Local news for local people
Oberon Council Advances with New Sewage Treatment Plant
December 4, 2025
Published on 27 November 2025
Oberon Council is committed to delivering a new Sewage Treatment
Plant (STP), a vital project that safeguards the health of
residents, protects our local environment and supports the future
growth of our community.
The current STP, built over 65 years ago, no longer meets modern standards. In 2017, Council secured a significant grant under the NSW Government's Restart Backlog Program, matched by Council's own reserves and borrowings. Since then, the project has faced regulatory hurdles, design changes and market pressures, increasing tender prices around $5 million above initial estimates.
The project is embedded in Council's Integrated Planning & Reporting (IP&R) framework, Operational Plan, and Long-Term Financial Plan, ensuring transparency and accountability.
Where We Are Now?
Council believes it has addressed all outstanding issues identified by Infrastructure NSW and the Department of Environment, Climate Change and Water (DECCW) and it has formally advised the Treasurer. Council has provided all necessary documentation, including a detailed change request, updated project design and schedule, confirmation that full funding is in place, and comprehensive plans for cost control, procurement, risk management and environmental approvals.
The Restart grant of $4.2 million remains a crucial funding source for the project. As Council believes it has satisfied all prerequisite requirements for the project to proceed Council is confident NSW Treasury and Infrastructure NSW will honour their commitment to allow Council to continue to use the Restart Grant for the project. There have been a number of significant delays and cost increases but these have primarily been driven by external factors outside of Council's direct control.
As of 14 November 2025, Council has secured an additional $5 million loan from TCorp to help fund the project, a necessary step given the significant challenge of self-funding the majority of this infrastructure.
Funding and Costs: How Is the Upgrade Paid For?
Total project cost: $18.6 million Construction: $17.1 million Project management: $0.5 million Contingency & insurance: $1 million
Where the Money Is Coming From?
NSW Restart Grant: $4.2 million Council's reserves: $6.4 million Loans:
$3 million (taken in 2021) $5 million (approved November 2025)
Council has carefully modelled and planned these costs within its long-term financial framework. Borrowing has been a prudent response to deal with rising prices and ensures this project can proceed without further delays.
Financial Approach and Why Action Is Essential
Delivering this project requires significant investment. Council is committed to:
Managing financial responsibilities cautiously
Seeking to
minimise potential impact on ratepayers
The cost to the community of not proceeding with the new STP would be far greater, as the current plant would have obsolescence issues, increased maintenance and repair costs, together with non-compliance issues with regulatory bodies. Hence Council now has a limited window of opportunity to deliver a sustainable solution for Oberon noting that it will place some constraints on Council finances which Council will need to manage diligently.
Andrew McKibbin
Mayor
