Snowy Hydro’s boss has resigned amid cost overruns and delays to the Snowy 2.0 project in NSW’s Snowy Mountains.
Key Points:
- Paul Broad has stepped down from Snowy Hydro after nearly a decade
- It comes amid cost blowouts and delays to the Snowy 2.0 project
- The Snowy Board will now begin the recruitment process
CEO and Managing Director Paul Broad has led the company since 2013.
His resignation comes amid claims by contractor Future Generation Joint Venture that the project has run out of steam by $2.2 billion.
In a statement to the ABC earlier this week, Mr Broad said the Snowy 2.0 project had been affected by the COVID-19 pandemic and supply chain issues, but rejected claims by the contractor on the cost explosion.
“Snowy Hydro rejects the $2.2 billion claim,” Broad said in a statement.
“Snowy Hydro has paid all amounts to which Future Generation Joint Venture is contractually entitled.”
Broad said all claims submitted by the contractor were “adequately” assessed, in accordance with contractual requirements.
The Snowy 2.0 project aims to link two dams through 27 kilometers of tunnels. (ABC News: Jade Macmillan)
Shadow Climate Change and Energy Minister Ted O’Brien said in a statement that he was concerned by reports that Mr Broad had been sacked from the post.
“Reports that Chris Bowen has ordered Snowy Hydro’s executive board to sack Snowy Hydro chief executive Paul Broad today for providing advice he disagrees with are deeply concerning,” Mr O’Brien said.
“[Mr] Bowen is on an energy rampage as he seeks to shut down the voices of industry insiders who have a different point of view.”
Climate Change Minister Chris Bowen did not respond to direct questions from the ABC about Mr O’Brien’s claims.
In a statement, a spokesman said the government valued Snowy Hydro and the “critical role” it played in supporting a changing network.
“The Albanian government notes the resignation today of Snowy Hydro’s CEO, Paul Broad, after almost ten years of service,” a spokesman said.
“[It] thanks him for his work in the energy market during this period.”
The Snowy 2.0 project has been hit with significant construction delays. (Provided by Snowy Hydro)
The $5.1 billion Snowy Hydro 2.0, first announced by then-prime minister Malcolm Turnbull in 2017, is 19 months behind schedule.
It has pushed projected electricity production past the planned 2025 start.
In a statement, Snowy Hydro said the board would begin recruiting to fill Mr Broad’s position.
“The Snowy Board will now begin a process to identify new leadership,” the statement said.
He said chief operating officer Roger Whitby would lead the organization on an interim basis, with support from Mr Broad to facilitate a smooth transition.
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