The 4350water Blog highlights some of the issues relating to proposals for potable reuse in Toowoomba and South East Qld. 4350water blog looks at related political issues as well.

Friday, October 28, 2005

Qld State MP - not sure on recycled sewage costs

At least one Qld State MP is apparently of the view that the proposed Toowoomba recycled sewage proposal could cost twice the amount the Council is quoting.

Raises the question of how accurate are their numbers and whether the Council will sign fixed price contracts without any cost escalation clause.

Contractor CH2M Hill is no stranger to cost overruns on projects:

"CH2M Hill estimated in 2003 that it could complete the removal of that waste for $90 million, according to the audit. But now DOE estimates the costs have increased to $215 million, the audit said."

See - Tri-City Herald article.

Also see - LA Weekly article.

Cost overruns = greater corporate profits.

In 2004, CH2M Hill had revenue of US$2.715 billion. (US$993 million related to US Federal Government contracts.)

See - SEC records.

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