Construction team led by China acquisition target Aecon picked for major Site C contract
The consortium expects to finalize the hydro deal early next year as the $1.5 billion Aecon sale moves forward
TORONTO—BC Hydro has selected a consortium of construction companies headed by Aecon Group Inc. as the preferred proponent for a major Site C dam contract.
The Canadian company, which is in the final stages of a controversial acquisition, said it expects to finalize the contract early next year. The scope of the project includes construction of the hydro station’s generating station and spillways.
Aecon holds a 30 per cent stake in the consortium, while Dragados Canada Inc. and Flatiron Constructors Canada Ltd. each own 27.5 per cent and EBC Inc. holds 15 per cent.
Earlier this week, Aecon shareholders overwhelmingly approved CCCC International Holding Ltd.’s $1.5 billion acquisition offer, leaving just a review under the Investment Canada Act before the purchase is finalized. Takeovers of Canadian companies by state-owned Chinese entities have been become a controversial issue and Ottawa says it will scrutinize the deal closely.
BC Hydro did not reveal the value of the generating station and spillway contract, though the overall Site C project is expected to cost $10.7 billion. B.C.’s NDP government begrudgingly approved further construction on the project this month after conducting an independent review.
Aecon and the rest of the consortium expect to start work on the project in the spring of next year and complete the work by 2023.