Hydro Rebuild Gets Special Project Rules

Summary#

This bill sets special rules for the Mactaquac Life Achievement Project, which is the long-term rehab of the Mactaquac hydro station in New Brunswick. Its goal is to speed up work, give flexible purchasing and contracting tools, manage labour on site, and lower some financing costs.

• Lets NB Power skip standard payment and performance bonds on this project if its board approves other security, and sets a 5% holdback on payments.
• Exempts all buying of goods, services, and construction for this project from the provincial Procurement Act.
• Allows NB Power, with approvals, to avoid paying certain annual provincial fees on federal loans or guarantees tied to this project.
• Labels the project area as a “major project” under provincial labour law, triggering a special labour framework for large builds.
• Allows the government to cancel the “major project” label later; if so, normal labour rules return right away.
• The bonding/holdback rules apply as of October 1, 2025. The labour designation will start on a future date set by government.

What it means for you#

• Workers and unions

  • The site will use a special labour system used for very large projects. This can set how unions are represented and how bargaining works across the project area.
  • Work done by NB Power itself, or work not tied to this rehab, is not part of that system.
  • If the government turns off the “major project” status later, normal labour rules return the same day for the affected parts of the site.

• Contractors and subcontractors

  • You may not need to provide standard payment and performance bonds if NB Power’s board approves other security. The form and amount of that alternate security will be set by the board.
  • The holdback on progress payments will be 5%. This improves cash flow compared with higher holdbacks.
  • The project is outside the Procurement Act. NB Power can run its own procurement process for this work.
  • Protection against non‑payment may look different if bonds are not used. Ask what alternate security applies before you bid.

• Suppliers and service firms

  • Buying for this project will not follow the usual provincial procurement rules. NB Power can tailor how it invites and awards bids for goods and services.

• NB Power customers

  • If the project uses federal loans or guarantees and the provincial minister approves, NB Power will not pay certain annual provincial fees on those amounts. Supporters say this could help lower project financing costs, which may ease pressure on power rates.

• Taxpayers

  • When the fee exemptions apply, the province will collect less fee revenue tied to this project’s federal loans or guarantees.

• Nearby residents

  • The “major project” area is mapped around the station site. The changes aim to keep construction moving; day‑to‑day local impacts are otherwise unchanged by this bill.

Expenses#

No publicly available information.

Proponents' View#

• Tailored purchasing and contracting will speed up a complex rebuild and avoid red tape.
• Allowing alternate security and a lower holdback can cut contractor costs and improve cash flow, leading to more competitive bids.
• Waiving annual provincial fees on approved federal loans or guarantees lowers financing costs for the project and can help keep power rates more stable.
• “Major project” status creates a clear labour framework that reduces risk of disputes and delays on site.
• The ability to revoke the status later gives flexibility if conditions change.

Opponents' View#

• Skipping the Procurement Act may reduce transparency and competition, raising the risk of favoritism or higher prices.
• Replacing standard bonds and cutting the holdback to 5% could weaken payment protection for subcontractors and suppliers if the alternate security is not as strong.
• Exempting fees reduces money flowing to the provincial treasury, which could shift costs to taxpayers or crowd out other priorities.
• The “major project” labour framework may limit usual bargaining choices for workers and employers.
• Letting cabinet revoke the designation by order, without the normal regulation process, could reduce public oversight.