Off the wire
• China treasury bond futures close mixed Friday  • Across China: From Changchun to Rio: Chinese train engineer tells tale of two cities  • China Hushen 300 index futures close lower Friday  • World food prices up slightly in April: FAO  • 2nd LD: Scottish National Party wins parliamentary election in Scotland  • Alberta wildfire could cause record insurance losses in Canada  • Elderly women in Canada's British Columbia more likely to receive inappropriate prescriptions: study  • 1st LD-Writethru: China indicts four senior officials for graft  • Most foreign fishing vessels reflagging to meet New Zealand law: regulator  • Chinese archaeologists discover 8,000-year-old paddy  
You are here: 　 Home

Australian election delays key asset sale needed to fund infrastructure projects

Xinhua, May 6, 2016 Adjust font size:

Funds for urgently needed infrastructure upgrades have been pushed back by three weeks as the pending Australian general election halts the privatization of state electricity distributor Ausgrid, according to media reports.

The New South Wales (NSW) state government had planned to announce the bidding winner for 50.4 percent of Ausgrid, in a deal worth 10 billion Australian dollars by mid year as it recycles state-owned assets to pay for much needed transport infrastructure and capital works.

However the sole remaining suitors State Grid Corp of China and Cheung Kong Infrastructure Holdings Ltd were sent emails via the state government's advisers last night informing them of the delay, global news agency Reuters reported, sighting unnamed sources.

According to Fairfax Media, the decision has been delayed until July 25, though no reasons were given. It's believed the decision has been delayed by the pending Australian general election to be held on July 2.

Australian Prime Minister Malcolm Turnbull is expected to call the election on Saturday, placing the government into caretaker mode which puts all foreign bids requiring Treasury and Australia's Foreign Investment Review Board (FIRB) approval on hold.

In a statement to Xinhua on late Friday, NSW Treasurer Gladys Berejiklian played down the media reports suggesting the decision has been delayed due to the pending election.

"The Ausgrid transaction remains on track to be delivered later this year," NSW Treasurer Gladys Berejiklian told Xinhua. Endit