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SNC-Lavalin Group and its partner, IMPSA, have won a contract with BC Hydro. (Mario Beauregard/The Canadian Press)
SNC-Lavalin Group and its partner, IMPSA, have won a contract with BC Hydro. (Mario Beauregard/The Canadian Press)

SNC, partner win BC Hydro contract Add to ...

SNC-Lavalin Group Inc. and its consortium partner have been picked by British Columbia Hydro and Power Authority as the preferred contractor on a $940-million project to design and build a replacement generating station on Vancouver Island.

BC Hydro and Montreal-based SNC-Lavalin have confirmed that the consortium has been selected and discussions are to begin soon with the aim of signing a contract in early 2014.

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“We are pleased to have been chosen as the preferred contractor and look forward to putting our expertise in this area to work for the population in B.C.,” SNC-Lavalin spokeswoman Leslie Quinton said in an email Wednesday.

The announcement provides a boost to engineering and construction giant SNC-Lavalin, which has been struggling to remake itself under a new chief executive in the wake of a series of corruption scandals linked to major projects in the Middle East, Asia and at home.

SNC-Lavalin’s partner is Latin American energy and hydroelectricity company IMPSA.

The win is an encouraging sign that SNC-Lavalin’s engineering and construction unit, which has had backlog problems, “is not imploding as some have assumed,” Dundee Capital Markets analyst Maxim Sytchev said in a research note.

The B.C. project is for an underground power station to replace the 65-year-old John Hart Generating Station on Campbell River, one of the oldest facilities of its kind in the BC Hydro electric network.

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