Council warned “significant uncertainty” of Emu Swamp cost
THE Queensland Treasury Corporation has warned of "significant uncertainty" surrounding the Emu Swamp Dam project during a review of the Southern Downs Regional Council's finances.
Councillors voted last month to include the Jacobs business case for the dam in the QTC review.
The business case estimated the dam would cost $113.6million, $14.3million of which the council would need to contribute.
The QTC believes there is "significant uncertainty" surrounding the financial affect of the Emu Swamp Dam development on the council.
The review pointed to a likely financial impost on the council from the project.
It also outlined uncertainty around the timing and amount of the project's financial cost to the council.
"We may have concern around any major deterioration in credit metrics resulting from the undertaking of the project," the report stated.
"Depending on funding, Emu Swamp Dam may represent a significant financial commitment for council."
According to the QTC report, while the council continues to consider the Emu Swamp Dam project it will remain classed as a developing outlook.
"At a minimum, council would need to develop a robust business case for this for the developing outlook to be resolved," the report stated.
