Winnipeg, MB – A new City of Winnipeg report shows that completing the final phase of the new North End Water Pollution Control Centre (NEWPCC) would deliver an extraordinary return on investment for other levels of government — a 53-to-1 return for the federal government and a 39-to-1 return for the Province of Manitoba.
The Fiscal and Economic Impact of NEWPCC Upgrades study finds that completing the third and final project, the $1.5-billion nutrient removal facilities, would expand wastewater treatment capacity for decades, unlock $186 billion in economic growth, and generate $47 billion in new federal and provincial tax revenue between 2033 and 2050.
“Completing this project is not only critical for our environment, it’s one of the best economic opportunities available to governments right now,” said Mayor Scott Gillingham. “When we finish the new North End plant, Winnipeg’s economy will grow by an additional 16 percent by 2050, and both the Province and Canada will recover their full investment by 2035 through higher tax revenues from new jobs, homes, and businesses.”
The report also underscores the risks of not proceeding. Without completing Project 3, Winnipeg will hit its wastewater treatment capacity by the end of 2032, halting the construction of new homes, industries, and jobs. City staff estimate that surrounding municipalities would reach their own capacity limits by 2037, freezing growth across the metropolitan area.
Projects 1 and 2 of the new North End plant — the Power and Headworks expansion and the Biosolids Facilities — are already funded and under construction at a combined cost of $1.6 billion. The City is seeking two-thirds funding from other levels of government for the final phase to complete the system, ensure full environmental compliance, and protect the health of Lake Winnipeg.
Fully funding Project 3 through sewer rates alone would raise the average household utility bill by more than $1,000 a year, threatening Winnipeg’s affordability and competitiveness.
“Protecting ratepayers is the priority,” said Councillor Ross Eadie, Chair of Water, Waste and the Environment. “We can’t put this entire cost on households without risking affordability. At the same time, we have a legal and environmental responsibility to meet provincial licence requirements and reduce nutrients flowing into Lake Winnipeg. Completing Project 3 with support from the other levels of government is the only sustainable way to do both.”
In addition to the economic benefits, the report notes that completing Project 3 will significantly reduce the City’s nitrogen and phosphorus discharges into Lake Winnipeg, improve biosolid reuse, and lower long-term operating costs.
Quick Facts:
- NEWPCC treats 70 % of Winnipeg’s wastewater and all biosolids from the city’s three treatment plants. It also treats wastewater from neighbouring rural municipalities through service sharing agreements.
- Without Project 3, Winnipeg hits capacity by the end of 2032, and city staff estimate the capital region will run out of capacity by 2037.
- With completion, Winnipeg’s GDP grows by an additional $186 billion and federal and provincial governments gain $47 billion in new tax revenue by 2050.
- Return on investment: 53:1 for the federal government, 39:1 for the provincial government.
- Winnipeg’s population grows by 124,500 people and its labour force by 91,000 people by 2050 under a build scenario.
Background:
The Fiscal and Economic Impact of NEWPCC Upgrades report was prepared by the City’s Economic Development and Policy Division to assess the economic, fiscal, demographic, and environmental consequences of completing or delaying the final phase of the new North End Water Pollution Control Centre. The full report is available here.