Government rejection infuriates Rudolph
aPart of the one consortium the Yukon government rejected as a possible builder of the Dawson City bridge believes the bureaucracy is trying to prevent the project from going ahead.
aPart of the one consortium the Yukon government rejected as a possible builder of the Dawson City bridge believes the bureaucracy is trying to prevent the project from going ahead.
Recently, the government requested companies interested in working on a partnership to build the bridge over the Yukon River in Dawson City to submit their qualifications to the government.
Those who the government felt qualified for the project, will now be allowed to put in proposals to build the bridge.
Of the three consortiums who replied, only Epcom, which includes Yukon companies and first nations, as well as multinational corporation SNC Lavalin, was rejected.
Jon Rudolph, the head of MacMillian Mining Contractors, one of the partners in Epcom, is the consortium's vice-president of administration.
Rudolph said the decision to reject Epcom 'is just absolutely ludicrous.'
The government told Epcom it failed to meet the qualifications, 'which was unfounded,' according to Rudolph.
The government told the group one of the reasons to reject its proposal was Epcom's inability to finance the project.
He said that made no sense since it's 'almost impossible to have clear (financial) support for a project' that has not even been designed yet.
The project designs would be part of the next stage.
He said the government said Epcom did not have enough experience with in-stream concrete piers. He added that also did not make sense since the bridge has yet to be designed and Epcom does not know if it would have concrete piers.
It also didn't make sense to him to reject the company, since such a large multinational like SNC Lavalin is involved.
'They're a huge company that's capable of just about any project,' he pointed out.
It was felt by the government that SNC Lavalin did not have enough experience.
'What do they know about building bridges and evaluating (bridge projects)?' he wondered about the territorial government.
He noted that SNC was just awarded the $1.8-billion RAV line, a rapid transit line connecting Vancouver, Richmond and the Vancouver International Airport.
That project includes the construction of two bridges across the Fraser River.
He said SNC Lavalin would have no problem finding the money for the Dawson City project, considering B.C. is confident SNC can find $1.8 billion to finance the RAV project.
'Does the government of Yukon really think they're not capable of financing a $30-million project?' he wondered.
'They can finance the thing out of petty cash.'
The Yukon Party government wants to do the project through a public-private partnership (P3).
A P3 sees a company finance and build a public project, like a bridge, in exchange for a way to make money off of it over the long-term. Potential ways to make money include tolls or having the government pay them an annual fee.
Rudolph said that with a P3, the group that wins is supposed to be the one that comes up with the best design and the best price.
He said the government is keeping Epcom from showing them whether or not they have the best design and price.
'Why aren't we allowed to play the game?' he said.
He believes the bureaucracy, which evaluated the three groups, doesn't want to see this built through a P3 it is the cabinet that has pushed for the bridge to be built using a P3.
'I think they want to find a way to stop the project,' he said.
He feels they are doing it by forcing Epcom to create a roadblock to stop the project.
'We're looking at our legal remedies, absolutely, because we feel the process is flawed and we're not being treated fairly.'
He pointed out another problem. According to the government's rules, a subcontractor can only be listed for one group.
The government said they were concerned about a subcontractor on Epcom's list.
However, that company was on the list of one of the group's that was accepted, Ledcor Projects Inc.
'(That subcontractor) ends up being on two teams, which is prohibited.'
Ledcor Projects Inc. is based in Vancouver and included these companies: All-North Ltd., Triton Consulting, Ledcor CMI, Buckland and Taylor, Ketza Construction of Whitehorse and Ruskin Construction.
The other group is headquartered Outside. It is called Dawson City Bridge Alliance. Those companies involved include: Associated Engineering, Kiewit corporation, Thurber Engineering, Access Consulting of Whitehorse, MacQuarrie, Northwest Hydro Consultants and Yukon Engineering Services of Whitehorse.
When Epcom was created in April 2003, it was reported the company is made up of ACR International Systems Inc., MacMillan Mining Contractors, SNC-Lavalin Inc. of Montreal, and 35403 Yukon Inc. The numbered company is a corporation owned by the Kluane, Kwanlin Dun, Ta'an Kwach'an and White River first nations.
The first nations own 51 per cent of Epcom, with the private sector companies owning 49 per cent.
Rudolph said Epcom is 85 per cent Yukon-owned, something neither of the other two groups can claim.
He also said the first nations involved in Epcom are quite upset with the decision.
'It's a complete slap in the face to them.'
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