Pumped Storage Hydro

Snowy Hydro addresses concerns after contractor Clough faces restructuring

Snowy Hydro addresses concerns after contractor Clough faces restructuring

Snowy Hydro released a statement addressing recent news related to one of the contractors building the 2 GW Snowy 2.0 pumped storage plant, saying it is working “to ensure construction on the project progresses smoothly.”

On Dec. 5, Webuild (formerly Salini Impregilo) announced that it and partner Murray & Roberts had jointly determined not to pursue previously announced plans to acquire the entire share capital of Clough Limited. Clough is part of the Snowy 2.0 Future Generation Joint Venture that is building the 2.0 pumped storage plant, along with Webuild and Lane.

Webuild said “the parties have jointly determined and agreed that there is no reasonable prospect of that acquisition proceeding through to a successful completion.” Based on this, Webuild and Murray & Roberts terminated the sale and purchase agreement immediately.

According to Clough, with the sale not proceeding, the board of directors decided to place Clough and its Australian subsidiaries into voluntary administration to conduct a business restructuring.

Four appointed administrators are now responsible for the company’s affairs and will be “exploring options for the restructure and recapitalization of the company.” Clough said the process also provides for the possibility of compromise with creditors, through adoption of a Deed of Company Arrangement.

Snowy 2.0 includes the construction of an underground power station and about 27 km of tunnels within the Kosciuszko National Park in the Snowy Mountains region of New South Wales. This is an expansion to the Snowy Hydro Scheme.

In a statement, Snowy Hydro said it was aware of the announcement and that “Clough’s earlier financial disclosure indicates financial issues with projects separate and unrelated to Snowy 2.0.”

Snowy Hydro said that as work continues on Snowy 2.0, its “first priority is ensuring the wellbeing and continuity of Clough’s workers on the project. We are working closely with the joint venture to ensure construction on the project progresses smoothly.”