B.C. Hydro Addresses Site C Dam Cost Overruns
Kelowna’s AM 1150 provides news, talk, and sports coverage, including updates on the Site C dam construction project.
Unforeseen Challenges and Cost Increases
B.C. Hydro attributes the cost overruns of the Site C dam to a series of low-probability but high-impact events. The utility acknowledged it should have better anticipated these risks. The construction proved more complicated and demanding than BC Hydro and its contractors had expected.
Project Location and Conditions
- Site C is the third dam on the Peace River in northeastern British Columbia, approximately seven kilometers from Fort St. John.
- The site’s complex geology and winter temperature swings, sometimes dropping to -30°C, added to the project's difficulty.
Project Timeline and Costs
The dam began full operation in August, generating enough electricity to power about 450,000 homes. Approved by the provincial government in December 2014, the initial budget was over $8 billion. Since then, costs have nearly doubled.
Lessons Learned from the Project
In a report submitted to the British Columbia Utilities Commission, B.C. Hydro highlighted challenges from the project’s size and complexity that affected timelines and budgets. The report suggests internal resources should have been increased earlier and more significantly.
“The first budget increase in 2018 was partly due to tension cracks on the left bank that caused schedule delays and approximately $610 million in additional costs.”
Overall, the report reflects on the underestimated risks and evolving challenges faced during construction, emphasizing the need for better risk management in future projects.
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