The Victorian Government has signed an agreement with AquaSure to refinance the Victorian Desalination Plant project early. This plan intends to reduce the overall costs of the project from that of the original financial agreement, which was struck during the global financial crisis, and to prevent further ongoing legal defence costs.
Under the contract, AquaSure was scheduled to refinance its $3.7 billion bank debt by September 2014.
With construction complete, agreeing to early refinancing now and resolving claims will allow AquaSure to obtain a better risk profile for the Desalination Plant project, and in turn this means significantly lower financing charges.
The precise value of savings will be known in the coming months once the refinancing process is complete.