Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

# of Projects: 1
100% of the Results

Background informationProject Created: October 2, 2019

Project Name: Snowy 2.0 Hydro Power Project (Talbingo Reservoir)
Year in Operation: 2024
Sector: Energy
Subsector: Water
Status: Design / Construction
Type: New Facility
Description: Snowy 2.0 will add the largest hydro power station in Australia to the Snowy Mountain Hydro generation scheme, which currently produces more than 1/3 of the nation's renewable energy. The original Snowy Mountains Scheme was construction between 1949 and 1974, comprising 16 major dams, nine power stations, one pumping stations, 145 km of tunnels, and 80 km of pipelines and aqueducts. Most of the project is underground. In addition to producing renewable energy, the project manages irrigation water flows via the western Murray and Murrumbidgee Rivers to substantial agricultural areas in SE Australia. The project will increase the hydro capacity of the overall scheme from 4 GW to 6 GW. A JV of Salini Impregilo and Lane Construction and Cloug (for $Austrailian 5.1B) is for excavation of up to 27 km of headrace and tailrace tunnelling and the powerhouse caverns located at up to 800 meters below the surfaces. The JV is Future Generation.
Delivery Method as described in the country where it's located: Design Bid Build
Is the project still active: Yes

Project Locations

City: Talbingo
State: New South Wales
Country: Australia, Commonwealth of

Souces of Project Support (Non-monetary)

Checkbox Checked Access to Land
Checkbox Checked Environmental Clearance

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: In March 2018 the Federal Government of Australia acquired all the shares of Snowy Hydro from the state governments of New South Wales and Victoria, for more than $6 billion (AUS). Favorable long term supply agreements with solar and wind generators for supply of off-peak energy will allow the government to pump water back to the upper reservoir and provide an estimated 175 hours for peak demand storage. This created the economics that will fund the project - with anticipated returns at about 9%.

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Checkbox Checked

Direct Cash Support: Capital costs are expected to be between $3.8 and 4.5 billion in 2017, and more than $5 billion after inflation adjustments through the end of construction. Another $2 billion is expected to be spent to upgrade transmission lines to the cities of Sydney and Melbourne, where the power will be sold at market rates.

Project Delivery & Finance Method

Project Delivery:
Design Bid Build/Construction Management at Risk (All Public Finance). Public Sponsor contracts for initial design, and separately contracts for initial construction. Public Owner then separately contracts with another party, who operates and maintains the facility.
Construction Manager At Risk Variants: Public Sponsor contracts with Construction Manager At Risk while design is in process.

Procurement Approach

Project Component
Based Selection
Request for
Request for
for Bids
Construction Manager at Risk

Term for Key Components & Forms of Contract

Project Component
Initial Design and Construction
Negotiated agreement. 

Project Value (If and As Known)

Date of Estimated Project Value: June 5, 2019
Project Value
Hard Cost
Hard & Soft Costs
$25-100 Million US
$1-5 Billion US
Operations & Maintenance
$2-10 Billion US
$2-10 Billion US


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