A WA parliamentary question probes the financing of the Muja A and B refurbishment, particularly regarding ANZ's involvement and contingency plans amid concerns about coal-fired power financing. The Minister's response cites commercial confidentiality and acknowledges financing challenges.

AnsweredQoN 997Legislative Council
Asked
24 November 2010
Portfolio
Energy

QuestionView source ↗

ELECTRICITY GENERATION — MUJA A AND B FINANCING
I refer to the refurbishment plants for Muja A and B. (1) Can the minister confirm that the ANZ bank is financing the refurbishment? (2) What is the minister’s plan B if the ANZ bank withdraws from the deal? (3) Does the minister agree with the 16 November article by John Hepburn that coal-fired power will become impossible to finance? (4) What is the minister’s plan C to guarantee energy security in the south west grid if Muja A and B fail to secure finance? Hon PETER COLLIER

AnswerView source ↗

I thank the honourable member for some notice of this question. (1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(1) Can the minister confirm that the ANZ bank is financing the refurbishment? (2) What is the minister’s plan B if the ANZ bank withdraws from the deal? (3) Does the minister agree with the 16 November article by John Hepburn that coal-fired power will become impossible to finance? (4) What is the minister’s plan C to guarantee energy security in the south west grid if Muja A and B fail to secure finance? Hon PETER COLLIER replied: I thank the honourable member for some notice of this question. (1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(2) What is the minister’s plan B if the ANZ bank withdraws from the deal? (3) Does the minister agree with the 16 November article by John Hepburn that coal-fired power will become impossible to finance? (4) What is the minister’s plan C to guarantee energy security in the south west grid if Muja A and B fail to secure finance? Hon PETER COLLIER replied: I thank the honourable member for some notice of this question. (1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(3) Does the minister agree with the 16 November article by John Hepburn that coal-fired power will become impossible to finance? (4) What is the minister’s plan C to guarantee energy security in the south west grid if Muja A and B fail to secure finance? Hon PETER COLLIER replied: I thank the honourable member for some notice of this question. (1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(4) What is the minister’s plan C to guarantee energy security in the south west grid if Muja A and B fail to secure finance? Hon PETER COLLIER replied: I thank the honourable member for some notice of this question. (1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
Hon PETER COLLIER replied: I thank the honourable member for some notice of this question. (1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
I thank the honourable member for some notice of this question. (1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(1) The Muja A and B project achieved financial close with a number of banks in September 2010. Details of these arrangements are commercial-in-confidence. (2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(2) Not applicable. (3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(3) Given current global financial conditions and the uncertainty surrounding carbon pricing policies, there is increased difficulty in financing coal-fired power stations. However, it should be noted that the state government has no plans to fund any new coal-fired power stations in the foreseeable future. (4) Not applicable.
(4) Not applicable.

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