Another blow for Snowy 2.0 project as drilling contract canned
The federal government-owned Snowy Hydro has suffered a further hitch on its giant Snowy 2.0 expansion with a drilling contract terminated.
The federal government-owned Snowy Hydro has suffered a further hitch on its giant Snowy 2.0 expansion with a drilling contract terminated, the latest setback as new boss Dennis Barnes prepares to meet Eden-Monaro MP Kristy McBain for an update on the project.
A drilling contract for the installation of six holes more than 2km in length was handed to AJ Lucas Services in early 2022 covering the installation of power, water, and communications services from its Lobs Hole to Marica sites. However, the deal was recently canned in a move which forced the Future Generation Joint Venture to reapproach the market to look for a replacement contractor. The so-called trunk services are a critical part of the project and will extend through to the Tantangara reservoir.
The expansion involves building a 240-metre pumped hydro power station sitting 800 metres underground which connects to 27km of tunnels between the Talbingo and Tantangara reservoirs.
“We are aware that the contract of a drilling subcontractor to Snowy 2.0 principal contractor Future Generation Joint Venture was terminated,” a Snowy Hydro spokeswoman said. “The drilling work is to facilitate ancillary services across the project and is not related to the main tunnelling activity. We understand that FGJV is in discussions with a replacement subcontractor, and is going through a tender/pre-award phase.” AJ Lucas Services declined to comment.
It follows a key tunnelling machine at the development remaining stuck more than two months after first grinding to a halt, with Snowy Hydro saying a week ago its contractors were still working to stabilise the ground in front of the machine.
Meanwhile, Mr Barnes will meet local Ms McBain on Thursday amid pay disputes with contractors. The meeting follows rising anger among Snowy 2.0 contractors who claim they have been waiting up to six months to be paid, with some businesses crippled by the lack of cashflow.
Ms McBain, who is also Local Government Minister, said she was eager to be updated on the project, and is expected to be briefed on a number of issues.
“The Snowy Hydro expansion is in the Eden-Monaro electorate, which is why I look forward to receiving an update on the progress of their works,” she said.
The Weekend Australian last month revealed growing anger among local contractors who have had their jobs replaced by external workers, with the majority hired by Leed Engineering which is one of the contractors working on the pumped hydro project. Many workers would not speak publicly over fears they could lose future work opportunities with Snowy Hydro.
It is understood Ms McBain will seek regular briefings from management and is keen to ensure Snowy 2.0 remains a strong employer in the region.
Over 2200 people are employed by the project, with about 4000 to be hired across its lifetime.
The tunnel boring machine, called Florence, hit difficult ground in November and has moved only 150 metres since it was first deployed in March 2022. The machine has not moved since December, when it stalled with soft ground ahead of it. Snowy said contractors were working to inject grouting in the 10-15 metre zone of “weak” ground ahead of the machine, needed to support its work before it reaches fresh rock. But that work has been slowed because a sinkhole has opened on the surface above Florence, leading to safety concerns around the site. Snowy did not give any indication of when it expects Florence to return to work, saying its contractor – the Webuild-led FGJV – was also working to modify the tunnelling machine to allow it to work through areas of soft ground.
