Winnipeg Wastewater System

operational

Opportunity New regulations put in place by Manitoba Conservation and Water Stewardship have made licencing requirements for sewage treatment plants more stringent under the Province’s Lake Winnipeg Action Plan. As a result of the new regulations the City of Winnipeg must invest close to $990 million to upgrade their sewage treatment plants In 2008 City Council initiated a procurement process to assist the City in the upgrade and expansion of the civic sewage treatment system. In 2011 the City of Winnipeg signed a 30-year collaborative agreement with Veolia to provide ongoing strategic advice and guidance on design, construction, technology and operational needs for three Winnipeg wastewater treatment and biosolids facilities. Innovations The service agreement is structured so that Veolia will share in savings generated provided quality standards are met and projects are delivered under budget. If projects exceed budgets, or defects arise in new plants then Veolia will share any added cost. Veolia can also earn compensation by meeting key performance areas that are not directly related to financial outcomes but are identified as City priorities (eg. Workplace health and safety, greenhouse gas mitigation, waste reduction) A Performance Guarantee Security (letter of credit and performance bond) of $50 million will remain in place for the first three major wastewater capital projects to ensure that Veolia carries out its obligations. The security may be seized by the City upon specific events giving the City cause to terminate the Agreement Results The City retains 100% ownership over the wastewater system and reserves the right to set utility rates. City Council votes each year to approve all capital and operating expenditures. The Winnipeg Free Press reported that in 2012 the program achieved approximately $800,000 in savings for the City of Winnipeg.

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