Why Building More Big Dams Could Be a Costly Gamble for Future Water Security and the Environment
Local voices believed many of their concerns had been ignored. There were deep concerns that flood-dependent farmers downstream might lose some of their livelihoods. Indigenous communities were worried about their cultural sites being destroyed.
Our analysis provided a more rigorous assessment of benefits and costs of the Wyangala Dam expansion.
We found total project costs were underestimated by at least 116%. The benefits were inflated by 56%. This meant the true impacts on the environment, agriculture and local communities were misrepresented.
Rethinking Australia’s Water Future
Our analysis provides a salutary lesson on why we need to rethink water security. Instead of sinking billions into dams, we should find smart and sustainable ways to manage our water.
The fixation on building and expanding dams means innovative alternatives are often ignored. These other options include recycling water, managing demand and carefully recharging aquifers (using aquifers as underground dams).
The National Water Grid Fund exemplifies the misguided “build more dams” mindset. Its portfolio of 61 large water projects has a total capital cost estimate of up to $10 billion.
Despite this massive investment, only 23 of these projects have publicly available business cases. It leaves more than $1.7 billion in committed funding shrouded in secrecy.
This lack of transparency is alarming, given the history of cost overruns and inadequate assessment of environmental damage. It points to the urgent need to reassess our approach to water security. The public has a right to know that their governments are spending wisely.
To avoid repeating costly mistakes and mismanaging taxpayers’ money, we need a smarter approach. Independent business cases should be mandated for all major water projects.
We also need a strong public sector capable of transparent evaluation. Promised new National Environmental Standards as part of reforms to environmental protection laws are likely to require rigorous scrutiny too. We must embrace transparency by opening decision-making to public scrutiny and diverse perspectives, including local voices and Indigenous stakeholders, from the start.
Finally, infrastructure planning must account for long-term climate impacts on water availability. Planning for climate change is vital.
As projects such as the proposed Wyangala Dam expansion demonstrate, Australia can no longer afford to gamble its water future on outdated, costly and environmentally destructive solutions. It’s time to end the wasteful spending.
Instead, we need to channel our efforts into truly effective, sustainable and transparent water management. Strategies must give priority to community needs, First Nations’ water rights, environmental protection and long-term climate resilience.
John Kandulu is Research Fellow, College of Business, Government and Law, Flinders University. Richard Kingsford is Professor, School of Biological, Earth and Environmental Sciences, UNSW Sydney. Sarah Ann Wheeler is Matthew Flinders Professor in Water Economics, Flinders University. This article is published courtesy of The Conversation.
