British Columbia’s construction industry is reacting positively to the provincial government’s decision to continue the Site C project, with a few caveats.
Premier John Horgan announced on Dec. 11 that the Site C hydroelectric project in northeastern B.C. would go forward, though he lambasted the previous Liberal government for what he termed as “megaproject mismanagement” and said while he hadn’t supported the project, leaving British Columbians with a $4 billion bill “with nothing in return” was unacceptable.
The Site C project is currently two years into construction and $2.1 billion has already been spent.
British Columbia Construction Association president Chris Atchison said while he recognized the challenges the NDP government faced in deciding whether to scrap the project or continue, “at the end of the day, Site C is a clean energy solution, a world class project built to world class standards, and we’re pleased with the opportunity to contribute to building it.”
Atchison also commended the government’s decision to create a project assurance board to oversee continuation of the project and indicated his organization would like to participate as part of the board.
The Independent Contractors and Businesses Association of B.C. (ICBA) welcomed the government’s announcement but criticized the review process that led to the decision.
“Site C is a strategic investment in B.C.’s economy as we transition from fossil fuels to clean energy. This is a project that was planned, reviewed and approved for over a decade and when the BCUC (British Columbia Utilities Commission) started yet another review earlier this year, Site C was 20 per cent constructed,” said ICBA president Chris Gardner. “The BCUC review was ill-conceived and unnecessary.”
The ICBA made presentations across the province and held “pink slip” events to represent the 2,500 workers who it said would face mass layoffs if the project was scrapped. It also made several presentations to the BCUC throughout the review process.
BC Building Trades executive director Tom Sigurdson said many of Site C’s problems could have been avoided if the former Liberal government had not politicized the process.
“The Liberals did an end run around the BCUC. Had they gone to them to begin with, we wouldn’t be in the mess we’re in today,” he said. “Having said that, once they did the end run, we wanted to build it.”
Progressive Contractors Association of Canada B.C. regional director Rieghardt van Enter said his association is pleased with the government’s decision.
“It’s the right decision for B.C., and we’re glad to see jobs and renewable energy for future generations,” he stated, adding while the NDP-Green government might have a slightly different approach to Site C from the Liberals, “what we want to see is for all to be able to do the work.”
The government’s decision to continue Site C could also in some ways act as a reset, Sigurdson added.
“It’s time to turn it around, to get more B.C. workers onsite and more opportunities for First Nations inclusion,” he said.
From a foreign investment perspective, van Enter said, it is challenging when those who might invest in large projects “see the goal posts moving.”
“We would like to see projects of this size continue, but there’s much to streamline in the environmental and regulatory approval process,” van Enter said.
“We don’t want the process to be any less stringent than it has been, but once a project is approved, we’re concerned that people will have to worry if it will be ‘unapproved.’ ”
Gardner echoed van Enter’s concerns.
“One of the challenges we are facing in Canada and B.C. is getting large infrastructure and responsible resource development projects to ‘yes’ — getting them approved and getting them built.
“We are developing a reputation as a jurisdiction where it is simply too difficult to get big projects approved and built. PNW LNG was recently cancelled as was the Enbridge Northern Gateway Project and TransCanada’s Energy East. All of this will hurt our economic competitiveness and long-term prosperity,” he said.
Atchison said while there was a risk of the project not moving forward with the new government, any foreign investor would have a good idea of the political landscape before committing themselves.
“The NDP was going to review the project and any foreign investor doing due diligence would know that going in,” he said.
The decision to continue Site C, he added, will reassure foreign investors looking to back future projects.
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