OVER 100 mayors and councillors gathered in Port Coquitlam for Metro Vancouver’s Council of Councils meeting on Saturday, September 14, where they had the opportunity to learn more about the North Shore Wastewater Treatment Plant Program, the reasons Metro Vancouver made the difficult decision to terminate the previous contractor, and what’s behind the cost increases.
“I am committed to transparency, so it was important to me to provide a forum for Metro Vancouver members to ask any questions about the North Shore Wastewater Treatment Plant Program,” said Mike Hurley, Chair of Metro Vancouver’s Board of Directors. “I was pleased to see many of my colleagues from across the region engaged in this important discussion on Saturday.”
Metro Vancouver says it has consistently shared information with the Board, the media, and the public about the project and the reasons for the cost increase resulting from the termination of the contract with Acciona Wastewater Solutions LP. In addition to the event held on Saturday and previous media opportunities, Metro Vancouver has centralized program information on a dedicated webpage.
Extensive information about the program is available online for those interested, including: a video technical briefing and backgrounder document explaining the project; answers to frequently asked questions; a monthly newsletter about the project; full copies of the public court filings; and a comprehensive timeline of events and documentation such as previous Board and Committee reports and presentations.
“It was a pleasure to host elected officials from across the region to come together and ask questions about the project and better understand its history,” said Brad West, Chair of Metro Vancouver’s Finance Committee and Mayor of Port Coquitlam. “We have seen many major projects across Canada escalate in cost due to the cumulative effect of inflation of construction and labour costs and competition for resources, so it was a good reminder of the factors influencing the changes to those cost estimates.”
“Building the plant is not optional — it is critical for protecting human health and the environment,” said John McEwen, Vice Chair of Metro Vancouver’s Board. “It’s incredibly important that we are realistic about what it will take to build a quality wastewater treatment plant so that inadequately treated water doesn’t end up in the Burrard Inlet.”
At the Council of Councils event, Hurley also announced that he has taken the next step in responding to calls for a review of the North Shore Wastewater Treatment Plant Program, retaining John J.L. Hunter, a retired judge and founder of Hunter Litigation Chambers, to advise the Metro Vancouver Board on an independent performance audit of the North Shore Wastewater Treatment Plant Program.
Information about the program can be found online at metrovancouver.org/nswwtp.
BACKGROUND
Program Transition and Termination of Previous Contractor
Acciona Wastewater Solutions LP (Acciona) was selected through a competitive process in 2017 to build the future North Shore Wastewater Treatment Plant. The original completion date of the project was end of 2020. In 2019, at the request of the contractor, the contract was revised to provide an additional two-and-a-half years to complete the project (end of 2023), along with an increased budget.
In 2022, Metro Vancouver says it made the difficult but necessary decision to terminate the contract with Acciona. There were concerns with Acciona’s performance under the contract, and the project was not going to be completed on time and within budget. At that time, the project was already two-and-a-half years behind schedule, and Acciona had informed Metro Vancouver that it required an additional two years, along with an increase in budget.
Since termination of Acciona, Metro Vancouver has been working with PCL as the construction manager and AECOM as the design consultant to progress the project. Early works construction has included assessment and repair of more than 1,500 concrete deficiencies. Additionally, design reviews identified that the plant’s design was not as advanced as reported by Acciona at the time of termination.
Metro Vancouver then had to re-evaluate costs and give a realistic updated cost estimate to the region. The updated cost considers comprehensive cost estimates by three separate organizations, a value engineering exercise, investigation of current market conditions, and a review by a Metro Vancouver Board task force to consider the best path forward.
About the North Shore Wastewater Treatment Plant Program
The new North Shore Wastewater Treatment Plant will serve over 300,000 residents and businesses in the Districts of North and West Vancouver, the City of North Vancouver, and Sḵwx̱wú7mesh Úxwumixw (Squamish Nation), and səlilwətaɬ (Tsleil-Waututh Nation). It will replace the existing Lions Gate Wastewater Treatment Plant, one of the last plants on the west coast of Canada and the United States to provide only primary-level wastewater treatment. Building a new wastewater treatment plant that provides a higher level of treatment is essential to comply with mandatory federal regulations. The program also includes construction of a new pump station and sewer pipes to serve the new plant (now complete), and the preliminary design for decommissioning the existing Lions Gate plant.
Metro Vancouver has undertaken continuous measures to enhance how it manages and delivers major capital projects and has undertaken extensive due diligence on the North Shore Wastewater Treatment Plant Program as it has evolved in recent years.
Program Information Available Online at www.metrovancouver.org/
