The city has squeezed a few more drops of funding from Ottawa for the most expensive project in Winnipeg’s history, the North End Sewage Treatment Plant.
Prairies Economic Development Minister Terry Duguid announced an additional $16 million from the federal Liberals, on top of $150 million already promised for Phase Two of the project.
“This will ensure that our city can grow, that we can protect our precious Lake Winnipeg, and importantly, keep water rates reasonable and affordable,” said Duguid.
The second of three phases is $482 million over budget. The province previously announced $30 million, and more money may be coming from Broadway. But they can’t say more due to restrictions on provincial announcements during the Transcona byelection.
Manitoba Municipal Relations Minister Glen Simard said the province is committed to all three phases of the sewage treatment upgrades.
“We’re going to keep our eye on the ball on this for phases one, two, and three,” said Simard.
All three of those phases are now pegged in the $3 billion range, up from the original $795 million dollar estimate. The costly upgrades are needed as Winnipeg is running out of sewage treatment capacity.
There is no funding for the final phase at this point. It appears the city may be eyeing a long-term, low-interest loan from the federal government’s infrastructure bank.
Mayor Scott Gillingham touched on the possibility.
“It makes sense that multiple generations who use the infrastructure would pay for it over many, many years,” said Gillingham.
A federal loan could be a way to keep future water and sewer rate hikes manageable for homeowners, who are funding the project. A report on proposed rates is coming at city hall Tuesday morning, with two scenarios.
“Here’s what the rates would be if there’s no other funding from senior levels of government,” said Gillingham. “Here’s what it would be if there is a partnership from senior levels of government.”
