Extract from Hansard [ASSEMBLY — Thursday, 11 October 2018] p6964d-6965a Mr Dean Nalder; Mr Ben Wyatt

ENERGY — WARRADARGE 4010. Mr D.C. Nalder to the Treasurer; Minister for Finance; Energy; Aboriginal Affairs: (1) If construction of the Warradarge Wind Farm is delayed will the engineering, procurement and construction contractor be liable to pay liquidated damages? (2) If yes to (1), what percentage of the liquidated damages would be disbursed each to Cbus Super Fund, Dutch Infrastructure Fund and Synergy? (3) If the Warradarge Wind Farm is delayed and Synergy does not receive 100 per cent of liquidated damages, how will it meet its Large-scale Renewable Energy Target (LRET) shortfall? (4) What is the percentage and value of the dividends remunerated by the Greenough River Solar Farm, Albany Grasmere Wind Farm and Warradarge Wind Farm projects that will remain in Western Australia? (5) When Synergy’s board approved Bright Energy Investment’s structure, did it consider procuring the Warradarge Wind Farm through any different structures (i.e. a fund, government balance sheet, or tendering out Warradarge Wind Farm)? (6) What taxation structure has been used for Bright Energy Investments? (7) Will Bright Energy Investments taxation structure involve a double trust structure that will see dividends sent offshore to Netherlands, paying only a 15 per cent withholding tax? (8) If yes to (7), how does this benefit the Australian taxpayer that is funding the Power Purchase Agreement? Mr B.S. Wyatt replied: (1) The engineering, procurement and construction contract is currently being negotiated and it is expected that the contract would include a liquidated damages clause. (2) The contract negotiations and final contract are commercial in confidence. (3) Synergy currently purchases Large-scale Generation Certificates (LGCs) from a number of WA renewable projects and would continue to meet its LRET obligations by procuring LGCs. (4) Synergy owns 19.9% of the equity in Bright Energy Investment. The value of the assets which will be part of BEI are subject to the finalisation of certain commercial arrangements, some of which remain under negotiation. (5) A number of options were considered in order to determine Bright Energy Investments was the optimal outcome. (6) Bright Energy Investments has a simple trust structure. (7) No. (8) Not applicable.

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