BC HYDRO PROCUREMENT OPPORTUNITIES INITIATIVES PRINCE GEORGE MARKET EXPANSION FORUM January 21, 2014 Rob Neilson Site C Procurement Manager 1
BC HYDRO POWERING B.C. WITH CLEAN, RELIABLE ELECTRICITY FOR GENERATIONS Commercial Crown corporation wholly-owned by the Province of B.C. 1.9 million customers (95% of B.C.) 2
BC HYDRO SYSTEM GENERATION 42 dams 31 hydroelectric facilities 3 thermal generating plants TRANSMISSION & DISTRIBUTION 300 substations 325,000 transformers 900,000 utility poles 18,500 km transmission lines 56,500 km distribution lines 3
UPCOMING PROCUREMENT OPPORTUNITIES GMS Generating Station Controls upgrades (2014) Spillway upgrade (2014) Williston boat ramps (2014) Town of Peace River (2014) Groundwater detwatering well system DCAT (under construction) PGTC capacitor project (2015) Site C Clean Energy Project 4
SITE C CLEAN ENERGY PROJECT DAM Type: Earthfill Dam Length: 1,050 metres Height: 60 metres Capacity: 1,100 MW Energy: 5,100 GWh/yr. RESERVOIR Length: 83 km Width: 2-3 times current river 5
SITE C PROCUREMENT 6
PROCUREMENT OBJECTIVES Achieve value for money for ratepayers Maximize cost-effective project performance (generation capacity, energy and flexibility) Structure fair and competitive procurement processes Meet project schedule Meet project budget Optimally manage project risks Support Site C project objectives, including providing economic opportunities for Aboriginal groups, northern communities and the province 7
PROCUREMENT APPROACH Multiple large contracts for major works, smaller contracts for other works Opportunities for small, medium and large businesses Encourage local and Aboriginal participation 8
SAMPLE PROCUREMENT PROCESS Prequalification (if appropriate) Development of contract documents Solicitation of responses (RFPs, tenders) Evaluation of responses Award of contract Continued market engagement 9
SITE C PROJECT COMPONENTS DAM SITE COMPONENTS Main Civil Works Generating Station and Spillways Turbines and Generators OFF-SITE COMPONENTS Clearing Public Road Infrastructure Transmission Line Site C Substation EARLY WORKS Early Clearing Early Civil Works Worker Accommodation and Site Services *All procurements are subject to certification and approvals 10
PROCUREMENT DELIVERY MODELS Category Component Procurement Approach Early Works Dam Site Components Off-Site Components Early Clearing Design-Bid-Build Early Civil Works Varies; primarily Design-Bid-Build Worker Accommodation and Site Services Design-Build-Finance-Operate-Maintain Main Civil Works Design-Bid-Build with Design-Build elements Generating Station and Spillways Turbines and Generators Design-Bid-Build with Design-Build elements Design-Build Clearing Design-Bid-Build Public Road Infrastructure To be negotiated with the Ministry of Transportation and Infrastructure Transmission Line Delivery method to be determined. Site C Substation Delivery method to be determined.
SUPPORTING ACTIVITIES Dam Site Components Archaeological site preparation Decommissioning of temporary access roads Environmental monitoring Offices, storage facilities & staging areas Safety, first aid & security Site re-vegetation Site road maintenance & snow clearing Transportation & shuttle services Truck washing & vehicle maintenance workshops Waste treatment & management facilities Workshops, labs, fabrication shops & testing facilities *All procurements are subject to certification and approvals Off Site Components Accommodation support Boat launches Day use recreation areas Hudson s Hope shoreline protection Monitoring programs Operation of satellite worker accommodation camps (if required) Park and ride facilities Peace Canyon substation expansion RV site operation and management (if required) Wildlife or fish mitigation projects Other supporting activities 12
REGIONAL CONTRACTOR ENGAGEMENT Based on feedback from regional companies, BC Hydro is developing a regional contractor engagement approach. Objectives: Assess capacity of regional contractors including staff, equipment and other resources. Commence relationship building and communication with businesses. Identify potential matches between contractor capacity and project work. Conducted 40+ site visits and meetings with regional contractors and First Nations companies in the following communities: Chetwynd, Dawson Creek, Fort St. John, Hudson s Hope, Pouce Coupe, Taylor 13
PRELIMINARY FINDINGS Contractor interests: Clearing and debris clean-up Access road and bridge construction Security Worker accommodation (camp and services) Heavy civil works (earth moving, quarrying) Reclamation Environmental monitoring Recreation (e.g. boat launch) Significant regional capacity in logging and clearing, and civil works Identified strategic partnerships that improve the range of services offered by regional contractors 14
STAYING INFORMED Sign up for Site C Business Directory Available at: www.sitecproject.com Attend proponent information meetings Participate in business-to-business networking sessions Get to know BC Bid: www.bcbid.gov.bc.ca Familiarize yourself with the project 15
QUESTIONS www.sitecproject.com 16