“In the case of the desalination plant, however, the investors’ financial problems are an opportunity to reconsider a project that was of dubious merit in the first place”.
Former Melbourne Water managing director John Morgan has described recycling as “cost effective, safe and environmentally correct”,…
“If plans to upgrade purification and return water to dams had gone ahead, Melbourne’s supply would have increased by a quarter — sooner than the desalination plant, at more than twice the energy efficiency and about a third of the cost”.
Go to ‘Tech Talk’ or Click here to see what some of the other alternatives are.
“THE project meant to secure Melbourne against water shortages is facing a crisis: a money shortage because of the global credit squeeze”.
“Banking sources say the project faces a funding gap of between $1 billion and $2 billion. Some in the infrastructure industry say a mere $300 million to $500 million is available from banks for all major projects across the country”.
“The shortfalls confront the Brumby and Rudd governments with either finding the money to bail out the controversial plant, along with a string of other projects across the country, or shelving it”.
The real story now will be how the Brumby Government, who have dug such a hole for themselves by relying on this one option, get out of it. Will they;
- Allow a go ahead without funding and risk the consortia collapsing and the government having to bail them out,
- Allow a contract where we pay for water even if it isn’t needed (a ‘take or pay’ contract),
- Give away chunks of Melbourne’s water infrastructure and activities to this multinational consortia to boost their profitability,
- Beg the Federal Government to contribute from the infrastructure fund, some part of the $4,000+ million cost, for a project giving only 50 full time jobs when operating,
- The possibilities are mind boggling.