Work on the troubled Cotter Dam project will resume next month, nearly three months earlier than predicted.
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The announcement comes after Actew Corporation found flood damage to the dam structure and machinery was less severe than expected.
It's the first positive development for the project after a month in which work at the site was stopped, nearly 200 workers were stood down, and the ACT government revealed the dam's ever-increasing budget had hit $397 million.
The earlier start date will take some of the pressure off the post-flood costs for the dam, but the damage bill will still run into millions of dollars, taking the project past the $400 million barrier.
It is expected the placement of concrete for the dam will now be completed by the end of this year and final structural concrete and commissioning will be completed in the first quarter of next year.
Actew Corporation managing director Mark Sullivan said the government-owned company would have a clearer idea of the dam's revised budget before the end of April.
''We are still working through the costs of the flood and will need to consider important factors, such as insurance claims, to get an accurate idea of the effect on the budget,'' Mr Sullivan said.
''It will be millions of dollars, but the impact will be greatly lessened now that we will be returning to work months earlier than anticipated.''
Mr Sullivan said the dam wall had ''held up well'' through the floods and the clean-up of the site had progressed quickly.
Though the 40m-high wall, about half its final height, was not compromised, much of the infrastructure and machinery had to be checked and timber removed from behind the new wall.
Mr Sullivan said ensuring the site was safe for work remained the top priority and would be essential when work resumed.
The Construction Forestry Mining and Energy Union, which represents more than 100 workers stood down last month, said the earlier start date would be a relief for the project's workforce. Secretary Dean Hall said although a small percentage of staff had moved on to other jobs, many had been put in alternative work by the Bulk Water Alliance until construction resumed.
He said the biggest problem would be replacing casual staff who had left the project permanently for work elsewhere.
''But I don't think they'll be short staffed,'' he said. ''The issue will be the transition from no work back into shift work.''
Mr Sullivan said a recruitment drive would fill any shortfall of staff, but the indication so far was that most of the dam's key skilled workers would return.
ACT Treasurer Andrew Barr welcomed the announcement that construction would resume in May.
''Returning to work sooner will help to ameliorate the cost increase arising from the record rains and flooding last month,'' he said.
''I thank Actew and their partners for their hard work in assessing the damage and preparing to resume construction.''