Page 2206 - Week 06 - Monday, 11 May 2009
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(3) Given ACTEW’s interest in Ecowise, did it find itself in a conflict of interest in relation to any work undertaken; if so, how did it deal with that conflict.
Ms Gallagher: The answer to the member’s question is as follows:
(1) and (2) Ecowise Environmental is a private company that is jointly owned by ACTEW and Jemena Networks (ACT) Pty Ltd. It provides various environmental monitoring and water resources assessment services to a range of public and private sector clients on a commercial basis in a competitive business market. These matters are between Ecowise Environmental and the relevant organisation. ACTEW does not involve itself in these third party transactions and it is inappropriate for ACTEW to divulge specific commercial and confidential information about Ecowise business operations and its clients.
(3) There is no conflict of interest between the work Ecowise Environmental may do for these organisations and ACTEW. Ecowise Environmental is a private company which operates under an international standard for testing laboratories and has NATA (National Association of Testing Authorities) accreditation.
Actew—debt
(Question No 128)
Mrs Dunne asked the Treasurer, upon notice, on 24 March 2009:
(1) In relation to the ACTEW Corporation’s 2007-08 annual report, how much debt does ACTEW anticipate it will require for completion of the major capital expenditure works as outlined at the second dot point on page 29 of the annual report.
(2) Over what time-frame will ACTEW draw down that debt.
(3) Over what period will the debt be repaid.
(4) What will be the annual debt costs.
(5) What impact will these costs have on water prices for ACT residents and businesses.
Ms Gallagher: The answer to the member’s question is as follows:
(1) ACTEW will fund 100% of the Water Security Major Projects capital expenditure through borrowings. The amount of debt funding required depends on the projects that are approved for construction and their final costs, which are yet to be determined.
(2) Major factors to be considered in determining the time frame include projected cash flows required by the projects and the conditions in the debt markets.
(2) ACTEW will seek borrowings of a long term nature that reflects the long life of the assets and spreads the costs over future generations. By way of example, ACTEW’s most recent borrowing was $300m in late June 2008 in the form of an Indexed Annuity Bond (through ACT Treasury) where the principal is repaid over 40 years.
(3) Annual debt costs will depend on the timing and the terms of the borrowings to be undertaken. Interest costs in 2007-08 were $26.7m and this will increase as more
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