❓ Question on Notice regarding the expected costs associated with consultants and advisers for the potential sale or lease of Fremantle Port, including success fees. The answer provides figures and details about the lead financial advisor's success fee structure.
AnsweredQoN 306Legislative Council
QuestionView source ↗
FREMANTLE PORT — CONSULTANTS AND ADVISERS
306. Hon KEN TRAVERS to the Attorney General
representing the Treasurer:
(1) Between 22 March 2016 and the
end of this financial year —
(a) how much does
the government expect to spend on any consultants or advisers regarding the
potential sale or lease of Fremantle port; and
(b) what is the
estimated total of any other costs that will be incurred regarding the
potential sale or lease of these assets?
(2) How much does
the government expect to spend on the potential sale or lease of Fremantle port
in the 2016–17 financial year?
(3) Do the
contracts with any of the consultants or advisers engaged to assist in the sale
or lease of Fremantle port provide for any type of success fee or payment?
(4) If yes to (3) —
(a) which consultants are eligible
for a success fee;
(b) what is the
estimated maximum payment under the success fee; and
(c) what are the criteria for the
consultants achieving a success fee?
306. Hon KEN TRAVERS to the Attorney General
representing the Treasurer:
(1) Between 22 March 2016 and the
end of this financial year —
(a) how much does
the government expect to spend on any consultants or advisers regarding the
potential sale or lease of Fremantle port; and
(b) what is the
estimated total of any other costs that will be incurred regarding the
potential sale or lease of these assets?
(2) How much does
the government expect to spend on the potential sale or lease of Fremantle port
in the 2016–17 financial year?
(3) Do the
contracts with any of the consultants or advisers engaged to assist in the sale
or lease of Fremantle port provide for any type of success fee or payment?
(4) If yes to (3) —
(a) which consultants are eligible
for a success fee;
(b) what is the
estimated maximum payment under the success fee; and
(c) what are the criteria for the
consultants achieving a success fee?
AnswerView source ↗
(1) (a) Based on
the currently approved budget and cash flows, $4.2 million is expected to be
spent over this period.
(b) It is $600 000.
(2) Based on the currently approved
budget and cash flows, $6 million is expected to be spent in 2016–17.
(3) Yes.
(4) (a) The lead financial adviser.
(b) The detailed
payment terms of the LFA contract are commercial-in-confidence; however, there
will be full disclosure of all divestment costs incurred for the transaction
following completion of the transaction.
(c) A milestone
criterion applies whereby the success fee is only payable on the successful
completion of the transaction for lease of the asset. The lease will be progressed
by the state only if the lease price offers value for money relative to the
retention value.
the currently approved budget and cash flows, $4.2 million is expected to be
spent over this period.
(b) It is $600 000.
(2) Based on the currently approved
budget and cash flows, $6 million is expected to be spent in 2016–17.
(3) Yes.
(4) (a) The lead financial adviser.
(b) The detailed
payment terms of the LFA contract are commercial-in-confidence; however, there
will be full disclosure of all divestment costs incurred for the transaction
following completion of the transaction.
(c) A milestone
criterion applies whereby the success fee is only payable on the successful
completion of the transaction for lease of the asset. The lease will be progressed
by the state only if the lease price offers value for money relative to the
retention value.
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