Tasmania paid Veolia A$1.79m to end Macquarie Point power plan

Abetz told Bayley the scheme predated any stadium discussions and is not part of the stadium project, ABC reported. He described connecting to the existing electricity network as “lower risk and cost” than the thermal plant. Bayley, for the Greens, called the stadium a slow-moving train wreck and accused the government of wilful disregard for taxpayers’ money, ABC said.

The disclosure follows other exit costs at the precinct. ABC lists A$1.257 million paid to property developer Milieu to abandon its Escarpment housing project and A$1.84 million paid to Hobart Brewing Company to end its 10 year lease of The Goods Shed. It also notes an unsuccessful stadium construction tender bidder, not named in the report, was reimbursed A$2 million for its costs, up from an original cap of A$250,000, which ABC covered the previous week.

The numbers

Beyond the Veolia invoice, ABC reports a further A$667,407 went to Melbourne-based Renewable Intelligence for earlier work on the project.

The stadium is planned as a 23,000 seat venue on a 9.3 hectare waterfront site, and the government is in final negotiations with BESIX Watpac as builder, ABC said. The A$1.13 billion price is widely expected to rise because of inflation linked to the Middle East war, according to the report. Premier Jeremy Rockliff would not repeat his commitment to cap the state’s contribution at A$875 million, ABC reported, though ABC says he has promised to publish the cost before the final contract is signed. Earlier coverage of the builder choice is in our report on BESIX Watpac.

What’s next

Power for the precinct is now planned as a connection from the North Hobart substation using existing network capacity, ABC reported. The connection cost is still being finalised with TasNetworks and is not in current estimates, according to Abetz.

ABC notes TasNetworks earlier told the development corporation the precinct needs 15.7 megavolt-amperes, above existing network capacity, while Abetz told a budget estimates committee the figure was 9.7 megavolt-amperes. That gap remains unresolved in the report.

Two decisions are due: the builder negotiations with BESIX Watpac need to conclude, and the government has said the stadium cost will be released before the construction contract is signed.