(Whitehorse) - David Morrison, Chair of the Board of Yukon Energy Corporation, in consultation with the Minister responsible, Archie Lang, announced today that the Board of Directors has requested the Auditor General of Canada conduct a special examination of the Mayo/Dawson City Transmission Line Project.
"Given the magnitude and significance of the transmission line to the territory, the board felt it prudent and responsible to conduct a thorough review of the project," Morrison said. "The project has experienced cost overruns and construction delays. The audit is one way to determine that the proper controls and project management systems were implemented and managed in a cost effective manner."
Construction of the 232-kilometre line from the Mayo hydro generating station to Dawson City started June 2001. The transmission line was commissioned on September 6 of this year. It was originally anticipated that the line would have been complete in November 2002. The original budget estimate for the project was $27.2 million and the current cost is $36.2 million but this amount is expected to increase.
Morrison, on behalf of the Board of Directors, requested the Special Examination in a letter to the Auditor General dated October 20th. The letter asks for a detailed review of the financial control systems, the project management systems as well as the spending authorities and control processes.
"We have asked the Auditor General to make the final report available to the Legislative Assembly as well as to our Board of Directors," Morrison said. "We want to be certain that the best interests of the ratepayers are being looked after and we want to be publicly accountable."
Yukon Energy is a wholly owned subsidiary of Yukon Development Corporation.
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