Are old ARENA projects really safe?

We now know ARENA's future is bleak, but a clause in its standard contracts provides the government with the power to also abandon already underway and funded projects. This could leave developers stranded with half-finished projects and big debts if they didn't make sure this clause was removed.

Yesterday the Abbott Government appears to have finally confirmed what everyone had come to expect, it will relegate its pre-election commitment that it “fully supports ARENA” to the non-core promise bin and abolish the agency in tonight’s budget.

At present there are no details of what, if any, of the Australian Renewable Agency's programs and associated uncommitted funding will be rolled over into the Department of Industry. One would suspect, given events over the last few months, that nothing will survive other than legacy projects funded under agreements already signed. By tonight with the release of the budget papers this should finally be resolved.


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