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KIT's Basslink to fork out A$38.5 mil in damages; A$31 mil in unpaid fees not recoverable

Felicia Tan
Felicia Tan • 2 min read
KIT's Basslink to fork out A$38.5 mil in damages; A$31 mil in unpaid fees not recoverable
Units in KIT closed 0.5 cent lower or 0.9% down at 55 cents on Dec 3.
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Keppel Infrastructure Trust (KIT)’s Basslink, has received the outcome of its arbitration involving itself, the State of Tasmania and Hydro Tasmania.

According to the company’s statement released via SGX, the arbitrator awarded damages of A$38.5 million ($38.0 million) against Basslink.

He also declared that Basslink’s claim of A$31 million in unpaid fees was not recoverable as a force majeure event had not occurred.

The disputes relating to the Asset Management Plan and the Marine Disaster Recovery Plan have been separately settled, according to Basslink.

Basslink Chief Executive Malcolm Eccles said that the organisation would take time to review the rulings and determine the next steps.

“We are obviously extremely disappointed with the outcomes,” he said. “We will need some time to review the decisions and consider the implications. In the meantime, Basslink continues to operate efficiently and reliably, connecting Tasmania to the national electricity market.”

Basslink, on April 26, 2018, had received a letter from the State of Tasmania that its dispute with the state had been referred to arbitration.

On Oct 8, 2018, the same thing occurred to Basslink’s dispute with Hydro Tasmania.

On Oct 22, 2018, Hydro Tasmania had issued a notice of dispute under the Basslink Services Agreement to Basslink. The dispute was referred to arbitration on Nov 29, 2018.

Units in KIT closed 0.5 cent lower or 0.9% down at 55 cents on Dec 3.

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