Snowy Hydro, other energy projects face cost blow outs after Clough collapse

“I think we’re all very, very disappointed that a company that has been part of the Western Australian landscape, a leading engineering company came from a homegrown Western Australian company started 60 or more years ago, has come to a sad end,” she said.

“They’ve got a great legacy and hopefully through voluntary administration, that we can see projects rescued.”

Perth-headquartered Clough is the builder or preferred builder for a range of projects in Western Australia and overseas including Snowy Hydro 2.0, the Waitsia gas project, Transgrid’s EnergyConnect project and Energy Australia’s Tallawarra project, both in NSW, and the Stephenson Avenue extension in Perth.

Its offshore projects include the Lihir gold mine shutdown work for Newcrest Mining and building the Lombrum Naval Base in Papua New Guinea for the Australian Department of Defence.

A spokesperson for Snowy Hydro said resolving Clough’s future would take time and Snowy Hydro would support that process where possible.

“As work continues on Snowy 2.0, Snowy Hydro’s first priority is ensuring the wellbeing and continuity of Clough’s workers on the project,” the spokesperson said.

“We are working closely with the joint venture to ensure construction on the project progresses smoothly.”

NSW-owned Transgrid said on Tuesday it remained committed to delivering the EnergyConnect project that will create a new energy transmission line that will provide cheaper energy to people in NSW. Clough was a part of the consortium selected to build the project alongside partner, Spain’s Elecnor.

“Work on the ground is well under way and we will continue to work with Elecnor to ensure the successful delivery of first power by the end of 2024,” a spokesperson for Transgrid said. “We expect to meet the current completion deadline of late 2024.”

The joint venture partners in the Waitsia gas project – Beach Energy in which Kerry Stokes owns a 30 per cent stake and the Australian energy investments arm of Japanese group Mitsui – said in separate statements on Tuesday that they had been planning for various outcomes including the scenario where Clough entered administration.

Clough’s parent, Murray & Roberts, said it had was given “no choice” but to call in the administrators to Clough as Webuild had promised a $30 million funding injection as part of its takeover.

“For an Australian company, voluntary administration is a flexible, short-term process which has the primary objectives of maximising the chances of the company, or so much of its business as possible, continuing in existence, and otherwise optimising the return for the company’s creditors and members,” it said in its statement.

With Peter Milne

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