Downer EDI Limited and its partner Senvion GmbH entered into a contract for Stage One of the Murra Warra Wind Farm near Horsham in Western Victoria. Stage One of the Murra Warra Wind Farm involves electrical, procurement and construction work, including the installation of 61 wind turbines. Under the contract, Senvion is responsible for the manufacture, transport, erection and commissioning of the turbines while Downer is responsible for balance of plant works.

Stage One is valued at approximately $380 million, with Downer's share approximately $100 million. While the delivery scope of Stage One of the Murra Warra Wind Farm is split between Downer and Senvion they share any liability under the project contract jointly and severally. Downer holds a substantial bank guarantee from Senvion.

On 9 April 2019 Senvion filed self-administration proceedings in Germany. On 17 April 2019 Senvion announced that its lenders and main bond holders had signed a binding loan agreement for a EUR 100 million debtor-in-possession facility. Work is continuing to progress on site and Downer has initiated discussions with Senvion's court appointed Custodian and other key stakeholders, including Partners Group (the owner of the wind farm), to establish a process for securing delivery of outstanding equipment and completing Stage One.

As these discussions continue, along with the self-administration process, Downer will be assessing whether there is any potential financial impact on Downer and consequently any impact on its guidance for the 2019 financial year. Downer will keep the market updated.