Inside the federal funding agreement that put Metro Vancouver on the hook for North Shore Wastewater Treatment Plant overruns

Project costs ballooned to $1.5b after the province canceled Pacific Ocean outfall

Metro Vancouver is on the hook for massive cost overruns at the North Shore Wastewater Treatment Plant after the province canceled plans for a Pacific Ocean outfall, according to a federal funding agreement obtained by The North Shore News.

The agreement, signed in 2015, shows that the federal government agreed to provide $269 million towards the project, which was originally budgeted at $618 million.

However, the province canceled the outfall plan in 2018, citing environmental concerns. This forced Metro Vancouver to redesign the project, which resulted in a significant increase in costs.

The total cost of the project is now estimated to be $1.5 billion, with Metro Vancouver responsible for the remaining $1.23 billion.

The federal funding agreement does not include any provisions for cost overruns, meaning that Metro Vancouver will have to find a way to cover the additional costs.

Municipalities may have to pay more

Metro Vancouver is considering a number of options to cover the cost overruns, including raising property taxes or borrowing money.

If Metro Vancouver decides to raise property taxes, it will likely have to increase them by a significant amount. The average home in Metro Vancouver is currently assessed at $1.2 million, and a 1% property tax increase would generate about $120 million in additional revenue.

If Metro Vancouver decides to borrow money, it will likely have to issue bonds. Bonds are essentially loans that investors make to governments. Metro Vancouver would have to pay interest on the bonds, which would increase the cost of the project.

Metro Vancouver has not yet decided how it will cover the cost overruns. However, it is clear that the province's decision to cancel the Pacific Ocean outfall has put Metro Vancouver in a difficult financial position.

Province defends decision to cancel outfall

The province has defended its decision to cancel the Pacific Ocean outfall, saying that it was the right thing to do for the environment.

The province says that the outfall would have damaged the marine ecosystem and that it was not necessary for the treatment plant to operate properly.

The province also says that it provided Metro Vancouver with $100 million to help cover the cost of redesigning the project.

Metro Vancouver says province did not provide enough funding

Metro Vancouver says that the province did not provide enough funding to cover the cost of redesigning the project.

Metro Vancouver says that it has spent $160 million on redesigning the project and that it will need an additional $100 million to complete the work.

Metro Vancouver is asking the province to provide the additional funding. However, the province has not yet said whether it will do so.

Conclusion

The North Shore Wastewater Treatment Plant project is a complex and expensive undertaking. The province's decision to cancel the Pacific Ocean outfall has made the project even more difficult and expensive.

Metro Vancouver is now facing a significant financial challenge. It is unclear how Metro Vancouver will cover the cost overruns. However, it is clear that the province's decision to cancel the outfall has put Metro Vancouver in a difficult position.