Ottawa announces $500 million for North End sewage plant upgrade

The federal government will provide $500 million to help complete the major upgrade to Winnipeg’s North End sewage treatment plant.

Winnipeg South MP Terry Duguid confirmed the total funding at a news conference at the plant Friday, calling the work critical to Winnipeg’s future.

“The stakes could not be higher. Without expanded wastewater treatment, Winnipeg would run out of capacity to build new homes and accommodate new industries within six years,” said Duguid.

The commitment offers the final funding needed to cover the $1.57-billion third and final phase of the upgrade. The city and province will also pay $500 million each for the work.

Premier Wab Kinew confirmed his government would provide its share of that funding in August.

City council will now fulfil its pledge to freeze Winnipeg water and sewer rates for 2027, which depended on the federal funding coming through, said Scott Gillingham, who was recently re-elected as Winnipeg’s mayor.

“When we look further ahead, into the future years, it will help us avoid major water bill increases that otherwise would have been necessary to pay for this project,” said Gillingham.

The final “nutrient removal” phase of the upgrade will greatly reduce the amount of algae-promoting nutrients flowing out of the plant and help enhance its capacity.

“It’s historic in its protection for Lake Winnipeg. It’s historic in that it will unlock and allow us to build thousands more homes, supporting businesses and creating jobs, as Winnipeg continues to grow. And it’s about keeping Winnipeg affordable for the people who live here,” said Gillingham.

The entire three-phase upgrade is expected to cost $3.1 billion, making it the most expensive infrastructure project in Winnipeg’s history.

The upgrade has been delayed several times since Manitoba’s Clean Environment Commission called for it back in 2003.

“The best time to have made those announcements was over 20 years ago. The next best time is today,” said Duguid.

He blamed the delay on governments that failed to promptly collaborate on the project in the past, stating some “finger-pointing” got in the way.

Duguid did not name the leaders he believes created that issue.

Those delays were a key reason the entire three-phase upgrade is now expected to cost $3.1 billion, up from the original estimate of $795 million, he said.

“(With) construction inflation, delays … it just costs more,” said Duguid.

When asked which level of government will pay the price if the cost rises again, Gillingham said extensive monitoring of expenses will ensure the project stays on budget.

Municipal Relations Minister Glen Simard said the province is also committed to getting the work done “on time and on budget.”

A Manitoba Jobs Agreement requires the contractor in place for the final phase of work to prove they’ve exhausted the local workforce before they can bring in workers from outside the province or country.

When asked if that requirement could make the project more expensive, Simard described the measure as an investment that will create jobs and economic benefits in Manitoba.

“This is putting Manitobans to work. That’s what this is doing. When we invest in people and we invest in a safe and secure environment that prioritizes Manitoba workers … everybody wins,” he said.

Following previous funding agreements between the three governments, the city is now operating its nearly complete headworks facility, the first phase of the upgrade.

In August, construction began on the second biosolids facilities phase, which will help alleviate the risk that Winnipeg will run out of sewage capacity.

“We’re pretty confident that we’ll be able to manage within our existing capacity. Have we completely alleviated or mitigated the concern? Not 100 per cent. But there (are) a lot of things that we can do, so we’re very optimistic,” said Cynthia Wiebe, Winnipeg water and waste’s manager of engineering services.

The new biosolids project is expected to begin operating in October 2030, with full completion in 2031.

The city expects to start construction on the final nutrient-removal phase of the upgrade at the end of 2028. The province has ordered the city to complete it by 2032.

Wiebe said water and sewer rate projections after the one-year rate freeze in 2027 will be updated “soon.”

joyanne.pursaga@winnipegfreepress.com

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