SYDNEY'S dams fell to a fresh record low yesterday, prompting the State Government to call for expressions of interest to build and operate the desalination plant at Kurnell.
Despite the worsening water shortage, the Government has chosen not to tighten restrictions, a move environment groups have criticised. (Ed. - emphasis added)
The invitation to four overseas water companies to bid for the project, expected to cost about $1.3 billion, comes 10 months after the Premier, Morris Iemma, scrapped a previous desalination tender process in the face of widespread public opposition. That decision cost taxpayers $5 million in compensation to the two short-listed consortiums. Companies involved with the first tender round are involved with the second round.
The Minister for Water, David Campbell, yesterday said the call for expressions of interest for a plant that would produce 125 million litres of water a day did not mean the Government would build the plant, unless dam levels fell as low as 30 per cent. Late yesterday they had fallen to 36.7 per cent, down 0.4 percentage points from last week. At this rate the dams will hit 30 per cent by March 24, the date of the state election.
"In the event of good summer rain the desalination plant may not have to go ahead," Mr Campbell said. "But Sydney Water needs to call for these expressions of interest now to ensure that we will be ready to build a plant if our dam levels continue to fall."
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http://www.smh.com.au/news/environment/record-dam-low-brings-new-talk-of-desalination/2006/12/21/1166290677320.html