With Muskrat work halted, Nalcor says it can't predict when megaproject will be completed
With much of the work on Muskrat Falls now halted because of the COVID-19 pandemic, Nalcor Energy says it can no longer provide a reliable completion schedule for the troubled Lower Churchill Project.
Companies carrying out critical work on both the generating and transmission components of the project have been temporarily freed of their contractual obligations — a legal clause called force majeure — because of the unprecedented and unforeseen travel and physical distancing restrictions imposed in response to the pandemic.
It's the latest setback for a project that has soaked into the very psyche of many Newfoundlanders and Labradorians during a decade of controversy, massive cost overruns and schedule delays.
Before the pandemic, full commercial power from Muskrat was scheduled to be reached by the end of this year, which was more than two years behind the original schedule.
But in an update late last week to the Public Utilities Board, Nalcor wrote, "The integrated project schedule will not be updated for both the Labrador-Island Link and Muskrat Falls sites until there is greater certainty on the path forward."
In the construction world, it's known as a black swan, or the realization of a risk that has a serious effect on a project's cost and schedule.
For Muskrat Falls, sanctioned in 2012 at an estimated cost of $7.4 billion, the coronavirus is the latest hit for a publicly funded project that is now more than $5 billion over budget.
Nalcor's update to the PUB did not include any information about a potential increase in the final forecast cost, which has remained unchanged since June 2017.
Care and maintenance mode
Nalcor announced March 17 it was demobilizing hundreds of workers at the Muskrat generating station in Labrador because of concerns over the potential spread of the virus.
As a result, the workforce has been trimmed from 500 to just 80 essential workers who are maintaining essential systems and operations.
Nalcor has adopted a variety of safety measures to ensure workers are not infected with the virus, including daily temperature testing of all workers, physical distancing, and enhanced sanitization. All essential workers are required to stay on site for the entire duration of their shift.
Plans to produce power from the first of four turbines at the station are now in limbo, after repeated schedule targets were already missed because of construction delays.
GE hires outside help
The technical challenges surrounding efforts to transmit electricity from Labrador to the island power grid over the new Labrador-island link have also been dealt another setback.
GE Grid, the company developing the complex transmission software in Stafford, England, has struggled to deliver what's called the control and protection software.
In a new development revealed to the PUB, Nalcor confirmed GE has hired external experts to help fix some bugs in the software.
What's more, Nalcor has recalled its personnel from Stafford because of the pandemic.
Meanwhile, software development is continuing, according to Nalcor, with teleconferences used for progress updates.
The sprawling switchyard at Soldiers Pond, outside St. John's, was placed in care and maintenance mode Saturday, which means all commissioning work, including repairs to the three synchronous condensers, has been suspended.
As a result of the pandemic, Nalcor has declared force majeure against its contractors, which frees Nalcor and its contractors from any contractual liability or obligation because of the pandemic, which has paralyzed countries throughout the world.
"We are actively monitoring and addressing the evolving COVID-19 pandemic and the potential risks to our people, our communities and site operations," a Nalcor official wrote in a statement to CBC News.
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