ElectraNet finalises $180m power contract
Piper Alderman has advised ElectraNet in its $180 million power contract with CIMIC, as well as a transmission agreement with OZ Minerals.
Firm: Piper Alderman (ElectraNet)
Deal: ElectraNet has completed a contract with CIMIC’s UGL. In addition, ElectraNet has been advised on a transmission agreement with OZ Minerals.
Value: $180 million (power contract with CIMIC). Undisclosed value on transaction involving OZ Minerals.
Area: Energy and infrastructure
Key players: The Piper Alderman legal team was led by partner Martin Lovell, with assistance from senior associate Juniper Watson and associate Mary-Anne Sotiropoulos.
Deal significance: According to a statement from Piper Alderman, ElectraNet’s contract with CIMIC’s UGL to design, construct and commission high-voltage substations and transmission lines that will connect the Prominent Hill Mine to the South Australian electricity grid.
“As part of the contract, UGL will design, construct and commission switching station infrastructure and approximately 300 kilometres of high-voltage transmission lines to support OZ Minerals Limited’s mining projects in South Australia’s upper north region. The project will generate revenue to UGL of approximately $180 million over two years,” the firm’s statement said.
Meanwhile, Electranet’s transmission connection arrangements with OZ Minerals will see it construct the new 300 kilometre high voltage transmission line and associated infrastructure to support its Prominent Hill operations.
“The project will be delivered under a build, own, operate and maintain (BOOM) model and provide for transmission connection to the South Australian electricity grid. The transmission line will replace the existing BHP facility and is expected to be operational during 2020,” Piper Alderman's statement explained.
Commenting further on the matter, Piper Alderman partner Martin Lovell said: “This transmission infrastructure not only provides an end-to-end network solution for OZ Minerals’ Prominent Hill, but also presents opportunities for future load and generation projects in the upper north region of South Australia”.
“It’s great to see the ElectraNet team working with industry to deliver such significant contestable works in a competitive market,” he added.
A statement from ElectraNet thanked Piper Alderman for its assistance in the matters.
“Piper Alderman’s support to the ElectraNet team, combined with legal leadership in developing and negotiating the transmission connection agreement between ElectraNet and OZ Minerals, proved invaluable in achieving a successful outcome for all parties,” the statement said.
“The Piper Alderman team integrated themselves seamlessly and were prepared to go the extra mile when needed.
“It was a pleasure to work with Martin and his team over the last six months. Their professionalism, commercial-mindedness, tactful approach, attention to detail, flexibility and availability make them a trusted advisor to ElectraNet. We look forward to working with Martin and the Piper Alderman team on future transmission connection opportunities.”