Loy Yang Power announces long-term outage contracts

Loy Yang Power has announced five-year multi-million dollar contracts for its power station outages.

The contracts with Lend Lease’s infrastructure services business and Siemens represent a change in the approach adopted by Loy Yang Power to contracting major outage services, previously allocating contractors on a single outage basis.

The new long-term strategy will allow each contractor to focus on specialised areas of the outages. Siemens will perform the turbine/generator work and Lend Lease will perform the boiler work. The new approach will also increase the planning time available for each outage project.

Loy Yang Power will conduct five major outages on its generating units over the next five years with total expenditure expected to exceed $100 million.

Loy Yang Power chief executive Ian Nethercote said the contracts signalled a level of confidence in the future of the Latrobe Valley power industry.

“The long-term contracts provide Loy Yang Power with business certainty and confidence in the longevity of our plant and our ability to continue to deliver reliable base load electricity to Victoria into the future,” Mr Nethercote said.

“A number of high-quality tenders were received for the contracts and the decision to award the contracts to Lend Lease and Siemens followed an extensive tender review process,” he said.

Lend Lease’s infrastructure services business managing director David Marchant said Lend Lease was a major provider of maintenance services to base load generators on the eastern seaboard and he was very pleased to continue their association with Loy Yang Power.

“The boiler maintenance contract is a significant boost to our Latrobe Valley operation, which employs around 250 people in the region,” Mr Marchant said.

The contract has been signed by the three parties, with the first outage under the contract commencing in August with a 39-day unit one outage.