09 Mar 2009 @ 5:39 PM 

Consortia bidding to build the Wonthaggi desalination plant may not be able to come up with the financing


“THE project meant to secure Melbourne against water shortages is facing a crisis: a money shortage because of the global credit squeeze”.

“Banking sources say the project faces a funding gap of between $1 billion and $2 billion. Some in the infrastructure industry say a mere $300 million to $500 million is available from banks for all major projects across the country”.

“The shortfalls confront the Brumby and Rudd governments with either finding the money to bail out the controversial plant, along with a string of other projects across the country, or shelving it”.

Click here for the whole article in the Age on Monday 09/03/09

The real story now will be how the Brumby Government, who have dug such a hole for themselves by relying on this one option, get out of it. Will they;

 - Allow a go ahead without funding and risk the consortia collapsing and the government having to bail them out,

 - Allow a contract where we pay for water even if it isn’t needed (a ‘take or pay’ contract),

 - Give away chunks of Melbourne’s water infrastructure and activities to this multinational consortia to boost their profitability,

 - Beg the Federal Government to contribute from the infrastructure fund, some part of the $4,000+ million cost, for a project giving only 50 full time jobs when operating,

 - The possibilities are mind boggling.

See ‘Tech Talk’ where Watershed Victoria shows alternatives could source the same quantity of water for between 1/3 and 1/2 the cost.

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Categories: Features, Making Waves, News
Posted By: neil
Last Edit: 01 Jun 2009 @ 02 42 PM

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