Ottawa adds $16M to existing $150-M contribution for North End sewage plant upgrade; ‘we’re going to continue to invest,’ province pledges

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This article was published 03/03/2025 (532 days ago), so information in it may no longer be current.

Senior governments are promising more funding to support the multibillion-dollar upgrade of Winnipeg’s North End sewage treatment plant and exploring new ways to get the entire project done.

On Monday, the federal Liberal government promised another $16 million for the second biosolids facilities phase of the three-phase mega-project, adding to $150 million it pledged late last year.

Terry Duguid, the federal minister responsible for Prairies Economic Development Canada, stressed his government strongly supports the entire project, which is expected to cost about $3 billion.

“Without sewage treatment capacity, like we’re talking about today, you can’t build new homes, you can’t protect Canada’s sixth great lake, Lake Winnipeg…. Without the resources to pay for it, our citizens’ water rates would go through the roof,” Duguid said at a Monday news conference.

The minister said the newly announced federal funding comes from cash earmarked for Manitoba within the Canada Housing Infrastructure Fund.

The previous funding announcement came with a condition that the city change its zoning rules to allow up to four housing units to be built on a single residential lot.

During the news conference, Manitoba Municipal Relations Minister Glen Simard highlighted his government’s share of the funding so far.

“The province has contributed close to $414 million to this project. And that is a really important number because it’s an example of our commitment to the project, an example of the premier’s dedication to get this job done…. We’re going to continue to invest,” said Simard.

The minister later clarified by email that amount includes $120 million of new funding.

Meanwhile, Duguid said talks are also underway to determine if the Canada Infrastructure Bank can help fund the third and final phase of the project. That could involve a low-interest loan that stretches payments over an extended period to ease the pressure on water and sewer rate hikes, he said.

“A Liberal government will be very, very focused on getting this done, getting Phase 2 completed (and) Phase 3 done,” said Duguid.

The funding provided so far reduces the amount Winnipeg must pay to complete Phase 2 of the project, a $1.035-billion measure to increase sewage treatment capacity.

Senior government funding has not yet been secured to cover the third and final phase, which aims to greatly reduce pollution leaving the plant. The city is expected to provide an updated cost estimate for that part of the project, and the overall price tag, Tuesday.

The Liberals are choosing a new leader Sunday to replace Prime Minister Justin Trudeau, who announced his resignation in January.

Although a federal election is expected in short order, Duguid said he expects Monday’s funding commitment will be safe if the Liberals remain in power.

“This has broad commitment in our party… I am very confident that the next Liberal government, should we get a new mandate, will be there,” he said.

Mayor Scott Gillingham said the funding is needed to avoid a steep hike in water and sewer rates.

“This funding partnership is vital so that we can maintain a measure of affordability for ratepayers. If ratepayers had to pay the full cost of these projects on their own, it would be crippling,” Gillingham said.

The city will release a new set of proposed water and sewer rates Tuesday.

Gillingham also spoke in favour of the idea of using long-term payments to cover the final costs of the project.

“It’s an infrastructure project that is utilized by multiple generations. So, that being said, it makes sense that multiple generations who use the infrastructure would pay for it over many, many years,” he said.

The province has set a 2030 deadline for the city to complete the entire three-phase upgrade.

joyanne.pursaga@freepress.mb.ca

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