Salmon farming giant Tassal is unlikely to come to the aid of Glamorgan-Spring Bay Council and fund the $600,000 shortfall for the Prosser River Dam and pipeline.
Glamorgan Spring Bay Council and Tassal have been in discussions since it was revealed two months ago the cost for the dam and pipeline had been severely underestimated.
As a result, the project can’t be completed and without a funding injection would become a white-elephant.
Council secured a $6 million loan from State Treasury in 2016 and a $2.3 million Federal grant to build the dam and pipeline.
The original business case for the project said the purpose of the dam would be to supply raw water to several proposed developments and provide a back up resource for TasWater in Orford and Triabunna.
It listed the main users of the raw water as Tassal for its farm expansion into Okehampton Bay and the Solis golf course.
Tassal has been tight-lipped on the issue and would only say it continued to support the project but refused to specifically address the question of whether it would fund the shortfall.
Mayor Debbie Wisby said the council did not have the capacity to fund the $600,000 shortfall without a loan.
“We have spoken and written to Tassal,’’ Ms Wisby said.
“We are waiting a response but at the end of the day it’s not the business of Council to fund this type of infrastructure.
“If we took out a 30 year loan that would mean we would not be in a position to borrow further in the event of a bridge going down and that is the type of infrastructure which is Council business.’’