Liberals open door to private partner on Mactaquac Dam

The Liberal government has introduced a bill that opens the door to a private-sector partner playing a role in the refurbishment of the Mactaquac Dam.

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The legislation updates the law that governs how Crown corporations, such as NB Power, tender and sign contracts.

But it carves out an exemption for what it calls a "non-routine capital project of the New Brunswick Power Corp.including a joint venture, strategic partnership or financing arrangement with a third party, that relates to electric utility assets and infrastructure" approved by NB Power's board.

The only potential project fittingthat definition at the moment is the looming $5-billion refurbishment of the Mactaquac Dam.

NB Power needs to replace the dam by 2030 because a reaction in its aggregate is causing the facility's concrete structures to expand.

The utility has already started holding consultations on whether to refurbish the dam, shut down its generators but leave it in place, or dismantle it.

Refurbishing the damso it can continue to generate hydropower will carry an estimated cost of $5 billion, by far NB Power's largest infrastructure project ever.

"When you're looking at $5billion, having partners who are potentially interested in being a financial partner in that, instead of the ratepayers and taxpayers, maybe that's an option that would be good to look at," said Energy Minister Donald Arseneault.

The bill doesn't require that to happen, but removes rules that would prohibit it.

'Too soon' to discuss

Deborah Nobes, aNB Power spokesperson,says the utility encouraged the government to introduce the bill but says it's "way too early" to be looking at potential partners.

She points out the utility is still far from a decision on whether to refurbish at all.

"It's really too soon to talk about what the project might be, or how it might work," she says.

Progressive Conservative MLA Brian MacDonald says he supports exploring that option, but worries the bill will weaken the rules governing the process.

"There's nothing wrong with talking to investors, but we need oversight over there," he says.

"This legislation removes NB Power from the normal procurement process."

Arseneault says the bill streamlines contracting rules for Crown corporations in the same way a bill by the previous PC government streamlined similar rules for government departments.

He also said there'll be plenty of oversight for any Mactaquac refurbishment, including hearings before the Energy and Utilities Board.

The wording of the bill was raised in Question Period when Macdonald asked Arseneault why former premier Shawn Graham was seen at the dam giving a tour to Chinese businesspeople.

MacDonald saidgiven Graham's previous Liberal government tried to sell NB Power, the tour raised questions in his mind.

Graham has been working as a consultant for Chinese companies looking for business in North America.

But Arseneault says the visit happened in the spring, the company hasn't been in touch since then, and it didn't have an interest in being part of the refurbishment.

Graham turned down an interview request about the visit.