Lower Churchill Project Gilbert Bennett, Vice President St. John s Board of Trade - May 22, 2013

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1 Lower Churchill Project Gilbert Bennett, Vice President St. John s Board of Trade - May 22, 2013

2 Safety Moment Nalcor Safety Culture 2

3 Project Overview

4

5 Muskrat Falls Generating Facility

6 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

7 Key Construction Activities: 2013

8 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 8

9 Labrador Transmission (2013) Commence Right of Way (ROW) clearing Muskrat Falls to Churchill Falls Commence transmission construction Commence earth works at Churchill Falls switchyard 9

10 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

11 Muskrat Falls Construction Site

12 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 12

13 Muskrat Falls Site 13

14 Drilling at the Powerhouse Area 14

15 Muskrat Falls Site 15

16 Muskrat Falls Site 16

17 Initial Construction Camp 17

18 Employment Opportunities

19 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. 19

20 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

21 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

22 How to Apply Register online at muskratfallsjobs.com Contact contractors working on the project Contact a union in your trade 22

23 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

24 Procurement Opportunities

25 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

26 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 26

27 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 27

28 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) 28

29 Accessing Procurement Information 29

30 Key Contract Awards

31 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 CH0008 North Spur Stabilization MF Generation Q4 Late Q2 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 Note: anticipated award dates for key contracts only. 31

32 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 CT kV HVac Transmission Line Construction LTA Early Q2 CT 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 CT 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 Note: anticipated award dates for key contracts only. 32

33 Contact Information 33

34 Contact Information Pat Hussey Supply Chain Manager t: Paul Kennedy - Senior Contracts Coordinator paulkennedy@nalcorenergy.com t: Philip Bursey Senior Contracts Coordinator (SOBI) philipbursey@nalcorenergy.com t:

35 Office Locations Hydro Place (SOBI) 500 Columbus Drive St. John s, NL A1B 0C9 Torbay Road Project Office Suite Torbay Road Plaza St. John s, NL A1A 4E1 Happy Valley-Goose Bay Project Office Burnwood Drive Happy Valley-Goose Bay, NL A0P 1C0 35

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