Mr. Johnston questions the Energy Minister about Kempe Group receiving $100 million for work on the Muja AB refurbishment project. The Minister defends the payment, stating it was for work rendered under a fixed-price contract where Kempe incurred losses.

AnsweredQoN 332Legislative Assembly
Asked
26 June 2013
Portfolio
Energy

QuestionView source ↗

MUJA AB — REFURBISHMENT — KEMPE GROUP
332. Mr W.J. JOHNSTON to the Minister for Energy:
I ask a supplementary question. I
asked the Minister for Energy how is it that Kempe, a 50 per cent owner of this
project, was paid over $100 million to be involved with the project?

AnswerView source ↗

Kempe is the owner of Inalco, which
is a joint venture partner. Out of the project funds, Kempe was paid $100 million
to do the engineering work required to refresh the plant. It was paid $100 million
for work rendered. I was also informed that it did the work under a fixed-price
contract and lost $30 million to $50 million on that project.
Mr
W.J. Johnston : According to Verve. 
Dr M.D. NAHAN : I
do not know who the member gets his information from. Kempe was paid $100 million
for its project because it spent $130 to $150 million on refreshing the
plant. 

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