$228m federal funding for Port Stanvac desal plant finalised

South Australia has secured $228 million from the Federal Government to help fund the Port Stanvac desalination plant.

The State and Federal governments have revealed final details of the deal, brokered after a year-long stand-off over the wording used to justify the $1.83 billion plant.

South Australia’s Water For Good blueprint states the plant, to produce 100 gigalitres of drinkable water annually when fully functional, will “reduce our reliance” on the Murray.

The Federal Government argued that meant drawing less water from the ailing river, while SA argued it would reduce the growth in future demand.

Water Minister Paul Caica yesterday told The Advertiser that SA had not been forced to cut its allocation from the Murray in return for the desal cash.

“There won’t be any reduction to the River Murray water entitlements for South Australia or Adelaide,” he said.

“The amount of water that currently flows across the border to South Australia will remain the same.”The agreement ensures that as the desalination plant operates, there’s a reduced reliance on drawing upon existing River Murray flows.

“What ‘reducing reliance’ means is not reducing our draw on entitlement-holders, but it means that we won’t in the future ever have to increase it.”

The agreement ensures a six gigalitre environmental water entitlement for the Murray every year and the provision of between 12 and 24 gigalitres during wet years, capped at 120 gigalitres over a 10-year rolling period.

The deal was struck with federal Parliamentary Secretary for Sustainability and Urban Water Don Farrell.

“It’s a landmark step in creating a sustainable future for Adelaide - balancing the needs of a growing population and the need to secure environmental flows for the iconic River Murray,” he said.

Opposition water spokesman Mitch Williams said the Government had wasted millions of dollars of taxpayers’ money on the plant and failed to confirm a date for first water.

He said SA had also been roped in to spending an additional $10 million in buying six gigalitres of water from the national market to give back to the Federal Government under the desal deal.

“SA Labor has no date for first water, just as it has no date for leadership change,” he said.

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