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Australia : Agreement reached on Ararat prison project
Publish Date : 06-Aug-2012
The Ararat prison expansion will be completed and subcontractors will be paid valid claims under an agreement negotiated by the Victorian Coalition Government.
The agreement to secure delivery of the prison expansion has been negotiated with the two domestic banks, the Commonwealth Bank and the Bendigo and Adelaide Bank.
A process for assessing and paying the subcontractors\' outstanding invoices will begin immediately.
\"This is a much better deal for Victoria than the one Labor left us with. After weeks of intensive negotiations, the Coalition Government has cleaned up another flawed Labor project,\" Mr Baillieu said.
\"We thank the subcontractors and the people of Ararat for their patience.\"
Under the agreement, the banks will complete the prison project. In doing so, they will assume all risk, guaranteeing the delivery of the project and providing certainty for both the State of Victoria and the people of Ararat.
Corrections Minister Andrew McIntosh said the agreement provides certainty as to cost and delivery. If the State had taken over the project, it faced uncapped costs and unacceptable delays.
\"Labor\'s project failed because it involved construction companies that couldn\'t deliver, and a lack of adequate guarantees to the Victorian taxpayer,\"
\"This agreement provides the certainty which was sorely lacking in Labor\'s failed contract,\" Mr McIntosh said.
The Coalition Government has negotiated payment of valid claims from subcontractors.
The agreement clears all obstacles to the project\'s recommencement, and the banks will now act to appoint a new builder.
\"Since this project was halted we have said repeatedly that Victoria needs these prison beds and the subcontractors interests were a priority,\" Mr Baillieu said.
\"We promised to deliver on both and that\'s what we\'ve done today.\"
The banks have committed to complete the project by the end of 2014.
