Strait of Hormuz closure identified as risk for Winnipeg sewer plant project

The clogged-up Strait of Hormuz could impact Winnipeg’s big sewage project. CTV’s Jeff Keele has the latest.

The Iran conflict may be half a world away, but it could push up the price of Winnipeg’s most expensive project.

“We’re watching the impact that global events are having on our construction projects,” said Mayor Scott Gillingham.

The $3-billion North End Sewage Treatment Plant upgrades are being done in three phases, known as the headworks, biosolids, and nutrient removal portions.

A report to the mayor’s executive policy committee has identified a new risk for the biosolids phase.

“The closure of the Strait of Hormuz has the potential to impact cost and schedule. Monitoring of the closure to assess impacts on material costs and delivery timelines is ongoing,” reads the report.

Water and waste committee chair Ross Eadie says the standoff at the strait is driving up gas and diesel prices, which trickles down to the cost of construction.

“All of the heavy equipment that’s utilized to do these projects, and even producing concrete and other components,” Eadie said.

The report also identifies another risk. It says a shortage of workers could be an issue because of the number of infrastructure projects planned in Manitoba.

Darryl Harrison from the Winnipeg Construction Association says changes to apprenticeship ratios and an aging workforce are also contributing to the shortages.

“Without enough workers, projects get delayed and the prices go up,” Harrison said.

The city report says a strategy to mitigate the problem is under development.

“I think it’s right for Winnipeg to be looking at labour supply, and making sure that there’s the people there to build this very important project for all of Winnipeg,” Harrison said.