ChanceC to skip $2bn in claims

WEBUILD EYES DEAL

ITALY’S Webuild could avoid up to $2bn of financial claims if a deal for collapsed contractor Clough proceeds, as the companies edge closer to an agreement covering several major Australian energy projects.

Minutes from a creditors meeting on January 25 detail how a mooted buyout of Clough by Webuild for sales proceeds of $38.9m would hand the Italian company more than 1000 staff across businesses comprising Clough Projects, E2o and Sharp Resources.

The deal was touted as avoiding claims of $1bn-2bn from Clough’s clients, with the troubled Snowy Hydro 2.0 expansion named as a project responsible for a large portion of the outstanding sum.

While the documents outline the broad shape of a potential deal between the pair, sources said a pending update to be released by Webuild this week would specify which projects the Italian contractor would ultimately scoop up and those that would be passed up. That is likely to change the final sale proceeds figure, with Clough still owing creditors more than $248m.

Webuild has effectively already taken over Clough’s role on the Snowy 2.0 contract, and the bulk of the blue-collar workers are employed and now paid by the joint-venture partnership.

The Kerry Stokes-backed Waitsia project in Western Australia, run by Mitsui E&P and Beach Energy, is expected to also be scooped up by Webuild with the companies waiting for an announcement by the Italian company in the next few days.

Blue-collar workers, particularly on the Waitsia project, jumped ship in January with only half of staff turning up for the first bus of the new year to return to the gas project site in the state’s mid-west.

Mitsui and Beach are understood to be prepared for the contract to switch to a reimbursable basis, effectively removing some of the financial risk and boosting the chances of the development being completed on time and budget.

Two of the other projects at risk in the process are Perdaman’s delayed $6.2bn Pilbara fertiliser project in WA and Transgrid’s 900km Energy Connect power cable linking South Australia and NSW.

Webuild has indicated its interest in the Perdaman project, according to sources, with negotiations focusing on keeping to the current budget while incentivising early completion of the plant.

Transgrid’s Energy Connect scheme has received less interest from Webuild amid speculation an external party such as Spain’s Acciona may want to team up with Clough’s jointventure partner Elecnor on the $2.3bn facility should the Italian company not pursue it.

The WA engineering firm collapsed in early December after a takeover by Webuild fell through less than four weeks after a deal was struck.

Deloitte and Webuild set a deadline of January 30 to finalise a deal on projects.