The WA State Government has announced it will continue with plans to refurbish the Muja Power Station near Collie in the south west of the state.

The WA Energy Minister Mike Nahan has told Parliament that based on the report’s findings, the government has decided to complete the project, and uphold its decision to sell at least half of Verve Energy’s share.

“While there will always be risks associated with thermal power plants, particularly those of the age of Muja AB, I am confident this is the best course of action given the independent advice received,” he said.

Mr Nahan says the government estimates the project will cost an additional $45 million to complete, taking the total cost of the refurbishment to more than $335 million.

He says he is confident the government will recoup its costs.

“The advice presented to the government in 2009 and upon which it relied to make the decision to refurbish Muja AB was seriously flawed. Following receipt of the independent reports, the government was faced with a decision: should further funding be committed to complete the project or should the refurbishment be abandoned? These independent reports recommend that completing the project represents the best value proposition going forward to the government.”

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