New QLD Treasurer says Borumba hydro project will be delivered despite multi-billion cost increase

ABC NEWS (Australia)

Queensland's new Treasurer says the Borumba pumped hydro project will be delivered, despite a $4 billion cost increase. David Janetzki says the Lnp is exploring options to make the project work, including whether to downsize.

Transcript

00:00It's a multi-billion dollar project touted as key to the state's energy transition.

00:08The proposed Barumba pumped hydro project is undergoing early works, but the price tag

00:13to build it has already surged.

00:16An initiative of the former Labor government, the 2,000 megawatt project was expected to

00:23be capable of powering over 2 million homes.

00:27It was originally due to cost $14.2 billion, targeting first power in 2030, but a newly

00:33released report from Queensland Hydro shows it's now forecast to cost $18.4 billion, with

00:40first power two and a half years later.

00:43We're committed to delivering Barumba.

00:46The treasurer says he'll meet with Queensland Hydro tomorrow to explore their options, including

00:51whether the size of the project could be altered.

00:54His predecessor insists he had no idea of the cost increase before the October election.

01:01In his first major speech since taking the reins, Mr Genetsky also revealed he's been

01:06warned by Treasury there's a growing risk the state's credit rating could be downgraded.

01:12It is highly likely that we have inherited an outlook downgrade and ultimately a rating

01:21downgrade too.

01:22Queensland has had a double A-plus credit rating since 2009.

01:26During the election campaign, Ratings Agency, SMP, said any additional spending, whether

01:32on new policies or blowouts, could weaken the budget, increase debt and put pressure

01:37on the rating.

01:38Is that part of the risk of Barumba?

01:41Yes or no?

01:42Yes.

01:43Ratings agencies right before the election went through Queensland's budget books.

01:47They put us on a stable outlook, which means they did not see any danger of a credit downgrade

01:54under the Labor government.

01:55Queenslanders will get a good look at the state's books in January, when Mr Genetsky

01:59releases his mid-year financial update.

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