Estimated cost for North Shore Wastewater Treatment Plant balloons to almost $4B

Construction on the long-awaited North Shore Wastewater Treatment Plant will soon begin again, according to Metro Vancouver, but it now comes with a much more expensive price tag of $3.86 billion.

When construction began on the facility in 2018, the project was estimated to cost $700 million and was expected to be operational by December 2020.

However, the project hit major roadblocks when Metro Vancouver terminated its contract with the company responsible for designing and building the new treatment plant.

Metro Vancouver Board of Directors Chair George V. Harvie said in a release that the building has to go ahead.

"Building a new wastewater treatment plant that provides a higher level of treatment is essential to comply with federal regulations and it is absolutely critical that the facility is built to ensure human health and the environment are protected well into the future," he said.

Once operational, the treatment plant will serve more than 300,000 residents and businesses on the North Shore and will provide tertiary filtration and disinfection. Metro Vancouver said "tertiary filtration will reduce the release of potentially harmful contaminants into sensitive marine environments."

Back in 2021, Metro Vancouver severed ties with Acciona Wastewater Solutions over long construction delays and a rising price tag.

Metro Vancouver then created a task force to explore how to move forward with the project, adding that Acciona only completed 30 per cent of the construction and 80 per cent of the project's design. Harvie said Metro Vancouver now has a viable path to complete it.

Metro Vancouver Commissioner and CAO Jerry Dobrovolny said the cost to deliver the treatment plant has grown.

"In updating the cost estimate, Metro Vancouver took into consideration the many large infrastructure projects in the market today, which are all competing for resources; the cumulative effect of inflation of construction and labour costs; and the significant work that was needed to address design and construction deficiencies," he said.

With the new $3.86 billion cost, Metro Vancouver said households within the North Shore Sewerage Area will be on the hook for an average increase of $725 for 30 years. The average cost does not compound over the 30-year period.

Meanwhile, Metro Vancouver said some project costs will be shared across the region, which are estimated at:

Metro Vancouver said it varies by municipality whether the costs of wastewater treatment, drinking water and solid waste management are included in utility rates, property taxes or a combination of both. 

The rate per household also depends on the type of home and usage.