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GOVERNMENT WELCOMES SALE of DELTA WEST POWER STATIONS to ENERGYAUSTRALIA NSW Taxpayers Finally Rid of Labor’S Dud Gentrader Deal

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GOVERNMENT WELCOMES SALE of DELTA WEST POWER STATIONS to ENERGYAUSTRALIA NSW Taxpayers Finally Rid of Labor’S Dud Gentrader Deal Mike Baird MP NSW Treasurer Minister for Industrial Relations MEDIA RELEASE Thursday 25 July 2013 GOVERNMENT WELCOMES SALE OF DELTA WEST POWER STATIONS TO ENERGYAUSTRALIA NSW taxpayers finally rid of Labor’s dud GenTrader deal Treasurer Mike Baird today announced the sale of Delta Electricity’s Mt Piper and Wallerawang power stations in the State’s Central West to EnergyAustralia for $160 million, in an agreement that also removes hundreds of millions of dollars in liabilities to the state. Mr Baird welcomed the agreement with EnergyAustralia – the counterparty to the previous Labor Government’s GenTrader contract for Delta’s Western power stations - as the death of State Labor’s botched 2010 electricity deal. “This is an excellent result for the people of NSW, who will no longer be exposed to billions of dollars in liabilities, created by Labor's GenTrader transaction,” said Mr Baird. “This was a disastrous transaction executed in Labor's dying days, in which the Auditor General found that the output from the GenTrader assets was sold by State Labor for less than half the book value.” The sale of Delta’s western power stations will remove liabilities under the GenTrader agreement – the Availability Liquidated Damages – estimated at around $200 million over the life of that agreement. The sale reflects the recommendations of the independent Tamberlin Special Commission of Inquiry, which advised the Government to sell or lease the GenTrader power stations. Mr Baird said the O’Farrell Government was working hard to reverse the financial mess and debt it inherited from the former Labor government and to retain its AAA credit rating. “The combined proceeds for this sale, together with the sale of Eraring Energy (including residual cash from Eraring Energy) and the termination of the State’s obligation to develop and operate the Cobbora coal mine earlier this month, provides a total cash benefit of $85 million for the State. “At the same time, we have managed to save taxpayers almost $2 billion in avoided liabilities, which significantly improves the State’s financial outlook and further strengthens our AAA credit rating,” Mr Baird said. “This sale is the final chapter in cleaning up another Labor mess, which will forever be remembered as Labor’s parting legacy to the people of NSW.” MEDIA: Rachael Storey 0467 741 310 Mr Baird said employees at the Mt Piper and Wallerawang power stations would transfer to EnergyAustralia on current terms and conditions and will also receive a number of important guarantees and benefits, consistent with other Government asset transactions. “On behalf of the Government, I wish to thank employees transferring to EnergyAustralia for their contributions to the business and wish them all the best for the future.” Mr Baird said the remaining generator asset sales remained on track, with the Expressions of Interest process for Macquarie Generation expected to commence shortly. The sale of the Delta Electricity Central Coast power stations – Vales Point and Colongra – is expected to take place in 2014. The advisers to the Government on the Delta West transaction are Goldman Sachs, Baker & McKenzie and KPMG. .
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