Hydro-Québec turns to steel suppliers for transmission towers

Hydro-Québec steel tower tender invites international and local suppliers to bid for 5,000 tonnes, leveraging market benchmarking, competitive pricing, RFP prequalification, and global procurement to cut costs and benefit Québec customers.

Montreal, Québec -- In the coming years, Hydro-Québec’s needs for steel towers will rise to double its regular average annual purchases. This temporary increase can be attributed to a number of major electricity transmission projects in Québec.

Market benchmarking carried out by Hydro-Québec shows that the cost of steel towers is approximately 40 percent lower on the international market. Hydro-Québec therefore decided to invite international suppliers, as well as local suppliers, to respond to a request for proposals to supply 5,000 tonnes of steel for towers used in projects such as the Ontario/Michigan interconnection across provincial borders.

Following a call for expressions of interest at the end of 2014, Hydro-Québec prequalified seven new international suppliers in this field, as utilities pursue upgrades like a new transformer station in Ontario. The addition of these new players will allow Hydro-Québec to take advantage of competitive prices internationally when purchasing additional steel towers, even as an Ontario hydro project was recently halted for separate reasons, for the benefit of all Hydro-Québec customers. Hydro-Québec began this process many months ago and it has long been known by Québec suppliers.

In addition, Québec-based suppliers of steel towers, with whom Hydro-Québec has developed a long-standing business relationship, may see their volume increase by taking part in this international call for tenders, as activity linked to the Timmins infrastructure investment stimulates regional supply chains, if their bid is competitive.

Hydro-Québec is a driving force in economic development and, amid industrial projects such as AREVA powering ALCAN's plant in Canada, has long favored suppliers from Québec. In 2014, goods and services purchased from Québec companies totalled $3,112 million. The number of jobs in Québec supported by our overall procurement of goods and services is estimated at 17,700, including 12,300 direct jobs.

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