The state government’s $130 million Pilbara Underground Power Project has run into more flak after electrical contractor O’Donnell Griffin halted work on the Karratha phase of the project.
This development comes two weeks after the government admitted the project was running over budget.
O’Donnell Griffin was awarded the Karratha contract in September 2010. Its parent company, ASX-listed Norfolk Group, said at the time the contract was valued at “$40+ million” and would employ up to 100 workers.
Regional power utility Horizon Power, which is managing the project, is in the process of finding new contractors to fill the breach.
Horizon said its management team in Karratha has “formed a team of specialists and engaged the services of experienced Western Power personnel and other contractors to work collaboratively to minimise the disruption to customers”.
“Horizon Power has inspected all open work sites and will recommence the project in Millars Well next week. Discussions with a second contractor to recommence work in Bulgarra are ongoing.”
Horizon said there had been no disruption to works already commenced in South Hedland, which are being undertaken by contractor Logsys Power Services.
Shadow Energy Minister Bill Johnston called on Minister Peter Collier to explain what was going on.
“In March Minister Collier was forced to admit that there was a significant cost blow-out in the Pilbara Underground Power Project, and now we learn that the contractor engaged has given up on the project,” Mr Johnston said.
“Minister Collier can’t tell Pilbara residents how much the project will cost, who will do the work, or when the project will be completed.”
Horizon said the dispute with O’Donnell Griffin was “subject to ongoing discussions” and declined to elaborate.
