Thank you, Mr. Speaker. I have a return to oral question asked by Mr. Testart on March, 11, 2019, regarding the Northwest Territories Power Corporation generator procurement cost.
NTPC recognized that Members have been interested in this project. The corporation is pleased to report that the project is nearing completion, with final commissioning under way for the last two generators. It was necessary to switch vendors for the final two units because the original vendor was unable to meet the required delivery schedule, even after multiple renegotiations. This vendor's bid was originally selected because it provided the lowest cost overall and met all other project requirements. The cancelled contract resulted in approximately $750,000 in additional costs. Included in this total are additional costs to mobilize contractors, install the units from a new vendor, interest associated with the schedule delays, as well as some additional designing and engineering. By changing vendors, the corporation was able to install larger units with better insulation and saving $170,000 of depreciation, partially offsetting these costs.
As a result of the challenges associated with this project, NTPC has strengthened its project management practices and procedures to be more industry standard, including adjustments to procurement practices. Thank you, Mr. Speaker.