Astaldi woes no surprise, says Muskrat Falls critic

Former PUB chairman and Muskrat Falls criticDavid Vardy saidit's no surprise Nalcor is facing off with Astaldi, the main contractor on the Muskrat Falls megaproject.

• 'I have to have a Plan B': Nalcor Energy, Astaldi at loggerheads over Muskrat Falls costs

Following Nalcor CEO Stan Marshall's revelation that the contractor is looking for hundreds of millions more to finish the project, Vardy said the company did not have the credentials to start the build in the first place.

"It's not surprising, given the fact that they haven't worked in Canada before," Vardy said on Wednesday. "They're an Italian company and it's the first time they've worked in the north."

I'm thinking it may well go more closely towards $15 billion.- David Vardy

Astaldi and Nalcor have reached an impasse in negotiations, Marshall revealed this week, as the company wants even more money potentially hundreds of millions to finish theconstruction project.

The hydroelectric projectis behind schedule, and costs have risen substantially.

Vardy claims Astaldi submitted the cheapest bid for their $1.1-billion contract, but said it'sonly the tip of the iceberg of theoverall projectcosts.

"We're looking at a commitment which is going to be well in excess of $10-billion. I'm thinking it may well go more closely towards $15 billion."

Local hires, says Astaldi

A spokesperson for Astaldi said Wednesday that the company was prepared to work in Labrador. He said about 90 per cent of the company's workforce was hired from Newfoundlandand Labrador.

The spokesperson also said that some of theproject managers and leaders have experience working in the north.

The contractor said the 2015 and 2016 construction seasons have been going well, but itsuffered setbacks with a series of weather-related delays early in the project and the recent concrete failure in apowerhouse unit.

Marshall said Wednesday that he didn't want to givemore money to the contractor and he was weighing the possibility that Astaldi would be replaced.

Still time to cancel?

Nalcor shuffled the deck this week with the announcement that the Muskrat Falls project would be split in two.

• Muskrat Falls becomes 2 projects as new Nalcor boss makes changes

But Vardy saidevery option should be on the table, including possibly cancelling the project.

"It seems to be a foregone conclusion that [Marshall] is going ahead with the project," Vardy said.

"He may well have come to that conclusion in his mind, but I think that's important that that be shared, whatever evidence there is with regard to the analysis."