PLANS to build a $2 billion desalination plant on the Sydney coastline to solve the city's water crisis will go to Cabinet next week, The Daily Telegraph has learned.
It is the first time the Government has given serious consideration to building such a plant.
It is believed a feasibility study commissioned by the State Government – which went to Utilities Minister Frank Sartor this week – has given the option the green light.
The study identified 14 sites along the coast from Palm Beach to Wollongong.
Possible locations would be Manly, Bondi or Malabar, where infrastructure exists.
The plant would be capable of converting sea water into 500 million litres of fresh drinking water.
Rather than being pumped back to Warragamba dam, it would be pumped directly into Sydney's water pipes daily.
Premier Bob Carr is understood to have met last night with Mr Sartor and given him approval to take the plan to a full Cabinet meeting next week.
The Premier's office would not comment last night, but said the water issue would form part of Cabinet discussions.
A Cabinet minute outlining the proposal is expected to be taken to the Budget committee, as well.
It is unclear if a plant would lead to higher water prices, considering the high cost of producing the water.
The Government has reservations that such a plant may ultimately lead consumers back into complacency about water conservation.
There are also concerns over the greenhouse gas emissions produced by desalination plants, but the plan is already believed to have broad support.
The first stage of the project would involve spending $50 million to develop a site on which the plant could be built.
This would give the Government the ability to start construction when dam levels fell below 30 per cent.
The plant itself would take less than two years to build.
It is believed that Mr Carr has hesitations about embarking on building a plant too early – if sufficient rain falls in the next few years, the need for a desalination plant could be postponed.
The $50 million start-up project is likely to get approval from Cabinet next week and would allow the Government to be ready for a "go ahead" at any time.
The Daily Telegraph
This report was published at www.dailytelegraph.com.au
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