THERE'S a big question mark hanging over what to do with the $75 million that's been committed to upgrading the Dungowan Dam.
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The federal government gave it to the NSW government back in 2016. However, they've shown little interest in using it, mainly because the project has been costed at $484 million.
So rather than letting the money sit there and collect dust, Deputy Prime Minister Michael McCormack, who as Infrastructure Minister is responsible for federal dam funding, will allow it to be used on a different water project in the region, if the state government can find a suitable (and no doubt less expensive) alternative.
It's a difficult situation because for a project like the Dungowan Dam upgrade, which comes with a close to half-a-billion-dollar price tag, $75 million barely makes a dent.
But $75 million is a good number for a short term option.
It's more than half of a 20 per cent upgrade of Chaffey Dam, which would take the region's main water supply to 120GL.
It could also to fund a significant portion of a 10GL off-river storage upstream of Tamworth, costed at $187 million.
The money could be used to either fund or investigate a pipeline from Chaffey to Tamworth, as 50 per cent of water released to the city via the Peel River is lost through transmission.
On the other hand, having that $75 million on the table for the upgrade of Dungowan Dam means the project is more than just a pipe dream.
It has real funding behind it, which makes it easier for it to get more.
Taking that money away could make it hard to get the ball rolling again.
Upgrading Dungowan Dam remains Tamworth Regional Council's favoured long-term option, because it owns the dam and all the water in it.
Unlike Chaffey Dam, where water is divided up between council, irrigators and other water users, council wouldn't have to share any of the water in an expanded 22GL Dungowan Dam.
So the question remains: what do we do with the dam money?