❓ A WA parliamentary question seeks updated cost and completion estimates for a desalination plant project. The answer provides figures for capitalised interest, technical completion, and first water provision, with practical completion expected by April 2007.
AnsweredQoN 515Legislative Assembly
QuestionView source ↗
(b) what is the most up-to-date estimate of the total interest costs associated with borrowings to fund the entire project; (c) what is the most up-to-date estimate of the completion date for the entire project; and (d) what is the most up-to-date estimate as to when drinking quality water from the desalination plant will reach Western Australian households?
(c) what is the most up-to-date estimate of the completion date for the entire project; and (d) what is the most up-to-date estimate as to when drinking quality water from the desalination plant will reach Western Australian households?
(d) what is the most up-to-date estimate as to when drinking quality water from the desalination plant will reach Western Australian households?
(b) $27.6 million over the period to May 2007 (capitalised interest at date of final payment). Interest costs are capitalised for large projects that take a number of years to complete. The interest cost on expenditure made prior to commissioning is accounted as part of the cost of construction. These costs are then included in the depreciation of the asset. The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects. (c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
Interest costs are capitalised for large projects that take a number of years to complete. The interest cost on expenditure made prior to commissioning is accounted as part of the cost of construction. These costs are then included in the depreciation of the asset. The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects. (c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects. (c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
(c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
(c) what is the most up-to-date estimate of the completion date for the entire project; and (d) what is the most up-to-date estimate as to when drinking quality water from the desalination plant will reach Western Australian households?
(d) what is the most up-to-date estimate as to when drinking quality water from the desalination plant will reach Western Australian households?
(b) $27.6 million over the period to May 2007 (capitalised interest at date of final payment). Interest costs are capitalised for large projects that take a number of years to complete. The interest cost on expenditure made prior to commissioning is accounted as part of the cost of construction. These costs are then included in the depreciation of the asset. The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects. (c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
Interest costs are capitalised for large projects that take a number of years to complete. The interest cost on expenditure made prior to commissioning is accounted as part of the cost of construction. These costs are then included in the depreciation of the asset. The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects. (c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects. (c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
(c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
AnswerView source ↗
Answered
3 January 2006
Responded by
Minister for Water Resources
Response time
41 days
(a) $387 million.
(b) $27.6 million over the period to May 2007 (capitalised interest at date of final payment).
Interest costs are capitalised for large projects that take a number of years to complete. The interest cost on expenditure made prior to commissioning is accounted as part of the cost of construction. These costs are then included in the depreciation of the asset.
The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects.
(c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
(b) $27.6 million over the period to May 2007 (capitalised interest at date of final payment).
Interest costs are capitalised for large projects that take a number of years to complete. The interest cost on expenditure made prior to commissioning is accounted as part of the cost of construction. These costs are then included in the depreciation of the asset.
The Corporation does not make funding decisions on a project by project basis. The Corporation's overall borrowing requirement is determined at a total business level, taking into account both internal funding capacity and operating and capital expenditure requirements. Apart from capitalised interest, borrowing costs are not apportioned to particular projects.
(c-d) Technical Completion of the plant will occur in October 2006 and the first water will be provided in November 2006. In the period to April 2007 the plant must demonstrate effective operation in order to achieve Practical Completion.
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