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SNC Lavalin and Aecon Industrial awarded $600 million contract from Ontario Power Generation

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SNC-Lavalin and Aecon Industrial have been awarded a major contract by Ontario Power Generation (OPG) to carry out the definition phase for the Darlington Retube and Feeder Replacement (RFR) Project, according to a SNC-Lavalin press release Wednesday. The total value of this phase of the project is estimated at over $600 million.

The overall projects consists of two phases: a definition phase from 2012 to 2016 and an execution phase from 2016 to 2023. According to the release, the definition phase involves a mock-up construction of a full-scale reactor to simulate key elements required for the project. It also includes the development of a detailed scope, schedule and budget for the execution phase, among other things. Subsequently, the execution phase will involve the refurbishment of all four reactor cores on a sequential basis using methods developed and tested during the project’s definition phase. The value of the execution phase will be determined once the first phase is completed. 

"This award demonstrates OPG’s confidence in this team and our capabilities in the nuclear industry. The decision by OPG to approach this project in two phases is consistent with SNC-Lavalin’s best practices on project execution for large scale projects. Having an in-depth definition phase validates and supports the planning of the execution phase,” said Patrick Lamarre, Executive Vice-President, SNC-Lavalin Group Inc.

It's a great opportunity for both SNC-Lavalin and Aecon Industrial – two veteran construction companies that have worked together in the past on similar projects. SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure and in the provision of operations and maintenance services. Aecon Group Inc. is one of Canada’s largest and most diverse construction and infrastructure development companies. The two companies will be sharing profits equally.

“We are pleased to once again be partnered with Aecon. We have a great history of working together and successfully delivering projects,” Lamarre said.

“This major award builds on the successful partnership Aecon and SNC-Lavalin have forged on nuclear projects over many years,” said John M. Beck, Aecon’s Chairman and CEO.  “It will help ensure Aecon’s continued growth in the nuclear power sector for years to come.”

Aecon will provide primarily construction and fabrication services, while SNC-Lavalin will focus on specialty tooling and engineering.  Project management and procurement will be provided jointly by Aecon and SNC-Lavalin, according to an Aecon release.


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