East West Deal done, page-3

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15/04/15

10:03

Post #: 15089242
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Originally posted by slc4me ↑

Sounds fair to me. A dud project that never should have been signed in the first place.

The Andrews government has resolved the impasse over the East West Link, agreeing to pay the consortium $339 million.
"The government has entered into an agreement with the East West consortium," Premier Daniel Andrews said on Wednesday.
The government says the money is not compensation, but instead represents costs incurred so far by the consortium.
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"This is a good faith agreement," Mr Andrews said.
Labor will buy the East West Link consortium for $1 and then pay a total of $339 million in what it says are "net costs already drawn down" for the project.
"No compensation for lost revenue will be paid," Mr Andrews said. "There will no compensation whatsoever paid.
"Any assets owned by the East West consortium will revert to the state."

http://www.theage.com.au/victoria/v...west-link-claim-for-339m-20150414-1ml9bz.html

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IMHO it is still too early for the Victorian government to crow about how it got out of the deal, there were a number of other groups in this deal and they may in turn now start some actions of their own, and it was still $339 million of taxpayers money for his own political power play

Sovereign risk around a perception the Victorian government is now an unreliable business partner is real, but probably manageable

Acciona is the lead partner of the Transcity joint venture – which also includes BMD Constructions and Italian tunnelling group Ghella – It is part of the consortium selected to design and construct the $6.8 billion East West Link in Melbourne along with Lend Lease and French group Bouygues.

Prime Minister Tony Abbott reiterated on Thursday his threat to demand that Victoria return the billions of dollars the federal government had pledged if Labor won the election and did not proceed with the project.
"Absolutely, this money was given for a specific purpose, under specific conditions and if those conditions aren't fulfilled the money comes back to Canberra," he said.

Mr Pallas confirmed on Tuesday morning that the French and Spanish embassies had lodged complaints with the Premier's Parliamentary Secretary about treatment of tenderers Bouygues and Acciona.
The two governments made a joint protest to the Andrews government about Labor's plan to cancel the controversial road project, according to a News Corp report.
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