Province warned time ticking on sewage plant funding

Winnipeggers could see their water bills spike unless the province steps up to fund the final phase of upgrades at the north end sewage plant, city leaders and environmentalists are warning.

“Without a funding commitment from the province, without a funding commitment from the federal government, Winnipeggers themselves will have to pay the full cost of the Phase 3 project, which has skyrocketed in cost from when it was first mandated back in 2005,” said Alexis Kanu, Lake Winnipeg Foundation executive director.

Two weeks ago, Winnipeg Mayor Scott Gillingham expressed disappointment the 2026 provincial budget did not specify funding for the $1.57-billion upgrade designed to greatly expand sewage capacity and significantly reduce algae-promoting nutrients flowing from the plant into the Red River, ending up in Lake Winnipeg.

“Without that in writing from the province, the city has no choice but to download the cost onto ratepayers because they can’t award a contract based on a vague promise of money down the road,” said Kanu. “Until we hear from the province, we also can’t leverage any money from the federal government.”

The cost of the first two phases of the $3.1-billion project is being shared by the city, the province and the federal government. The provincial budget committed to coming up with a plan for funding the final phase of the project, but not an amount.

Environment and Climate Change Minister Mike Moyes said the province has already committed to $335 million for Phase 2, but hasn’t promised to fund the same portion of Phase 3.

“We’re all looking forward to getting (the project) built and making sure that we’re protecting our waterways,” Moyes said in an interview Monday. “I think we have been really clear that we’re going to be there for Phase 3.”

The province outlined milestones the city must meet in a letter sent on March 20. It extended the deadline for completing the project by two years to 2032, a requirement to meet an Aug. 31 deadline for Phase 1 of the project and set out targets for Phase 2.

“If they don’t hit those targets, we’re going to know about it right away so we can hold them to account — whether that’s through environmental protection orders or whatever’s necessary,” Moyes said.

“We’re hoping that that’s going to turn the project around and get it built in short order.”

Coun. Jeff Browaty said Monday the city needs a firm funding commitment from the province soon or he fears the final cost of the project will soar even higher.

“We’re talking months, not a year,” Browaty, the finance committee chairman, said of assurances for funding. “We’re working with pre-qualifying bidders on that third phase. If somebody that we’re pre-qualifying pulls out, what does that mean for competition in terms of it getting bid on? There’s all sorts of risks if we don’t continue moving forward on getting that third phase built.”

One of the the largest risks, Browaty said, is the fact Winnipeg is the economic driver of the province, saying growth will be halted without the investment.

“If we don’t have the sewage capacity, we’re going to have to say we can’t add 10,000 new homes. We can’t build a new food processing factory,” he said.

The Lake Winnipeg Foundation is now urging Manitobans to email the environment minister and appeal the 2032 deadline extension granted by the province.

Two years ago, the province held firm on its 2030 deadline, stating that pollution helped fuel toxic algal blooms that harm water and threaten tourism, fisheries and the livelihood of First Nations that depend on the lake.

Now it’s giving the city more time because the project can’t be completed by then.

“We’ve had this tension between the regulatory hand and the funding hand, and it doesn’t seem to be resolved,” Kanu said Monday.

She said it was “shocking” there was no provincial funding allocated for Phase 3, as it’s “the piece of the project where all the environmental protection for Lake Winnipeg resides.”

Kanu said the plant releases phosphorus pollution at levels five times higher than the environmental limit while its new phosphorus-reduction system is operating at only a fraction of its potential.

carol.sanders@freepress.mb.ca

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