IT WILL be more than four years before the Sydney desalination plant produces a drop of water again, if the water level at Warragamba Dam declines at the same rate as the last time it topped out in August 1998.

Even if levels drop at the same rate as the fastest decline it would be two years before the dam falls to 70 per cent – the point at which the desalination plant would be turned on.

Assuming the former rate, a private owner of the plant – to be announced by the State Government this year – will take more than $500 million from NSW taxpayers without producing a litre of water.

Based on estimates from the Independent Pricing and Regulatory Tribunal, a private sector owner would take $591 million in ”availability charges” from Sydney Water – payment for keeping the plant available.

Taking away fixed costs, including $1.1 million a month to be paid to the plant’s operator, Veolia Water, and financing debt on the expected $1.1 billion price tag – which excludes a possible privatisation of the $600 million pipeline – a little over $50 million a year will go to the owners in profit.

The Greens MP John Kaye said: ”Labor’s desalination plant was always a white elephant, but the coalition are now taking away the opportunity to turn the plant off and avoid $600 million of wasted availability charges,” he said.

Interested bidders include local and international, a number of investment banks and pension funds from Canada and Korea.

Warragamba Dam, one of the largest domestic water supply dams in the world, is likely to continue to spill if the Bureau of Meteorology’s long-range forecast for more rain proves correct.

The Bureau of Meteorology NSW climate manager, Dr Aaron Coutts-Smith, warned NSW residents to brace for more wet weather.

He said there was a 60 per cent chance of above average rainfall throughout autumn when low pressure systems off the east coast are more prevalent.

”There are increased odds of above average rainfall over the next three months, but most of that will be west of the divide,” he said.

”We can’t tell whether it will come in heavy showers like Thursday’s downpour or whether it will be more evenly spread.”