Senate Environment and Communications Legislation Committee, , 9:27:29 to 9:31:58
Discussion centers on the absence of a revised Net Present Value (NPV) for Snowy 2.0 and the potential requirement for a multi-billion dollar government support package to maintain the project's viability.
Topics: Snowy Hydro, Renewable energy, Integrity
Speakers: Hon Sarah Henderson, Dennis Barnes, Hon Murray Watt, Unknown Speaker
>> I mean the reason this is so important Mr. demands is that Australians need deserve to know um that this project is still going to deliver economic benefits to the nation. So in 2024 there was a positive MPV of $3 billion based on a $12 billion construction cost and completion by December 2028. Um, it's just very concerning that that reassessment has not either not been completed or is not available given how important it is for Australians to know that this is going to deliver economic
>> Well, I think Mr. Barnes has previously outlined some of the economic benefits that the project would provide to the country.
>> Well, that's why I'm seeking the update, Minister, seeking the updated net present value for that very reason.
you've you've asked that several times. Um I think Mr. Barnes has given you the answer he's able to give and to the broader economic benefits of this project that's been already been outlined as well.
>> Well, the revised MPV is is very very pivotal and so are you going to be uh releasing a new or revised MPV, Mr.
Barnes? So, we'll take the provision of a business case in whatever form on
>> But can I just ask are you going to be releasing a new or revised MPV?
>> And that's a question for our board and I'll take that on notice.
>> Well, you you would as the CEO um be be making a lot of these day-to-day decisions. Is it your plan to recommend to the board that there will be a revised or new MPV?
>> I mean, our board has been focused on concluding the cost reassessment.
>> So, so hang on a minute. So, you can't even give us a guarantee about the MPV. I mean, is is it not reasonable that you would release a revised MPV?
>> So, we've been focused on the cost reassessment. Obviously the production of our annual report has our auditors review the impairment test for the organization. I've given you some figures around the asset IRR and I'll take it on notice on whether that can be provided in a subsequent uh advice. I'm
I'm the can I put this to you that I'm concerned that you're not releasing the MPV because your books things don't add up and the only way in which they add up is if you get a very substantial multi-billion dollar bailout from the
>> mean we signed off our accounts and published those last Friday with audit sign off. Uh I think I've described that we will need government support to complete this project.
But can I put to you that's why you are not giving us full and transparent information in relation to these very important financial um benchmarks for this project. I
>> mean I'm sure that when the support package is determined there will be accompanying narrative around the nature of that support. So,
so can I assume then when you say when the support pro package is determined that there will be a support package?
>> Well, I've said that we have asked the government for support to complete this
>> and so can I assume by your answer that the government has committed to you that it will provide some sort of support package.
>> The government the advice we provided government is that we need support and it's now with the government for
consideration. You just said to me when that support package will be provided.
>> Well, I'm making an assumption. I have not received that from departments or minister.
>> So, you haven't received any guarantee at this point?
>> No, we have received support to keep which we received last year when we exceeded when we said we were going to exceed the 12.
>> And if you don't receive that support, you'll have you'll you'll have a huge write down before your eyes, won't you?
Well, it I mean the the purpose of the support is to maintain our credit It doesn't mean that you would necessarily be writing down the project unless you stop the project.