MONTREAL,
Feb. 28, 2014 /CNW Telbec/ -
SNC-Lavalin Inc. (TSX: SNC) is pleased to announce that InPower BC,
a special purpose vehicle established by SNC-Lavalin Capital Inc.,
in which it holds a 100 percent interest, has signed an agreement
with BC Hydro to design, build, partially finance and rehabilitate
the John Hart Generating Station Replacement Facility under a
20-year contract. BC Hydro will continue to operate the
facility.
Built in 1947 on the Campbell River, the
existing 126-MW John Hart Generating Station represents
approximately 17 percent of the total generating capacity on
Vancouver Island. The project will create a more reliable,
seismically robust and environmentally friendly facility with an
increased installed capacity of 132 MW.
SNC-Lavalin and its team of subcontractors will
provide engineering and construction services. The maintenance of
the generating station will be performed by a partnership of
SNC-Lavalin and an Industrias Metalúrgicas Pescarmona S.A.I.C. y F.
(IMPSA) entity, in coordination with BC Hydro staff.
The Province's power utility named the
SNC-Lavalin-led team as preferred proponent in November of 2013
following a competitive and rigorous procurement process.
"SNC-Lavalin and its partners are pleased to
have an opportunity to help deliver an important project for those
who depend on John Hart for their
power," said Robert G. Card,
President and CEO, SNC-Lavalin Group Inc. "We look forward to
working closely with BC Hydro in one of our strategic home markets
to make the new John Hart facility a
resounding success."
BC Hydro will provide 60 percent of the
approximately $700 million
construction capital cost, with SNC-Lavalin Capital Inc. providing
the balance through invested equity and arranged debt financing,
including a short-term construction loan by Alberta Treasury
Branches and a long-term widely distributed private placement
underwritten by Scotia Capital and National Bank Financial. The
project financing is non-recourse to SNC-Lavalin.
"We are thrilled to continue our long
association with the Province of British
Columbia and strengthen our leadership position in this key
market," added Gerry Grigoropoulos,
Acting Executive Vice-President, Infrastructure Concession
Investments, SNC-Lavalin Group Inc. "This is the first time BC
Hydro has undertaken this procurement model and the replacement
project is one of the largest EPC opportunities in the province.
This agreement therefore also acknowledges SNC-Lavalin's fully
integrated services strategy and team structure."
The construction of the hydroelectric project
will commence in April 2014, with
full commercial operations expected to begin by the fall of 2018.
The total completion of the new facility and decommissioning of the
existing one will run into 2019.
SNC-Lavalin is one of the leading engineering
and construction groups in the world, and is a major player in the
ownership of infrastructure and in the provision of operations and
maintenance services. Founded in 1911, SNC-Lavalin has offices
across Canada and in over 40 other
countries around the world, and is currently active in some 100
countries. www.snclavalin.com
SOURCE SNC-Lavalin