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Inquiry Into the Development of Northern Australia Submission

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Inquiry Into the Development of Northern Australia Submission INTRODUCTION It is our intention to undertake a project which will provide water to outback areas of Queensland and Northern New South Wales. Part of the Project will involve the construction of 2 to 3 600-1000 megawatt Hydro Electric Power Generators and several Pump Stations. Some electricity will be used to pump water over the Great Dividing Range and the balance would be available for the local grid. PROJECTS • Diamantina River The Upper Reaches of the Diamantina River and a number of Rivers flowing into the Gulf of Carpentaria are separated by a high ridge of land approximately 10 kilometres wide at its narrowest point. It is envisaged to propose that we build a structure either to drill a 10 kilometre long tunnel under the higher land or a combination of tunnel, elevated canal and divert water via pipeline which would normally flow into the Gulf. Instead it would then flow into the Diamantina River during the wet season. A detailed feasibility study which incorporates a survey of the area to determine elevations would need to be undertaken in order to produce a solution which requires minimal or no pumping. The feasibility study would also help to determine the most cost effective method to complete the project. • Tully and Herbert Rivers A major supply of water will come from the Tully and Herbert Rivers. Initially we will need to ascertain rainfall data for the rivers catchment areas and also month by month water flows for both Rivers. Preliminary investigations indicate that there will be sufficient volume of water to justify the construction of 2 or 3 600-1000 megawatt Hydro Electric Power Generator and Pump Stations on each of the Tully and Herbert Rivers. A large detailed contour map with sufficient details of Outback Queensland and Northern New South Wales will be needed in order to design pipeline/s and/or elevated canal to service outback areas and to enable strategic placement of dams/reservoirs. If appropriate map and data are not available a detailed survey of the appropriate areas would need to be undertaken to produce the necessary map and data required. In fact a detailed feasibility study will need to be undertaken to determine the most efficient way to complete this part of the project. CONTRACTORS . Power China has significant experience in the construction of Hydro Electric Power Generators, Water Diversion Projects and Major irrigation Projects. Please access brochure on google site as it is too large to email. Error! Hyperlink reference not valid. China Power is a subsidiary of Power China and is listed on the HK Stock Exchange. Error! Hyperlink reference not valid. -- Shared using Google Toolbar We will be dealing direct with Power China in Beijing rather than the subsidiary China Power. The information from the website of China Power may provide some insight into the size of the corporation we are dealing with and we know their capabilities and have been assured that they will deal with our proposal to help the farmers receive water. Please also see the link: Error! Hyperlink reference not valid. Power China have • built tunnels through the foothills of the Himalayas and also mountains in China and Mongolia. • built an Aqua duct 300 metres above a deep valley and incorporated it into a bridge capable of supporting high speed rail. • built a tunnel underneath the Yellow River, which is a very large river. These are phenomenal feats. FUNDING - LOAN FACILITY A loan for the full amount of the project will be arranged from a holding funds. PROJECT TO BE OWNED JOINTLY BY THE HOLDING FUNDS AND THE GOVERNMENT Upon repayment of the principal and interest the entire project will become the property of the Australian Federal or State Government. A corporate body will be required to manage the completed project until the loans are repaid. GOVERNMENT GUARANTEE Funding is dependent upon the Australian Federal Government or State Government providing a Government Guarantee which provides for the repayment of the principal and interest of the loan. Our preference in this case would be to receive an Australian Federal Government Guarantee as the project involves at least two States, and may even benefit South Australia and Northern Territory for the excess water may be directed inland. GOVERNMENT CONTRIBUTION • Government Guarantee for the repayment of principal and interest. • Real Estate for the construction of the Hydro Electric Power Generators, Pump Stations, Reservoirs and Pipeline Corridor to be organized by the Government. • Easements or Rights of Ways for Pipeline etc. • Consultancy Fee/Commission. REPAYMENT OF LOAN Initially it was intended that the loan be repaid by charging for water used however the project is so large that