Project boosts confidence.

• Author: Ross, Ian
• Position: Great Lakes Power - Brief Article

Hydro station good news for area contractors

SAULT STE. MARIE - New reforms designed to encourage development of "green" electricity generation and to reduce property taxes on power dams should ultimately put more green in some Algoma contractors' pockets.

Local contractors, tradesmen and suppliers stand to benefit from Great Lakes Power's (GLP) decision to build a new $75-million hydro-electric generating station near Wawa.

The proposed 45-megawatt High Falls Generating Station, which will replace an aging 'and inefficient 71-year-old station on the Michipicoten Riyer, will be built over an 18-month period starting in the spring of 2001 and will boost power production at the site by 57 per cent.

No new permanent jobs will be created from the plant since GLP stations are digitally controlled from its Sault headquarters, but utility officials say the project will include a strong local construction component among the estimated 310,000 hours of employment within Canada, including 250,000 hours of direct employment at the site.

GLP is finalizing a contract with the design-build contractor, and will not know how local subcontractors, suppliers and labour will be used until the final agreement is signed.

Mike McEwen, GLP's president, says that, when talking with bidders earlier in the process, the utility pressed them to use local content as much as possible.

"We suggested they use local organizations -- contractors, First Nations and the like -- and we did put that into our terms, so we do want to see that happen.

"We're a member of the community, too, and we want to see that come forward into the final contract."

GLP selected a joint venture group of McNamara Construction of St. John's, Nfld. and the international engineering firm of AMEC Inc. as lead contractors. VA Tech Sulzer of St. Catharines and Siemens Canada are the principal suppliers of the turbines and generators respectively.

Rick Thomas, manager of the Sault's Construction Association, calls GLP's announcement "great news" for his 130-member organization.

Buoyed by some major redevelopment work on three area shopping malls, Thomas says it is not unreasonable to suggest that the bulk of the work at High Falls could be directed to local carpenters, electricians, equipment operators and labourers.

"GLP is probably going to have a contract with a large national dam builder, but certainly 99 per cent of the people who actually perform the work will be from this region, certainly from...