The cost of Tasmania’s Marinus Link undersea power cable project has blown out, according to Premier Jeremy Rockliff.
The project was originally estimated to cost between $3.1 billion and $3.8 billion, with the loan scheme financing 80% of the cost and the rest split between Tasmania, Victoria and the Commonwealth.
Rockliff has warned that the project does not make sense for Tasmania at “any price” and that there is a line in the sand that Tasmania cannot afford to cross.
“For the right price, Marinus Link is an important project which will help boost additional renewable energy development in Tasmania and support growth in business and industry,” the Premier said.
“The right price does not mean any price, and from day one we have said that the cost-benefits of this project must stack up in favour of Tasmanians.”
Rockliff said he has written to and spoken with the Prime Minister seeking a more favourable deal for the project, which aims to increase Tasmania’s capacity to bring power from its renewable energy projects to the mainland.
“I have asked the Prime Minister to consider alternative funding options for the increased costs of this project.”
“Those discussions are continuing, and I am confident that we will reach a good outcome for Tasmania soon.”
The extent of the cost blowout or the new estimate has not been revealed.
Labor MP Josh Willie has described the announcement as a major backflip.
“This is another broken promise in the energy portfolio from Minister Barnett and this government,” Willie said.
“[Guy Barnett] has said that it’s a great deal for Tasmania and that he’s going to deliver Marinus. Today he is walking away from that promise”.
