Hydro-Quebec said that it decided to invite global suppliers to respond to an RFP for 5,000 tonnes of steel for towers
QUEBEC—In the coming years, Hydro-Quebec’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 Quebec, said the hydroelectric company.
Market benchmarking carried out by Hydro-Quebec shows that the cost of steel towers is approximately 40 percent lower on the international market. Hydro-Quebec said that it 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.
Following a call for expressions of interest at the end of 2014, Hydro-Quebec pre-qualified seven new international suppliers in this field. The addition of these new players will allow Hydro-Quebec to take advantage of competitive prices internationally when purchasing additional steel towers, for the benefit of all Hydro-Quebec customers. Hydro-Quebec began this process many months ago, which the corporation said has long been common knowledge among Quebec suppliers.
In addition, Quebec-based suppliers of steel towers, with whom Hydro-Quebec has developed a long-standing business relationship, may see their volume increase by taking part in this international call for tenders if their bid is competitive.
Hydro-Quebec said that it has long favored suppliers from Quebec—in 2014, goods and services purchased from Quebec companies totalled $3,112 million. The number of jobs in Quebec supported by the company’s of goods and services procurement is estimated at 17,700.