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SNC-Lavalin no risk to Muskrat Falls: Nalcor

SNC-Lavalin logo
SNC-Lavalin logo - Contributed

Company successfully completed majority of contracted work

While being embroiled in several reputation-killing controversies over the past two years, SNC-Lavalin has soldiered on with work on Newfoundland and Labrador's Muskrat Falls hydroelectric project.

SNC-Lavalin is the engineering, procurement and construction management contractor for the $6.99-billion power project - playing an essential role in keeping the infrastructure build on time and on budget.

Meanwhile, sitting down with editors at The Globe and Mail last week, SNC-Lavalin's CEO Robert Card told editors the whole of the company could be forced into a sale or closure should there be a move to lay criminal charges against it in relation to contracting for construction of a new hospital in Montreal.

Card was speaking about a hypothetical situation, a worst-case scenario in a collection of potential futures for the company.

And no related charges have been laid against the company.

No significant risk

But should SNC-Lavalin's troubles manifest in the dire scenario voiced by Card, it will not result in any significant risk to the ongoing hydro project in this province, according to Nalcor Energy.

"Nalcor Energy is the Muskrat Falls project owner and retains full oversight, decision-making and financial authority over the project," stated a spokeswoman for the Crown corporation, in response to questions last week.

"All engineering work for the project is completed, procurement is almost complete and construction management is being undertaken by a Nalcor Energy-led integrated project team," she stated.

"We do not see any corporate activity related to SNC-Lavalin as a significant risk to the project."

SNC-Lavalin once held the majority of space at a project office on Torbay Road in St. John's, as engineering and early procurement contracting was being completed. Over time, additional Nalcor Energy staff - and other members of the so-called "project execution" team not based in Labrador - have taken up space, as engineering and the bulk of procurement wrapped up.

The office will remain open until the project is completed.

The total value of SNC-Lavalin's work on the construction project has not been disclosed.
 

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