Federal Minister for Climate Change and Water, Senator Penny Wong, and NSW Minister for Water, Phil Costa jointly announced Sinclair Knight Merz (SKM) as the successful tenderer.

Senator Wong said the new (Part B) project would refine six water savings options identified under Part A last year to ascertain which option or mix of options achieved the biggest water savings in a practical, cost-efficient manner.

“We’ve identified six management options for the Menindee Lakes that could save up to 180 billion litres of water currently lost to evaporation,” said Senator Wong.

“The Darling River Water Savings Project is an important element of Water for the Future – the Rudd Government’s long-term water “An initial assessment undertaken by Geoscience Australia indicates great potential for a combination of groundwater extraction and an aquifer storage system to provide Broken Hill’s water in the future.”

The next investigation will involve on-ground measurements and preparations for an airborne electro-magnetics study of the region’s groundwater systems.

This work will commence shortly and is expected to be completed by February 2009.

“The potential use of aquifers could significantly reduce the evaporation losses created by storing the city’s water supply in the Menindee Lakes.

"This saved water can then be returned to the lower Darling and the Murray rivers,” Senator Wong said.

“If the next phase determines the use of sustainable groundwater resources and an aquifer storage system is practicable, a project will be developed to fully test this new approach.”

Any such project will complement the Darling River Water Savings Project (Part B).

The Australian Government has committed $400 million to reduce evaporation and improve water efficiency at Menindee Lakes, secure Broken Hill’s water supply, protect the local environment and heritage, and return up to 200 gigalitres annually to rivers and wetlands.

A copy of the Broken Hill Groundwater Resource Assessment can be found at: www.environment.gov.au