❓ Hon Ray Halligan questions the Premier about cost blowouts and operating cost decreases for the Kwinana desalination plant, seeking detailed breakdowns and assurances regarding future cost control. The Premier provides some breakdowns and assurances.
AnsweredQoN 1044Legislative Council
QuestionView source ↗
I refer the Premier to his announcement on April 14 that the construction cost of the Kwinana desalination plant has blown-out to $387 million and projected operating costs have decreased by more than 20 per cent, and I ask -
(1) Will the Premier please provide a complete itemised breakdown of all anticipated construction costs that comprised the Government’s original cost estimate of $346 million?
(2) Will the Premier please provide a complete itemised breakdown of all anticipated construction costs that comprise the Government’s current cost estimate of $387 million?
(3) Will the Premier please provide a complete itemised breakdown of all anticipated operating costs (on an annual basis) that comprised the Government’s original cost estimate?
(4) Will the Premier please provide a complete itemised breakdown of all anticipated operating costs (on an annual basis) that comprise the Government’s current cost estimate?
(5) Can the Premier assure the people of Western Australia that the construction and operating costs of the Kwinana desalination plant will not increase further?
(6) What contingencies has the Premier put in place to meet possible future cost increases?
(1) Will the Premier please provide a complete itemised breakdown of all anticipated construction costs that comprised the Government’s original cost estimate of $346 million?
(2) Will the Premier please provide a complete itemised breakdown of all anticipated construction costs that comprise the Government’s current cost estimate of $387 million?
(3) Will the Premier please provide a complete itemised breakdown of all anticipated operating costs (on an annual basis) that comprised the Government’s original cost estimate?
(4) Will the Premier please provide a complete itemised breakdown of all anticipated operating costs (on an annual basis) that comprise the Government’s current cost estimate?
(5) Can the Premier assure the people of Western Australia that the construction and operating costs of the Kwinana desalination plant will not increase further?
(6) What contingencies has the Premier put in place to meet possible future cost increases?
AnswerView source ↗
Answered
18 May 2005
Responded by
Leader of the House representing the Premier
Response time
22 days
(1) The Perth Seawater Desalination Plant was estimated to cost $297 million, and the downstream assets required to transfer the water from Kwinana into the Integrated Water Supply System (IWSS) were estimated to cost $49 million. (2) The revised estimates for these components are $323 million and $64 million. (3) The original cost estimate of $24 million was based on estimates for power, chemicals, labour, maintenance and asset replacement. (4) The current average estimate of $19 million is based on the current estimates for power, chemicals, labour, maintenance and asset replacement. (5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(2) The revised estimates for these components are $323 million and $64 million. (3) The original cost estimate of $24 million was based on estimates for power, chemicals, labour, maintenance and asset replacement. (4) The current average estimate of $19 million is based on the current estimates for power, chemicals, labour, maintenance and asset replacement. (5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(3) The original cost estimate of $24 million was based on estimates for power, chemicals, labour, maintenance and asset replacement. (4) The current average estimate of $19 million is based on the current estimates for power, chemicals, labour, maintenance and asset replacement. (5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(4) The current average estimate of $19 million is based on the current estimates for power, chemicals, labour, maintenance and asset replacement. (5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(2) The revised estimates for these components are $323 million and $64 million. (3) The original cost estimate of $24 million was based on estimates for power, chemicals, labour, maintenance and asset replacement. (4) The current average estimate of $19 million is based on the current estimates for power, chemicals, labour, maintenance and asset replacement. (5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(3) The original cost estimate of $24 million was based on estimates for power, chemicals, labour, maintenance and asset replacement. (4) The current average estimate of $19 million is based on the current estimates for power, chemicals, labour, maintenance and asset replacement. (5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(4) The current average estimate of $19 million is based on the current estimates for power, chemicals, labour, maintenance and asset replacement. (5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(5) The contracting strategy adopted is an Alliance between the Water Corporation and the Multiplex Degremont Joint Venture which will reduce the risk of cost increases and provide incentives to the Alliance partners to reduce costs. (6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
(6) There are contingencies built into the estimates to allow for the identified risks during both the construction and operations phase.
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