NO LIMITS ON INCOMPETENCE. ANOTHER $700 MILLION FOR ASTALDI

This Blog has reported many times the amount of money in dispute with Astaldi is in the range of $600-800 million. 

CEO Stan Marshall confirmed the sum yesterday. Nalcor, he told reporters, had reached a new contract with Astaldi increasing the value of the original contract by a whopping $700 million ($1.15 billion according to Marshall but $1.0 billion was the figure first reported). 

Some of this money was accounted for in the revised $11.4-billion estimate – making the net impact $270 million. If the PR types think this early attempt to soften the blow, given the size of the award, they are mistaken.

$700 million is a staggering sum. It not only creates a new and higher project cost estimate of $11.67 billion, it forces us to ask for the thousandth time: does anyone at Nalcor know what they are doing? And, why hasn’t Stan Marshall sent them away?

SEEMS (ALMOST) EVERYONE IS SCRAMBLING

“Scramble” is a word that conveys something more than a sense of urgency.  It suggests a disorganized, frantic, confused, even undignified effort to do something or get somewhere. There is a lot of scrambling going on in the Province, right now.

The Premier and his Finance Minister are scrambling to put together a Budget; private enterprise is back in vogue as they contemplate selling off public services; the crown jewels can’t be far behind.

Carol Furlong is scrambling having recognized, too late, the government has public employees in the crosshairs.

CUPE President, Wayne Lucas, says “there will be war”; it’s a safe bet he’s scrambling; some call it leading from behind.

MUSKRAT FALLS NEEDS TO BE EXPOSED TO THE LIGHT

One of the unfortunate consequences of the Tory Leadership troubles and the Humber Valley Paving affair is that the Muskrat Falls Project has slid off the public radar. 

The Government has given Nalcor sanction to spend billions of dollars in the absence of structured and resourced ‘oversight’.  The Agency essentially has carte blanche access to the public purse. 

Nalcor continues to post job figures and expenditures without offering proof of progress on the Muskrat Falls site.  

We are not in possession of the latest project cost estimates or a revised construction schedule; the latter a major concern of the Independent Engineer (IE).

Readers are reminded it is not the IE’s job to sound alarm; its chief role is simply to make sure the $5 billion Bond funding, on which the Feds have a guarantee, is not spent on overruns.

In short, the public is in the dark on the Muskrat Falls project. Take a look at a prime example, the $1 billion Astaldi contract. 

NALCOR'S INADEQUATE REPLY TO OVERSIGHT ISSUES AT MUSKRAT FALLS

Nalcor has responded to the serious issues raised by the January 20^th, 2014 Uncle Gnarley Post entitled MUSKRAT FALLS "ON ICE": NEWS FROM THE FIELD.

  

This Link will take you to Nalcor's Statement from Lower Churchill Project Vice-President, Gilbert Bennett.  You will note that it fails to answer these questions: was the road to the construction site plowed?  Was the fuel truck prevented from delivering the essential fuel with which to run the pumps at the huge excavation site?  Did the dewatering pumps run out of fuel? Was there a failure of management on the Project?

These are the fundamental questions.  

Nalcor can blame Astaldi Canada for the oversight as it pleases (as they are apparently trying to do), but the public needs to know if the pumps unexpectedly shut down as its reference to “negligible ice buildup”, in Bennett's reply, seems to confirm.  Please advise us if that is what occurred.

Are there now discussions between Nalcor and Astaldi Canada about the financial or other fall-out from this event?

I would hasten to inform Nalcor that regardless of its relationship with Astaldi Canada, Nalcor is responsible for everything that happens on the Muskrat Falls site.

On that point, I am obligated to note that  SNC-Lavalin was awarded a Contract to deliver engineering, procurement and construction management (EPCM) services for the Muskrat Falls project.  Management of snow clearing, if not the pumping systems, too, would normally fall within the scope of such management services.  

Are rumours of SNC-Lavalin's departure from the Muskrat Falls Site overstated?  

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Related Reading on Uncle Gnarley Blog regarding world class experts:    

NALCOR: NO PLACE FOR TRAINING WHEELS

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P.S. Astaldi Canada, Welcome to Labrador