Keeyask dam cost could reach $10.5 billion


tay
#1
An independent review of Manitoba Hydro's capital expenditure program warns the Keeyask hydroelectric dam could cost the province billions more to complete than expected. It also blames the Crown corporation's lack of construction management experience and skills for failing to keep the multibillion-dollar project on track.

The report, written by Calgary consulting firm MGF Project Services, was commissioned by the Manitoba Public Utilities Board as part of the PUB hearings into Hydro's proposed rate increase. It found the Keeyask dam could cost as much as $10.5 billion due to the "contractor's poor productivity and increased indirect costs" associated with the project.

The 695-megawatt generating station — approximately 725 kilometres north of Winnipeg on the Nelson River — was originally estimated to cost $6.5 billion and expected to be in service by November 2019. In September 2016, Hydro raised its cost estimate to $7.8 billion.

Then in March, it went up to $8.7 billion. At the time, Hydro blamed rising expenses for foundation work for the additional increase.

Hydro wants to charge 7.9 per cent more per year until 2023-24, and raise rates an additional 4.54 per cent the following year. If allowed, that would mean a $1,000 Hydro bill would reach almost $1,600 in 2023-24, and it would hit $1,650 the following year.

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Keeyask dam cost could reach $10.5 billion, report warns - Manitoba - CBC News
 
Decapoda
+1
#2  Top Rated Post
So much for cheap hydro in Manitoba. After 17 years of NDP rule, the last thing the province needs is to give people and business one more reason to leave.
 
Hoid
#3
oh just wait for it.

mega project = mega cost over run. Site C already $3 billion over and it's barely started?

should add its blown past the $10 billion mark and it looking at that $20 billion finish line.
 
taxslave
#4
Quote: Originally Posted by Hoid View Post

oh just wait for it.

mega project = mega cost over run. Site C already $3 billion over and it's barely started?

Site C was on time and on budget when the dippers took over the government. Do tell how did the dippers squander that much money on one little project in 4 short months?
 
Hoid
#5
Quote: Originally Posted by taxslave View Post

Site C was on time and on budget when the dippers took over the government. Do tell how did the dippers squander that much money on one little project in 4 short months?

it has never been on time or on budget,

the previous government ran up that $3 billion or so over run prior to getting permission to go ahead with the project.
 
taxslave
#6
Quote: Originally Posted by Hoid View Post

it has never been on time or on budget,

the previous government ran up that $3 billion or so over run prior to getting permission to go ahead with the project.

There was no overrun until 4 months after the dippers took over. The provincial government gives permission, not askes for it.
 
Hoid
#7
the provincial government has spent billions of dollars on this project.

the provincial government approved the project last week.

anywhere outside of BC this would be considered odd.