Tuesday, November 20, 2012

Hydropower development is about relationship and early stage planning

Veresen Inc. is engaged in construction of a hydropower project in northwest B.C. that speaks to the development opportunities in this area of the province. The pace of development is indicated by the demand for skilled labour in a growing number of projects in the northwest Pacific. Alexi Zawadzki, Vice President, Hydropower Development, Veresen Inc says a 20 MW project cluster is under construction on Dasque Creek and nearby Middle Creek.
 
“We signed three Impact Benefit Agreements with Kitselas, Lax Kw'alaams, and Metlakatla First Nations. The consultation process took three years with Kitselas and Coast Tsimshian business developers,” says Zawadzki, “who are savvy on training and contract opportunities. We were flexible in discussion and careful in finalizing these IBAs so as to consider the many interests came to the table from each organization. I am very pleased to see a new community bus for Lax Kw’alaams and a rescue vessel in the works for Metlakatla, made possible by our project.”
 
First Nation contractors have been clearing the penstock and access routes for a year. The timeline of the Dasque Project calls for completion in 2013. “We had a tough winter last year plus flooding issues on Skeena which threatened the 20 km access road. We had to build up the road during freshet, which was conducted by a First Nations contractor. Winter road maintenance was conducted by a local top-notch First Nation contractor, which we hired for a second year.” With two large dumps of snow already the crew has been out maintaining access to the construction site for a few weeks already.
 
“We have a turbine installed at Middle Creek,” says Zawadzki, “and we are putting in penstock on both projects. Soon we will be starting construction of the water intakes,” on this $75 million run-of-river hydro development with a 40 year electricity purchase agreement with BC Hydro. When the power comes on stream depends on a 20 km transmission line being finished, “which is relatively a simple build on this project.” The transmission line interconnects at the Skeena substation near Terrace.

Veresen is B.C.-oriented in pursuit of new energy, “What we find is a lot of opportunities for First Nation business to get involved, including civil works, and transmission line construction, and it ought to be a focus in the education system to build the skill sets and capacity for working in construction. In this territory there is a concentration on forestry in First Nations and it's done them well but there is an opportunity to diversify by expanding skill sets into construction in order to mitigate the ebb and flow of the lumber markets. There are opportunities in project management, scheduling, concrete works, earth works, electrical/mechanical and projects across the province are demanding people with construction skills.”

Recruiting First Nation personnel is integral, “We have an office administrator in Terrace from Kitselas who is a very competent, well- educated professional. However, had she had difficulty finding the right school until she landed at Capilano University in Vancouver. It's a matter of finding the right fit for learning.”
 
Veresen Inc is working on another hydro development located north of Squamish. The Culliton Project is in the permitting stage, and the company has an IBA with the Squamish First Nation that has developed over a number of years, providing once more a process for contract opportunities, employment and training. That's a $50 million investment by Veresen into an area that contains a strong First Nation vision, “The Squamish have great understanding of the investment and top leadership in balancing economic development and environmental stewardship.”
 
Veresen Inc operates across North America building new infrastructure that deliver jobs. Over 350 people have been put to work thus far in the Dasque project, he says, “and it will add value to community. We try to hire locally for there are advantages in having people who know the terrain, the relationships, and where the skills are available. We are in a situation in the northwest Pacific where a lot of other projects have drained the labour pool. It’s great to see people back to work in the north.”
 
Veresen sees a bright future in power development in BC and does it in various ways, “We do wind power, gas-fired power generation, and hydro throughout the country and we see a bright future in partnerships with First Nation groups. We always engage First Nations group at the earliest stage, when the project is just a concept. The people we deal with have a depth of understanding in culture, environment, and land use planning. We have a history of conducting environmental and permitting work with First Nations service providers. This allows us to plan projects to fit the landscape. At the end of the day, it’s about relationships, doing our best by others, and if something fails we have a level of trust to fall back on.”

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