City’s north end sewage treatment plant upgrade increases by $47.5M

The City of Winnipeg looks set to pay an additional $47.5 million for what was already its most expensive infrastructure project.

A new staff report seeks city council approval to cover a contractor’s claim for rising labour, material, equipment and subcontractor costs on the first phase of the north end sewage treatment plant upgrade.

The cost of the first phase of work would rise from nearly $518 million to more than $565 million, within an overall $3-billion upgrade, if the increase is approved.

In June, water and waste officials warned the project’s price was at risk of increasing by “tens of millions” of dollars due to the claim.

The latest report calls for the extra cash to come from an environmental projects reserve, which it says would have “no immediate impact on sewer rates.”

City staff urge council to approve the overrun to avoid arbitration, which it says would be “likely to significantly increase overall costs.”

Council is expected to cast a final vote on the funding request on Sept. 25.