Question regarding the efficacy of the business case for the Muja AB refurbishment, specifically concerning the private investor's lack of financial contribution to resolving boiler energy issues. The Minister deflects, blaming the previous Labor government's selection process.

AnsweredQoN 283Legislative Assembly
Asked
19 June 2013
Portfolio
Energy

QuestionView source ↗

MUJA AB —
REFURBISHMENT
283. Mr W.J. JOHNSTON to the Minister for Energy:
I have a supplementary question. Does the minister think the fact
that the private investor was not required to put any money into resolving the
boiler energy issues in any way reflects on the efficacy of that business case,
as the private sector operator was able to get out of all costs related to this
engineering stuff-up?

AnswerView source ↗

In retrospect, the joint venture partner was not a good one.
I might add —
Several members interjected.
Dr M.D. NAHAN : He
was chosen by the Labor government as the preferred tenderer —
Several members interjected.
The SPEAKER :
Members!
Mr F.M. Logan interjected.
The SPEAKER :
Member for Cockburn! Member for Cockburn, I call you to order for the second
time. Member for Cannington, I call you to order for the first time. Minister,
have you answered that question?
Dr M.D. Nahan : No.
The SPEAKER : Will
you continue.
Dr M.D. NAHAN : Let
me explain: the previous government —
Several members interjected.
The SPEAKER :
Members!
Dr M.D. NAHAN : The
previous government agreed to go out to tender on what to do with Muja A and B.
Several members interjected.
Dr M.D. NAHAN :
Just let me finish!
Several members interjected.
The
SPEAKER : Members! Member for Cockburn, I call you to order for the third
time. Member for Willagee, I call you to order for the second time. Member for
Butler, I call you to order for the second time. Member for Victoria Park, I
call you to order for the second time.
Dr
M.D. NAHAN : They put out an expression of interest to a whole range of
parties on what to do with Muja A and B. Then Verve came back to them with the
tick-off of the minister and it chose —
Several members interjected.
The SPEAKER :
Members!
Several members interjected.
The SPEAKER :
Member for Butler! We are getting absolutely nowhere.
Dr M.D. NAHAN : The
expressions of interest came back and Inalco was chosen by Verve, ticked off by
the minister, to go forward as the chosen joint venture. The final okay was
determined and given by the Minister for Energy in 2009.
Mr M. McGowan : By
the Liberal minister!
Dr M.D. NAHAN : Yes

Several members interjected.
The SPEAKER :
Members! Member for Willagee, I call you to order for the third time.
Mr P.C. Tinley :
What!
The SPEAKER :
Member for Willagee, do you want to have a little rest maybe. Member for
Mandurah, I call you to order for the first time. Minister, can you wind this
up.
Dr
M.D. NAHAN : Under the arrangement, the firm —
Mr D.A. Templeman :
You've dug the biggest hole in the world for yourself!
Dr M.D. NAHAN :
Yes, look who is in the hole!
Several members interjected.
The SPEAKER :
Members!
Dr
M.D. NAHAN : Inalco, the joint venture partner, was responsible for bringing
the loan in, but it did not bring much equity, if any, into the deal, and that
was a weakness.

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