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Montréal, Québec, Canada, 2016/01/08 - Over the next few years, Hydro-Québec’s steel requirements will be twice as high as average due to major projects being carried out - HydroQuebec.ca.
In 2015, the company launched two separate calls for tenders totalling $65M, with 85% of the contracts going to Québec-based companies.
Initial call for tenders for 5,000 tonnes
The tender analysis indicated that inviting new international suppliers to bid along with Québec companies resulted in a price decrease of roughly 20%. This analysis takes into account the same quality criteria and transportation costs.
For this initial call for tenders, Hydro-Québec retained the Turkish firm Mitas. The contract for the supply of 5,000 tonnes is worth $10 M. The variance between the offers presented was significant enough for the contract to be awarded to a new supplier.
Second call for tenders for 25,000 tonnes
In November 2015, Hydro-Québec launched a second call for tenders for 25,000 tonnes. The decrease in prices noted during the initial call for tenders had continued. Three Québec-based firms tabled the best offers and will share contracts worth a total of $55 M.
Hydro-Québec must reach a balance between economic spin-offs in Québec and the price paid, since purchases have an impact on electricity rates in Québec.
In 2014, Hydro-Québec’s purchases of goods and services reached $3.3 billion, more than 90% of which were from Québec-based companies.
Hydro-Québec (hydroquebec.com) is a public utility that generates, transmits and distributes electricity. It is Canada’s largest electricity producer and is among the world’s largest hydropower producers. Its sole shareholder is the Québec government. It uses almost exclusively renewable generating options, in particular hydropower, and supports the development of other sources of energy, such as wind and biomass, through purchases from independent power producers. Its research institute, IREQ, conducts R&D in energy efficiency, energy storage and other energy-related fields. Hydro-Québec invests $100 million in research every year.