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
"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
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
For further information:
Public Relations Manager, Global Corporate
SNC-Lavalin Group Inc.
514-393-8000, ext. 54772
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
514-393-8000, ext. 57553