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CONSTRUCTION OF YORKTON SGI BUILDING TO PROCEED IN SPRING

Released on October 18, 1995

Ed Tchorzewski, minister responsible for SGI, said today that SGI will
proceed with plans to construct a new salvage building in Yorkton in
the spring of 1996 after the project has been re-tendered.

SGI tendered construction for the 14,000-square-foot building on
July 13, 1995. The tender closed on Aug. 22, with one Regina firm,
Gabriel Contracting, as the lone bidder.

"SGI has made a sound business decision not to accept the lone bid on
the grounds that it is higher than the approved budget," Tchorzewski
said. "It is a standard business and construction industry practice to
re-tender for a project if only one bid is received and the bid is
higher than budgeted. In this case, SGI is faced with that situation."

SGI announced plans to construct a new salvage facility in the spring
of 1994. The current facility is 25 years old and no longer meets the
business needs of SGI or the needs of its customers.

"The project will be re-tendered in the spring," Tchorzewski said.
"SGI believes re-tendering the project is the best decision for
Saskatchewan taxpayers, the city of Yorkton and the corporation."

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For more information, contact:

Darcy McKenzie
SGI
Regina
Phone: (306) 751-1347






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