$33B in construction spending for Labrador megaprojects is welcome news for industry
While shovels aren't yet in the ground and no labour contracts are signed, billions of dollars in planned construction spending for a new megaproject has many optimistic about the positive impact the new Churchill Falls deal will have on Newfoundland and Labrador.
A memorandum of understanding for Churchill Falls hydroelectric plant and other projects was announced in December and is set to be finalized in April 2026. It will require approximately $33 billion in construction contracts between Churchill Falls and Gull Island.
"Thirty-three billion [dollars'] worth of construction is significant, no question," Trades N.L. executive director Bob Fiander told reporters while attending Energy N.L.'s annual conference in downtown St. John's earlier this week.
Stéphane Jean, a senior director with Hydro-Quebec, says construction on Gull Island's temporary infrastructure, like the work camps and roads, will begin next year, while construction at the Churchill Falls extension will begin in 2029.
Fiander says his members need this work.
"We're about 70 per cent unemployed," he said.
"We're looking forward to getting shovels in the ground and that's important for us because, you know, when our members are not working, they're not getting paid. They're looking elsewhere."
While there haven't been any signed labour agreements, he says he's looking forward to what lies ahead.
Fiander says he also welcomes the news from Prime Minister Mark Carney on fast-tracking projects deemed "nation-building."
"Fortunately for Newfoundland and Labrador, we have a number of projects that could be nation-building projects," said Fiander.
Energy N.L. CEO Charlene Johnson says the investment will mean a lot of work for her members through construction, environmental work and building transmission lines.
"That's very exciting for our members because really we're at a little bit of a lull in the industry now and I'm very optimistic about the future," she said.
Johnson added Bay du Nord won't have a decision on its future for some time, making the Churchill Falls deal the next big project in the province.
She says Energy N.L. members will have to be ready soon for work on the camp, roads and bridges needed in Labrador.
"They said they want to move quickly because all of this has to happen in very short order if they're going to have this power in place within 10 years," she said.
Brad Forsey, director of business development for the Cahill Group and vice-chair of Energy N.L. board of directors, says there's going to be a lot of long-term construction work ahead of the sector.
"It's a great opportunity for us to be involved from the beginning all the way to the end. We've been involved in similar type projects in this industry and adjacent industries. And we look forward to the opportunities that we have here in front of us," he said.
Forsey agreed with Johnson that these projects are important.
"There is a bit of a lull right now, but we need to make sure that we're ready and we need to communicate and show to them that we're ready."
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