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Showing posts with label Cost Overruns Muskrat Falls; James L. Gordon. Show all posts
Showing posts with label Cost Overruns Muskrat Falls; James L. Gordon. Show all posts

Monday, 26 October 2015

$600 MILLION A PINCH: CHANGE THE ONLY TOURNIQUET FOR MUSKRAT

A better Nalcor CEO would tell us what he plans to do differently

The one certainty about Ed Martin’s demand for another $600 million for Muskrat Falls is that it will be repeated, over and over.

JM has written, on this Blog, that Nalcor will have to work hard to keep the final cost below $10 billion. 

A senior Nalcor engineer offered the prediction, more than two years ago, that the final cost will come in around 2.5 times the DG-2 estimate of $5 billion. That’s $12.5 billion.  It’s a scary number. He knows a thing or two about large projects.

Proof of the financial hole being dug at Muskrat is found not just in the third party analysis conducted by JM and James L. Gordon; it is implicit in what Ed Martin did not say. We will come to that in a moment. But, first, to James Gordon and JM.