Nyngan to Cobar Pump Stations and Pipeline

Early work on two new pump stations, located in Nyngan and Hermidale, has commenced. Construction company Diona, awarded the contract in 2024, is expected to  begin the main works by mid-2025.

Construction is expected to be complete by the end of 2026.

The department’s Water Group is leading the development and delivery of the project. Cobar Water Board is contributing to the design and development of the project.

The NSW Government has an obligation to taxpayers in a tough economic climate to be extra vigilant about investments.

Preliminary estimates to replace the pipelines have increased to over $300 million due to rising construction costs.

We know the community will be disappointed that the pipeline project is not being progressed right now.

We have worked hard over the past year to look at different funding pathways to find a way forward but, at this stage, we have no other choice but to hit pause.

Work on the final business case is complete, so the pipeline project could be revisited down the track.

Water security will not be jeopardised. This pipeline will remain operational and will continue to be maintained by Cobar Water Board alongside its other water supply pipeline that shows zero signs of leakage and is expected to continue to supply safe and secure water for more than a decade.

While the replacement of the older pipelines is on hold, the NSW Government remains committed to Cobar’s long-term water security and will continue working on sustainable solutions for the region.

All major infrastructure investment decisions taken by the NSW Government are required to be supported by a Final Business Case.

The business case investigated the feasibility of replacing one of the water supply pipelines between Nyngan to Cobar along with building new tanks and a pump station at Cobar.

In 2018, the Cobar Water Board replaced a 30km section of pipeline for $9 million, but this did not include all the additional infrastructure now required.

The Final Business Case scope includes replacing 120km of pipelines, a new pump station at Cobar and tanks throughout the network, the required control valves as well as state-of-the-art telemetry.

Due to the estimated costs increasing to $329 million, the NSW Government has hit pause on progressing the project for the time being.

As part of our commitment to being open and transparent, this Summary Business Case (PDF, 3612.95 KB) for the Nyngan to Cobar Pipeline Project provides all the key information and ensures sensitivities are managed appropriately.

Engagement with the federal government, mining companies, councils and other stakeholders about funding pathways for this project was undertaken, but a resolution could not be found.

The reality is NSW does not have the financial capacity to cover even 50 per cent of the project at the present time.

Australian Government funding programs are capped at 50 percent which means we would need to come up with potentially over $150 million which we currently do not have.

The NSW Government is spending record amounts on housing, health and education and to help ease pressure on households, which is why we need to be incredibly careful about ensuring our spending isn’t getting out of hand.

Unfortunately, we cannot justify this cost in the current economic environment.

While the replacement of the older pipelines is on hold, the NSW Government remains committed to Cobar’s long-term water security and will continue working on sustainable solutions for the region.

Water security will not be jeopardised.

This pipeline will remain operational and will continue to be maintained by Cobar Water Board alongside its other water supply pipeline that shows zero signs of leakage and is expected to continue to supply safe and secure water for more than a decade.

The NSW Government will continue to work closely with the Member for Barwon Roy Butler, Cobar Shire Council, Bogan Shire Council and the Cobar Water Board to get on with the job of building the $49 million high-priority pump stations at Hermidale and Nyngan.

Cobar will have two new pump stations by the end of 2026 – 100 per cent funded by the Australian and NSW Governments – that will support the towns water needs for at least 50 years.

Cobar has significant water storage in town that they can access if there are any maintenance issues with the pipelines.

The new pump stations will be constructed within the vicinity of the existing pump station sites, at Nyngan and Hermidale.

The department’s Water Group conducted environmental and technical assessments as part of developing the review of environmental factors (REF) for the project. Read the REF (PDF, 10807.29 KB).

The $49 million pump stations are being funded thanks to $26.25 million from the Australian Government’s National Water Grid Fund and $22.75 million from the NSW Government.

In addition, the $2.8 million Final Business Case was also delivered by the Australian Government’s National Water Grid Fund ($1 million) and the NSW Government ($1.8 million).

A technical feasibility review was undertaken to produce a shortlist of options. An initial analysis of these options eliminated many as they would not provide sufficient water security and water supply capacity for Cobar, or they were cost prohibitive.

Non-infrastructure options were also investigated and discounted due to their practicality, their inability to meet demand requirements and cost.

The NSW and Australian Governments are co-funding all the capital costs for the pump stations project

Future water rates will be determined by the asset owner.

The existing pipeline and pump stations are currently owned and operated by Cobar Water Board.

The NSW Government is working closely with the relevant stakeholders, with an intention that Cobar Water Board will continue to own and operate the new pump stations upon completion.

The Water Group is committed to building and maintaining respectful, trusted and collaborative relationships with our communities and stakeholders to ensure water infrastructure projects achieve the best possible outcomes.

We have met and spoken with communities and stakeholders, including First Nations communities, local councils, Cobar Water Board, landowners, businesses and local community members.

We will continue to engage throughout the construction of the pump stations.

Minimal disruptions to the water supply are anticipated during the construction of the pump stations.

Notifications will be provided to all customers if an interruption to water supply is required for construction purposes.

The pump station replacements will be constructed in the vicinity of existing pump stations with current landholder agreements and access arrangements to be confirmed.

The department’s Water Group will consult directly with landowners to minimise potential impacts to properties during the construction phase. and to address any ongoing maintenance requirements.

As part of our commitment to investing in the communities where our projects are located, and to providing significant opportunities and economic benefits to regional areas, wherever possible we will seek to engage local contractors, First Nations businesses and local people to help develop and deliver our projects.

Whilst we can’t guarantee there will be opportunities for all registered businesses, the project provides this register to all partners and contractors as the first port of call when they need local services.

In addition, the Water Group selects project partners and contractors based on their history of using local suppliers and maximising local benefits from their projects.