Today we commenced consultation on our initial draft decision for Marinus Link’s Stage 1, Part B (construction costs) revenue proposal.
We are taking a two-step approach in making a determination for this proposal, to support consumer engagement and the timely delivery of Project Marinus. This includes an initial draft decision limited to two market tested work programs, with the remaining cost elements assessed in a supplementary draft decision.
Our role is to assess the efficiency and prudency of the forecast construction costs to ensure consumers pay no more than necessary.
Our initial draft decision is to accept Marinus Link Pty Ltd’s (MLPL) forecast capital expenditure of $1,632.2 million ($2023) for the two market tested work programs. This compromises converter station design and equipment supply of $737.2 million ($2023) and the high voltage direct current cable system of $895.0 million ($2023). The two market tested work programs account for 46% of the total proposed capital expenditure for the construction of the first Marinus Link cable. Our initial draft decision also includes our positions on the application for the capital expenditure sharing scheme, cost pass throughs and the contingent project for cable 2.
We expect to receive a revised proposal from MLPL in July 2025, which will include updated costings on the remaining costs for the balance of works, support activities and risk allowance which are not assessed as part of the initial draft decision. We expect to make our final decision on Stage 1, Part B (Constructions cost) following both rounds of consultation in December 2025.
