Talks on East West Link compo to start
December 23, 2014
The Australian: Talks on East West Link compo to start 23 December 2014
The new Victorian government has canned plans for the East West Link project. Source: Supplied
NEGOTIATIONS are to begin today over potential government compensation for the cancelled East West Link amid market speculation of a growing rift between lenders to the $6.8 billion toll road project and the construction consortium led by Lend Lease.
The unwinding of a $3.5bn debt facility, arranged by a group of financiers including the Commonwealth Bank, has emerged as a key issue in resolving the dispute between the state and the consortium.
Potentially complicating negotiations, the interests of the lending group have diverged from those of Lend Lease, which was to build the ill-fated project.
Market sources said this was because Lend Lease frequently bids for government projects and needs to maintain a good relationship with the state, while the banks are more concerned with recovering compensation.
However, a spokesman for the consortium said it was “united”. Continue Reading…