GNWT to review $32 million Inuvik/Tuk highway expense claim - Action News
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GNWT to review $32 million Inuvik/Tuk highway expense claim

The Government of the Northwest Territories announced Thursday that they are reviewing a $32 million claim from EGT Northwind, the company contracted to construct the Inuvik to Tuktoyaktuk highway.

Gov't wouldn't specify details of claim, working with independent engineer to settle dispute

A March 2015 photo shows progress on the Inuvik side of the Inuvik/Tuktoyaktuk highway. The territorial government is currently reviewing a $32 million claim made by EGT Northwind, the project's contractor. (Submitted by James MacKenzie/Department of Transportation)

The Government of the Northwest Territories announced Thursday that they are reviewing a $32 million claim from EGT Northwind, the company contracted to construct the Inuvik to Tuktoyaktukhighway.

In a press release issued Thursday evening, the territorial government stated that it was "advised by EGT Northwind that it might be making a claim against the contract to cover extra costs incurred," and that the two parties areworking with an independent engineer to "resolve the issue in a timely manner."

Specifics as to what the "extra costs" pertained towere not included in the territorial government's release.

EGT Northwind, a joint venture of two Inuvialuit-ownedcompanies E. Gruben Transport and Northwind Industrieswas awarded the $229 million contract to construct the highway in January of 2014. The company completed its second season of construction on the highway in the spring of 2015.

At that time, the territorial government acknowledged that progress on the 137-kilometre project wasn't moving as fast as originally planned,but that the road would be completed in the 2017/2018 construction season as planned.

In the release, territorial transportation minister Tom Beaulieu said that his department "has been working closely with the contractor to understand the potential issue and determine next steps.

"Once we have the information we need, we will be in a better position to identify what else, if anything, we need to do to successfully complete this project."

Nahendeh MLA wants project put on hold

KevinMenicoche, theMLA for Nahendeh, wants the highway project put on hold.

He says the government should stop and reassess the project and itscontractors. He saysthe governmentshould have learned its lesson from the Deh Cho bridge project, which went millions over budget.

"We learned from the Deh Cho bridge, this is not going to happen again.And we were assured by the minister and the government that we had an ironclad contract and we won't run across over expenditures," Menicoche said.

"Not only myself, but I know thatthe public out there are saying, 'I told you so.'"