An independent review of the Site C project in British Columbia, Canada, by Ernst & Young and BTY Consultancy Group has found that appropriate processes are in place to meet project milestones and financial targets, with the project described as being clearly defined and well planned, BC Hydro has announced.
The review of the Site C project's risk and cost management processes states that: “Overall, our review finds that the project is well defined and that the processes for managing risks and costs are largely representative of leading practices. Execution of the major work packages are clearly scoped and supported by both a robust set of project management practices and tools, as well as by a team with deep experience on delivering major projects for BC Hydro.”
Ernst & Young and BTY Group were engaged to assess the Site C project's practices for cost and schedule forecasting, including risk management and mitigation, to ensure the appropriate processes are in place to build the project on time and on budget.
The review focused on four key areas:
- Review of contracts (over $50 million) awarded to date.
- Review of risk management plans, processes and risk registers.
- Review of cost management plans and processes, with an assessment of overall cost controls.
- Review of key cost drivers and indicators compared to the estimate baseline.
During the months of July and August 2016, Ernst & Young and BTY reviewed over 100 project documents, interviewed senior project personnel and conducted a site visit.
"Given Site C's early stage in its lifecycle, our review did not find any evidence to suggest that major project milestones and financial targets will not be met. Overall, the Site C project is both clearly defined and well-planned," states the report. "While project execution risks do exist, those risks are well-understood and managed by the project team."
The Ernst & Young/BTY report provides a list of recommendations for BC Hydro to consider going forward, and BC Hydro said it has reviewed and considered the recommendations and has developed an action plan to address them.
The Site C Clean Energy Project is the third dam and hydroelectric generating station being built on the Peace River in northeast British Columbia. It is also the largest energy infrastructure project currently in the works across Canada. The project will supply 1100MW of capacity, and produce nearly 5100GWh of electricity annually. Work on the project will continue through peak installation periods in 2022 before a scheduled completion in 2024.
The Ernst & Young and BTY report is available online at sitecproject.com.