I think AVL tick the local content box a lot better. Atlantic are Indonesian owned, and AVESS import VFBs from South Korea, and only half own that company.
Regarding the 5% chance of AVESS and whether they think the same, my guess would be they think they have a better chance than that, but know they're up against it. If I was Ken Brisden I would still want AVESS to submit an EOI, partly for brand recognition, partly to get submission feedback, partly for the chance that they could win it, but mostly for brand recognition and to get their name in the space. Maybe they're looking at it wholistically, that the VFB market in WA will eventually be big enough for multiple players.
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