Palaszczuk government commits $600 million to the $1.2b Paradise Dam project rebuild

The funding announcement is the largest state water infrastructure investment since the Labor government rose to power in 2015.

At a total rebuild cost of $1.2 billion, the state government is hoping the federal government will match their commitment to deliver the project.

Paradise Dam originally stored 300,000ML when full, but when Sunwater and the state government lowered the spillway due to safety concerns, the dam was only able to store 170,000ML, 57 per cent of the original capacity.

At the lowered rate, the dam hit 108 per cent capacity as recently as November.

The move comes after representatives from 11 key Bundaberg region farming groups released a joint statement in November, calling for a decision to be made.

Premier Annastacia Palaszczuk announced the funding commitment at Paradise Dam on Tuesday Morning and said the project will create approximately 250 jobs during construction.

"Our $600 million investment in Paradise Dam is a game changer for the families and farmers here in Bundaberg," Premier Palaszczuk said.

"We know this project will deliver water security and safety for the people of Bundaberg. Now it's time to get on with the job.

"Returning Paradise Dam to its original height and reinforcing the wall will deliver long-term water security for the region and keep communities located further downstream safe.

"This rebuild will also support thousands of long-term jobs and deliver significant flow-on benefits for local businesses and contractors, making it an important initiative in the economic recovery of this region."

The premier said her government is working closely with the federal government to secure funding for this project.

"But let me be clear - regardless of federal support, I am fully committed to rebuilding Paradise Dam," she said.

Deputy Premier Steven Miles said returning Paradise Dam to full capacity will bring it back to its full 300,000 megalitre capacity.

"We always said we would prioritise safety and investigate the best option for the Wide Bay community, and that is exactly what we've done," Mr Miles said.

"This investment will deliver long-term water security for irrigators and create jobs in the region.

"It's now time for the federal government for put their words into actions and allocate their share of funding towards the project."

Minister for Regional Development and Manufacturing and Minister for Water Glenn Butcher said he would continue to work with the Deputy Prime Minister and federal government on a collaborative funding approach for the rebuild.

"I've had some really good discussions with the Deputy Prime Minister and we're getting close to hammering out a funding deal," he said.

"This project is ready to go with early construction works starting as soon as next year. There's no reason to delay this project which is why we're kickstarting it with this injection of funds.

"We know we have the best solution and now that there's real money on the table, we will be working around the clock to get this project up and running.

"I look forward to the federal government formalising their verbal commitments to financially support this project."

Federal Minister for Resources and Water, Keith Pitt has been contacted for comment.

Investigations have shown that a combination of buttressing the dam and significant improvements to the spillways, apron and new training walls will strengthen and stabilise the dam when it is restored to full capacity.

Member for Bundaberg Tom Smith said this funding showed the Palaszczuk government was serious about getting the rebuild done as soon as possible.

"It was only the end of last year that we released the options report and now to have the Premier and Minister here in Bundaberg with real funding already is a massive step forward," he said.

"This commitment will not only ensure the safety of Paradise Dam, but ensure the water security needed for our growers to continue to invest in their industry and create the high-tech, high-skilled and high-waged jobs for locals."

Mr Butcher and Mr Smith confirmed last year that irrigators would not be asked to pay the cost of restoring the dam to full capacity.

As well as meeting the stringent safety criteria with which all dams in Australia must comply, demand studies have shown that the re-raised dam will have sufficient capacity to meet the region's need for water for decades to come, even with the potential impacts of climate change.

The next stage of the project includes progressing the design and delivery methodology, early contractor engagement and procurement activities necessary before construction can commence.

A detailed project timeframe is being developed and early works will commence in 2023.

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