Construction of the $8.7 billion Site C Dam in B.C. will begin in summer 2015 and will provide approximately 10,000 direct construction jobs.
In making the announcement, Premier Christy Clark said the Site C Clean Energy Project will provide B.C. residents with the most affordable and reliable source of power for more than 100 years.
“Affordable, reliable, clean electricity is the backbone of British Columbia’s economy. Site C will support our quality of life for decades to come and will enable continued investment and a growing economy,” said Clark.
According to the government, B.C.’s population and economy are growing, and the demand for power is expected to increase by 40 per cent over the next 20 years. Site C will be required even with BC Hydro’s ambitious Power Smart programs that are targeted to meet 78 per cent of future electricity growth.
The capital-cost estimate for the a massive hydroelectric project has been updated to $8.335 billion, and government has also established a project reserve of an additional $440 million to account for events outside of BC Hydro’s control that could occur over an eight-year construction period, such as higher than forecast inflation or interest rates, for a total of up to $8.775 billion. The reserve is subject to provincial Treasury Board approval.
“Today’s announcement is a historic milestone and we look forward to building this important provincial project,” said Susan Yurkovich, BC Hydro executive vice-president responsible for Site C. “We will continue to work with First Nations, communities and landowners to ensure that we deliver on our commitments and realize the many benefits of this project.”
The dam would be the third on the Peace River in northeastern B.C., flooding an 83-kilometre stretch of valley near Fort St. John. The project is scheduled to complete in 2024.
The announcement was met with positive reactions from the construction industry. The Independent Contractors and Businesses Association of B.C commended the government’s decision and said that both environmental and governmental approval sends a strong signal that British Columbia is open for business and can and will approve major infrastructure projects.
“Site C is the right project at the right time for the future of British Columbia and our economy,” said Philip Hochstein, ICBA president. “This is the kind of project that will be a legacy for generations. By moving forward with Site C, BC Hydro can ensure our province has enough clean, renewable energy to power our province for decades to come.”
The BC Road Builders and Heavy Construction Association also supports the decision to approve Site C.
“This is a very important decision and it’s the right decision for all British Columbians,” said Jack Davidson, president of the BC Road Builders. “Site C will create jobs and provide economic benefits to many generations, and it is so important for British Columbia to capitalize on this unique opportunity.”
BC Hydro estimates that the project will generate approximately 10,000 direct jobs and an additional 23,000 indirect jobs, and contribute $3.2 billion to BC’s GDP. In addition, Site C will generate firm power for more than a century.
“This project is an investment in the future of our great province. It’ll provide workers with jobs, and protect the competitive advantage British Columbians and local businesses have with some of the lowest power rates in North America,” said Davidson.
