Mr. Jean-Louis Servranckx reports

AECON CONSORTIUM AWARDED CIVIL CONSTRUCTION CONTRACT FOR THE JOHN HART DAM SEISMIC UPGRADE PROJECT IN BRITISH COLUMBIA

Aecon-EBC General Partnership (AEGP), a consortium between Aecon Group Inc. (60 per cent) and EBC (40 per cent), in which Aecon is the lead partner, has been awarded the first phase of a $245-million two-phase civil construction contract for the John Hart dam seismic upgrade project in Campbell River, B.C. The scope of work involves upgrading earth stabilizing infrastructure to improve the seismic resiliency of the existing John Hart dam. Aecon's share of the contract will be added to its construction segment backlog in the fourth quarter of 2022.

An early contractor involvement (ECI) phase will commence in the fourth quarter of 2022 to collaboratively plan and prepare for construction. Upon successful completion of the ECI phase and following BC Hydro's final project decision, BC Hydro intends to issue authorization to proceed with construction, which is expected to commence in the third quarter of 2023 with anticipated completion by the end of 2026.

An Aecon-led joint venture completed the John Hart generating station replacement project in 2019, which included the construction of a new water intake, the replacement of three penstocks with a tunnel, and the construction of a new underground generating station and water bypass facility. The innovative project was the first hydroelectric public-private partnership (P3) in Canada and was recognized with the 2018 Tunnelling Association of Canada award of excellence.

"This project will ensure the continued supply of safe, reliable power for surrounding communities and adds another signature project to our diverse backlog in Western Canada -- underscoring our pre-eminent reputation as the preferred contractor for complex civil construction," said Jean-Louis Servranckx, president and chief executive officer, Aecon. "We are proud of the critical role Aecon played in successfully delivering the John Hart generating station replacement project, and we look forward to working with our partner while further strengthening our relationship with BC Hydro through this collaborative approach."

Dividend

Aecon's next quarterly dividend of 18.5 cents per share will be paid on Jan. 4, 2023, to shareholders of record as of Dec. 23, 2022.

About Aecon Group Inc.

As a Canadian leader in construction and infrastructure development with global expertise, Aecon (Toronto Stock Exchange: ARE) strives to be the No. 1 Canadian infrastructure company and is proud to be recognized as one of the best employers and best 50 corporate citizens in Canada. Aecon safely, profitably and sustainably delivers integrated solutions to private and public-sector clients through its construction segment in the civil, urban transportation, nuclear, utility and industrial sectors, and provides project development, financing, investment and management services through its concessions segment.

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