Bass Strait electricity transmission cables facing $3.8b cost blowout
The bold plan to install two new electricity transmission cables under Bass Straight has been dealt a blow. The state government has revealed the 3.8 billion dollar Marinus Link project is facing significant cost blowouts - triggering renegotiations over who pays.
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TVTranscript
00:00 A survey ship sails Bass Strait on its mission to prepare for the Mariners Link project,
00:07 but as designs for the project progress, the cost is becoming clearer.
00:12 We have now been advised of material and significant increase for Mariners Link. This would mean
00:19 a significant extra cost burden for Tasmanians.
00:26 Bass Link cable already connects Tasmania to Victoria, but it's limited. Mariners Link
00:31 would triple capacity. A pair of undersea cables could send enough power for 1.5 million
00:36 homes.
00:38 The agreement we made with the Australian Government in October last year intended the
00:41 project to be funded on the basis of 80% debt finance and 20% equity shared equally between
00:48 the Commonwealth, Tasmania and indeed Victoria.
00:54 Past estimates had the cost at $3.8 billion, but the Government won't say what it is now.
01:00 There's been no progress. All we've had is talk and tens of millions of dollars spent
01:05 and now we have a Government that is crab walking away.
01:08 The cables have been sold as helping Australia's energy transmission by bringing more Tasmanian
01:13 wind and hydro power to the national electricity market.
01:17 I think there's a broad view that this is an important project, but of course there's
01:21 a price at which it won't make sense and it's important to get a handle on that.
01:25 The Premier says he's drawn a line in the sand which the state just can't afford to
01:29 cross. The future of the project now rests on funding renegotiations with the Victorian
01:35 and Federal Governments.
01:37 It's about the right price, but not at any price. It's about ensuring that we progress
01:43 the project, but on our terms.
01:46 Sharing risks and rewards of the major project.
01:49 [BLANK_AUDIO]