Global construction company, ACCIONA, has signed on as the major construction partner of the Eyre Peninsula’s new desalination plant, which is now expected to cost $470 million – $140 million more than original costings.
The South Australian Government says the reverse osmosis desalination plant at Billy Lights Point will provide a climate-independent source of sustainable drinking water for the region’s 35,000 SA Water customers.
SA Water has been working with ACCIONA to refine the project’s design to determine the final cost of delivering the plant as quickly as possible, while incorporating critical stakeholder feedback to minimise environmental impacts.
Combined with continued global inflationary pressures, the changes have resulted in a revised project cost of approximately $470 million, with first water expected to be delivered from the plant by the end of 2026.
“The Eyre Peninsula Desalination Plant will deliver a secure source of water for more than 35,000 SA Water customers and will support jobs and future-proof the region,” said Planning Minister, Nick Champion.
“Both ACCIONA and McConnell Dowell helped deliver the successful Adelaide Desalination Plant and will bring invaluable experience to this vital project for the Eyre Peninsula.”
ACCIONA will construct the 5.3 gigalitre-per-year capacity plant with marine construction specialists McConnell Dowell also partnering with SA Water to deliver the project’s associated marine infrastructure.
Both ACCIONA and McConnell Dowell were part of the construction consortium that delivered the 100 gigalitre-capacity Adelaide Desalination Plant in 2011.
South Australian-based construction company, Leed, will be responsible for designing and constructing the transfer pipeline which will deliver safe, clean drinking water from the new plant to the existing water distribution network.
The final design includes constructing the plant’s marine pipeline infrastructure by tunnelling beneath the shoreline and inter-tidal areas to provide additional protection to the coastline and marine environments and locating the intake and outfall pipes – used to draw and return seawater to the plant – in deeper waters.
The Government says the cost adjustment will not impact SA Water’s customers’ bills, with the additional expenditure to be managed through a re-prioritisation of the utility’s broader existing state-wide capital works program.
“We’re delivering this infrastructure upgrade without placing extra financial pressure on households,” said Minister Champion.
“The project is well underway, and we will deliver the first water from the new plant by the end of 2026 – which will be welcome news to residents who have suffered through years of unnecessary delays by the former Liberal Government.”
He says the Eyre Peninsula’s recently announced 2025-26 groundwater allocation for the Southern Basins, which is responsible for 75% of the region’s drinking water, is sufficient to meet current demand.
