Lower Churchill Project Gilbert Bennett, Vice President

St. John’s Board of Trade - May 22, 2013

Safety Moment

Nalcor Safety Culture

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Project Overview

Muskrat Falls Generating Facility

Project Update

• Sanction decision made by the provincial government in December 2012

• Preliminary site work completed at Muskrat Falls

• Moving forward with site construction

• Contracts and packages awarded for several major project components

Key Construction Activities: 2013

Muskrat Falls – 2013

• Bulk excavation work underway

• Start reservoir clearing

• North Spur geotechnical program

• Accommodations complex to be constructed; starter camp opened

• First concrete to be poured for spillway

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Labrador Transmission (2013)

• Commence Right of Way (ROW) clearing

– Muskrat Falls to Churchill Falls

• Commence transmission construction

• Commence earth works at Churchill Falls switchyard

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Labrador-Island Link/SOBI (2013)

• Anticipated release from Environmental Assessment

• Following release:

– Commence earthworks at Soldier’s Pond (Avalon Peninsula)

– Start ROW clearing in Labrador and Northern Peninsula

– Begin transmission construction

– Begin Strait of Belle Isle Horizontal Directional Drilling (HDD) program

Muskrat Falls Construction Site

Muskrat Falls Site Today

• Seven contractors working on site today

• Approx. 300 workers on site • Security and medical

services located on site • Health, Safety and

Environmental personnel onsite

• Construction power available

• Temporary camp operational

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Muskrat Falls Site

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Drilling at the Powerhouse Area

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Muskrat Falls Site

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Muskrat Falls Site

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Initial Construction Camp

Employment Opportunities

Jobs and Benefits

• Ave. 3,100 direct jobs at peak

• Ave. 1,500 direct jobs/year across 70+ occupations

• More than 75% of the direct labour for the Muskrat Falls generation facility will be undertaken in Labrador.

• After construction, NL employment will continue with an estimated 80 direct full time jobs during the operational life of the project.

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Attracting Skilled Workers

• Direct and indirect employment across a variety of industries

• Project will largely require: – Labourers

– Carpenters

– Ironworkers (rebar)

– Truck drivers

– Surveyors

– Crane operators, drillers and heavy equipment mechanics

• Skill sets typically more accessible in the local labour market with accessible training

Attracting Skilled Workers

• Labour market pressures around the province and across the country

• Need to be competitive to attract highly skilled and qualified workers

• Competitive terms and conditions of employment throughout construction include:

– wages – quality accommodations – travel and transportation – accessible training – work site close to home

• Employment will grow in steady numbers as construction progresses

How to Apply

• Register online at muskratfallsjobs.com

• Contact contractors working on the project

• Contact a union in your trade

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muskratfallsjobs.com

• Job database specific to Muskrat Falls construction

– For potential candidates and project contractors/unions

• Helps meet anticipated labour requirements for the project

• Provides easy access to employment information

• Use of database by contractors/unions will be tracked by Nalcor

• Approximately 5,000 registered applicants

Procurement Opportunities

Project Procurement

• Full and fair opportunity on a competitive basis

• Availability and competitiveness of businesses to provide goods and services determines level and nature of economic benefits

• All businesses must demonstrate value and competitiveness in bids, and develop business opportunities with primary contractors to successfully secure work with the project

Nalcor is employing best practices in project and contract management to ensure project costs and schedule are effectively managed

• Nalcor, SNC-Lavalin Inc. and any contractors and suppliers must adhere to provisions of:

– Impacts and Benefits Agreement (IBA) with Labrador Innu

– NL Benefits Strategy

– NL/NS Benefits Memorandum of Understanding

Procurement Opportunities

• Majority of procurement activity initiated in 2013/14

• Range of opportunities will be available:

– Primary contractor or direct supplier to Nalcor

– Subcontractor or supplier to project’s primary contractors

• Forecasted, active and awarded packages available on Nalcor’s website

• Contact information for approved bidders and successful contractors also available online

• Businesses encouraged to regularly monitor the site for potential opportunities

• Subcontractors encouraged to contact bidders and successful contractors directly to sell their product/service and demonstrate value

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RFP Evaluation Criteria

• Commercial requirements

• Commitments in IBA, NL Benefits Strategy and NL/NS Benefits MOU

• Health, Safety and Environment

• Experience

• Creditworthiness

• Price

• Quality Assurance

• Technical suitability

• Service

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Procurement to Date

• EOI and prequalification initiated

• Some packages awarded for major project components: – Accommodations complex (Liannu Limited Partnership)

– Turbines and generators (Andritz Hydro Canada)

– Bulk excavation (IKC-ONE)

– HVdc Submarine Cables (Nexans Norway AS)

– HVac transmission line Tower Steel (Sa-Ra, Turkey)

– Medical services (Innu-Med)

– Security services (Speuata Security)

– 315 kV HVac transmission line right-of-way clearing (Great Western Forestry)

– Reservoir Clearing (Johnson Construction)

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Accessing Procurement Information

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Key Contract Awards - 2013

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Key Contract Awards 2013

Package No. Title Project Forecasted Award

CH0030 Turbines and Generators MF Generation Awarded Jan 2013

CH0007 Intake and Powerhouse, Spillway & Transition Dams

MF Generation Late Q2

CH0008 North Spur Stabilization MF Generation Q4

CH0023/24 Reservoir Clearing – Muskrat Falls MF Generation Awarded Apr 2013

CH0032 Powerhouse, Intake and Spillway Hydro-Mechanical

MF Generation Q2/Q3

SH0018 Catering , Housekeeping and Janitorial Services MF Generation Q2/Q3

SM0705 Provision of Laboratory Services MF Generation Q2/Q3

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Note: anticipated award dates for key contracts only.

Key Contract Awards 2013

Package No. Title Project Forecasted Award

CD0503 Earthworks at Various Power Distribution Sites LTA/LITL Late Q2/Early Q3

CD0534 Converter Stations LTIL Q3/Q4

CT0319 315kV HVac Transmission Line Construction LTA Early Q2

CT0341 315 kV HVac Transmission Line ROW Clearing LTA Awarded Mar 2013

PD0537 Power Transformers – AC Substation LTA/LITL Late Q2/Early Q3

Various Hardware Supply for HVdc Transmission Line LITL Q3/Q4

CT0343 Clearing of ROW HVdc Transmission – Section 1 LITL Late Q2/Early Q3

CT0327 350 kV HVdc Transmission Line Construction - 1 LITL Q4

LC-SB-011 Rock Berm Construction Supply & Install LITL Q2/Q3

LC-SB-022 SOBI - HDD Rig and Surface Spread LITL Q2/Q3

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Note: anticipated award dates for key contracts only.

Contact Information

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Contact Information

Pat Hussey – Supply Chain Manager pathussey@nalcorenergy.com t: 709.737.1493

Paul Kennedy - Senior Contracts Coordinator paulkennedy@nalcorenergy.com t: 709.737.4215

Philip Bursey – Senior Contracts Coordinator (SOBI) philipbursey@nalcorenergy.com t: 709.737.1830

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Office Locations Hydro Place (SOBI) 500 Columbus Drive

St. John’s, NL A1B 0C9

Torbay Road Project Office

Suite 2 350 Torbay Road Plaza St. John’s, NL A1A 4E1

Happy Valley-Goose Bay Project Office 19-21 Burnwood Drive

Happy Valley-Goose Bay, NL A0P 1C0

www.muskratfalls.nalcorenergy.com

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