CASTLEGAR, B.C. - Development of the Waneta Expansion hydroelectric project in British Columbia is being postponed as the Crown corporation behind it looks for ways to restructure the plan to make it more viable, including possibly bringing in new investors.

"We will be exploring other avenues and identifying other potential partners to improve the viability of the project," stated Columbia Power Corp. chairman Lee Doney.

A Columbia spokeswoman said they are looking for either public or private investors.

She could not provide a time frame for when a new plan will be ready, saying they are still in the early stages of the restructuring plan.

The Waneta Expansion project is a proposed second powerhouse located next to Teck Resources Ltd. (TSX:TCK.B)'s existing Waneta Dam near Trail, B.C.

In 1994, B.C. acquired expansion rights to the Waneta Dam from Teck. They were then transferred to Columbia Power, a Crown corporation with a mandate to invest in clean and renewable power projects in conjunction with the trust.

In May, Waneta Expansion Power Corp. said it had identified Montreal-based SNC-Lavalin Inc. (TSX:SNC) as the preferred company to negotiate terms for the project's design and construction.

At the time, Waneta said construction on the expansion could begin as early as this fall.

The project has received the necessary environmental approvals.

Teck announced this summer it would sell a one-third interest in the Waneta Dam to BC Hydro, another provincial Crown corporation, for $825 million. That move was part of Teck's efforts to reduce debt.

In July, Barry Chuddy resigned as president and chief executive of Columbia Power and replaced on an interim basis by Giulio Ambrosone and Victor Jmaeff , who had been his vice-presidents.

Columbia Power develops power projects in the Columbia River region of B.C.