The City of Regina and a consortium led by EPCOR Water Prairies Inc. have reached financial close for Regina's new Sewage Treatment Plant in Saskatchewan (Canada). EPCOR will design, build, finance, operate and maintain the Sewage Treatment Plant for 30 years.
The consortium EPCOR Saskatchewan Water Partners is formed by: Lockerbie Stanley Inc./AECON (design and construction lead), Stantec (design), EPCOR Water Services Inc. (project lead, operation and maintenance lead, financing team), Gracorp Capital Advisors (project Lead, financing lead) and Graham Infrastructure LP (design and construction lead).
Construction for the new Sewage Treatment Plant will cost $181 million, which is $43.5 million lower than budgeted. The P3 Canada Fund has approved federal funding for up to 25 per cent of the eligible capital costs. This funding is estimated at approximately $48 million. As the P3 process was extremely competitive, the contract for construction and long-term operations and maintenance is significantly under budget. The project is $248 million under budget for the entire 30 years, bringing the long-term costs down from $858 million to $611 million.Regina Mayor Michael Fougere said:
John McBride, CEO of PPP Canada, said:
"I'm ecstatic we are getting such great value on our new Sewage Treatment Plant. The competition generated through the P3 process allowed us to get the best deal possible. This cost savings will bring down the taxpayers' portion of the bill, and our partnership with EPCOR will ensure we continue to provide safe and reliable wastewater treatment for the long term."
Dr. Stephen Stanley, Senior Vice-President, Water Canada & Technologies for EPCOR Utilities Inc., said:
"PPP Canada is proud to support the Regina Sewage Treatment project. The City of Regina has adopted a modern, innovative approach to infrastructure delivery, and as a result this project will produce cost savings for taxpayers over the long term."
"We believe the P3 model will bring benefits to the residents of Regina and are pleased that the City chose an experienced neighbour like us to complete the project. EPCOR is a successful P3 operator in other Western Canadian communities, and we will be pleased to provide safe and reliable wastewater service to the people of Regina. We look forward to welcoming the current employees supporting the Regina Sewage Treatment Plant site to our team in the near future."
Construction is already in progress. EPCOR will begin operating the plant on August 1, 2014. The Sewage Treatment Plant will meet new permit requirements and be substantially complete by December 31, 2016.
The City of Regina will always own and control the Sewage Treatment Plant and only the City will set utility rates.