Report 15

Pilbara Underground Power Project

Background

The Pilbara Underground Power Project (PUPP) aims to replace overhead power lines for a safer and more reliable power supply to approximately 5 600 residential and industrial lots in parts of Karratha (3 327 lots), South Hedland (2 028 lots), Roebourne (50 lots) and Onslow (214 lots). The initial planned cost and timeframe was $132 million and three and a half years, with completion due in December 2012.

The risks of power outages and economic disruption resulting from cyclones and extreme weather events in the Pilbara are well established. In 2008, Horizon Power (Horizon) produced a strategy to ‘harden’ regional power supply across numerous parts of the state, including the Pilbara.

In June 2009, Cabinet provided an initial $35 million of a $100 million state government contribution funded through the Royalties for Regions (RfR) program. The remaining $65 million was approved in January 2010 and funds provided in November 2010. PUPP is part of a larger $300 million Pilbara Revitalisation Plan.

Like other underground power projects in Western Australia (WA), local government was required to share the cost with the state. In this case, the state was to contribute $100 million and participating local government authorities were expected to provide $30 million. This was different from other such projects in regional and metropolitan areas where the funding split has been 50-50.

The Department of Local Government and Regional Development (DLGRD), now Department of Regional Development (DRD), was responsible for bringing together and assessing the project proposal and administering the funding agreement. The Office of Energy (OOE) developed the original costings for PUPP. Project oversight rested with a steering committee made up of DLGRD, OOE, the Pilbara Development Commission, local government authorities and Horizon.

Horizon was the organisation chosen to deliver the undergrounding project, including contracting the construction works, project design and overall project delivery. Horizon is a government trading enterprise, governed by a Board, which reports to the Minister for Energy.

Horizon contracted separate companies to undertake the undergrounding works in Karratha and South Hedland. Work first began in Karratha in 2010. The initial contractor stopped work in 2012 and another contractor is now in place. Work began in South Hedland in 2012, and was completed in 2013. Work has yet to start in Roebourne or Onslow.

 
Page last updated: November 1, 2019

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