Report 20

Ord-East Kimberley Development

Introduction and Background

Introduction

This audit assessed how effectively the Department of Regional Development (DRD) has implemented the Ord-East Kimberley Development Plan and whether the intended socio-economic benefits to the community were achieved. We also examined the role of LandCorp and the Department of State Development (DSD).

Background

The first stage of the Ord River Irrigation Area, which is based on the main dam at Lake Argyle, was completed in 1971 and services 14,000 hectares (ha) of farming land.

Since the mid-1990s, there have been several investigations into the potential of expanding the irrigation area. None of these progressed due to a number of issues including water availability, native title claims and environmental approvals.

In October 2005, the WA Government, the traditional owners and pastoral and agricultural interests signed the Ord Final Agreement that addressed native title and Aboriginal heritage issues. It also opened the way for development of land at Goomig, Knox, Mantinea, Packsaddle, Ord West Bank and Ord East Bank (Figure 1). However, after seeking expressions of interest from the market, development did not progress because proponents required major State-funded investment, estimated at $158 million for a 7,000ha development and up to $310 million for a 16,000ha development.

In 2008, Cabinet approved $220 million for expansion of the Ord project. In 2009, the State and Commonwealth governments agreed to co-fund a stimulus package for the Ord region through a National Partnership Agreement. This became the Ord-East Kimberley Development Plan (the OEKD Plan). The aim of the plan was to develop a sustainable and stronger economy and improve the socio-economic outcomes for Aboriginal people in the East Kimberley. It included 2 key projects:

  • Expansion of the Ord irrigation system at a cost of $220 million to be completed in 2011 which involved:
    • delivering water and road infrastructure to service about 8,000ha of land at Goomig
    • subdivision and sale of the 8,000ha in up to 25 lots
    • scoping for land at Mantinea (4,000ha), Ord West Bank (1,300ha) and Packsaddle (1,380ha), and work to consider land at Knox (8,000ha), Victoria Highway, Carlton Hill, Bonaparte Plain and the Keep River Plain (NT).
  • A Commonwealth-funded building program costing $195 million for 27 social infrastructure projects, including new educational and health facilities by June 2010 (Appendix 1).

DRD was lead agency with some involvement from DSD. DSD coordinated 21 of the Commonwealth projects, with the remaining 6 delivered by the Shire of Wyndham-East Kimberley. The projects were completed by 2013.

LandCorp was the key project and contract manager for the irrigation expansion, and the subdivision and release of land at Goomig. Construction work began in May 2010 and infrastructure works were finalised in December 2014.

In 2012, the State selected a single proponent to develop the Goomig land parcel, with an option to develop Knox. The developer originally proposed a much larger sugar development, but is now farming mainly chia on around 1,600ha of Goomig. Developers have also been identified for Mantinea, Ord West Bank and Packsaddle.

Figure 1 - Land parcels involved in the Ord expansion

 
Page last updated: September 7, 2016

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