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Wastewater treatment facility projected to be $10 million over budget

Escalation in construction costs contributing to increase
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A rendering of the CRD wastewater treatment plant, which accounts for 68 per cent of capital expenditures. (CRD rendering)

Residents and businesses in the Capital Regional District would need to foot the bill if an extra $10 million in projected cost increases gets adopted into the budget for the $765 million wastewater treatment project.

A staff report highlights the project’s forecasted cost increase in a monthly progress report submitted to the CRD’s management committee for review this Friday, with a request the new numbers be brought to the board for final approval.

RELATED: Potential for Greater Victoria sewage project to go over budget

ALSO READ: CRD’s 2019 financial plan includes 23 per cent increase for capital projects

A second report to the committee, made by an independent review firm, attributes the budget overrun to Vancouver Island’s “construction cost escalation.”

It also suggests cutting around $20 million in additional projected costs to keep spending from climbing to an extra $31 million increase, or 3.6 per cent, from initial budget plans.

ALSO READ: CRD staff, Victoria mayor call for shift in direction on sewage sludge processing

An agreement with federal and provincial governments secured 60 per cent of funding or $459 million.

The facility has a deadline of December 31, 2020 to meet federal regulatory approval.

swikar.oli@goldstreamgazette.com


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