Metro Vancouver considers financing options to pay $1.4B cost for two replacement sewage treatment plants
Timeline for Replacement of Treatment Plants with Advanced Facilities
A critical issue before the Metro Vancouver Board is the timeline for replacement of the Iona Island and Lions Gate sewage treatment plants serving the Vancouver and North Shore sewerage areas, respectively. The Board is considering two scenarios:
- replace Lions Gate by 2020 and Iona Island by 2030
- replace both by 2020
The total capital cost for replacing the existing ~50-year old primary plants with advanced treatment facilties is $1.4 billion. At its November 2009 meeting, the Board referred the timeline issue to the Finance Committee, and asked for input on the financing implications.
Financing Implications for Construction of Two Plants by 2020
When the Finance Committee met in January 2010, its deliberations were informed by reports prepared by the advisory Reference Panel and the Chief Financial Officer.
Mayor Malcolm Brodie, Finance Committee Chair, summed up the discussion by noting that the overall impact of constructing both treatment plants by 2020 is comparatively small. “The incremental difference in the annual financing cost of one versus two plants is not that much. The biggest hit is the first one.”
Senior Government Shared Responsibility
The Finance Committee asked staff to prepare a report that will address a number of key items flowing from the Reference Panel submission, in particular how to strengthen the financing section to drive home the message that replacing the two treatment plants depends upon senior governments accepting their shared responsibilities.
To read the complete story, click on Metro Vancouver Reference Panel informs Finance Committee deliberations on HOW to pay for two replacement sewage treatment plants.
Posted January 2010