Question on Notice regarding the refurbishment of the Muja AB power plant by the Kempe Group, focusing on costs, payments, and alleged losses. The Minister defers a full answer to the following day.

AnsweredQoN 331Legislative Assembly
Asked
26 June 2013
Portfolio
Energy

QuestionView source ↗

MUJA AB — REFURBISHMENT — KEMPE GROUP
331. Mr W.J. JOHNSTON to the Minister for Energy:
I refer to the Muja AB scandal and
specifically to Verve Energy's relationship with the Kempe Group of Companies
that paid $80 000 for a 50 per cent share of the Muja AB project.
(1) Can the
minister confirm that the Kempe group was paid $110 million for the
refurbishment of the Muja AB plant?
(2) Can the
minister confirm that the Kempe group was also paid a multimillion dollar ''development
cost recovery'' and exactly how many millions of dollars was this
payment?
(3) When the
minister told the Legislative Assembly that the Kempe group had lost $30 million
on its $80 000 investment in the Muja project, how did he calculate that
amount?

AnswerView source ↗

(1)–(3) I
will make a further statement on the Muja AB issue tomorrow, as has been
referred to repeatedly. As I mentioned before, Kempe was a joint venture
partner—actually Kempe was not, it was Inalco, an off-shoot of Kempe.
Kempe was the parent firm and it got the fixed-price contract to refresh the
plant. I indicated it lost between $30 million and $50 million. Where did I get
that figure from? Verve told me. I cannot confirm the exact amount that it spent
but I will do that tomorrow and I will provide other information about Kempe's
involvement in the project at that time.

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