TORONTO, June 14, 2018 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that a joint venture between Aecon, SNC-Lavalin and AECOM has been awarded a $475 million contract by Bruce Power to execute the Unit 6 Fuel Channel and Feeder Replacement (FCFR) at the Bruce Nuclear Generating Station in Kincardine, Ontario. The joint venture will work together under the banner Shoreline Power Group. Aecon holds a 40 per cent share in the project.
As a part of Bruce Power's Life Extension Program, which will allow Bruce Power's CANDU units to continue to operate safely through to 2064, the project is the centrepiece of the Major Component Replacement (MCR) program to replace the main components of the reactor. Unit 6 is the first of six reactors being replaced by Bruce Power through the MCR program.
The scope of work includes the removal and replacement of calandria tubes, pressure tubes, and feeders for Unit 6, as well as construction management and trade labour. Work will be performed through Aecon's Industrial segment and is scheduled to commence in June 2020, with expected completion in the third quarter of 2022.
The joint venture has also signed a Preferred Supplier Agreement with Bruce Power under which the joint venture could be awarded similar contracts for the subsequent five units.
"Aecon is pleased to be awarded this critical contract by Bruce Power and we are proud to play a prominent role in executing the MCR program," said Mark Scherer, Executive Vice President, Aecon Industrial. "Aecon has established a strong local presence in Kincardine through our current role on the Unit 6 Steam Generator Replacement Project and we look forward to further strengthening relationships in the community and with our project partners."
"This award highlights the recognition of Aecon's first-rate expertise in the nuclear industry and will provide significant steady revenue for Aecon's Industrial segment," said John M. Beck, President and Chief Executive Officer, Aecon Group Inc. "Aecon looks forward to leveraging its extensive experience and lessons learned from delivering nuclear refurbishment projects across the province as we continue to play a key role in providing clean, reliable and affordable energy in Ontario."
"As Canada's largest Public-Private Partnership, Bruce Power will continue to meet all investment requirements related to this multi-year program, and, through continued strong and efficient performance, will provide low-cost power to the province for decades," said Mike Rencheck, President and Chief Executive Officer, Bruce Power. "We are making this key contract award announcement today with the confidence the members of the Shoreline Power Group have demonstrated the experience, commitment and dedication to safety, quality, productivity and innovation to enable us to keep our Life-Extension Program on time and on budget."
Bruce Power is a low-cost electricity provider that powers more for less, delivering 30 per cent of Ontario's electricity at 30 per cent less than the average cost to generate residential power. Bruce Power's role has been recognized by a range of independent experts, business groups and energy experts in recent years. For example, in 2017, Ontario's Financial Accountability Office (FAO) released a report on the life extension of the province's nuclear fleet. The report concluded, "There is currently no portfolio of alternative low emissions generation which could replace nuclear generation at a comparable cost."
Aecon Group Inc. (TSX: ARE) is a Canadian leader and partner-of-choice in construction and infrastructure development. Aecon provides integrated turnkey services to private and public-sector clients in the Infrastructure and Industrial sectors, and provides project management, financing and development services through its Concessions segment. For more information, please visit aecon.com and follow us on Twitter at @AeconGroup.
Statement on Forward-Looking Information
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aecon Group Inc.
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