Hydro projects flow $2B down the Mattagami River: redevelopment on upper, lower Mattagami stations generating hope.

• Author: Stewart, Nick
• Position: TIMMINS

Nearly $2 billion worth of hydroelectric developments underway is set to provide a financial shot in the arm for two northern Ontario communities along the winding Mattagami River.

Reaching 440 kilometres from James Bay through to Timmins, the Mattagami River has caught the eye of Ontario Power Generation (OPG) to become a stronger player in renewable power.

One part of the focus involves the Upper Mattagami, located 50 kilometres north of Timmins, where $300-million worth of work is underway to refurbish four century-old hydro generating stations: Wawaitin, Sandy Falls, Lower Sturgeon, and Hound Chute. It is expected to be complete in 2011.

"Certainly, the province is very interested in expanding the renewable energy footprint in Ontario," says Carlo Crozzoli, vice-president of hydroelectric development, OPG.

"There's certainly a lot of activity on the wind front (by private developers), and not so much on the hydro front, so we're working hard to make sure some of the hydro projects that are available to be developed can proceed."

Additional work is being done to add 21 megawatts (MW) across the four dams, bringing their capacity to a total of 44 MW, or enough to serve 22,000 households.

While much of the capital costs are spent on power-producing equipment acquired from around the world, Crozzoli estimates one-third will be spent directly in the North, mainly through civil construction work.

Indeed, the Upper Mattagami's design-build contract for the project has a Timmins connection, as it is being done jointly between Omaha-based Peter Kiewit and Sons and Timmins' Leo Alarie and Sons.

In peak periods, the project has roughly 500 workers on site, though the typical number of direct jobs sits at approximately 300, with an anticipated indirect job total of 200.

This translates to a $100-million windfall for the Timmins region, something regional leaders are glad to see.

"This is a really big project, and we're happy to know that this kind of money is being spent in our neck of the woods," says Timmins Mayor Tom Laughren. "It's the kind of thing that really helps when (we hear announcements) like the Xstrata layoffs."

Northern officials are also waiting with anticipation to see the final approval come through for work on the Lower Mattagami, located roughly 70 kilometres northeast of Kapuskasing. The project is set to be more expansive and expensive than the Upper Mattagami.

The redevelopment would add efficiency and generators to the...