Cross Canada Check-up:

Construction developments in Alberta, Saskatchewan and ManitobaTony Clark, General Counsel, The Graham Group

CBA 2010 National Construction Law Conference

Introduction

• Forecasted growth in the Prairies– Where is the construction industry headed?

Project Highlights• Project Highlights– What are some of the key projects underway or in

the pipeline?p p

• Noteworthy Developments

Forecasted Growth in the Prairies

• The Alberta Story:– Sooner than expected recovery

J b l f 2007 2009 h t t d t i i 2010• Job losses from 2007-2009 have started to regain in 2010.• Steady growth is predicted from 2012 to 2016.

• The Saskatchewan Story:– What Recession?What Recession?

• 3600 new jobs in non-residential construction in 2009• By 2012 and through to 2016, construction activity is expected to return

to normal levels.

Th M it b St• The Manitoba Story:– A Slight hiccup

• 2008-2009 saw a shallow dip, followed by recovery between 2010 to 2012.

• Employment is expected to expand 20% in the three years, largely tied to p y p p y , g ythe housing market and utility related construction.

Source: “Construction Look Forward: An Assessment of Construction Labour Markets from 2010 to 2010”. Construction Sector Council.

The Alberta Project InventoryCurrent and future (in millions)

$140,000.0

$160,000.0

$100,000.0

$120,000.0

$60,000.0

$80,000.0

$20,000.0

$40,000.0

$0.0 Oil S

ands

Pow

er

Infrastructure

Institutional

Com

mercial / R

Pipelines

Residential

Mining

Tourism / R

ec r

Residential

Biofuels

Oil and G

as

Manufacturing

Telecomm

unic

Other Industria

Agricultural an

Petrochem

ical

Forestry and …Retail

reation

cations

al d … s

Source: Inventory of Major Alberta Projects, Govt. of Alberta, June 2010

Projects in the Prairies: Current and Future

• Alberta– Current

O• Oilsands– Kearl Lake (Imperial Oil) – first production in 2012, eventually 300,000 bpd -

$8 bn– Suncor Firebag, Stage 3 -$900mm– Syncrude Phase 4 Upgrader Expansion and Phase 2: Aurora South Mines

Trains 1 and 2 $2 3 bnTrains 1 and 2 - $2.3 bn– Shell Albian Sands 1 upgrading - $5bn

• Commercial and Infrastructure– West LRT Project - $1 bn (Design –Build)– The Bow Building $1 5 bn (CM)– The Bow Building $1.5 bn (CM)– South-East Stony Trail - $769mm (P3)– Alberta Schools Alternative Project (ASAP) 2 - $253mm (P3)– ASAP 1 (18 Schools) - $634mm - opened up Fall 2010 (P3)– Northwest Anthony Henday - $1.4 bn (P3) – Edmonton Remand Centre - $620mm (CM)Edmonton Remand Centre $620mm (CM)– South Calgary Hospital - $1.3bn (CM)

Calgary’s Bow Building

Calgary WLRT

Calgary’s Peace Bridge

Projects in the Prairies: Current and Future

• Alberta– Proposed and UpcomingProposed and Upcoming

• Oilsands and Energy:– Joslyn ($9 bn)& Surmont Phase 2 ($2 bn) (Total E&P)– Total E&P’s 300,000 bpd upgrader – CNRL Bitumen Upgrader Phase 1 - $4 bn– CNRL Bitumen Upgrader Phase 1 - $4 bn– Shell’s Carmon Creek $3,450 bn

• Commercial and Infrastructure– North-East Anthony Henday (P3)

South Edmonton LRT (Design Build)– South Edmonton LRT (Design-Build)– ASAP 3 (P3)– Health Care

» Phase 1 of the Capital Plan: $1.4bn in spending on 22 facilities including $540mm Grande Prairie Hospitalfacilities, including $540mm Grande Prairie Hospital

» Phase 2 (Calgary and Edmonton): TBD• Purple Reign: YYC Tunnel and SE LRT?

Projects in the Prairies: Current and Future

• SaskatchewanC– Current:

• Boundary Dam ICCS• PCS Projects including Cory (near completion) increasing annual

capability from 800 000 tonnes to 3 m tonnes and Rocanvillecapability from 800,000 tonnes to 3 m tonnes and Rocanville expansion, including new Scissors Creek Mineshaft ($7 Bn)

• CCRL refinery upgrade - $1.9bn• Agrium Vault expansion at Vanscoy g p y• Mosaic expansions - $3.15bn• Circle Drive - $275mm

• Saskatchewan– Upcoming

• Covered Stadium for Regina, $450mm (possibly P3)• Federal Co-Op’s refinery in Regina, $1.6bnFederal Co Op s refinery in Regina, $1.6bn • Intermodal Transport Hub in Regina• Black Lake Hydro – 50MW (possibly P3)• Jansen potash Mine – $6-7bn (BHP dependent?)Jansen potash Mine $6 7bn (BHP dependent?)• Athabasca Basin roadworks (likely P3)

Projects in the Prairies: Current and Future

• Manitoba– Current:Current:

• Disraeli Bridges (P3)• Winnipeg Wastewater System (P3?)• Red River Floodway Expansion - $665mm• Wuskwatim Generation Project - $1 3bn 200 MW• Wuskwatim Generation Project - $1.3bn, 200 MW • St. Joseph Windfarm -$345mm, 138 MW• Southwest Rapid Transit Corridor - $138mm• Canadian Museum for Human Rights - $310mm

– Future• Manitoba Hydro’s $15bn in capital projects:

– Gull Rapids dam – 640 MWKeeyask Generating Station 695 MW– Keeyask Generating Station – 695 MW

– Conawapa Generating System -1485 MW• IKEA (Canada’s largest…)

Noteworthy Developments

• Alberta– Oilsands

• Alberta in the Movies!• Alberta in the Movies!• September 24, 2010: Government of Alberta to form a committee to determine industrial impacts

based on water monitoring data.• September 30, 2010: Federal Government forms a 6 member panel to examine the water-testing

regime in the Athabasca River.

– Construction Safety– Construction Safety• September 30, 2010: Government of Alberta posted detailed employer safety records on-line• Number of lost-time claims, estimated number of employees, lost-time claim rate, number of

fatalities, if the employer holds a Certificate of Recognition, and industry and province-wide lost-time claim rates for comparison purposes.

– Future of Alberta P3 Projects• Saskatchewan• Saskatchewan

– Potash Corp v. BHP Billiton• If successful, what, if any, influence will smaller producers hold in relation to royalty settings?

• Manitoba– Winnipeg Wastewater system

• $660mm upgrade to Winnipeg’s Waste water system• $660mm upgrade to Winnipeg s Waste-water system• 30 year contract to design, build and partly operate sewage treatment plants• Issue for October 27 municipal election