Kinew commits $500M for final phase of North End sewage treatment plant upgrade

The Manitoba government will provide $500 million for the final phase of the North End sewage treatment plant upgrade, granting a long-standing request by the city.

“This is a big project that will allow for more housing and it’s an important project, not just from an environmental standpoint, but… for the Manitoba economy,” Premier Wab Kinew said in an email.

He said the province will help the city to “deliver this project on budget” and support its request for another $500 million from the federal government.

The premier was not available for further comment Friday on the contribution toward the third phase of the upgrade, a $1.57-billion project that would greatly reduce the amount of algae-promoting nutrients that flow out of the plant.

In April, Kinew told media his government could devote more money to the project from provincial strategic infrastructure funding the city receives each year.

The entire three-phase upgrade is the city’s most expensive infrastructure project yet, with a total cost of nearly $3.1 billion. Its first two phases were jointly funded by the city, province and Ottawa.

Mayor Scott Gillingham welcomed the new funding pledge.

“This project is critical to Winnipeg’s growth in the future and unlocking the capacity challenges that we have right now, and it’s really vital to make sure that we are protecting Lake Winnipeg,” Gillingham said. “The provincial and federal commitments are critical because… their funding will help to make sure that water and sewer rates remain affordable for ratepayers.”

A November city report warned the average household’s annual utility bill would skyrocket by more than $1,000 by 2027 if the municipal government was left to fund the third phase of the upgrade alone. It also warned the city could run out of sewage capacity to build new homes and businesses by 2032 if the entire project was not completed first.

Gillingham said talks are still underway on the city’s request for $500 million in federal funding for the final phase of work. The city previously approved plans to cover the remaining $500 million.

“We continue to have good dialogue with the federal and provincial government on the federal government’s share of this project,” he said.

On Friday, the mayor said it’s urgent that the city secure full funding in “the coming months,” both to better protect Lake Winnipeg from algae blooms and ensure the expanded plant works as well as it could.

“It’s all interconnected, so we need the entire plant built, all three phases completed in a timely fashion,” he said.

Terry Duguid, the federal MP for Winnipeg South, said Canada’s housing and infrastructure minister is still actively involved in talks over the funding request.

“There’s a track record of the federal government being there with substantial dollars in Phase 1 and Phase 2, and I’m sure that those discussions on Phase 3 will be positive and productive,” said Duguid.

While there is no set timeline to complete those talks, he said the federal government agrees the upgrade is a key infrastructure priority.

“All three levels of government know… expanded sewage treatment is needed to service our growing city. It will be required to build new homes, to support business expansion and to protect Lake Winnipeg,” he said.

Infrastructure Canada did not respond to questions about the federal funding request by deadline Friday.

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga