SNC-Lavalin has been awarded a five-year contract worth an estimated $1.6-billion to design and build portions of AltaLink's transmission lines in Alberta.
The Montreal-based engineering giant said the engineering, procurement and construction (EPC) agreement extends its services to its AltaLink subsidiary that were set to expire on Wednesday.
SNC said it was a awarded a portion of the new contract following a competitive bidding process launched by the Alberta Utilities Commission.
It said an independent adviser who oversaw the process described the agreement as “fair to all participants.”
The contract to deliver transmission lines and substations will be based on need assessments and permitting.
SNC-Lavalin didn't put a price tag on the contract, but Pierre Lacroix of Desjardins Securities estimated it is worth $1.6-billion. That constitutes the lion's share of the development project's estimated $2-billion cost.
SNC's shares gained 89 cents, or 2.4 per cent, at $38.03 in afternoon trading on the Toronto Stock Exchange.