Fitzroy to Gladstone Pipeline (Gladstone Area Water Board and McConnell Dowell BMD Joint Venture)
Overview
The $983 million Fitzroy to Gladstone Pipeline (FGP) secures long-term water security for the Gladstone region andprotects the region’s industrial economy.
Gladstone is one of Australia’s most significant industrial hubs, home to major alumina refineries, aluminiumsmelting, cement manufacturing, coal export terminals and LNG operations. These industries generate more than$6 billion in gross regional product annually and support over 13,000 direct and indirect jobs. GAWB’s bulk waterinfrastructure underpins this economic activity.
GAWB embedded sustainability, local procurement and workforce development into project governance frominception. Through the Australian Industry Participation Plan (AIPP), early market engagement and transparentprocurement maximised regional participation. A voluntary local content commitment of $90 million for Gladstoneand Rockhampton suppliers was embedded in the contract and significantly exceeded, with $159 million spentlocally, strengthening regional business capability.
The project engaged 135 local suppliers, representing 23% of eligible project expenditure retained within the region.
Workforce diversity and training targets, including First Nations and women in construction participation, wereintegrated into delivery frameworks. A purpose-built construction camp reduced pressure on the local housingmarket during peak construction.
Operational decisions also incorporated circular economy principles, including beneficial reuse of water treatmentresiduals rather than disposal to landfill.
Outcomes achieved
The FGP delivered measurable economic outcomes across productivity, employment, supply chain capability andregional resilience.
Protecting a $6+ billion industrial economy
Prior to delivery of the FGP, Gladstone relied on a single source of supply from Awoonga Dam. At the end of 2025,dam levels were 43 per cent. Water security modelling is undertaken on a rolling five-year planning horizonincorporating storage levels, contracted demand and projected supply.
Modelling undertaken in 2025 confirmed that without the additional supply scheduled to come online in 2026, waterrestrictions would now apply. Because FGP supply will enter the system in 2026, restrictions are not required.
This outcome is immediate and measurable, protecting industrial output and more than 13,000 jobs within a regiongenerating over $6 billion in gross regional product. By diversifying supply, the FGP reduces systemic supply risk andstrengthens long-term confidence for industry and future development within Central Queensland’s StateDevelopment Areas.
Local and Queensland supply chain participation
Economic participation outcomes included:
• $159 million spent with Gladstone and Rockhampton suppliers
• $246 million spent within Queensland
• $210 million spent nationally
• 135 local suppliers engaged
• Regional spend representing approximately 23% of eligible project expenditure
Through the Australian Industry Participation Plan (AIPP), a local procurement target of $90 million with Gladstoneand Rockhampton suppliers was established and significantly exceeded, with $159 million spent locally. This stronglocal participation retained project expenditure within the regional economy, supporting local employment, suppliergrowth and long-term infrastructure capability across Central Queensland.
Participation in the FGP strengthened regional supplier capability. For example, a First Nations-owned cleaningbusiness engaged to service project offices gained experience delivering services on a major infrastructure project,strengthening Indigenous business participation in the regional supply chain.
Workforce participation and skills development
At peak construction, more than 500 workers were employed, including more than 400 local workers (approximately80% of the workforce).
Workforce development outcomes included 21 traineeships and 82,870 hours of work and training, buildingcapability across trade, safety and infrastructure competencies. Diversity outcomes significantly exceeded targets,delivering 79,909 hours of Indigenous workforce participation (target 10,300) and 245,398 hours of women inconstruction participation (target 51,800).
Minimising housing market impacts
A purpose-built construction camp at Gracemere accommodated the project workforce during peak construction,reducing reliance on the local rental market and minimising potential housing impacts on the community.
Circular economy and resource optimisation
Residual solids generated through water treatment were classified for beneficial reuse rather than landfill disposal.A local farming enterprise entered into an agreement to repurpose the material for agricultural application,delivering economic benefits including avoided landfill costs, reduced haulage and conversion of waste intoproductive input.
Transparency and knowledge sharing
Economic outcomes were shared through Ministerial and departmental reporting, media and social media updates,industry forums, business network engagement and IS Rating reporting processes.
Beneficiaries from this project
Industry security
Industrial operators benefited from avoided water restrictions, protecting production continuity and more than13,000 direct and indirect jobs across one of Australia’s most water-intensive industrial regions. The project providesconfidence for ongoing industrial investment and long-term operational planning.
Local business participation
Local businesses benefited through structured procurement that engaged 135 regional suppliers and delivered $159million in regional spend, strengthening supplier capability, workforce capacity and business competitiveness acrossCentral Queensland. Approximately 135 local enterprises participated in project delivery, building experience andcapacity within the regional infrastructure supply chain.
Queensland suppliers benefited from $246 million in statewide expenditure, supporting broader activity across theinfrastructure and construction supply chain.
Workforce and skills
Local workers benefited through more than 500 peak construction roles, supported by structured training and skillsdevelopment strengthening long-term employability within the infrastructure sector.
First Nations and women in construction benefited through targeted workforce initiatives delivering 78,124 hours ofIndigenous workforce participation and 239,934 hours of women in construction participation, significantlyexceeding targets of 10,300 and 51,800 hours respectively.
Community impacts
The local community benefited from housing mitigation measures that reduced rental market pressure andworkforce displacement risks during peak construction.
A local farming enterprise benefited from beneficial reuse of water treatment residual solids, generating economicactivity and agricultural productivity improvements estimated at an average of $1.2 million per year.
The broader regional economy benefits from strengthened supply chain resilience, enhanced infrastructure deliverycapability and improved confidence for future industrial expansion and long-term economic growth across CentralQueensland.
Leaving a legacy
The FGP establishes a lasting economic legacy for Central Queensland by fundamentally shifting the region’seconomic risk profile.
Structural economic resilience (SDG 9 – Industry, Innovation and Infrastructure; SDG 8 – Decent Work and EconomicGrowth) By delivering a second source of water supply, the project removes Gladstone’s historic single-sourcevulnerability and strengthens the long-term resilience of one of Australia’s most significant industrial regions.Gladstone’s industrial base — including alumina refineries, aluminium smelting, cement manufacturing, LNGproduction and bulk export operations — generates more than $6 billion in gross regional product and supportsover 13,000 jobs.
Prior to the FGP, the region relied entirely on Awoonga Dam. Diversifying supply through the Fitzroy River reducessystemic supply risk and improves the reliability of bulk water infrastructure that underpins industrial operations.
This improved water security provides greater confidence for existing industries and long-term planning for futuredevelopment, supporting the continued activation of Gladstone as a nationally significant export and industrial hub,enabling sustained economic participation across Central Queensland.
Regional capability uplift (SDG 8 – Decent Work; SDG 10 – Reduced Inequalities): Engagement of 135 local suppliersand more than 400 local workers builds long-term infrastructure and supply chain capability within the region.Training and diversity initiatives expand workforce participation, capability and create inclusive economic pathways.
Housing market stability (SDG 11 – Sustainable Cities and Communities): A purpose-built construction camp atGracemere accommodated the project workforce during peak construction, reducing reliance on the local rentalmarket and proactively minimising potential housing pressure on the Gladstone community.
Circular economy innovation (SDG 12 – Responsible Consumption and Production; SDG 6 – Clean Water andSanitation): Beneficial reuse of residual solids reduces waste, lowers operational costs and creates local economicvalue, demonstrating how circular economy principles can enhance financial performance while supportingenvironmental stewardship.
The FGP demonstrates that sustainability-led infrastructure can protect economic output, strengthen regionalcapability and secure long-term industrial and regional prosperity.