SNC-Lavalin joint venture awarded $2.75 billion contract for execution phase of Darlington nuclear refurbishment project by Ontario Power Generation

MONTREAL, Jan. 11, 2016 /CNW Telbec/ - SNC-Lavalin (TSX : SNC) is proud to announce that its 50/50 joint venture (JV) with Aecon Group has been awarded a $2.75 billion contract to carry out the execution phase of the Darlington Re-tube and Feeder Replacement (RFR) scope of work by Ontario Power Generation in support of the refurbishment of the Darlington Nuclear station.

The commencement of the execution phase marks the JV's successful delivery of the definition phase (2012-2016) of the project, which included the construction of a full-scale reactor mock-up facility to simulate key elements of the refurbishment work and the testing of specialized tooling and to help prepare a comprehensive estimate and schedule for the project.

The execution phase of the project will involve the replacement of main reactor components using tools and methods that were developed and tested during the project's definition phase, carried out by the JV. Each of the four Darlington Candu reactors will be taken out of service sequentially for approximately three years to allow for the replacement of fuel channels, feeder pipes, calandria tubes and end fittings.

"Following almost four years of preparation and planning, this amendment to proceed with the physical refurbishment work demonstrates OPG's confidence in our joint venture team and in our capabilities in the nuclear industry," said Sandy Taylor, President, Power, SNC-Lavalin.

When the reactors are fully refurbished, OPG's Darlington station, which produces 20% of Ontario's electricity, will be able to provide safe, reliable, affordable and CO₂-free energy to the citizens of Ontario for another 30 years.

"Our team will immediately shift its focus to the execution phase of the project. This will include training and procurement of critical resources before the outage begins," said Preston Swafford, Chief Nuclear Officer and Executive Vice-President, Nuclear. "Our portion of the project is expected to create approximately 300 jobs within SNC-Lavalin and another 500 jobs in Ontario. We would also like thank Canada's Building Trades for their support on this project."

The first outage is targeted to begin in the fourth quarter of 2016 and it will take approximately ten years to complete the work on all four units. SNC-Lavalin's share of the contract will be added to its Power segment backlog in first quarter of 2016.

About SNC-Lavalin
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin's employees are proud to build what matters. Our teams provide EPC and EPCM services to clients in a variety of industry sectors, including oil and gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions. www.snclavalin.com

SOURCE SNC-Lavalin

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