The province has decided to continue construction on a multi-billion-dollar hydroelectric dam, despite the project being over budget and behind schedule.

B.C. Premier John Horgan announced Monday that the government is opting to continue construction on the Site C dam, rather than cancel or delay it.

The dam was initially estimated to cost $8.3 billion, but Horgan announced that the latest estimate puts the total at $10.7 billion.

"I can say without hesitation this is a very, very divisive issue, and it will have profound impacts not just on the people that I met in the region, not just on the people who are working on the site today, but all British Columbians, this generation and the next generation," Horgan said.

"We have not taken this decision lightly."

At a news conference, Horgan said the project was brought "to the point of no return" by the previous government. However, he said the province will provide enhanced oversight, both through independent experts and government representatives, to keep costs in line.

While the project's price has gone up, he said the additional costs can be recovered through the sale of electricity over a long period of time.

The decision was made to avoid the additional expenses that would come with cancelling construction, Horgan said.

He blamed what he referred to as mismanagement on the Liberals, but said, "we cannot punish British Columbians for those mistakes, and we can't change the past."

Horgan maintained that he felt the project shouldn't have been started in the first place, calling it a reckless decision.

"I question their motivations, I question their assumptions, I question their business case and their budgets," he said, but added that he felt his only choice was to continue.

Construction began two years ago on the project first initiated by the former Liberal government, and a decision to cancel would affect more than 2,000 workers.

A recent review from the B.C. Utilities Commission suggested that terminating the project would cost the province $1.8 billion, in addition to $2.1 billion already spent. Suspending construction until 2024 would add at least $3.6 billion to the original price tag.

The NDP campaigned on having the project reviewed, a practice that was once standard in B.C. before the Liberals' clean energy laws allowed some projects to bypass review.

In addition to announcing construction would continue, Horgan said a new food security fund would be set up when the project is complete, using revenue from Site C to support farming and agricultural innovation in B.C.

Community benefits programs will also be set up to assist local communities and increase the number of apprentices and First Nations workers hired to work on the project.

Horgan also said his government plans to build an alternative energy strategy focusing on renewable, green power sources.

'Appalling and indefensible': Critics speak out about decision

The NDP's decision on Site C drew a range of critics from lobby groups and provincial politicians to Horgan's own family members.

When asked whether NDP MLAs who didn't agree with the decision would be walking away, Horgan said even his wife was opposed, but they'd talked it through and she's sticking around.

Liberal MLA Mike Bernier said his party is concerned about the uncertainty that surrounded the project during the review process, and the message that sent to would-be investors. He also accused the NDP of commissioning the review purely for political reasons and to appease the provincial Greens.

In a statement, Green Leader Andrew Weaver said his caucus was "extremely disheartened" by the minority government's decision. Weaver called the decision fiscally reckless, and said that his party did everything it could to convince the NDP to cancel.

"The government’s argument that cancelling Site C is too risky due to debt is incredibly cynical. This is a question of priorities."

"Today, Site C is no longer simply a B.C. Liberal boondoggle - it has now become the B.C. NDP's project."

And less than an hour after the decision was announced, two B.C. First Nations announced they would be seeking an injunction.

The West Moberly and Prophet River nations said they intend to obtain a court injunction to halt construction so they can move forward with civil action, citing treaty infringement.

"The results they received from (the BCUC review) were clear: no need for the power, better alternatives once we do, and no advantage to ratepayers to proceed. With those findings, the only responsible choice was to immediately stop destroying the Peace River valley," Chief Roland Willson said in a statement.

Amnesty International echoed the sentiment in a release calling the decision "appalling and indefensible."

The organization's Canadian secretary general said: "The fact that he would allow the destruction of the Peace River Valley despite such serious concerns is a blatant betrayal of his government’s commitments to uphold the rights of Indigenous peoples, including the UN Declaration on the Rights of Indigenous Peoples."

Horgan addressed those who told him to pull the plug on the project following the announcement.

"I respect the strength of your convictions and your concerns about the future of BC Hydro and British Columbia," he said.

"I share your determination to protect B.C.'s farmland and reduce the impact of energy developments now and into the future."

While critics were vocal, the Canadian Taxpayer Federation called it the best option in a bad situation.

"This is a wise move and we must proceed with caution," said Kris Sims, B.C. director of the CTF.

"Taking a $4-billion bath with nothing to show for it would have been fiscally irresponsible. Let's get this done as quickly and frugally as possible."

With files from CTV Vancouver's Bhinder Sajan and Ben Miljure, and CTV National News' Melanie Nagy