Manitoba Hydro restarting international consulting business

Manitoba Hydro is getting back into the international consulting game.

On Monday, the Kinew government announced it was resuming operations for Hydro's international consulting business, Manitoba Hydro International (MHI).

"This will bring in another source of revenue for Manitoba Hydro, keeping it public, and keeping rates low for you," said Adrien Sala, minister responsible for Manitoba Hydro.

Manitoba Hydro International, a subsidiary of Manitoba Hydro, started in 1998. It provided utility consulting and technology solutions and products to international clients until February 2021 when the previous Conservative government appointed board at Hydro ordered the shut down of operations. At the time, Hydro said it was because of diminished revenues and pointed to a review, which illustrated the risk of doing business in politically unstable countries.

“The comprehensive review determined that MHI was operating in higher-risk international countries that exposed Manitoba customers to potential liabilities, including security risks for employees and financial risks,” a statement at the time read. “It was also identified Manitoba Hydro customers effectively subsidized MHI through MHI’s use of Manitoba Hydro assets.”

Ben Graham, the chair of Manitoba Hydro's board, said the risk appetite of the organization could change over time.

"I think there's a recognition by the team at MHI (Manitoba Hydro International) as well as the board, that we will be very selective of the opportunities we take on,” Graham explained. “And a lot of these projects paid for by the IMF (International Monetary Fund) or the World Bank have very strict guidelines on what can and can't be accepted. So if you think how our risk management framework compliments theirs, I think we're going to be selecting the right type of projects."

Graham said Manitoba Hydro International has consistently delivered a net annual income in the millions of dollars. He said that cash will be used to help keep rates lower for Manitobans. "Every dollar earned from International clients, is a dollar that goes directly towards reliable and affordable energy for everyone in this province," said Graham.

Officials said resuming the work of Manitoba Hydro International won't happen overnight.

The government said they intend to add staff over the next three or four years and resume bidding on projects around the world as soon as possible.