Report 20

Ord-East Kimberley Development

Audit conclusion

Government modelling showed that to succeed, the Ord-East Kimberley Development Plan not only had to deliver physical assets, it had to improve social and economic outcomes for the region and its people. So far, results are mixed, though we recognise that deep and sustained improvement will take many years.

The expanded irrigation took 3 years longer than expected and cost $334 million, $114 million more than budgeted. Inadequate budgeting and costing, even when seeking an additional $91 million funding, led to the overrun. The 27 social infrastructure projects funded by the Commonwealth met its $195 million budget but took up to 3 years longer than planned.

Of the planned 8,000ha of land at Goomig, 7,000ha is available for farming, though only 1,600ha was under crop at June 2016. The plan to subdivide and sell up to 25 lots that would be ready for farming by 2012 did not succeed. The replacement strategy of leasing to a single large developer was reasonable, as was the process. However, it made negotiations more complex and the development lease is not yet in place.

The sustained social and economic benefits underpinning the decision to proceed with this $529 million investment have not been realised. Nor is there a plan to track and assess them. Considerable local and Aboriginal employment and training was created during construction but this has not been sustained. Other areas identified in the OEKD Plan are moving towards development. If successful, they will increase economic activity and employment, but the extent of this is uncertain. While Government expects developers to fund any further infrastructure needs, it has not yet finalised processes to support this approach.

Page last updated: September 7, 2016

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