15th May 2009
WA DEFERS CRITICAL MIDWEST
ENERGY INFRASTRUCTURE
Integrated energy developer Aviva Corporation Limited
(ASX:AVA, BSE:AVIVA) advises that the WA government
has deferred construction of the 330kV transmission line from Perth
to Geraldton and has not included expenditure on the
line in the 2009/10 budget.
The Economic Regulation Authority of Western Australia
determined that the 330kV transmission line satisfied the Regulatory Test in
December 2007. The Regulatory Test is an assessment of whether the proposed
work maximises the net benefit to those who generate, transport and consume
electricity in the South West Interconnected Network after all options are
considered.
The 330kV transmission line was proposed by the state
network operator Western Power. The ERA received public submissions in favour
of the proposal from Aviva and other entities including
? Mid West Development Commission
? Griffin
Energy
? Geraldton Iron Ore
Alliance
? Extension Hill Pty Ltd
Aviva CEO Lindsay Reed said ?The
power line is of critical importance for the development of the Mid West region
because energy is a key requirement for all the proposed iron ore projects and
the deep water port at Oakajee?.
Aviva?s
Coolimba Power project at Eneabba
can accommodate up to a two year deferral of the transmission line and requires
the construction of only the first stage from Perth
to Eneabba to facilitate connection to the network.
?It is
critical for Coolimba that the government expeditiously clarifies the extent of
the deferment and indicates how it intends to fund the transmission line?, Mr
Reed said.
?Without
such commitment Coolimba will be unable to contract with Western Power for
connection to the network and as a consequence would be unable to contract to
supply electricity to Synergy or other customers?.
The capacity to execute these contracts is fundamental
to the procurement of project finance for Coolimba. Mr Reed said that Aviva
maintains that a competitive power generation sector in WA involving private
sector projects requires adequate and timely provision of transmission infrastructure
in order for new generation to be developed.
As a matter of priority Aviva will be engaging with
government at all levels to provide certainty for the funding and development
of this transmission line.
CONTACTS:
Lindsay Reed
Robert
Kirtlan
Aviva
Aviva
Chief Executive Officer
Director
Tel: +61 (0) 8 9367 2344
Tel: +61 (0) 8 9367 2344
Issued by:
Warrick Hazeldene
Purple
Communications
Tel: +61 (0) 8 6314 6300
ABOUT AVIVA
Aviva is an integrated energy company
listed on both the Australian Stock Exchange and Botswana Stock Exchange with
its head office in Perth.
The company is growing a portfolio of integrated energy assets. Aviva?s most advanced asset is the Coolimba Power project in Western
Australia.
The Coolimba Power Project will be based
on fuel from the Central West Coal project and is ideally located in the
northern half of the SWIS power grid to take advantage of demand growth both in
the SWIS and from new resource projects in the Mid West Region. The location
has the advantage of low cost fuel, available water, adjacent infrastructure,
existing mining lease and freehold land. Coolimba will be a 400MW base load
generator employing leading emissions technology for water, sulphur and carbon
dioxide.
Aviva is earning a 90% interest in the Mmamantswe project in Botswana
where it has outlined a 1.3 billion tonne coal resource. The project is well
positioned, being on the South African border and adjacent to key
infrastructure including, highway, railway, and high voltage transmission
lines.
Visit: www.avivacorp.com.au
Issued by
Purple
Communications
Level 3, 28
Kings Park Road, WEST PERTH
WA 6005
Ph: 08 6314 6300 Fax: 08 6314 6355
purple@purplecom.com.au