New gas fired electricty plant for Wagga


Contracts due soon: B&B is completing construction contracts for the gas-fired plant, which would cost about $600 million to build using standard industry cost assumptions of $1 million a megawatt.

Other expansions mooted: It gained development approval earlier this year. B&B is also considering expanding its Ecogen gas-fired power business in Victoria and its Braemar joint venture in Queensland.

Float up in the air: Meanwhile, B&B must decide within the next month whether to go ahead with a sharernarket float of its power assets this year, wait until 2007 or restructure the assets into an unlisted fund. It has mandated investment banks Deutsche Bank and Morgan Stanley to lead the potential float.

ERM a long-time partner: B&B’s stake in the plant at Wagga, which it is developing in a joint venture with long-time partner ERM, would be part of any power station business. Other assets likely to form the power fund are B&B’s interests in Queensland gas-fired power stations at Braemar and Oakey and Western Australia’s NewGen venture at Kwinana, all of which are also joint ventures with ERM.

The Australian Financial Review, 28/9/2006, p. 16

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