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Showing posts with label EY Interim Report on the Muskrat Falls project 2016. Show all posts
Showing posts with label EY Interim Report on the Muskrat Falls project 2016. Show all posts

Monday, 18 April 2016

ASTALDI CONTRACT "A RECIPE FOR DISASTER" AMONG CONCERNS OF TOP HYDRO ENGINEER

Guest Post by James L. Gordon, P. Eng.

When Astaldi demolished the half-built dome, I just could not understand the reason for their decision. Now I know!

All hydro projects built in Northern Canada are constructed with heated and illuminated, insulated fabric enclosures covering all concrete work, sometimes with a small high-speed crane at the top to transport concrete buckets and skips of re-bar. The enclosures provide an excellent 24-hour, 7 days per week work environment, greatly increasing productivity.

With the release of the EY interim report, they mentioned that remuneration for the work undertaken is based on man-hours. Page 9, part 5.8, states –“However, the payment mechanism is based on person-hours expended rather than m3 of concrete poured.” This is a recipe for disaster, since the contractor, Astaldi, can increase remuneration and hence profit, by increasing staff.

Wednesday, 13 April 2016

EY REPORT: BALL CAPITULATES TO NALCOR CLIQUE

Written by Cabot Martin and Des Sullivan

Yesterday, the Minister of Natural Resources, Siobhan Coady did not release the Review promised in January, on the Muskrat Falls project; one that was supposed to have been completed by March 31, 2016.

What we have, instead, is an INTERIM, or unfinished, flawed, and incomplete, Report from EY. 

While the Minister acknowledged, yesterday, the project is suffering major problems and is concerned about the situation, the Premier has given the project the green light anyway - a response that is completely inconsistent with the financial risk to the Province implicit in EY's findings. 

It seems Premier Ball and his Minister concluded, long ago, that whatever the Report contained, they would not put the project on hold and delay a restart - not even for 45 days - when the full EY Report would be finished. 

With timing one would only expect from Nalcor, Coady dropped the EY Report in our laps two days before the very day on which a painful Budget will be delivered by the Finance Minister.