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21 July 2003 - The A$780m ($505m) Basslink project linking the power grids of Victoria, Australia and Tasmania is to begin within months. This follows a breakthrough in negotiations between Basslink's main contractor, Siemens, and the state's key building unions.

For two years, Trades Hall Council's building industry group, made up of major unions in the industry, threatened to refuse to work on the project. The ban followed calls from Gippsland residents to sink powerlines underground.

Siemens corporate affairs manager Leah Waymark said Saturday that the company expected construction would begin within a couple of months. "We are quite confident the unions will build it," she said.

Basslink would allow Victoria and other States that are part of the National Electricity Market (NEM), to export electricity to Tasmania. It would also allow the export of hydro-electricity from Tasmania into the NEM.

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