Legislation introduced to prepare for Mactaquac dam project

Release

Department of Energy

November 05, 2025

FREDERICTON (GNB) – The government has introduced legislation to provide clarity and certainty to NB Power and companies providing equipment and services for a potential refurbishment of the Mactaquac dam.

“The Mactaquac Life Achievement Project Act does not approve the project, but will help ensure it can move ahead in a timely fashion so the dam can continue to generate clean electricity for New Brunswickers,” said Energy Minister René Legacy. “We recognize that this project is a major endeavour, logistically and financially, and we have created legislation to improve its feasibility.”

If passed, the legislation would:

·         Exempt the project from the bonding requirements of the Construction Remedies Act, while maintaining the five per cent holdback under Section 34. This is deemed necessary because the Canadian surety market cannot generally provide 50 per cent bonds for contracts lasting more than five years.

·         Designate the project as a “major project” under the Industrial Relations Act, once the labour agreement process has concluded with trade associations and unions, which will ensure labour stability and cost certainty.

·         Clarify that all procurements related to the project are exempt from the Procurement Act, removing ambiguity and allowing NB Power to proceed with confidence and flexibility.

·         Provide certainty to federal funding instruments, such as the Canada Infrastructure Bank, that the provincial government is ready to negotiate agreements that can meet their terms and conditions.

“The legislation is about removing barriers, providing clarity, and ensuring that New Brunswick is ready to move forward if and when the time comes,” said Legacy.

 

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