It has been revealed that consultancy firm KBR will receive in excess of $30 million for advisory input with respect to the $3.1 billion desalination plant to be built at Wonthaggi in Victoria and scheduled to produce 150 gigalitres of fresh water annually by 2011. 

Toorale Station is expected to be acquired by the Federal and NSW Governments within the next two weeks for around $20 million. Its purchase will allow annual inflows into the Murray-Darling system to be increased by an estimated 90 gigalitres. 

To recap: 

?        The consultancy fee alone for Victoria?s desal plant is 50% more than the expected purchase price of Toorale Station.

?        Based on acquisition price alone, with no consideration of the operational costs of desal projects, in the first twelve months of operation the Wonthaggi plant will produce around 48 litres per dollar outlaid, whereas Toorale will provide approximately 4,500 litres per dollar. 

These figures should largely dispel concerns about the wisdom of Government plans to purchase strategic irrigation properties in the Murray-Darling Basin.