The much awaited Sir Adam Beck Hydro Scheme in Canada will not begin within the next six months (Oct ’98). David Heath of the client, Ontario Power Generation, told T&T International, "Unfortunately, the tunnel project has been delayed. The length of the deferment is very difficult to predict but we are certain it will not start within six months." On a more optimistic note, he continued: "It definitely has not been cancelled."
Primarily, blame for the delays lie with the ongoing restructuring of the electrical industry in Ontario. Heath explains: " We are in the process of deregulating our industry and forming a new company. We have decided not to proceed (with the project) until the impact of these changes is better defined."
Award of the contract for the hydro scheme was expected in July/August this year, with the Obayashi/Kenaidan JV tipped after pre-qualifying with the lowest bid of US$270m. With the award of contract, the JV was to order a 13.9m hard rock TBM, thought to be one of the largest of its kind in the world, from Herrenknecht int the US for construction of the 10km long water diversion tunnel. A spokesman for Obayashi told T&T International, "The Obayashi/Kenaidan JV has been notified that the status of the Sir Adam Beck Additional Diversion Project is on indefinite hold."
The privatisation or dissociation of Ontario Hydro from the provincial government has not run as smoothly as had been hoped. The issue is how to resolve the future of the nuclear generating stations, which amount to more than 40% of the province’s total generating capacity. The problem is twofold: first, the rehabilitation of some of the idle nuclear plants and second, how to limit the potential exposure liability to Ontario Power Generation (OPG), the successor to Ontario Hydro, caused by the existence of these nuclear power plants. "Until these issues are sorted out, OPG is unable to raise finance for any capital expenditure, including, of course, Sir Adam Beck," said the spokesman.
