Construction on the long-awaited North Shore Wastewater Treatment Plant will soon begin again, according to Metro Vancouver, but it now comes with a much more expensive price tag of $3.86 billion.
When construction began on the facility in 2018, the project was estimated to cost $700 million and was expected to be operational by December 2020.
However, the project hit major roadblocks when Metro Vancouver terminated its contract with the company responsible for designing and building the new treatment plant.
Metro Vancouver Board of Directors Chair George V. Harvie said in a release that the building has to go ahead.
“Building a new wastewater treatment plant that provides a higher level of treatment is essential to comply with federal regulations and it is absolutely critical that the facility is built to ensure human health and the environment are protected well into the future,” he said.
Once operational, the treatment plant will serve more than 300,000 residents and businesses on the North Shore and will provide tertiary filtration and disinfection. Metro Vancouver said “tertiary filtration will reduce the release of potentially harmful contaminants into sensitive marine environments.”
Household costs
Back in 2021, Metro Vancouver severed ties with Acciona Wastewater Solutions over long construction delays and a rising price tag.
Metro Vancouver then created a task force to explore how to move forward with the project, adding that Acciona only completed 30 per cent of the construction and 80 per cent of the project’s design. Harvie said Metro Vancouver now has a viable path to complete it.
Metro Vancouver Commissioner and CAO Jerry Dobrovolny said the cost to deliver the treatment plant has grown.
“In updating the cost estimate, Metro Vancouver took into consideration the many large infrastructure projects in the market today, which are all competing for resources; the cumulative effect of inflation of construction and labour costs; and the significant work that was needed to address design and construction deficiencies,” he said.
With the new $3.86 billion cost, Metro Vancouver said households within the North Shore Sewerage Area will be on the hook for an average increase of $725 annually for 30 years. The average cost does not compound over the 30-year period.
Meanwhile, Metro Vancouver said some project costs will be shared across the region, which are estimated at:
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An average increase of $140 for households in the Vancouver Sewerage Area
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An average increase of $80 for households in the Fraser Sewerage Area
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An average increase of $70 for households in the Lulu Island West Sewerage Area
Metro Vancouver said it varies by municipality whether the costs of wastewater treatment, drinking water and solid waste management are included in utility rates, property taxes or a combination of both.
The rate per household also depends on the type of home and usage.
The revelation of the increased costs has not landed well with all officials on the North Shore.
District of North Vancouver Mayor Mike Little said in a statement he is extremely frustrated by the project.
“I am bothered about the additional costs that the district taxpayers will be forced to absorb to get the North Shore Wastewater Treatment Plant completed and operational,” he said.
City of North Vancouver Mayor Linda Buchanan sits on the board of directors for Metro Vancouver. She said as a member she has to accept the decision of the board, but she also has concerns about the impact the increased costs will have on residents.
“People deserve to have updated infrastructure that is affordable and paid for equitably,” she said.
Dobrovolny said he understands the financial concerns and that Metro Vancouver is working on a long-term financial plan to illustrate to the provincial and federal governments the need for financial support.
Metro Vancouver said it will confirm a contract to complete construction over the coming months.
