Major Capital Projects Prioritized and Recommended for Federal and Provincial Cost-Sharing

Released: September 11, 2019 at 9 a.m.

Winnipeg, MB – An administrative report to be considered by Executive Policy Committee next week prioritizes and recommends several major City of Winnipeg infrastructure projects for cost-sharing with federal and provincial governments Mayor Brian Bowman said today.

“Building Winnipeg and moving our city and province forward on addressing its infrastructure deficit requires partnerships with provincial and federal governments,” said Mayor Brian Bowman. “What’s coming forward for review by Executive Policy Committee and ultimately Council is a prioritization of major infrastructure projects that require strong federal and provincial funding partners in order to get them built.”

The administrative report prioritizes and recommends the approval to submit four capital projects for federal and provincial funding under the Investing in Canada Infrastructure Program.

The Investing in Canada Infrastructure Program is the current ten year federal infrastructure funding program. This program is expected to make over $1 billion in federal contribution funding available over ten years for Manitoba infrastructure projects.

Under this program, the public service is recommending the prioritization and approval of the following four capital projects:

  • The North End Water Pollution Control Centre (NEWPCC) Upgrade: Headworks Facilities Project;
  • The North End Water Pollution Control Centre (NEWPCC) Upgrade: Biosolids Facilities Project;
  • The South Winnipeg Recreation Campus: Phase One – Recreation Centre Project; and
  • The St. James Civic Centre – Facility Expansion Project.

The combined cost of these four capital projects is estimated at $994 million.

The Mayor noted the two highest prioritized capital projects recommended by the public service for cost-sharing under the Investing in Canada Infrastructure Program are wastewater treatment projects. The cost of these two projects is estimated to be $909 million representing 91% of the $994 million total cost of all four projects.

“As a city, we remain committed to doing our part to protect and improve the water quality of our rivers and lakes,” said Mayor Bowman. “However, Winnipeg residents and property taxpayers simply cannot be expected to incur costs of this magnitude on their own.”

It is expected eligible costs for projects approved through the Investing in Canada Infrastructure Program would be cost-shared by each level of government with the federal government contributing 40%, the provincial government contributing 33.33%, and the city government contributing 26.67% of the total eligible costs.

If approved under the Investing in Canada Infrastructure Program, these capital projects would be eligible for federal and provincial partnership funding of up to $643.4 million which would significantly reduce the financial burden on Winnipeg residents.

When prioritizing and recommending the four projects, the public service followed asset management processes as well as criteria cited by Executive Policy Committee which required projects to have been previously identified in the city’s capital budgets or five-year forecast. It also required that projects fit within the financial constraints of the City of Winnipeg capital budget.

While the City of Winnipeg’s infrastructure deficit has been reduced over the last several years, its current infrastructure deficit is estimated at $6.9 billion. Within this infrastructure deficit are 22 major capital projects requiring $4.5 billion in funding.

“Winnipeg’s population is growing, and so too are our infrastructure needs,” said Mayor Bowman.

The Mayor noted that if the recommendations are approved by Executive Policy Committee and Council, and if accepted for funding through the Investing in Canada Infrastructure Program, it would provide a significant amount of financial support to the City of Winnipeg’s efforts to meet provincial regulatory requirements for the treatment and removal of nutrients determined to be harmful to Lake Winnipeg.

In late August, the City of Winnipeg submitted its final Combined Sewer Overflow Master Plan to the Province of Manitoba fulfilling a key provincial licensing requirement. The Master Plan outlines the City’s commitment to do its part to reduce the impact of combined sewer overflows on rivers and lakes, including Lake Winnipeg. The Master Plan is expected to be implemented over several decades at a capital cost estimated to be $2.3 billion.

The administrative report is publicly available on the City of Winnipeg’s Decision Making Information System (DMIS).

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