Home›Questions on Notice›QoN 3236

❓ Question regarding the Muja AB project and a KPMG report highlighting an asymmetrical risk profile where Verve Energy bore a disproportionate share of risks. The government confirms consultation but claims the practical risk of losses to Verve was assessed as low at the time.

AnsweredQoN 3236Legislative Assembly

Asked

27 November 2014

Member

Mr W.J. Johnston

Portfolio

Energy

QuestionView source ↗

I refer to Muja AB project, and specifically to the KPMG report of 4 September 2013, that states in part “the true value of each party’s contributions, combined with the contracting, financing and guarantee arrangements, created an asymmetrical risk profile between the parties, with Verve bearing a disproportionate share of the risks”, and I ask: (a) was the Government consulted during the structuring of the JV agreements; (b) if the Government was consulted why did the asymmetrical risk profile arise; and (c) further, if the Government was consulted why was Verve left bearing a disproportionate share of the risks?

AnswerView source ↗

Answered

17 February 2015

Responded by

Minister for Energy

Response time

82 days

(a) Yes
(b)-(c) Analysis completed at the time indicated that the practical risk of losses to Verve Energy associated with the asymmetrical risk profile was low.

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