Victoria's desalination plant refinance deal 'will cut water bills' Aerial view of Victoria's desalination plant near Wonthaggi. A DEAL has been struck between the State Government and AquaSure to refinance the Wonthaggi desalination plant. The Government has also resolved $1.3 billion in legal claims by the consortium behind the troubled project. Under the contract signed by the former Labor Government, AquaSure was scheduled to refinance its $3.7 billion bank debt by September 2014. But the early deal means lower interest rates for AquaSure which the State Government says will result in lower water bills. In 2012, AquaSure took action against the Government for claims totalling more than $1 billion, including for days lost due to bad weather and industrial action during construction. The State Government says it will make no cash outlay related to the resolutions and the cost of ongoing legal bills has been avoided. Water Minister Peter Walsh said the original deal for the desalination plant was made at the height of the global financial crisis and refinancing will produce savings for Melbourne Water customers. "This is a great outcome for Victorians, it has been a tough negation," Mr Walsh said. I think we have negotiated very smartly on behalf of Melbourne Water customers ... and there will be savings on water bills into the future. He said the total amount of savings would not be known for a few months, but believes customers could see changes in their water bills from next year. Opposition Leader Daniel Andrews said the former Labor Government gave AquaSure the option to refinance early, given the contracts were signed at the height of the financial crisis. "AquaSure have been able to obtain lower financing charges, this is good news for Victorian water users," Mr Andrews said