Victoria, British Columbia, July 16, 2012 – The governments of Canada and British Columbia and the Capital Regional District (CRD) announced funding today for the construction of a new wastewater treatment system for the region. This project will reduce marine pollution by vastly improving the quality of municipal wastewater discharged into the Strait of Juan de Fuca.
"Our Government is proud to support this critically important initiative that will protect the marine environment around Victoria and southern Vancouver Island for future generations,"
said the Honourable James Moore, Minister of Canadian Heritage and Official Languages and Senior Minister Responsible for British Columbia. "This infrastructure project will create local jobs, leverage private sector investment and contribute to the long-term well-being of Vancouver Islanders."
The new system, known as the Core Area Wastewater Treatment Program (CAWTP), will consist of three projects: the construction of the McLoughlin Wastewater Treatment Plant and Marine Outfall, a Biosolids Energy Centre, and Conveyance System Upgrades. The total capital cost of the CAWTP is estimated to be $782.7 million. The total proposed federal contribution will be up to $253.4 million, the total provincial contribution is a maximum of $248 million, and the CRD will provide the balance, estimated at close to $281.3 million. The Biosolids Energy Centre portion of the Program will be delivered through a public-private partnership (P3), with support from the P3 Canada Fund. As a P3, the CRD will be able to harness private sector innovation and ensure the best possible value for taxpayers' money.
Work will begin this year.
"This project is intended to bring the region's infrastructure in line with environmental standards, help to preserve our precious waterways, and create vital jobs for B.C. families,"
said the Honourable Ida Chong, B.C. Minister of Community, Sport and Cultural Development. "It's good for the environment, it's good for the economy, and it demonstrates leadership in sustainability."
Once completed, the CAWTP will significantly improve the level of wastewater treatment, as well as reduce the volume and incidents of untreated wastewater discharge as a result of sewer overflows. The new facilities will be designed to satisfy British Columbia's Wastewater Regulation and the proposed federal Wastewater Systems Effluent Regulations.
"This funding consideration brings us one step closer to providing effective, innovative and environmentally-responsible wastewater treatment for our residents,"
said Geoff Young, CRD Board Chair. "I am pleased to see our federal and provincial partners' investment in this important initiative."
Federal funding for McLoughlin Wastewater Treatment Plant and Marine Outfall, and Conveyance System Upgrades is conditional on Treasury Board approval and the signing of the contribution agreements. The project must also meet all the terms and conditions of federal infrastructure programs, as well as respect any applicable legal obligations, including those related to aboriginal consultation and environmental assessment. The Biosolids Energy Centre meets the Terms and Conditions of the P3 Canada Fund and is eligible under the wastewater infrastructure category.
The P3 Canada Fund is a merit-based program with the objective of supporting P3 infrastructure projects that achieve value for Canadians, develop the Canadian P3 market and generate significant public benefits. PPP Canada was established by the Government of Canada to improve the delivery of public infrastructure by achieving better value, timeliness and accountability to taxpayers, through public-private partnerships.
Canada's Economic Action Plan 2012 focuses on creating new opportunities for jobs, growth and long-term prosperity. Strengthening infrastructure across the country is an important part of this plan. Thanks to the Government of Canada's leadership, and our strong economic and financial fundamentals, the Canadian economy has recovered from the global recession better than most other industrialized countries. Canada has been a leader among G-7 countries throughout the recovery, with more than 765,000 net new jobs created since July 2009. Find out more about the opportunities in Economic Action Plan 2012 at www.budget.gc.ca/2012/home-accueil-eng.html.
For more details on each project, please see the attached backgrounder.
For more information on the Building Canada plan, and on investments in British Columbia by Infrastructure Canada, please visit www.infrastructure.gc.ca.
To learn more about Canada's Economic Action Plan, visit www.actionplan.gc.ca.
For more information, contact:
Geneviève Sicard
Office of the Minister of Transport, Infrastructure and Communities
613-991-0700
Jeff Rud
Ministry of Community, Sport and Cultural Development
250-208-4028
Andy Orr
CRD Corporate Communications
Office: 250-360-3229
Cell: 250-216-5492
PPP Canada Media Inquiries:
media@p3canada.ca or
613-947-9480/1-877-947-9480
Infrastructure Canada
613-960-9251
Toll free: 1-877-250-7154
Backgrounder
Wastewater Projects in the Capital Regional District
The governments of Canada and British Columbia, along with the Capital Regional District (CRD) are working together to improve wastewater treatment in the Greater Victoria Core Area.
The new Core Area Wastewater Treatment Program, with an estimated total capital cost of $782.7 million, will consist of three major projects:
- the construction of the McLoughlin Wastewater Treatment Plant and Marine Outfall;
- upgrades to the Conveyance System; and
- the construction of a Biosolids Energy Centre.
In total, the contribution from the Government of Canada toward the entire initiative will be up to $253.4 million. The total provincial contribution is a maximum of $248 million, and the CRD will provide the balance, estimated at close to $281.3 million.
Federal funding for individual projects under the Core Area Wastewater Treatment Program is conditional on Treasury Board approval, and on the signing of the necessary contribution agreements. The projects must also meet all the applicable terms and conditions of the respective federal programs, as well as respect any applicable legal obligations, including those related to aboriginal consultation and environmental assessment.
The provincial contribution represents about one-third of the eligible capital costs as determined by the CRD in 2010, has Cabinet approval, and is dependent on the completion of all project components, completed to meet provincial requirements.
McLoughlin Wastewater Treatment Plant & Marine Outfall
The construction of this new wastewater treatment plant will ensure that the CRD can meet the future wastewater treatment needs of the growing community. The McLoughlin Wastewater Treatment Plant will provide secondary-level treatment for wastewater, before it is discharged through a new marine outfall located at McLoughlin Point. By providing secondary-level treatment, the plant will comply with provincial and forthcoming federal regulations.
Funding breakdown
| Federal contribution |
up to $120 million under the Building Canada Fund – Major Infrastructure Component |
| Provincial contribution |
$135 million |
| CRD contribution |
$109.7 million |
Conveyance System Upgrades
This project will upgrade the existing wastewater conveyance system to enable the treatment of municipal sewage within the Core Area at the McLoughlin Wastewater Treatment Plant, where it will receive secondary-level of treatment prior to discharge into the ocean. In addition to capacity and energy efficiency upgrades to several existing pump stations, wet-weather attenuation tanks will be installed in Saanich East to help manage increased sewage flows during wet weather, and reduce sewer overflows.
Funding breakdown
| Federal contribution |
up to $50 million under the Green Infrastructure Fund |
| CRD contribution |
$74.1 million |
Biosolids Energy Center
The Biosolids Energy Center (BEC), which will be procured through a public-private partnership, will treat organic solid waste generated by the treatment processes at the McLoughlin Wastewater Treatment Plant. The BEC will be a centralized organic treatment facility that includes digestion and biogas production, and may include the integration of fats, oils, greases and other pre-processed organic and kitchen organics from the region. Included in this project is the associated conveyance infrastructure required to transport solid waste to the BEC. Once selected, the private sector proponent will be responsible for designing, building, financing, operating and maintaining the new Biosolids Centre for a total concession period of 25 years. The CRD will maintain ownership of the facility and accountability for the project through a performance-based contract to ensure that high standards are met throughout the life of the contract.
Funding breakdown
| Federal contribution |
up to $83.4 million under the P3 Canada Fund (PPP Canada Inc.) |
| Provincial contribution |
up to $113 million |
| CRD contribution |
up to $97.5 million |
