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Muskrat Falls Project

9 Apr 2016

The objective of the Engagement is to assess the reasonableness of the Muskrat Falls Project’s cost and schedule forecast and to identify opportunities to address any material/critical risks. [...] The direct and indirect consequences of this delay are expected to have material impacts on cost and schedule that are not reflected in the September 2015 Forecast; ► the current contingency level representing 4.7% of the cost to complete2, or 2.3% of total cost, is low for the current stage of completion of the Project. [...] This construction work is challenging in terms of its scale, time and geography and as such is exposed to a wide range of execution risks; and ► there is a risk of multiple-month delay to completion of the HVdc transmission line contract as a result of a number of delivery challenges that have been experienced to 1 At the time of the September 2015 Forecast, Nalcor communicated that first power in [...] EY recommends that consideration be given to the use of a more conservative confidence level for setting Project contingency, based on a thorough risk assessment; ► the sufficiency of the Project contingency should be reviewed quarterly to assess whether it appropriately covers all risks, taking account of the effectiveness of mitigation plans and the likelihood of risks crystallizing; and ► there [...] Page 5 $ CAD (M) Muskrat Falls Project Review of project cost, schedule and related risks 3 Objective a nd scope 3.1 The objective of the Review, as described in the statement of work, is to assess the reasonableness of the Project's4 cost and schedule forecast and to identify opportunities to address any material/critical risks.
risk assessment technology economy governance science and technology construction electric power transmission risk weather human activities ernst & young hvdc lower churchill project high-voltage direct current construction work muskrat falls ey.com convertor stations ernst & young global limited ernst & young llp
Pages
20
Published in
St. John’s, NL, CA

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