Site C review will also assess contractor’s bankruptcy

The independent review of the $8.9-billion Site C hydroelectric project, ordered by the B.C. government to determine the dam’s viability, will also assess the effect on one of the three prime construction contractors going into receivership.

The company — Calgary-based Petrowest Corp., which holds a 25 per cent stake in the construction partnership — was forced into court-ordered receivership this week by its banking syndicate, which had demanded immediate repayment of all amounts it was owed. The banking syndicate, which includes the Bank of Montreal, held a $40-million revolving credit facility, which had been used up by Petrowest by the end of 2016, according to the company’s financial statements.

There was another $35-million revolving loan.

The company has also received a notice of termination from Peace River Hydro Partners, the project consortium it was a part of that includes Acciona Infrastructure Canada Inc. and Samsung C&T Canada Ltd. Each hold an equal share of the remaining 75 per cent stake in the partnership.

“The BCUC will assess the economic viability of the project. As such, we anticipate that the review will fully canvas any ramifications associated with the notice of termination,” B.C. Energy Minister Michelle Mungall said in a written statement.

Mungall declined any further comment “out of respect for the independence of the review process.”

We anticipate that the review will fully canvas any ramifications associated with the notice of termination.

The NDP had promised during the May election campaign to send the project, under construction on the Peace River in northeast B.C., to a review by the BCUC.

The review — a final report is to be delivered by Nov. 1 — will determine whether the mega-project should continue, be paused or completely cancelled. Hydro has spent $1.75 billion in construction at Site C, with another $4 billion committed in contracts.