Hawkesbury City Council is seeking to abandon its grant-funded Oasis Aquatic and Leisure Centre upgrade after the estimated cost climbed from $6.716 million to $21.484 million, with more than $1 million forecast to be spent without construction.
The collapse of the South Windsor project leaves promised improvements undelivered, reimbursement unresolved and Council asking the NSW Government to redirect the remaining allocation to Richmond Swimming Centre. Says Cr Eddie Dogramaci:
We have a Council that can't build, can't repair and can't maintain anything. Its a disgrace and Councillors need to start speaking out and demanding accountability from our employee the General Manager.
Everyone knows it and tells me and the other Councillors but I'm the only one with the guts to say it out loud. Well I'm not.
Council’s October 13 business paper reveals the scale of the funding gap, the unsuccessful attempt to reduce the project and the financial uncertainty surrounding its closure.
For residents anticipating better swimming facilities, the outcome is a substantial retreat from the original promise.
The upgrade was intended to provide a shallow-depth program pool supporting learn-to-swim, seniors activities, rehabilitation and hydrotherapy, alongside a children’s splash park, improved amenities, outdoor fitness facilities and additional parking.
The program pool was central to the proposal. It would have increased available water space and reduced competition between activities using the existing indoor pools.
Instead, Council now faces closing the project with designs, investigations and planning documents retained for possible future use.
A budget more than tripled
The project was submitted under WestInvest in 2022, with the funding deed executed in late 2023.
Its original $6.716 million budget was supported by a June 2022 quantity-surveyor cost plan. That included a $4.64 million construction allowance, together with provisions for escalation, contingencies, professional fees and other costs.
By September 2025, the estimated project cost had reached $17.754 million.
An August 2026 cost plan lifted that figure to $21.484 million, approximately $14.768 million above the grant allocation. Council had no approved contribution to bridge the gap.
Council attributes the increase to construction-market escalation, more detailed investigations and the complexities of extending an ageing aquatic centre while it remains operational.
Identified cost drivers included fire services, stormwater infrastructure, chemical-delivery arrangements, additional amenities, acoustic treatment and refined pool and treatment-plant requirements.
The report argues that progressively testing the project prevented Council from committing to construction it could not afford. Delay over three years in commencing construction caused costs to blow out.
However, the progression from a $6.7 million proposal to a $21.5 million estimate raises questions about the adequacy of the original assumptions and when the full funding problem became clear.
Reduced plan rejected
Council attempted to salvage a smaller package.
In October 2025, councillors endorsed a staged approach concentrating construction on school-age amenities, the splash pad, parking and compliance works, with a covered deck dependent on affordability.
The program pool and outdoor gym would remain designed for future delivery.
Council submitted its variation request on December 11, 2025.
On August 20, 2026, the Premier’s Department rejected it, determining that the reduced proposal substantively changed the approved purpose and would not deliver the original community outcomes.
Those outcomes included increased aquatic capacity, accessibility, learn-to-swim opportunities, seniors programs and fitness participation.
Council’s own report acknowledges that removing the program pool undermined important benefits underpinning the grant.
Even the reduced August 2026 package was estimated at $7.035 million, exceeding the available allocation.
Spending without construction
Actual expenditure had reached $956,675 by August 31, 2026.
A further $100,551 was forecast for essential remaining work and closure, bringing the projected total to approximately $1.057 million.
The expenditure covers design, investigations, professional advice, project management, administration and related activities. No construction expenditure had been incurred.
Council says the work has produced reusable material, including approximately 170 drawings and documents, specialist assessments, operational planning and information about existing infrastructure.
That material may support future improvements, although restarting would require updated costs, reviews and refreshed procurement documents.
The immediate financial question is how much the State will reimburse.
Council has received $672,000. Approximately $385,227 in forecast expenditure above that payment remains subject to the Department’s assessment.
Officers consider there is a strong basis for reimbursement, but further payment is not guaranteed. Any unreimbursed amount would become a Council funding issue.
Richmond transfer remains uncertain
Council’s proposed exit includes asking that the remaining Oasis allocation be redirected to Richmond Swimming Centre.
The report identifies approximately $5.66 million as potentially available, subject to final reconciliation.
However, the transfer is discretionary. Council has no confirmed entitlement to redirect the money, and closing Oasis is not conditional on approval.
In Council’s first Chambers and Beyond podcast, general manager Will Barton emphasised cost pressures and the value of identifying the shortfall before construction.
Mayor Mary Lyons-Buckett supported seeking the Richmond transfer.
The unresolved issue for Oasis users is what happens next.
Council acknowledges that underlying capacity, infrastructure and community needs remain. Its closure process will preserve project records and refer existing asset matters for assessment.
Residents still await a final account of the expenditure and confirmation of whether the remaining grant will stay in the Hawkesbury.
