Marinus Link names preferred bidder for “balance of works” on undersea cable

Marinus Link has named the preferred bidder for the contract to build the supporting network infrastructure at either end of the $5 billion undersea cable that will provide a second link between the electricity markets of Tasmania and mainland Australia.

Marinus Link Pty Ltd (MLPL) – which manages the interconnector project for its three shareholders, the federal, Victorian and Tasmania governments – says it has selected a joint venture called TasVic Greenlink as the preferred bidder for the civils and construction tender.

MLPL says it currently in final negotiations the DT Infrastructure and Samsung C&T Corporation JV on a contract covering construction of converter stations in Heybridge and Hazelwood, the installation of equipment, and land cable civil works spanning 90 km across Gippsland.

MLPL CEO Stephanie McGregor says the preferred bidder recommendation follows a “robust and comprehensive” evaluation process and opens the door to major opportunities for local businesses.

“The successful tenderer will need strong local business capability to deliver on this massive construction campaign, and we’ve set targets to incentivise this,” McGregor said.

“In February, we invited local businesses to connect with our initial shortlisted bidders in Burnie, Morwell and Leongatha, and nearly 600 people turned up.

“We’ve already passed on the details of over 500 subcontractors and suppliers who registered on the Industry Capability Network gateway previously.”

Marinus Link has faced a good deal of controversy over its plans, including for the blowout in costs that led to its second sub-sea cable to be set aside and for the manner of approval by the state Liberal government.

Some analysts and environmentalists remain bitterly opposed to the huge project, on both economic and environmental grounds, although it forms a key part of the federal government’s renewables plan and the Australian Energy Market Operator’s planning blueprint, the Integrated System Plan.

Despite this opposition, Marinus Link has been ticking off the milestones over the past few months, including financial close off the back of a record multi-billion dollar commitment from the federal government’s green bank.

The Clean Energy Finance Corporation (CEFC) last week announced a “substantially increased” commitment of up to $3.8 billion in concessional finance to support the delivery of Marinus Link – its biggest investment, yet.

In early August, Final Investment Decisions (FID) were announced by the Tasmania, Victoria and federal Labor governments, which hold 17.7 per cent, 33.3 per cent and 49 per cent shares in Marinus Link, respectively.

FID was closely followed by federal environmental approval – a three-times delayed decision accompanied by “strict conditions” for the cable, related to listed threatened species and communities, listed migratory species and an approved Commonwealth marine area.

At around the same time, the Tasmanian Liberal government – which at the time was in caretaker mode – made public a similarly delayed Whole-of-State Business Case, revealing that Marinus Link would likely lead to some unpleasant cost hikes for major industry in the state.

“With Marinus Link in place, Tasmania and Victoria will share much more electricity, pairing Victoria’s wind and solar with Tasmania’s flexible hydropower system and geographically diverse wind. This is a powerful synergy that strengthens the grid for both states,” McGregor said on Monday.

“The project doesn’t just enable more electricity to flow – it also promotes investment in new clean energy projects and industry, in both Tasmania and Victoria.”

MLPL says construction of the project is expected to commence in 2026, subject to final environmental and regulatory approvals. Stage 1 is scheduled for completion by 2030.

“We’re continuing our engagement with landholders, local communities and businesses ahead of construction, and once our final key partner is signed on, we’ll be out and about at large,” McGregor said.

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