The NSW Premier has vowed to go it alone on the $2 billion project to raise the Warragamba Dam wall even if the federal government doesn't split the cost.
Dominic Perrottet said the state would wear the cost if the Commonwealth doesn't come to the table, despite indicating earlier this year that the state would be unable to fund the project alone.
Two weeks ago the NSW government announced they would fast-track the raising of the dam wall by 14 metres by declaring it a critical state infrastructure.
Raising the wall has been considered by many successive premiers in NSW but the current Premier maintains the recent flood inquiry gave it a renewed sense of urgency.
That inquiry, led by NSW chief scientist and engineer Mary O'Kane and former police commissioner Mick Fuller, said the project would cost $2 billion and could save lives and homes by giving people more time to evacuate.
Today the Premier said he would expect the federal government to go halves given the project is about saving lives.
"Where there is an important opportunity to protect the lives of people across our state I would expect a 50-50 funding arrangement," he said.
"But for the abundance of doubt, NSW is committed to this project and we will build it."
The plan to raise the dam wall has been criticised by environmental groups — who argue the Blue Mountains could lose its world heritage listing — and some First Nations people, who warn culturally significant sites would be destroyed.
NSW Labor has ruled out raising the wall but are consulting with experts on options to lower the dam's capacity on a needs basis.
Opposition leader Chris Minns has previously said the cost of the project was "astronomical" and accused the government of having an agenda to increase the population living on the flood plains.
Mr Perrottet said a business case for the project had been provided to the federal government but environment impact statements were still being worked on.
He insisted things were progressing as quickly as possible but could not commit to reports being finalised before the March 2023 election.
Yesterday Prime Minister Anthony Albanese said Mr Perrottet had not "advocated" for the project with him.
"But as he said to me, why would he … we look at business cases, which we don't have yet. We look at environmental assessments, which haven't been done yet," Mr Albanese said.
The Premier has since hit out at what he called a long history of federal governments skimping on investment into NSW.
"NSW always seems to do poorly when it comes to federal government investment at budget time. That is a historical fact," he said.
"The reason that occurs…is because the NSW government continues to invest record amounts in infrastructure.
"Because there's so much happening in NSW, we seem to get penalised."
Yesterday State Treasurer Matt Kean told Nine Radio the federal government was "ripping off" NSW taxpayers.
Shadow Minister for Water Rose Jackson today said people in Western Sydney should feel sceptical about the government saying it will stump up all the costs.
"This project is not in the budget. There is no detailed analysis that has been released," she said.
"This is a desperate political act months before the election because the premier has realised they have been dragging their feet on this for years."
