Aecon, FlatironDragados JV wins major U.S. dam project

Key Takeaways:

• Aecon and FlatironDragados secured a US$691 million dollar contract with the U.S. Army Corps of Engineers for water storage and fish passage expansion at the Howard A. Hanson Dam.
• The construction phase is scheduled to begin in the second quarter of 2026 with a projected completion date in the third quarter of 2031.
• The infrastructure improvements focus on building a downstream facility with stacked ports to help salmon access nearly half of the Green River habitat located above the dam.

The Whole Story:

A joint venture led by Aecon Group Inc. (TSX: ARE) and FlatironDragados has secured a US$691 million contract from the U.S. Army Corps of Engineers to expand water storage and fish passage at Howard A. Hanson Dam in Washington State, the company said in a news release.

Aecon holds a 40% in the joint venture, with FlatironDragados holding 60%. Aecon’s share of the contract will be added to its Construction segment backlog in the first quarter of 2026.

The project will be delivered under an integrated design and construction contract model. The collaborative development phase is expected to conclude and construction to commence in the second quarter of 2026, with anticipated completion in the third quarter of 2031.

The work involves constructing a downstream dam facility with vertically stacked ports on the dam’s upstream side. The facility will connect to spawning habitat and support salmon access to nearly half of the Green River habitat above the dam.

“This project is an exciting undertaking that leverages Aecon’s extensive civil and dam infrastructure capabilities while advancing Aecon’s steady growth across North America,” said Jean-Louis Servranckx, President and Chief Executive Officer of Aecon Group Inc. “Building on the collaborative development phase, we are well positioned to safely execute construction, working alongside our client, tribal partners, federal and state agencies, and Tacoma Public Utilities.”

Howard A. Hanson Dam, located near the headwaters of the Green River in King County, has served as the primary flood defence for the Green River Valley since 1961. The dam’s reservoir collects runoff from 220 square miles of the Green River’s 483-square-mile drainage area. In winter, the reservoir remains mostly empty, allowing the river to flow through a gate-controlled tunnel. As the risk of flooding decreases by March, the dam shifts to water conservation, gradually filling the reservoir to support fish migration and spawning.

The dam has prevented an estimated $6 billion in flood damage since the January 2009 flood. Before its construction, the Green River Valley flooded over 30 times in 70 years, causing significant damage to property and farmland. The dam became operational on Christmas Day, 1961, ahead of its scheduled completion in April 1962.

The Green River provides Tacoma’s primary water source, collected and purified at a facility three miles downstream. Public access to the dam is restricted as it is located within a closed watershed established in 1914 through an agreement between the city of Tacoma and the U.S. Forest Service.