Paradise Dam Rebuild Abandoned: Board Calls $4.4 Billion Cost "Grossly Disproportionate"

Key Developments

Sunwater's board has unanimously recommended the Queensland government abandon plans to rebuild Paradise Dam, citing cost blowouts to $4.4 billion.

In a letter to Water Minister Ann Leahy, board chair and former deputy premier Jeff Seeney stated the project should be "no further considered," arguing the previous government's decision to rebuild lacked "rigour or professional credibility."

"Consultants were tasked with providing an evidence base after the announcement was made," Seeney said, criticizing the process as fundamentally flawed from the outset.

Dam History

Paradise Dam, located near Bundaberg, was originally built with a 300,000 megalitre capacity. After severe flooding in 2013 caused structural damage, the dam wall was lowered by 5.8 meters between 2019 and 2021, reducing capacity to 170,000 megalitres.

Testing in 2023 revealed concrete degradation that Sunwater determined could not be repaired, prompting the former Miles government under Labor to commit to building a new wall downstream. The projected cost was revealed in 2024 to be at least $4.4 billion.

The current Crisafulli government directed Sunwater to begin geotechnical investigations last year, with a detailed business case expected this month.

Political and Local Reactions

Premier David Crisafulli urged caution, saying decisions on the dam's future would be premature before the business case is completed.

However, Bundaberg Mayor Helen Blackburn called for the rebuild to proceed, emphasizing water security for the region's agricultural output.

"90,000 megalitres of water allocation entitlement is available for sale," Sunwater stated, noting it can meet projected water demand at the reduced capacity "well past 2065."

Bundaberg farmer Craig Van Rooyen sharply criticized the board's recommendation, arguing it undermines farmers who invested based on promises of restoration.

What Happens Next

The detailed business case is expected this month, which will inform the government's final decision. Until then, the future of Paradise Dam—and the water security of the Bundaberg region—remains uncertain.