3rd Party Review of Economic Benefits
Third Party Review of Actual and Forecast of Local, Regional and Provincial Economic Benefits Derived from Construction
TyPlan was retained by Innergex Renewable Energy Corporation (Innergex) to undertake a comparative analysis of the expected economic benefits identified as part of the Environmental Assessment Application Certificate, submitted in 2012 (EAC 2012) for the Upper Lillooet Hydro Project (ULHP), with actual spending and benefits derived from the projects construction to date in 2015. The project benefit area includes the Village of Pemberton, Squamish Lillooet Regional District and the Province of British Columbia. The review was based on working directly with the contractors building the project, who provided project expenditures (based on project management tools such as project schedule, project human resource planning etc.) tracked within the local community, region and province, based on the first year of construction. Utilizing the British Columbia Input Output Model (BCIOM) to TyPlan "reengineered" the economic modeling process to determine actual and forecast to completion benefits associated with the construction of the project.
Once complete the results were compared to the original benefits indentified into the EAC 2012 economic benefit report estimates. While the use of the BCIOM is common for estimating benefits of construction projects, this process was the first time the author is aware of actually comparing the estimates derived from the BCIOM to that of actual project benefits. TyPlan with the support of BC Stats, developed a methodology to compare estimated project benefits prior to construction ( usually done to support project environmental assessment requirements), to actual benefits derived from construction.
The report outlined Issues regarding interpretation of how the model can be used and presented best management practices to enable owners to optimize local benefits related to construction, which Innergex is currently exceeding.