Overall project health

As of September 30, 2023, the overall Project health remained “amber.” The Project is approximately 82% complete and work continues to advance, however, there are still potential risks remaining. BC Hydro continues to review, assess, mitigate, manage and monitor potential risks to the Project.

Safety

Safety status remained “amber” as of September 30, 2023. During the reporting period, the Project experienced the busiest summer construction season since the Project started, with multiple contractors and work fronts operating across the dam site, and a strong focus on work in and around the powerhouse. In July 2023, more than one million hours were worked, a peak for the Project.

As compared to the same period in 2022, the Project safety performance metrics during the reporting period for lost time injury frequency and all injury frequency remained consistent, and there was a slight improvement in serious incident frequency. Compared to the previous quarter, there was a slight improvement for lost time injury frequency and serious incident frequency, and a slight increase in all injury frequency.

WorkSafeBC imposed a penalty against BC Hydro on Site C related to WorkSafeBC orders the Project received in July 2022 for first aid and prime contractor responsibilities in the Site C powerhouse. BC Hydro takes health and safety responsibilities and orders from WorkSafeBC very seriously, and since July 2022, BC Hydro has worked to ensure it is compliant with the WorkSafeBC requirements related to prime contractor responsibilities and first aid.

Scope

Scope status remained “amber” as of September 30, 2023. Provisions are included in the Project plans for potential scope adjustments for site conditions and interfaces. As construction progresses, there remains a risk of design changes due to unknown field conditions.

Schedule

Schedule status remained “amber” as of September 30, 2023. The Project is currently on schedule to achieve the approved 2025 final unit in-service date and is approximately 82% complete. Based on the construction progress achieved to date and revised contractual schedules, there is a possibility that reservoir filling could start in late fall 2023. This would also provide an opportunity to achieve first unit in service earlier than planned.

There continues to be uncertainty related to achieving the contractual schedules, and there are identified risks that could adversely affect these schedules. The risks related to achieving an earlier reservoir fill are higher than the risks related to achieving the approved schedule.

The time available to complete the remaining scopes of work is expected to be sufficient for the Project to meet the approved schedule.

Cost

Cost status remained “amber” as of September 30, 2023. Potential cost risks remain, as detailed in this report.

As of September 30, 2023, the life-to-date actual costs are $12.4 billion, which results in an estimated $3.6 billion of remaining costs based on the forecast of $16 billion.

Quality

The quality status for the Project continued to be “green” as of September 30, 2023, indicating that the work generally conforms to the requirements of the drawings and specifications. When a quality issue is identified during the course of construction, BC Hydro and its contractors work to rectify the issue to ensure that the quality of the completed work achieves the quality specifications.

The Technical Advisory Board and independent international dam experts continued to review and confirm that the Project designs are appropriate, safe and serviceable over the long operating life of Site C.

Regulatory, Permits and Tenures

The regulatory, permits and tenures indicator status remained “green” as of September 30, 2023. Overall, BC Hydro continued to be issued permits and authorizations in accordance with construction timelines. As of September 30, 2023, 627 of the estimated 665 provincial and federal permits and authorizations required for the Project have been received and are actively being managed.

Environment

The Project environment status remained “amber” as of September 30, 2023, due to the unresolved April 2022 potentially acid-generating rock Environmental Assessment Office order and a warning letter received on September 26, 2022.

BC Hydro worked with the B.C. Environmental Assessment Office to address the order and letter. BC Hydro has conducted local government, Indigenous Nations and regulator consultation on proposed amendments to the Site C Construction Environmental Management Plan to clarify that the current approaches to managing potentially acid-generating rock provide adequate environmental protection. The revised Construction Environmental Management Plan was submitted to the Environmental Assessment Office for their final review and they responded to that submission with several clarifying questions. As of September 30, 2023, a reply to their questions had not yet been submitted. Additionally, BC Hydro is developing final treatment plans for potentially acid-generating sites that will not be addressed through dam construction or the creation of the reservoir.

Procurement

The procurement indicator status remained “amber” as of September 30, 2023, due to the remaining right bank foundation enhancements procurements that still need to be negotiated.

The majority of the Project’s commercial agreements are in place, with a few remaining commercial agreements for smaller scopes of work expected to be awarded by the spring 2024.

Indigenous Relations

The Indigenous Relations indicator status remained “amber” as of September 30, 2023. BC Hydro has a mandate from the Government of British Columbia to reach Project or impact benefit agreements with the 10 Indigenous groups that are most impacted by Site C. Eight of 10 agreements are fully executed and in implementation. BC Hydro has a standing offer to negotiate with the remaining two First Nations that have not signed agreements related to the Site C Project. BC Hydro also maintains a working relationship with those Nations through ongoing consultations and engagement.

BC Hydro has completed consultations with impacted First Nations regarding options and site-specific plans for managing identified burial and cultural sites impacted by reservoir filling, in particular in the Halfway River and Cache Creek / Bear Flats areas.

Stakeholder Engagement

The stakeholder engagement indicator status remained “green” as of September 30, 2023. BC Hydro continues to work with the communities, regional district and stakeholder groups on the implementation of various community agreements.