Winnipeg Free Press - ONLINE EDITION

Engineers picked for waste-water upgrades

The City of Winnipeg has chosen Veolia Canada over two other engineering firms to help conduct $661 million worth of upgrades to the city's sewage-treatment plants.

After a year-long search for what was originally going to be a "strategic partner" in a new water, sewage and garbage utility, the city is poised to enter into a 30-year deal with the Canadian wing of Veolia, a multi-national consulting firm based in France.

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The deal will see five to 15 Veolia staffers help design upgrades at the sewage treatment plants and assist the city's maintenance efforts. The private firm will not own any facilities and unionized city staff will continue to operate them, said Bryan Gray, one of the creators of the city's new utility.

The city has abandoned a plan to allow a private firm to own part of a subsidiary in the new utility. Instead, the deal with Veolia -- which needs approval from executive policy committee and city council -- will see the company assume responsibility for a percentage of any cost overruns and also some of the savings that may flow from more efficient plant operations.

The city must complete upgrades to the South End Water Pollution Control Centre by the end of 2012, according to a provincial environmental order. Upgrades to the North End plant must be completed by the end of 2014.

There is no firm timetable for the city to create its new utility. The City of Winnipeg Charter must be changed to make that happen.

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