$1.2 billion Desal savings and 0GL order for 2014-15

Source: Victorian Government - http://premier.vic.gov.au/media-centre/media-releases.htm 

28 March 2014

The Victorian Coalition Government is delivering on the promise to reduce the impact of the Desalination Plant on the water bills of Melbourne families.

“As of today, a total of $1.2 billion has now been clawed back from the total contract costs of the Desalination Plant project,” Minister for Water Peter Walsh said.

“The latest reduction in total contract costs comes from successful strategic debt refinancing, which will deliver Melbourne families a $187 million reduction on water bills.

In addition, water bills have also been reduced by:

“Total contract costs, without ordering water, still stand at $18.3 billion over 27 years but this is a $1.2 billion improvement on the deal Labor signed – a deal they tried to hide from Melbourne households,” Mr Walsh said.

“The desalination plant is a classic example of Labor’s abysmal failure to manage major projects. Labor cannot be trusted to spend taxpayers’ dollars wisely.”

Mr Walsh also announced today that, for the third consecutive year, the Victorian Government will not order desalinated water from the Wonthaggi plant.

“Melbourne’s water storages are at 74.2 per cent and do not need supplementing despite the hot dry summer,” Mr Walsh said.

“A full desalinated water order for 2014-15 would cost Melbourne families an extra $114 million and would be a waste of money given the healthy dam levels.

“The Victorian Coalition Government is focused on helping reduce the cost of living, including household water bills, for Victorians after years of Labor’s waste and mismanagement caused water bills to double.

“In January, I launched Fairer Water Bills, a major efficiency program for Victoria’s urban water corporations aimed at finding greater savings for customers. The initiative is on track to deliver additional savings to customers from 1 July this year.”

Additional attachment - Updated forecast Desalination Plant annual service payments - available via http://www.premier.vic.gov.au/images/Updated_Forecast_Desalination_Plant_Service_Payments_-_March_2014.pdf



Deborah Cole 0419 962 644 deborah.cole@minstaff.vic.gov.au


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