IT promised 300 jobs and a vital economic boost for the Mallee.
But construction of Victoria’s largest solar farm near Ouyen, a project that has the backing of a multinational worth billions, has had a different kind of impact.
Two subcontractors have entered insolvency procedures.
Businesses in the region were left owed at least $290,000, according to an administrator’s report.
Workers were warned by their union to stay away from jobs at the site.
And a once-hopeful community now feels like the companies steering the project have “stabbed us in the back”.
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WORK on the Kiamal Solar Farm, located alongside the Calder Highway just north of Ouyen, started late in 2018.
Initially expected to reach full commercial operation by mid-2019, the project’s first stage is still under construction.
Kiamal is a development of Total Eren, which counts as a 30 per cent shareholder Total, a French multinational valued by market capitalisation at more than $A170 billion.
Total Eren’s website says through “partnerships with local developers” it manages renewable energy projects around the world.
In the case of Kiamal, it was announced in October 2018 that Canadian Solar and Biosar Australia would provide engineering, procurement and construction services to the project.
Beneath the lead contractors, subcontractors were appointed to provide services for the project.
Among these was Ozmac Solar Pty Ltd, which the Supreme Court of Queensland ordered to be liquidated on September 20 last year.
In a report to creditors last month, the liquidator said it appeared Ozmac had a contract with Biosar to provide labour services at Kiamal.
The liquidator said an analysis of the company’s bank statements found the last payment it received for services was from Biosar, on June 21, for $275,000.
Ozmac “then had minimal funds and (still had) a minimal balance by the end of July 2019, which indicates (Ozmac) ceased trading in July 2019”.
The full extent of what Ozmac owed at the time of its collapse is unclear, as the liquidator said its director had not provided the company’s books and records.
Another subcontractor was Rusca Bros. Services Pty Ltd, part of the Northern Territory-based Rusca Group.
The subsidiary company entered voluntary administration on December 23 last year.
Rusca Group managing director Robert Rusca told the NT News the decision was made due to non-payment for work done at Kiamal.
“No pay, no work,” Mr Rusca said.
“We are owed a considerable amount of money – in the millions – and that hasn’t been forthcoming, and because of that, we have had to take this course of action with the interstate energy arm.”
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ADMINISTRATORS appointed to investigate Rusca Bros. Services Pty Ltd last month issued a report that said Biosar was “regularly late” in making payments to the company.
Payment issues were said to have started in August last year.
“It would appear that Biosar pushed out timing of payments and despite providing assurances that funds would be transferred, they were not received or were received late,” the report said.
Rusca was left with “little alternative” but to cease providing services to Biosar, which it did in November.
The administrator’s report listed amounts the Rusca subsidiary owed creditors.
Among them were 26 Mallee businesses — located in Ouyen, Speed, Mildura and Irymple — owed a combined $290,920.98.
The largest sum owing was for $125,025.46 to an Ouyen business.
Other firms in the region were owed amounts of $33,081.79 and $29,670.
Sunraysia Daily has chosen not to name any of the 26 businesses, after being told some were fearful of not being paid.
Rusca Group declined to comment due to impending legal action against Biosar.
Sunraysia Daily made multiple attempts to contact Biosar and its Greek parent Ellaktor, which were unsuccessful.
Mildura councillor Gavin Sedgmen, who was logistics manager with Biosar, said on Friday he no longer worked for the company.
Canadian Solar has not been named in complaints or insolvency reports.
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WEA Group is another subcontractor hired to help build Kiamal Solar Farm.
A source close to the project, who declined to be named, said there was an informal protest earlier this month involving WEA Group employees over irregular or non-payments since December.
The source claimed workers were “physically and mentally spent”, with some owed more than $4000.
Protesters were told to “get back to work or leave”, the source said.
“This story needs to be exposed and it’s about time it is, because enough is enough,” the source said.
“There are too many people being done over.”
WEA Group was unable to comment due to “contractual obligations”.
Warning signals were sent to workers about the solar farm as far back as June last year.
The Victorian branch of the Electrical Trades Union (ETU) cautioned its members in a Facebook post about “insecure work and substandard pay and conditions” at the site.
“ETU members should be aware that the Kiamal Solar Farm near Ouyen has the potential to become another RCR situation,” the post said, referencing the collapse of a separate solar farm contractor.
RCR Tomlinson was said to employ 115 electricians at the Wemen solar farm project at the time it entered voluntary administration in 2018.
Administrators of the Rusca subsidiary identified $1,022,217.10 in owed employee entitlements, including unpaid superannuation, wages and redundancy payments.
Ozmac’s liquidator found $13,070 in owed superannuation, but its report said the total owed in wages and super was unknown.
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THE wait for payments has been felt by the tight-knit Mallee community.
An Ouyen source, who asked not to be named, said the solar farm was supposed to be “such a great thing” for the economy.
“The drought has been so bad that it was just going to give people a new lease on life, but instead they have stabbed us in the back and betrayed us,” the source said.
“People come down to the pub and sit at the table in a group and can’t believe this has happened and that people can be this unfair to other people.”
The source said although the town didn’t want to see the worst in people, Ouyen had been “taken advantage of”.
“I don’t think we even know how bad it is really,” the source said.
“I can stand here and say this is awful, it’s not fair, I’m scared, but I don’t know if we’re all frightened enough.
“I don’t think we know how far these corporations are willing to go to save themselves and in the process put everyone else under.”
UPDATE — Late Friday, Total Eren issued the following statement: “We are aware of ongoing discussions between Biosar and local subcontractors and we believe our main EPC is handling the situation.
“We have expressed to Biosar that we were expecting them to implement the right solutions.
“As a Group policy, we are committed to fulfill our obligations vis a vis all our suppliers and contractors and have therefore obviously met all our payment obligations on time to Biosar.
“We remain fully committed to the Kiamal solar project, which we believe will contribute to a more sustainable environment in Australia.”
