News Release
Regional Council Approves Phase 2 of Harbour Solutions Project
(Tuesday, March 9, 2004) - Halifax Regional Council tonight approved Phase 2 of the Harbour Solutions Project.
HRM will enter into agreements with D & D Water Solutions Inc. for the design, construction and commissioning of three new sewage treatment plants (STP) for a guaranteed maximum price of not more than $133 million, plus the flow through costs of bonding, insurance, applicable taxes and inflation.
The approval is conditional on HRM receiving substantial incremental funding from the Federal government and to receiving advice from its insurance advisor that the terms and conditions of the final insurance package are appropriate, given the nature of the project and current market conditions.
The parties to the proposed STP Development Agreement are HRM and D&D Water Solutions Inc., a newly incorporated company owned 50/50 by Dexter Construction Company Limited and Degrémont SA. The Degremont sewage treatment technology was a critical element in the original proposal for the Harbour Solutions Project and was never in question.
Mayor Peter Kelly said This agreement represents a pivotal breakthrough in the Harbour Solutions Project and will bring to an end the flow of 181 million litres of raw sewage into our harbour everyday."
In August 2003, Halifax Regional Council signed an agreement for Phase 1 with Dexter Construction Limited to construct the Sewage Collection Systems(SCS) for the project. The SCS will be connected to the three new sewage treatment plants in Halifax, Dartmouth and Herring Cove.
This latest agreement, when signed, will enable HRM to design and construct the entire Harbour Solutions Project within the original budget of $333 million. A final agreement for Phase 3 (disposal of biosolid waste) is yet to be negotiated.
Phases 1 and 2 of the Harbour Solutions Project are expected to be completed within approximately 48 months.
The Federal government had previously agreed to contribute $30 million to the project and the Province of Nova Scotia agreed to contribute $30 million over a 15-year period, as well as approximately $2 million in required land.
Negotiations are continuing with the Federal government to secure additional funding, including details as to how these funds would be appropriated.
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Contact:
Brad Anguish
Director, Environmental Services
(902) 490-4825
