Following delays, uncertainty and escalating costs, Alberta Transportation has finally agreed to provide the necessary funding to complete the South Red Deer Regional Wastewater project.
The ambitious three-phase project that will move wastewater and sewage by pipeline from Olds to the city of Red Deer was initiated in 2007 and is now expected to be completed by the last quarter of 2014 or the first quarter of 2015.
“We are very pleased they are meeting that commitment, a commitment that was made some time ago and it's important that they follow through with those commitments,” said Bruce Beattie, reeve of Mountain View County.
“It started out as a three-year project, extended to six years and there was an agreement by the provincial government that they would fund the 90 per cent level of that expansion and improvement, and it is my understanding the government will be.”
The project began with a projected total cost estimate of about $107 million. With two of the three phases now completed, the final total cost has climbed to between $134 and $138 million.
The South Red Deer Regional Wastewater Commission (SRDRWC), which represents seven participating Central Alberta municipalities, moved forward with the understanding the province would pay for 90 per cent of the total cost.
However, there were concerns earlier this year the province was considering funding only up to $99 million of the project, which would work out to just 80 per cent of the total cost, with the rest left up to the participating communities.
Last month the SRDRWC board announced it would not continue construction of the final phase of the project until it received some firm idea when more money would be coming from the province.
Alberta Transportation Minister Ric McIver put the funding concerns to rest on July 8, when he announced the provincial government would fund up to $121 million for the project and that the 90/10 per cent split would remain.
The participating SRDRWC communities - Red Deer, Penhold, Olds, Bowden, Innisfail and the counties of Red Deer and Mountain View – are responsible for 10 per cent of the cost.
“This has been a bit of a complex issue,” said McIver, noting the government was able to identify new information required for the project to move forward with a total $121 million provincial investment along with the original funding formula.
“As a result of that we are able to confirm that additional funds are necessary to meet the growing needs of Central Alberta. We will support the commission in completing the regional wastewater system in Alberta's rapidly growing south Red Deer region by 2015.”
Dale Withage, chief administrative officer for SRDRWC, said the July 8 announcement now means work can proceed to finish the wastewater delivery system from Penhold to Red Deer as well as completing the necessary upgrades to the wastewater treatment plant in Red Deer.
“The province approved it but hadn't confirmed when they would get us some money,” said Withage, adding the board will now discuss the details of the announcement through a letter from the province before sending its stamp of approval back to Alberta Transportation.
“They (the province) have thrown a few curves into it in terms of how to give us that funding and the board has to be comfortable that is going to work in terms of how it is going to affect the cost and the timing.”
He said the province wants to phase in the funding over three fiscal years with the last third of the money released in the 2015/16 fiscal year, a year after the planned completion date of the entire project.
“How are we going to finish this project and pay bills if we have not got that money? The board has to feel comfortable that there is a plan in place to cover those costs,” said Withage, adding the board was scheduled to meet on July 12.
“If the board is comfortable that the numbers work for them then it will be full steam ahead.”
If the board approves the Alberta Transportation letter that outlines the province's funding, construction of the final phase of the project should begin in October before freeze-up, said Withage.
