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Snowy Hydro could cost Scott Morrison $6bn

Snowy Hydro could cost Scott Morrison $6bn

The Turnbull government faces some hard bargaining in its quest to buy NSW and Victoria' out of Snowy Hydro for about $6 billion, but has made a good start by getting both states to the table.

Victorian Premier Daniel Andrews said he is keen to talk to Malcolm Turnbull about a sale of the state's 29 per cent sale in Snowy Hydro but wary of "the Prime Minister of Sydney's" record of "ratting" on infrastructure funding deals.

"I have got my doubts about any new deal with Mr Turnbull given that he ratted on the last one but I am happy to talk to him about it," Mr Andrews said. Victoria says it has been shortchanged by billions of dollars under asset recycling deals while NSW has got every cent it is owed.

Snowy Hydro could be worth as much as $7 billion but energy experts have cast doubt on the viability of Prime Minister Malcolm Turnbull's $2 billion expansion plan, saying the technical risks of such a massive drilling project are huge.

Financial Review

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