The development of Victoria’s water grid will help Victoria to better manage supply risks. The Sugarloaf Pipeline is an important new addition to this grid and will connect Melbourne’s water supply system with the Goulburn River system.

In 2010, the pipeline will deliver 75 billion litres of water to Melbourne, from several sources.

From 2011 on, the pipeline will deliver Melbourne its share of savings achieved under Stage 1 of the Northern Victoria Irrigation Renewal Project (NVIRP). Once Stage 1 is completed at the end of 2012, it is expected to save an average of 225 billion litres of water a year. As with all water allocations in Northern Victoria, the actual amount saved each year will vary, depending partly on rainfall and inflow conditions. Each year the amount will be split three ways between Melbourne, irrigators and the environment. Melbourne's allocation will be capped at 75 billion litres per year while in 'wet' years, irrigators and the environment could receive greater allocations.

Funding 

The Sugarloaf Pipeline Project will cost $750 million, paid for by Melbourne’s water users through Melbourne Water. This includes a $125 million upgrade to Melbourne’s water treatment and distribution network to accept this new source of water.

Environmental Considerations

Potential impacts on flora, fauna, waterways, land use and other related issues were considered during the pipeline’s design stages.

These detailed studies were used to help select the preferred corridor for the pipeline. For example, the environmental work considered and identified the best possible route to avoid or minimise impacts such as vegetation clearance and ways to offset unavoidable clearance. This work considered the requirements of state and national legislation to identify potential impacts on rare and endangered species and ways to avoid, mitigate or offset those impacts.

These studies and their preliminary recommendations are available publicly in the Project Impact Assessment report (PIA), which is available at the Sugarloaf Pipeline Alliance website. The PIA also shows the preferred corridor for construction of the pipeline. The final pipeline alignment will be determined after an independent review of the PIA by an Advisory Committee appointed by the Minister for Planning.

The Advisory Committee received and reviewed submissions on the PIA and conducted public hearings. On 16 May 2008, it provided advice to the Minister on the final pipeline alignment, construction techniques and any appropriate controls under the Victorian Planning and Environment Act. It also advised the Commonwealth Minister for Environment, Water, Heritage, and the Arts on potential impacts of the project under the federal Environment Protection and Biodiversity Conservation (EPBC) Act.

The State Planning Minister and Commonwealth Environment Minister will determine whether they need to place conditions or controls on the project to avoid or mitigate potential impacts. The Project Alliance building and operating the pipeline will be required to comply with those conditions.

The pipeline intake at the Goulburn River has been specifically designed to minimise environmental impact during construction and operation. The operating rules, which will govern the volume of water to be extracted, the season when water can be transferred and the acceptable impacts on the river’s flow have been determined in consultation with Goulburn-Murray Water, Goulburn Broken Catchment Management Authority and the community.

Melbourne’s share of the water saved by the NVIRP will be stored in Lake Eildon. The storage will not have any less water as a result of the Project, in some instances Lake Eildon may even hold more water while savings are being stored but not used.

Recreational and tourism activities, such as boating and fishing on and around Lake Eildon will not be impacted by these projects.

Safeguards

The Victorian Government has announced a set of safeguards to ensure Melbourne does not take more than 75 billion litres per year from the Goulburn system:

• The Victorian Government or Melbourne Water corporations will not enter the permanent or temporary market to purchase additional water for Melbourne
• The treatment plant at Sugarloaf Reservoir has limited capacity. It cannot handle any more than 75 billion litres per annum above its current volume, and
• Melbourne’s share will be issued as a legal bulk entitlement, limited to a maximum of 75 billion litres annually

Timing 

Construction works commenced in 2008, with delivery of water expected by 2010.

More Information

More information on the Sugarloaf Pipeline Project is available from the Sugarloaf Pipeline Alliance website.