Lower Churchill Project Project Update April 13, 2013
Safety Moment • Nalcor safety culture 2
Project Overview
Muskrat Falls Generating Facility
Project Update • Sanction decision made by the provincial government in December 2012 • Preliminary site work completed at Muskrat Falls • Moving forward with site construction • Contracts and packages awarded for several major project components
Key Construction Activities: 2013
Muskrat Falls – 2013 • Bulk excavation work underway • Start reservoir clearing • North Spur geotechnical engineering • Accommodations complex to be constructed • First concrete to be poured for spillway 8
Labrador Transmission (2013) • Commence Right of Way (ROW) clearing – Muskrat Falls to Churchill Falls • Commence transmission construction • Commence earth works at Churchill Falls switchyard 9
Labrador-Island Link/SOBI (2013) • Anticipated release from Environmental Assessment • Following release: – Commence earthworks at Soldier’s Pond (Avalon Peninsula) – Start ROW clearing in Labrador and Northern Peninsula – Begin transmission construction late 2013 – Begin Strait of Belle Isle Horizontal Directional Drilling (HDD) program
Muskrat Falls Construction Site
Muskrat Falls Site Today • Seven contractors working on site today • Approx. 300 workers on site • Security and medical services located on site • Health, Safety and Environmental personnel onsite • Temporary camp operational in April 12
Muskrat Falls Site 13
South Dam Area 14
Drilling at the Powerhouse Area 15
Temporary Accommodations 16
Permanent Accommodations Pad
Bulk Excavation 18
Line Stringing Across Churchill River Bringing construction power and high speed broadband into site. 19
North Spur Substation 20
North Spur Substation – Control Building Foundation 21
Newfoundland and Labrador Benefits
Benefits to NL will include: • Long-term stable electricity rates for generations • Reliable, long-term supply of clean, renewable energy • Energy independence – an enviable position • Energy for future mining and industrial development in the province • Diversified economy, jobs and benefits • Link to North America’s electricity grid and ability to export power to other markets • Long-term revenue generation
Project Benefits • The construction of Muskrat Falls will mean significant economic benefits for Newfoundland and Labrador, including: – $1.9B in income to labour and business – $320M in average income benefits per year – $290M in taxes to the Government of NL 24
Project Benefits • Approx. $500M in income to business and labour will be earned by Labradorians and Labrador-based businesses. • 23,300 person years of direct, indirect & induced employment - 8,000 in Labrador. • 9,100 direct person years of employment during construction - 5,800 in Labrador. 25
Employment & Training Opportunities
Jobs and Benefits Average 3,100 direct jobs at peak • 1,500 direct jobs/year on average • across 70+ occupations 1,330 direct jobs/yr in Labrador • More than 75% of the direct labour • for the Muskrat Falls generation facility will be undertaken in Labrador. After construction, NL employment • will continue with an estimated 80 direct full time jobs during the operational life of the Project. 27
Hiring Protocol • Effective upon finalization of collective agreements and Special Project Orders. • Hiring protocol for the generation portion of the project: – IBA Commitments – Qualified and experienced residents of Labrador – Qualified and experienced residents of Newfoundland – Qualified and experienced Canadians – Qualified and experienced non-Canadians • Hiring protocol for the transmission portion of the project: – IBA Commitments – Qualified and experienced residents of Newfoundland & Labrador – Qualified and experienced Canadians – Qualified and experienced non-Canadians 28
Labrador Employment • January 2013 – 369 people working in Labrador – 101 residents of Labrador, 54 are members of Aboriginal groups • February 2013 – 466 people working in Labrador – 144 residents of Labrador, 76 are members of Aboriginal groups • As work at the Muskrat Falls construction site increases, employment opportunities will also ramp up, with more people and trades required month over month, year over year. 29
Attracting Skilled Workers • Direct and indirect employment across a variety of industries • Project will largely require: – Labourers – Carpenters – Ironworkers (rebar) – Truck drivers – Surveyors – Crane operators, drillers and heavy equipment mechanics • Skill sets typically more accessible in the local labour market with accessible training
Attracting Skilled Workers • Labour market pressures around the province and across the country • Need to be competitive to attract highly skilled and qualified workers • Competitive terms and conditions of employment throughout construction include: – wages – quality accommodations – travel and transportation – accessible training – work site close to home • Employment growth and ramp up will occur in steady numbers, month over month.
Quarterly Labour Demand 2013-17
How to Apply • Register online at muskratfallsjobs.com • Contact contractors working on the project • Contact a union in your trade 33
muskratfallsjobs.com • Helps ensure Newfoundlanders and Labradorians benefit from jobs/opportunities generated through Project • Help meet anticipated labour requirements for the Project • Provides easy access to employment information • Job database specific to Muskrat Falls construction • Database for potential candidates and Project contractors/unions • Use of database by contractors/unions will be tracked by Nalcor • Over 4,000 registered applicants
Labrador Aboriginal Training Partnership • Working closely with LATP, CNA, and other stakeholders to ensure Aboriginal people from Labrador have access to programs and training that will help them become qualified to work on the project. • Number of success stories through these partnerships, which will continue to build as we increasing employment demands on the project. • Training programs facilitated by LATP do not relate specifically to current labour needs for Muskrat Falls.
Procurement Opportunities
Project Procurement Full and fair opportunity on a competitive basis • Availability and competitiveness of businesses to provide goods and • services determines level and nature of economic benefits All businesses must demonstrate value and competitiveness in their • bids, and develop business opportunities with primary contractors to successfully secure work with the project. Nalcor is employing best practices in project and contract • management to ensure project costs and schedule are effectively managed. Nalcor, SNC-Lavalin Inc. and any contractors and suppliers must • adhere to provisions of: – Impacts and Benefits Agreement (IBA) with Labrador Innu – NL Benefits Strategy – NL/NS Benefits Memorandum of Understanding
Procurement Opportunities Range of opportunities will be available: • – Primary contractor or direct supplier to Nalcor – Subcontractor or supplier to project’s primary contractors Forecasted, active and awarded packages available on Nalcor’s • website Contact information available for approved bidders and successful • contractors Businesses encouraged to regularly monitor the site for potential • opportunities Subcontractors encouraged to contact bidders and successful • contactors directly to sell their product/service and demonstrate value Majority of procurement activity for the Project will be initiated in • 2013/14 38
Innu Business Opportunities • Nalcor is committed to enhancing Innu business participation in the project in accordance with the IBA • Innu Businesses have first bidding opportunity on $400 million of business opportunities, split between Phase 1 (Muskrat) and Phase 2 (Gull Island) • First bidding opportunities cover a wide range of goods and services • Interested businesses should contact the Innu Business Development Centre or Innu Nation to discuss partnership opportunities
Procurement Activities to Date Contracts awarded to Labrador and Aboriginal companies: • – Site Clearing for Muskrat Falls Access Road and Ancillary Areas (Nukum Forestry) – Southside Access Road (Liannu Limited Partnership) – Supply of temporary construction camp (Liannu Limited Partnership) – Bulk excavation (IKC-ONE Earthworks Constructors) – Security Services (Speuata Security Inc.) – Site Medical Services (Innu - Med Inc.) – Temporary site services (Labrador Catering Limited Partnership) – Snow clearing (Shukapesh Construction Ltd.) To date, more than $8.5 million in expenditures has been made to • Labrador based companies. More than $200 million in contracts awarded to Innu • partnerships/businesses to date.
Procurement Forecast 41
Accessing Procurement Information 42
Community Liaison Committee
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