Wastewater project facing financial troubles

Jul 11, 2022 | 11:57 AM

The North Okanagan Wastewater Recovery Project is feeling the impact of higher construction costs and inflation.

The project involves the Regional District of North Okanagan (RDNO), the Township of Spallumcheen, and the Okanagan Indian Band (OKIB) working together to create a system that also addresses the environmental degradation of Swan Lake, provides economic development opportunities in the area and address the challenges of drought conditions for local agriculture.

However, the RDNO stated the project is facing some financial woes.

The July 2022 project update from the RDNO states that construction costs have increased by as much as 30 per cent annually. That’s nearly 10 times more than the typical annual increases of three to five per cent, which matches inflation.

The contractor selected for the project last fall has also reported similar cost increases for other projects across the country.

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The RDNO said the increase can be attributed to the impact the COVID-19 pandemic had on supply chains, material and labour shortages; rising fuel costs; and the floods and fires throughout B.C.

Due to the escalating costs, the project team has been tasked with pursuing potential solutions to bring an affordable, fiscally responsible community wastewater system to the North Okanagan.

These include seeking additional grant opportunities; exploring more partnership opportunities; reviewing options for project phasing, and looking into alternative cost recovery tools.

“We are exploring every angle to secure additional funds to deliver a community wastewater system for the North Okanagan,” said Electoral Area B Director, Bob Fleming.

“Enhancing our service levels for residents and businesses, while protecting Swan Lake and its tributaries is of utmost importance.”

There are still several steps to be completed before the construction work can begin. Geotechnical investigations must be done to understand the soil composition and water table depths for infrastructure placement; rights of way for the collection system and lift stations must be negotiated; the detailed design must be finalized, and meetings with senior levels of government must be held to discuss additional funding.

“A wastewater system that supports our local farming community with reclaimed irrigation water is still very real for the North Okanagan,” said Christine Fraser, Mayor of the Township of Spallumcheen.

“Rising costs mean we need to be flexible and responsible to the communities we serve.”

The RDNO has applied for approvals and permits from the Agricultural Land Commission and the Ministry of Environment, which need to be in place prior to any construction work,

Construction of the Wastewater Recovery Project is expected to begin in 2023, though an exact date was not specified.

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by Liam Verster

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