Thank you, Mr. Speaker. Mr. Speaker, my question is for the Minister of Finance about the problems with the building of the fibre optic line down the Mackenzie Valley. The contracting company Ledcor has relieved its subcontractor for deficient work. The Minister has said that he expects the line will still be completed on schedule, but Ledcor says it won't be able to assess the effects of warm construction until the winter's end. Can the Minister tell the House what contingency plans are in place in case the project is delayed? Thank you, Mr. Speaker.
Masi. Minister of Finance.
Thank you, Mr. Speaker. Mr. Speaker, our department officials will be assessing the options available to the GNWT under the Project Management Agreement to ensure that the work gets completed. This will include working with Northern Lights and the communities to ensure construction can be completed early in 2017 and the line commissioned shortly thereafter. Thank you, Mr. Speaker.
Thank you to the Minster for his reply. Reports of problems with erosion and other problems with installation of the line go back to last summer. Can the Minister tell us what actions were taken by the government to address these issues?
Following winter 2015 construction, as the Member said, there was some erosion and slumping area of concern were identified by Lands inspectors and Ledcor personnel. Northern Lights produced and acted on the remediation plan, and all the sites that were identified are being attended to. Ongoing monitoring is in place and with additional remediation being staged this winter in advance of the spring melt.
Thanks again to the Minister for his response. Can he tell us how we can be sure the remediation work on known deficiencies will not increase the cost of the project and cost to taxpayers?
The structure of the P3 agreement with Northern Lights is such that the ownership, design, and construction of the fibre line was a transferred risk from the GNWT to Northern Lights. Additionally, Northern Lights has the obligation to fulfill the requirements of the regulatory permits. As indicated by Northern Lights, the cost of remediation was borne by Northern Lights in accordance with the project agreement. Unlike a traditional build procurement, the construction risk was transferred by the GNWT to Northern Lights.
Masi. Oral questions. Member for Yellowknife North.
Thank you, Mr. Speaker. My final question: We've seen some problems with cost overruns on some P3s, the Deh Cho Bridge comes to mind. Can the Minister tell us what the government's P3 policy says about analyzing risk and managing deficiencies in work contracted under P3s? Thank you, Mr. Speaker.
We should note that the Deh Cho Bridge was actually not a P3 project. It was a negotiated contract where substantial design and construction risk was still with the GNWT. Before the P3 procurement starts, the GNWT undertakes a detailed risk analysis of the proposed P3 procurement compared to traditional procurement. This ensures risks are reflected in the procurement and all proponents are clearly aware of the risks they would be assuming as captured in the project agreement. To ensure that deficiencies are being properly managed, there will be no service commencement unless the design, construction, and operating specs as specified in the project agreement are met as determined by an independent certifier. No payments will be made by the GNWT until the Mackenzie Valley Fibre Optic Link is independently certified.
Masi. Oral questions. Member for Yellowknife Centre.
