Penshurst wastewater project costs too high
Wannon Water has reluctantly decided not to go ahead with the Penshurst Adaptive Wastewater Project due to escalating costs.
Managing Director Andrew Jeffers said the full town project was now estimated to cost nearly $20 million.
“The project has financial risks for customer bills in the long term and is no longer a viable alternative approach for small town sewerage improvements. Wannon Water’s Board has therefore reluctantly decided not to proceed with this project,” Mr Jeffers said.
Over the past few years, Penshurst has been the focus of a case study looking at alternative ways to improve the management of small town sewage.
The Penshurst Adaptive Wastewater Project was being led by Wannon Water and actively supported by Southern Grampians Shire Council. It was also supported by the Department of Energy, Environment and Climate Action (DEECA) through the Great South Coast Integrated Water Management (IWM) Forum.
While the project was investigating a whole-of-town wastewater solution, as a first step, one part of town was selected to trial a pilot wastewater management and water recycling system. The idea was that it would capture wastewater near the source, treat it and then re-use it on public open space.
“Our consultants originally estimated the full town project would cost nearly $10.4 million (pre-pandemic prices),” Mr Jeffers said. “However, recent estimates have shown the cost of the fully implemented solution for the entire town has risen substantially to $19.6 million.”
Similarly, the pilot project costs have also risen from $1.7 million to $2.7 million, creating a $1 million funding shortfall.
Mr Jeffers said Wannon Water acknowledged the current challenges around wastewater management in the Penshurst township and the impact it was having on the environment and in limiting future development opportunities.
“Therefore, while this particular project will not go ahead, we remain committed to engaging with the community and continuing to investigate other options to provide a sustainable wastewater solution.
“We also plan to continue monitoring the quality of the groundwater at the installed monitoring sites. This will allow us to better understand some of the impacts of wastewater disposal in the town and help inform future investigations.”
