Calls for probe into A$192m renewable project to save A$5.4m in diesel for remote mining town

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[quote]Coober Pedy's new electricity system will cost almost double what it should, according to an independent report, prompting the South Australian Opposition to ask for an investigation by the auditor-general.

A report by Adelaide engineering firm Resonant Solutions found a $192-million contract to provide power to the outback mining town through a hybrid renewable system could have cost $85 million less if alternative vendors had been given the opportunity to tender.

Deputy state Liberal leader Vickie Chapman questioned why the deal was not put out to tender and drew similarities with the State Government's controversial Gillman land deal.

"As we know in the Gillman deal that was exposed, very strict criteria has to apply if a government or agency is going to accept an unsolicited bid," she said.

"In this case, one bid was considered, the matter did not go out to tender to build this new hybrid system for the Coober Pedy power supply, and that in itself needs to be looked at."

Coober Pedy District Councillor Justin Freytag said the council engaged Resonant Solutions to oversee and give advice on the wind, solar and battery project to be built by Energy Developments.

The firm advised against the contract in its report but by that stage the council had already signed off on it.

Mr Freytag said the Government's Department for State Development (DSD) negotiated the deal.

"It was their deal as far as we're concerned," he said.

"We signed off on it, and we had lawyers to oversee and recommend to council the process ... but that's what we were lumbered with effectively."[/quote]

[url]http://www.abc.net.au/news/2017-02-18/coober-pedy-electricity-system-cost-85-million-too-much/8282736[/url]

I find it's staggering they want a probe to just cover the extra $100m and not the fact they're spending hundreds of millions so they don't need to buy $5m in diesel over 20 years. For that price they could have built a high-voltage 200km link to Coober Pedy and surrounding towns from the national grid.