Fyshwick sewage treatment plant is being investigated for future expansion with proposed upgrades likely coinciding with residential development of the Dairy Road precinct.
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About 700 residents are scheduled to move into the site between Fyshwick and the Jerrabomberra Wetlands over the next 10 years, the first of 500 dwellings set for completion in 2025.
Icon Water plans to expand its sewage treatment capacity in line with population growth, a two-plant approach with facilities in Canberra's east and west is one option being explored.
A decision to grow Fyshwick rather than establish a new facility elsewhere could result in treated effluent being discharged into Lake Burley Griffin.
The ACT and Region Catchment Management Group, which Icon is a part of, wrote to Water Minister Shane Rattenbury last year identifying planning was focused on Fyshwick.
"Consequently, Icon Water has provisionally flagged that it is likely to seek a licence to discharge into LBG [Lake Burley Griffin] or one of its tributary waterways," the group advised.
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Ray Hezkial, Icon Water, Managing Director, said the existing Fyshwick site was one location being explored for an eastern treatment plant due to its proximity to the current wastewater network.
He said the service provider was not currently seeking authorisation to discharge into Lake Burley Griffin and was still exploring future wastewater treatment options.
Mr Hezkial said a detailed environmental impact assessment would be required for development approval, which would consider environmental, social and economic impacts. Odour management would be part of that consideration, Mr Hezkial said.
"We actively engage with planners, regulators and developers to maintain appropriate surrounding land uses so that we can continue to operate the plant effectively with minimal odour impact on neighbouring activities," he said.
Icon Water's previous sewage strategy was based on population projection of 430,000 by 2030, however, Canberra reached 450,000 people last year. Built in the 60s, the current Fyshwick plant treats sewage from the Majura, Fyshwick, Hume, Jerrabomberra and Narrrabundah catchments, discharging into the Molonglo River downstream of the city.
Molonglo co-director, Nikos Kalogeropoulos, said developers had always planned Dairy Road in full knowledge of Canberra Sewerage Strategy 2010-2060 and controls were in place to ensure residential areas were not located in areas potentially impacted by odours.
Mr Kalogeropoulos said they weren't concerned about a potential expansion, as odour impacts had been addressed in an extensive study which had been independently audited.
He said in the 20 years Molonglo had managed the site, they had not had any concerns or complaints of odour from tenants or visitors.
In the past three years, visitation to the site has increased to approximately 800,000 people per year, he said.
Mr Kalogeropoulos said Dairy Road was set to become a high-quality, low density, "landscape-led" neighbourhood.
"This connection to landscape will be instrumental to the physical and mental health, fitness, and wellbeing of the people that live there, satisfying an innate need for affiliating with nature," he said.
"If there was an issue with odour this would have manifested by now, and it simply hasn't."
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