The Hughenden Offstream Water Storage project has progressed to its expressions of interest phase

The council has commenced the expressions of interest phase for the Hughenden Offstream Water Storage project, a move Flinders Shire Council Mayor Jane McNamara said would minimise delays further down the track.

"In practical terms, the project is shovel ready and the council has commenced the procurement phase, with Stage 1 being Expressions of Interest, and Stage 2 being the tendering phase," Cr McNamara said.

"The council cannot enter into a contract with the contractors unless it receives the funding confirmation from the Commonwealth. This is the standard process the council needs to go through to comply with the Procurement Policy.

"The process could take up to six months, so we have started the procurement process to ensure the project is shovel ready, to brief the industry, to complete market sounding, and to avoid any potential delays."

The project is expected to cost $59.18 million, and will have the capacity to store 10 gigalitres of water for irrigation purposes.

As it stands, Flinders Shire Council has committed $7.98 million and the Queensland Government has committed $25.6 million to the project, but $25.6 million has yet to be approved by the Federal Government.

8,200 megalitres of river licences have also been granted to the Flinders Shire Council, which is more than enough to complete the 7,000 megalitre first stage.

Applications for both the Commonwealth funding and remaining river licences are underway and the council expects to find out the result of the funding application in late 2022.

Cr McNamara said the first stage of the project could proceed with the existing water licences, but more funding was critical to the project proceeding.

"If the council is unable to secure Commonwealth funding, then we would need to look at alternative options to fund the project," she said

"The project returns $1.33 for every one dollar of investment; but can be delayed if we are unable to secure funding on time."

The project is listed as a priority by the council, which says it will "support the ongoing development of the 15 Mile Irrigation Development Project, and the proposed Hughenden meatworks and feedlot".

The council also says the project complements the other water security project in the region, the Hughenden Irrigation Project which proposes a 161 gigalitre in-stream storage facility 45km outside Hughenden.

The mayor said water security was key to the region's future, as the council hoped to turn Flinders Shire into a horticultural hub.

"Water is one of our most precious resources, known as liquid gold and the key to unlocking growth and development in North-West Queensland," Cr McNamara said.

"Water security is critical, and the proposed Hughenden Water projects along the Flinders River will support the future growth and development potential of Flinders Shire and its surrounding region."

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