The Federal Government has doubled its financial investment in the Wyangala and Dungowan Dam projects in New South Wales.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack announced an extra $283.5 million in funding for the two projects, bringing the government’s total contribution to $567 million.

The additional cash investment for the two projects, from the 2020-21 Budget, is part of the Federal Government’s commitment to delivering new water infrastructure.

“These dams will increase inland water storage by the equivalent of 1.2 Sydney Harbours and we want to see benefits flowing to local communities as soon as possible,” McCormack says.

“We want to deliver critical water infrastructure projects for rural and regional communities because increased water security supports growth in Australian agriculture, creating new jobs and supporting existing ones as we build greater resilience to drought and floods.

“We know the economic road out of this pandemic relies on funding major infrastructure to support local communities and create jobs and these dam projects will do exactly that.”

McCormack says the government is close to finalising negotiations on the funding agreement for the Dungowan and Wyangala projects. Main construction works will begin after the environmental approvals are in place.

In October 2019, the Australian and New South Wales Governments committed to co-fund the construction of these projects, along with $12 million each towards the development of a detailed $24 million business case for the proposed Mole River Dam. This new capital grant funding replaces previous loan arrangements agreed with the NSW Government.