Construction has started on Victoria's Desalination Project near Wonthaggi, which will provide up to 150 billion litres of water each year to Melbourne from the end of 2011.
More than 65 jobs have been created onsite already as part of the earthworks and AquaSure expects to have 200 people working on site by Christmas.
Water Minister Tim Holding, who today inspected works at the plant site near Wonthaggi, said the project will secure water supplies for Melbourne, Geelong and towns in Western Port and South Gippsland.
"By turning sea water into drinking water we will ensure that we have enough water during severe droughts and as our climate changes," Mr Holding said.
"The start of construction on Australia's largest desalination plant is a vital step in delivering our water plan which includes the Sugarloaf Pipeline, the $2 billion investment in irrigation upgrades and key regional water projects."
"Despite the recent rainfall Melbourne's water storages are only at 34.2 per cent which is why we need a reliable, non-rainfall dependent source of water - this is why we are building the desalination plant."
AquaSure, consisting of Suez Environnement, Degremont, Thiess and Macquarie Capital Group, was awarded the tender for the project in July. This includes construction and operation of the desalination plant, an 84-kilometre transfer pipeline, plus the construction of underground power and sourcing renewable energy.
Morwell based company RTL has been awarded a $10 million contract to undertake the majority of earthworks on site.
Around 1.1 million cubic metres of earth will be excavated - using five heavy excavators, 13 dump trucks and a number of dozers, graders and rollers.
Mr Holding said earthworks started following the approval of an Environment Management Plan and certification by the Independent Reviewer and Environmental Auditor.
"These initial works include excavation of the plant building site and new wetlands, construction of access roads and hardstand areas," he said.
"The 'spoil' that is being excavated will remain on site to create a series of dunes to act as sound and visual barriers during construction and operation of the project."
Mr Holding said works were being fast-tracked to ensure the project is completed on time. More works will begin soon including:
Construction on the pipeline later this year; and
Tunnelling for the intake and outlet pipes in mid 2010.
Mr Holding said around 1700 direct jobs and as many as 3050 indirect jobs will be created during construction in a tough global economy.
"The project will provide employment opportunities for local people. There will be several waves of recruitment in coming months with jobs to be advertised for trades including concreters, steel-fixers and form workers and labouring positions," he said.
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