The contract is the first of seven that will make up the multi-billion-dollar refit of the giant nuclear station, which is due for a mid-life refurbishment.
Previous nuclear projects in Ontario have gone badly over budget, and opposition New Democrats criticized the contract award
But Energy Minister Chris Bentley says this time meticulous planning and preparation will keep costs in line.
“What was announced today was a different approach,” said Bentley in an interview.
Planners will map out the work into 30-minute segments, Bentley said. And a training centre with mock-ups of complex components of the nuclear station will allow crews to practice tasks before they start on the real reactors.
“One of the reasons they’re doing such an extensive design, planning preparation exercise is so they can map out the construction, and transfer any risks of missing those construction timelines to the contractor,” he said.
The initial $600 million contract will cover the planning phase of the project.
The price for the second phase – executing the work – will be determined once the plan has been completed. Planning should be finished by 2016, and work completed by 2023.
Previous projects, like the construction of the Darlington plant and the refurbishment of the Pickering A and Bruce A nuclear stations, have collectively run billions of dollars over budget.
Electricity ratepayers remain on the hook for most of the over-runs, paying for them through the “debt retirement charge” on every hydro bill.
Bentley wouldn’t forecast the total cost of overhauling the four reactors at Darlington, though previous estimates have ranged between $6 and $10 billion.
Physical work on the reactors is expected to start in 2016.
SNC-Lavalin Nuclear’s parent company delayed announcing its financial results this week, saying that it is probing $35 million in payments that were not documented last year.
Bentley wouldn’t comment on the company’s problems, other than to say the company has a “long-excellent track record” on large projects.
The work on the present project involves removing and replacing the pressure tubes and calandria tubes for all four units at Darlington.
The tubes hold the uranium fuel bundles and coolant that run through the core of the reactor.
The four Darlington reactors have reached mid-life. The refit will allow them to operate for another 25 to 30 years.
Peter Tabuns, energy critic for the New Democratic Party, sharply criticized the contract award.
“I find it extraordinary, when they’re facing huge over-supply of electricity, that they aren’t putting this on hold,” Tabuns said.
“This will further drive up hydro costs in Ontario.”
Ontario faces a glut of power some days. Demand has never rebounded since the latest recession. Meanwhile two newly overhauled nuclear units operated by Bruce Power will come on stream this year, along with a growing number of renewable power projects.
Tabuns said he’s seen no business case for the project: “This is a decision that makes no sense in terms of Ontario’s economy.”
Conservative energy critic Vic Fedeli supported moving ahead, however. Ontario gets half its power from nuclear plants, and the Conservatives don’t advocate changing that.
“It’s the right step to make sure we understand what we’re getting ourselves into,” he said.
“Our caucus will watch very closely on this project, because we expect to become the government soon. We’re going to inherit a real mess in our electricity sector, and we want to know this project is progressing well.”
Shawn-Patrick Stensil, nuclear critic for Greenpeace, disagreed.
“This is a lot of money to spend on a project that has yet to gain any regulatory approvals,” he said. “OPG has yet to provide an economic case for rebuilding Darlington. And the Fukushima disaster raises questions about the safety of the station’s multi-reactor design.”
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