Underground Power Project costs $122million more than planned
12 Aug 2015 - Pilbara Underground Power Project is currently forecast to cost state and local governments a total of $252 million and be completed by June 2018..
This is $122 million more and six years later than originally approved. The State Government agreed in 2014 to contribute an extra $75 million in funding.
The estimated cost of the undergrounding works in Karratha (which now includes Roebourne) is $138 million, up from $75 million. This includes a $34.55 million contribution from the City of Karratha, up from the original estimate of $18.7 million.
Horizon spent almost $22 million of its own funds on top of the $230 million budget, which already included $7 million contributed by Horizon.
The original costing for the project was not based on an accurate assessment of the local conditions and complexities. The Office of Energy (now Public Utilities Office) estimated a cost of $17,000 per lot. Current figures suggest an actual cost of over twice that amount at $41,000 per lot.