Hon. Helen Bullock questions the Minister for Energy regarding cost escalations and contractor withdrawal from the Pilbara Underground Power Project. The Minister provides updates on the ongoing review and confidentiality surrounding the contractor's departure.

AnsweredQoN 186Legislative Council
Asked
1 May 2012
Portfolio
Energy

QuestionView source ↗

PILBARA UNDERGROUND POWER PROJECT
186. Hon HELEN BULLOCK to the Minister for Energy:
I refer to the minister's answer to question without
notice 73 asked on 20 March 2012 in relation to the Pilbara underground power
project and to today's media reports of the withdrawal of the Karratha
contractor.
(1) Has
Horizon Power's review of the cost escalation been completed; and, if
not, when will it be completed?
(2) If yes to
(1), what is the amount of the escalation and what is the estimated final cost
of the project?
(3) To date,
how much money has been paid to the contractor for the Karratha elements of the
project?
(4) What were
the reasons given by the contractor for the Karratha elements for withdrawing
from the project?

AnswerView source ↗

I thank the honourable member for some notice of this
question.
(1) No. Due to
the size and complex nature of the Pilbara underground power project, a
thorough cost escalation review will take a number of months to complete.
Horizon Power anticipates this review will be completed by August 2012.
(2) Not applicable.
(3) The amount
paid to the primary Karratha contractor is currently the subject of assessment
and commercial consideration between Horizon Power and the contractor.
(4) The reason
given by the contractor for demobilising from the Karratha elements of the
Pilbara underground power project is subject to ongoing discussions between
Horizon Power and the contractor and to the confidentiality provisions in the
contract between the parties.

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