Murrumbidgee Irrigation is set to receive $126 million from the federal government to complete their automation and modernisation project.
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Last year, MI reached the 80 per cent completion milestone and the Commonwealth funding will be used to upgrade the 1500 monitoring locations, automate 360 regulators and refurbish 20 kilometres of open earth channels. A 5000 megalitre surge upstream reservoir will also be built.
Commonwealth water minister Keith Pitt said 6.3 gigalitres of water savings would be returned to the environment and 1.1 gigalitres for consumptive use including irrigation.
"It's a win-win not only for local organisations, the local community and farmers but also for the environment," he said.
"We'll have a more efficient irrigation system, we'll have less losses both through evaporation and seepage and we'll have a modern irrigation system that meets needs of consumers and users far into the future,"
"We've completely ruled out buybacks, we're not buying back anymore water, that's finished. It has a detrimental impact particularly on smaller communities and small irrigation communities and this is the way forward."
The funding is part of the $1.3 billion state-led off-farm efficiency program.
Member for Farrer and federal environment minister Sussan Ley said the funding grant had been championed by the NSW Government.
"When we can deliver water more efficiently and effectively we save water for the delivery system itself, we save it for the farmers and we can give some of it to the environment," Ms Ley said.
"It genuinely is a win-win and actually demonstrates what the Basin Plan is all about."
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NSW water minister Kevin Anderson said MI's modernisation project would support the area's future growth.
"While I'm a huge advocate for water efficiency, it's about getting that balance right, you've got to make sure you can still provide enough water for farmers, their business operations are critical to ensuring local communities thrive and survive."
MI CEO Brett Jones once complete the project would enhance the efficiency and productivity of the area's farmers.
"This funding is huge for MI, it enables us to complete our automation and modernisation of our whole system,"
"It enables us to deliver water to our farmers in the best way possible. They want much higher flow rates, they want to turn on quickly and turn off quickly in terms of watering their farms, that wasn't achievable before we started all this automation, this completes that work."
Mr Jones said it would set the region up for the next 30 to 50 years.
"The investment in infrastructure supports communities, it keeps us here for tomorrow and the day after," Mr Jones said.
Work on the main canals had been completed and Mr Jones said much of the work on the next two years would be around small channels.
The work is expected to be completed in 2024.
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