Yukon Energy; Kiewit Sign Construction Contract for Mayo B

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Mar 12, 2010  Comment

Yukon Energy has awarded the construction contract for the Mayo B project. The contract, worth $85.4 million, was given to Peter Kiewit Sons Co. this morning.

“Through our normal competitive bid process we initially hired Kiewit almost a year ago to be involved in the planning and design of Mayo B,” Yukon Energy president David Morrison said. “We felt that involving a construction company early in the process would help minimize risks associated with cost and schedule.”

“Since then, Kiewit’s input and expertise has proven to be invaluable to the advancement of the Mayo B project, so we are happy today to finalize a contract and to continue working with them during construction,” Morrison added.

Over the past several months, Kiewit worked with Yukon Energy’s engineers to finalize the most cost-effective and efficient design. It also helped with the tender process for the turbine/generator package and worked with Yukon Energy to determine firm costs for Mayo B.

“We are extremely pleased to be working with the Yukon Energy on the Mayo B hydroelectric project,” Peter Kiewit Sons Co. Senior Vice-President Greg Dixon said. “Yukon Energy has developed a unique alliance contracting model that has created a strong working partnership between Kiewit, the local community of Mayo, the First Nation of Na-cho Nyak Dun (NND) and the energy company.”

“The traditional bid-build contracting model has been challenging on complex hydro projects and Yukon Energy should be commended for its strong leadership in promoting this new and exciting approach,” Dixon said. “As the project proceeds, the hydroelectric industry will be watching with keen interest as this innovative contracting model may shape the future of hydro projects across Canada.”

Land-based construction of Mayo B is expected to start this summer, subject to a review by the Yukon Utilities Board and the Yukon Environmental and Socio-economic Assessment Board. The water-based work is planned for the summer of 2011. Mayo B is expected to be completed no later than March 2012.

Yukon Energy and Kiewit will be working with the NND and the community of Mayo to plan for local employment and business opportunities during the construction. Yukon Energy expects to sign a Project Benefits Agreement with the First Nation very soon.

Mayo B is being made affordable due to a $ 53.35 million contribution from the Federal government’s Green Infrastructure Fund as well as $30.15 million from the Yukon Development Corporation and the Yukon government. The other $36.5 million will be paid for by electrical customers. However because the cost will be spread over the lifetime of the project (50+ years) there will not be a rate increase as a result of the Mayo B project.


Contact:
Janet Patterson
Supervisor, Communications
Yukon Energy Corporation
(867) 393-5333
janet.patterson@yec.yk.ca

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