this method may not provide adequate repayment. An alternative would be to apply a percentage of the additional revenue of Farm production due to the increase of the farm productivity towards repayment of loan and interest. This method has been used successfully for Projects in other countries. We believe that this is achievable because the regular supply of water should enable the farmers to have a good year, every year. This would be enhanced such as if the farmers each plant 200 acres of lucerne. The fact that we are able to provide a central focus for the sale of all produce would make this a workable solution. By using this method for payment of the Project, the farmers would be paying for the Project, not the taxpayer and the farmers would also receive the water at a reasonable price. If the water cost is reasonable and produce grown was purchased from the farmers at a long term contract price it would not be a burden on the Federal Government or the taxpayer. The loan would not be an impediment on the Government or the taxpayers as it would be serviced by others. OTHER SUBSEQUENT PROJECTS • Abbatoirs It is important that the beef be processed locally in order to obtain a premium price and to provide Australian jobs, as well as setting base for export with long term contract. • Cotton Farms The cattle farmers need an additional cash crop to supplement their incomes. With large amounts of water available if the farmers are encouraged to grow cotton in the new location instead of along the Murray Darling this would result in significant water being returned to the Murray Darling. • Fruit ie. Mangoes and Dragon Fruit, Lychees and other tropical fruits etc Again we would encourage the farmers to use excess water to grow Mangoes, Dragon Fruit Lychees and other tropical fruits etc. for the export market. BUYERS IN CHINA Parties in China who wish to purchase meat, cotton, fruit etc can be secured from Australia. BENEFITS – SHORT TERM AND LONG TERM The project would be undertaken by highly experienced proven teams of workers which would result in the project being completed at a lower cost and in a shorter time than using inexperienced workers team. Employment opportunities will be created by side projects which follow the main project. ENVIRONMENTAL BENEFITS Water will be diverted from flowing into the Coral Sea which should be beneficial to the Coral Reef. OTHER SIMILAR PROJECTS • Lake Argyle to South Australia This project will involve the construction of a 1000 megawatt Hydro Electric Power Generator at Lake Argyle with an 1800 km pipeline (approximately) to Adelaide, South Australia. Approximate cost $4.8 billion. Therefore the cost to the consumer would be approximately $1 per kilolitre instead of the current $3.60 to 3.90 per kilolitre., • Lake Argyle to Perth This project will involve the construction of a 1000 megawatt Hydro Electric Power Generator at Lake Argyle with an 1800 km pipeline (approximately) to Perth Western Australia. Approximate cost $4.8 billion. Therefore the cost to the consumer would be approximately $1 per kilolitre. OTHER INFRASTRUCTURE PROJECTS We appreciate that there is a need for Railways Ports Bridges and other Infrastructure which is required and can be incorporated within the realms of the White Paper. We have access to the top 100 companies in the world to build infrastructure and to provide the banking finance. PORT A Port will need to be constructed at an appropriate location on the Gulf of Carpentaria to enable the heavy equipment and materials needed for the Project to be landed. Once the Project is completed and the area comes into full production the Port will be converted to a container Port capable of receiving medium size container vessels. It is envisaged that all meat, fruit and other perishable produce will be exported in refrigerated containers. SUMMARY What we have outlined is a concept plan only although it has been discussed with the contractors overseas and based on other projects they have completed in various parts of the world we have been informed that in principal it is achievable. Further investigations will be required by members of the experienced team to produce a detailed plan which will bring this project to fruition. It is important that we use highly experienced teams to undertake this project as they will be able to complete the project on time and within the allocated budget. If this is not achieved it may make the project unviable. The estimated cost of this project is approximately $8-10 billion and from date of commencement of construction would take approximately 3-5 years to complete. You will therefore appreciate the need to deliver the project on time and on budget. A recent estimate to build a water pipeline from Lake Argyle to Adelaide was in excess of $12 billion. We are able to build the two Lake Argyle pipelines for substantially much lower amount.
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