A troubled $2 billion project designed to save huge amounts of water in northern Victoria by upgrading a 100-year-old irrigation system has hit another hurdle with the sudden departure of Goulburn-Murray Water boss John Calleja.
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Mr Calleja's exit on Tuesday comes after the Andrews government in March stripped GMW of its management of the "Connections" project and gave the responsibility to a "Project Control Group" led by consultant Mike Walsh.
The Project Control Group reports directly to Water Minister Lisa Neville and the GMW board.
It is understood that the relationship between GMW management and the Project Control Group had become unworkable in recent weeks, with members of the Project Control Group reportedly frustrated by GMW's apparent unwillingness to provide it with information.
Fairfax Media can also reveal that accounting firm PriceWaterhouseCoopers has been engaged by the Project Control Group to conduct a financial audit on the project which aims to upgrade irrigation connections for thousands of farmers in order to save 204 gigalitres of water.
The Project Control Group is expected to release a new plan within six weeks to ensure the Connections project is delivered on time and within budget.
With the federal election campaign in full swing, the ongoing troubles with the Connections project is set to test the relationship between Victoria's Labor state government and Malcolm Turnbull's Coalition government. The project is jointly funded by Victoria and the Commonwealth.
The history of the Connections project has been politically divisive in Victoria after the former Baillieu-Napthine government took responsibility for delivering it off the group set up by the previous Brumby Labor government and gave it to GMW.
In November last year, both Ms Neville and federal Agriculture Minister Barnaby Joyce called for drastic changes to be made after an independent review of the project raised concerns it would fail to be delivered on time and within budget.
Ms Neville said Mr Calleja's departure would not affect delivery of the project and that she was confident the Project Control Group she installed would "achieve the best outcomes for the region, irrigators and the environment".
GMW chair Sarah Scales thanked Mr Calleja for his efforts. He was appointed managing director in July last year.
