March 26, 2010

Procurement

Northwest Territories takes over P3 bridge project

New contractor hired to complete construction

RICHARD GILBERT

staff writer

VANCOUVER

A bridge being built as a public-private partnership is being taken over by the government of the Northwest Territories after an extensive redesign of the superstructure and the hiring of a new contractor to complete construction.

Prince George-based Ruskin Construction is replacing Atcon Construction as the main contractor on the Deh Cho Bridge as foundation work wraps up and superstructure begins.

The project began as a joint project between the territorial government and the Deh Cho Bridge Corporation (DCBC). The corporation’s new role, if any, hasn’t yet been determined.

“The nature of the relationship is still under negotiation and the project may not fall under the definition of a P3,” said Earl Blacklock, manager of public affairs and communications with the territory’s department of transportation. Since taking over, the government is also in the process of getting the authority to acquire the debt.

Under the initial agreement, the corporation was responsible for the design, construction, operation and debt management of a $169 million bridge over the Mackenzie River near Fort Providence, N.W.T .

With the bridge 50 per cent complete, the government is moving to improve management of the project and to reduce uncertainty on the largest construction project ever built by the territorial government.

The original P3 proposal called for accelerated construction. Work on the foundations and substructure started before the superstructure design by Spronken was finalized.

However, the design raised red flags, even though it was conceptually accepted by all parties with the signing of the original agreement, as it didn’t meet Canadian bridge code standards.

An independent review of the superstructure design by TY Lin International and BPTech Engineering, advised the government that the process would have to start over again.

The halted P3 project was already running at least a year behind schedule, when North Vancouver-based Infinity Engineering was brought in to evaluate the findings.

“Two independent reviewers said there were flaws and they asked us how we could fix them,” said Prabhjeet Raj Singh, vice-president of Infinity.

“These flaws were related to code violations and an absence of a feasible or proven construction scheme.”

Redesigning the superstructure took six months and was completed by Infinity in January.

It allowed the government to move forward on the project by hiring a new contractor to start construction on the half-finished bridge in June.

The revised cost of the bridge is $182 million and it is expected to be completed by November 2011.

The original $169 million contract with Atcon was terminated at the end of 2009, after the company completed about $41 million worth of work.

A total of $75 million has been spent on the project as of Dec 31.

“Atcon had an option to continue with the project under the original contract and had they done so, they would have been on the project today,” said Blacklock.

“Instead they tried to renegotiate at a new price for the second phase of construction.”

Last month, all of Atcon Group’s companies were placed in receivership.

An emergency session of the legislature is planned to discuss the bridge project’s finances.

It will address taking over the project and assuming the debt, because the territorial government’s total debt could exceed the $500 million federal limit.

The Deh Cho Bridge will provide a year-round road link between Alberta and North Slave communities, such as Yellowknife.

It will replace the existing winter road and summer ferry services across the Mackenzie River.

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