Leaked Videos Reveal Flooding in Snowy 2.0 Tunnel as Costs Soar

Key facts

• Videos show water rushing at high pressure through a tunnel carved by boring machine Kirsten, which climbs a 47% gradient.
• A temporary pump failure late last month created a waterfall-like flow over part of a large excavated cavern.
• Snowy Hydro says water ingress is due to natural geological conditions and is being managed by contractor Future Generation Joint Venture.
• no injuries from the incident and is monitoring the site.
• Boring machine Florence got stuck in soft ground in September 2022, opening a sinkhole, and later wedged in hard rock in February 2024.
• Former PM Malcolm Turnbull commissioned the project in 2017 with a $2 billion price tag and a 2021 deadline.
• Official cost estimates have risen to $12 billion, with completion pushed to 2028.
• Snowy Hydro recently stated the 2028 deadline remains on track despite calls for a new cost assessment.

Water Ingress Incidents Raise Safety and Cost Concerns

Torrents of water have been seen gushing through a tunnel and a cavern deep underground on the troubled Snowy 2.0 pumped hydro project, as two incidents within days of each other illustrate the challenges contractors face. Videos obtained by this masthead show dramatic scenes as water rushes at high pressure through a tunnel carved out by a 205-metre-long boring machine known as Kirsten, which has been grinding through rock uphill at a 47 per cent gradient. In another incident late last month, a temporary fault with pumps caused a backlog of water, creating what resembled a waterfall over part of a large cavern excavated for the project.

Contractors and Regulators Respond to Leaks

Snowy Hydro, the Commonwealth-owned corporation charged with delivering the project, said the water ingress was the result of naturally occurring geological conditions and was expected during tunnelling. “While the volume was higher than usual for a short period, the water flow depicted is being actively managed on-site by principal contractor Future Generation Joint Venture,” it said in a statement. “Underground work is continuing on the project.” NSW’s workplace safety regulator, SafeWork, said it was aware of “an issue” with water entering a section of the Snowy Hydro 2.0 project, and it would continue to monitor the status of the site. “injuries to workers from this incident,” it said in a statement.

Webuild Faces Dual Pressures on Major Infrastructure

Italian construction company Webuild, which is the lead contractor on the project, directed questions to Snowy Hydro. Webuild is also constructing a multibillion-dollar metro rail line to Sydney’s new international airport, and is involved in a high-stakes stoush with the NSW government on that project. The company has faced repeated setbacks on Snowy 2.0, including a previous incident with boring machine Florence, which became stuck in soft ground in September 2022, less than 100 metres into a 15-kilometre tunnel, opening a sinkhole to the surface.

Timeline of Delays and Cost Blowouts

Former prime minister Malcolm Turnbull commissioned Snowy 2.0 in 2017, declaring a completion deadline of 2021. His initial price tag of $2 billion, announced before a feasibility study was complete, climbed to $6 billion when the report was completed. The official price tag was changed to $12 billion in 2023, and the deadline extended to 2028. Then in October last year, Snowy asked the Webuild-led joint venture constructing the project to undertake another cost assessment, leaving many observers to expect another blowout.

Boring Machine Florence: A Symbol of Persistent Problems

Florence was stuck for nearly all of 2023, was freed in December and made slow progress until February 2024 when it became wedged in hard rock while excavating a curve in the tunnel. A team of contractors with high-pressure water jets took seven weeks to blast it free. Since then, it has continued work on excavating the headrace tunnel that will connect the Tantangara reservoir, at the high point of the project, to the powerhouse and electricity-generating turbines.

Project Stakes and Future Outlook

The leaked videos starkly illustrate the obstacles the multibillion-dollar project is encountering beneath the Kosciuszko National Park, and away from the public’s eye. Despite the latest incidents, Snowy recently said its 2028 construction deadline remained on track. However, the repeated cost overruns and technical difficulties have drawn sharp criticism from politicians and media commentators, with some labeling the project a “leaking monstrosity” and a “laughing stock.” The final bill, once projected at $2 billion, could now exceed $42 billion according to some estimates.

The bottom line

• Leaked videos show significant water ingress in Snowy 2.0 tunnels, with no injuries reported.
• Boring machine Kirsten operates at a steep 47% gradient, while Florence has faced multiple setbacks since 2022.
• Cost estimates have ballooned from $2 billion in 2017 to $12 billion officially, with potential for further increases.
• Completion deadline has slipped from 2021 to 2028, though Snowy Hydro insists it remains on track.
• Lead contractor Webuild is also embroiled in disputes over a Sydney metro rail project.
• The project’s troubles have fueled public and political scrutiny, with some calling it a sinkhole for taxpayer funds.