MONTREAL, March 1, 2012 /CNW Telbec/ - SNC-Lavalin (TSX: SNC) is pleased to announce that its joint venture with Aecon Industrial has been awarded a major contract by Ontario Power Generation (OPG) to carry out the Definition Phase for the Darlington Retube and Feeder Replacement (RFR) Project.
The overall RFR Project consists of two phases - a Definition Phase from 2012 to 2016 and an Execution Phase from 2016 to 2023. The Definition Phase includes the construction of a full-scale reactor mock-up to simulate key elements of the refurbishment work, and the development, procurement and testing of specialized tooling required for the Project. It further includes the development of a detailed scope, schedule and budget for the Execution Phase, as well as procurement of reactor components for the first unit to be refurbished.
The total value of the Definition Phase is estimated at over $600 million. The value of the Execution Phase will be determined once the Definition Phase is completed.
The Execution Phase, which will occur after the OPG Board and the Joint Venture agree to transition from the Definition Phase, will involve the refurbishment of all four reactor cores on a sequential basis using the tools and methods that were developed and tested during the Project's Definition Phase.
"We are pleased to once again be partnered with Aecon. We have a great history of working together and successfully delivering projects," said Patrick Lamarre, Executive Vice-President, SNC-Lavalin Group Inc. "This award demonstrates OPG's confidence in this team and our capabilities in the nuclear industry. The decision by OPG to approach this project in two phases is consistent with SNC-Lavalin's best practices on project execution for large scale projects. Having an in-depth Definition Phase validates and supports the planning of the Execution Phase."
SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com.
For further information:
Vice-President, Global Corporate Communications
SNC-Lavalin Group Inc.
514-390-8000, ext. 7354
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
514-390-8000, ext. 7553