British Columbia’s power utility admits it should have been more proactive in managing the soaring costs of the Site C hydroelectric dam project.
They attribute part of the issue to failing to account for “low-probability, high-consequence risks.”
BC Hydro, in a “lessons learned report” to the British Columbia Utilities Commission, states that the project is on track to be completed within its $16 billion budget—nearly double the original 2014 estimate of $8.8 billion, which was revised in 2018 and 2021.
The cost overruns are blamed on the pandemic and failure to account for risks like significant geotechnical problems. The utility acknowledges it should have enhanced internal project resources earlier.
Site C, the third hydro dam on the Peace River in northeastern B.C., will generate enough electricity to power 450,000 homes annually. The 224-page report suggests future projects should better communicate risks with potential budget and schedule impacts.
It highlights that while the pandemic was unforeseen, geotechnical challenges were anticipated, with foundation enhancements and left bank repairs adding billions to the budget. Additional expenses arose from contractor claims, redesigns, and other factors.
-with files from the Canadian Press
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