News | 16th Apr, 2012

Power station project halted despite legal victory

Monday, 16 April 2012
ABC News

The company planning to build a new Latrobe Valley power station has stopped work on the project following a recent legal battle.

HRL won its bid to have the 600 megawatt coal and gas-fired power plant approved in VCAT last month.

But the company says the tribunal's ruling effectively puts the future of the project in the hands of the Federal Government, by tying it to the ongoing contract for closure negotiations.

The VCAT judgement says works must not commence until the Federal Government has entered into contracts to close at lease 600 megawatts of coal-fired electricity generation in Victoria.

HRL says that condition is a major concern and has stopped design and pre-construction work.

Green groups have welcomed news.

Victoria McKenzie-McHarg from Environment Victoria says now the project is on hold the Federal Government should withdraw its $100 million funding pledge.

"Stopping work on this polluting project is the most sensible decision that HRL has made in the last five years," she said.

"HRL have continually failed to meet their deadlines and what this announcement looks like to us is that they are now trying to get yet another extension on their funding from the Federal Government, which is a completely inappropriate action."


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