B.C. NDP announces Site C will go ahead with new $16B budget
Site C will go ahead, one year later and $5.3 billion more, the NDP announced Feb 26. (BC Hydro image). Zoë Ducklow, Local Journalism Initiative Reporter
By Zoë Ducklow, Local Journalism Initiative Reporter, North Island Gazette
Feb 26, 2021
The NDP says they will continue building the Site C mega dam in northeastern B.C., with an increased budget of $16 billion and a one year delay.
Last August the government commissioned a special review and geotechnical safety review after BC Hydro acknowledged a serious concern about the dam’s foundational stability. Those reports have just now been made public, with all recommendations being accepted.
The review from special advisor Peter Milburn recommended additional oversight, but did not find evidence of mismanagement. The engineers review recommended adjustments to strengthen the foundation, which have been accepted.
The government calculated it would cost $10 billion to terminate the dam, and concluded it was preferable to complete Site C at the higher price point than to absorb the loss. It said cancelling the dam would have an immediate impact to ratepayers of an estimated 26 per cent rate increase over 10 years.
About $6 billion has already been spent, and construction on the dam is over half complete, BC Hydro said. The Peace River has been diverted, the coffer dams are done, and two of the massive turbines have arrived from Brazil. The Ministry of Energy, Mines and Low Carbon Innovation also said most of the environmental impacts have already occurred.
RELATED: Open letter urges B.C. to pause work at Site C dam to review costs, geotechnical issues
As for geotechnical concerns, engineers John France and Dr. Kaare Hoeg evaluated the small movement shifts that had been observed, and recommended solutions to shore up the strength of the foundation. They met virtually, reviewing analysis from other engineers, but did not in fact visit the site itself.
Making up the $5.3 billion cost increase — up to $16 billion from the previous budget of $10.7 billion — the Ministry said “about half” comes from the geotechnical changes and COVID-19 related adjustments. It would not provide more specific numbers.
Approximately $2.6 billion of the pumped-up budget comes from other unrelated cost overruns.
The actual rate increase from completing the project are unknown, as they will not take effect until the dam is complete, now estimated for 2025.
BC Hydro has calculated an example, assuming the total costs were spread over 10 years: the new budget would result in 14.5 per cent increase, or $36 per year for the average rate payer. Previous increase for the $10.7 billion budget was estimated at 11.4 per cent. The cost of terminating would lead to a 26 per cent rate increase over 10 years.
RELATED: First Nation calls for release of Site C report in open letter to premier
The dam has been controversial since the 1980s when it was first proposed as a series of dams on the Peace River. Supporters say the mega dam will supply B.C. with stable energy to meet growing capacity needs.
Those opposed group under a variety of reasons, a primary critique being the ballooning budget.
Site C was originally approved with an $8.8 billion budget in 2014. It increased to $10.7 billion after the BC Utilities Commission reviewed the project in 2017 when the NDP took over government.
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Concerns around dam stability have been raised by the public for years. Other complaints are about the ecological impact, First Nations rights in the area, and whether B.C. really needs the power supply.
Do you have something to add to this story or something else we should report on? Email: zoe.ducklow@blackpress.ca