Infrastructure report card: Qld top of the class

Queensland will spend $6 billion on state infrastructure this financial year, $1billion up on last year, accounting for 27% of all Australian state and territory capital works for the period.

Called `economic infrastructure' because it will support export industries and regional and urban development, 57% of budget will be spent on energy and transport.

The focus is on roads, bridges, water and sewerage treatments, port facilities, railway works and electricity generation and supply.

Major transport projects include $167m expansion of the RG Tanna Wharf at the Port of Gladstone; $571m over four years on Arterial Roads Infrastructure; $500m over four years on QR Citytrain network MetTrip; and $200m on Brisbane busways.

Additionally, the government has awarded a $212million four-year contract to Maryborough-based joint venture EDI Bombardier to supply 72 new carriages for the new and expanded Citytrain services.

Following a damning independent review of the performance of the state's duopoly energy suppliers Energex and Ergon, an embarrassed State Cabinet has authorised that each supplier spend $504m and $500m a year for the next two years, respectively, or $2.7billion on infrastructure.

Fast tracked energy

This is an average increase in spending on past years of 70% per year and will be fast tracked to maintain rural and urban energy supplies to meet increasing domestic and industry demands, and eliminate massive outages experienced last summer.

Both suppliers will increase capital works spending on assets such as substations and networks to meet new government performance standards and increase operation and maintenance programs. Ergon has been charged with improving the reliability of its long rural feeders over the next five years to better service country customers.

The coal industry will be a major beneficiary of the big infrastructure spend. Market analysts predict coal exports will continue to grow by 7% per year to 2010 with transport and water supply key issues. Coal is also the mainstay of the energy market.

Work has started on the three-year $1.1billion Kogan Creek Power Project near Chinchilla by CS Energy using local inexpensive high quality steaming coal.

Drought proof station

It will be the nation's single largest power station and one of the lowest cost and environmentally effective.

New dry cooling technology used in the 750MW base load station, consumes 90% less water than conventional plants making it virtually drought proof with much less greenhouse gas emissions. It will provide 7% of Queensland's forecast electricity demand as well as servicing the interconnected national market.

Kogan Creek was the last coal fired generation licence issued under Queensland's Cleaner Energy Strategy.

The completion of the $160m gas pipeline from Moranbah in the Northern Bowen Basin to Townsville in November is a major milestone in the upgrade and conversion of the off-peak Townsville Power Station from aviation fuel to coal seam methane gas. The conversion will reduce greenhouse gas emissions by 1million tonnes a year.

Methane gas pipeline

Owner/operator of the 370km pipeline Enertrade says it has triple the capacity needed to fuel the power station and surplus could be used to boost new industries. The pipeline was built in an alliance between Enertrade, GHD and Thiess Nacap

Queensland has invested $4.7billion in new electricity generation since the National Electricity Market (NEM) started in 1998.

Capital expenditure on transport infrastructure for the coal industry includes $228m on rail track upgrades and maintenance and the expansion of the Tanna Coal Terminal by the Central Queensland Port Authority.

Also under construction are the the Burnett Dam and associated infrastructure for completion late 2005 and the Eidsvold Weir built by the private sector following a competitive tender, to finish this year.

Queensland government says there is a role for the private sector in the `timely' delivery of `efficient' infrastructure. However while it is looking at a several public-private partnerships for public infrastructure projects, it cautions they must meet the government's Value for Money Framework.