SYDNEY, Aug 31 — The expansion of Australia’s largest hydropower scheme will now cost A$12 billion (RM36 billion), roughly doubling the price tag for the delay-plagued...
SYDNEY, Aug 31 — The expansion of Australia’s largest hydropower scheme will now cost A$12 billion , roughly doubling the price tag for the delay-plagued renewable energy project at a time when Australia must urgently replace retiring coal plants.
Originally slated for completion in 2021, years of cost overruns and delays led government-owned corporate Snowy Hydro to launch a review earlier this year after the abrupt exit of its chief executive. In addition, it said the initial design underestimated costs while the site’s geology was slowing construction. Soft ground at the site caused a tunnel collapse in March.
Snowy Hydro is also scrapping the fixed price contract with its construction consortium, mostly owned by Italian builder Webuild in favour of a “Incentivised Target Cost” contract. Snowy Hydro will settle all outstanding claims with the consortium.