North Shore Wastewater Treatment Plant Was Originally Provided With Over $200m In Federal Funding To Cover 1/3 Of The Project Costs Which Have Now Ballooned To Nearly $4B
MEDIA RELEASE – June 20, 2024: Seven lower mainland city councillors from five different jurisdictions will be writing to Canada’s Auditor General Karen Hogan, urging her to carry out a full audit of Metro Vancouver’s North Shore wastewater treatment plant which is now years behind schedule and $3 billion over budget. They are also calling upon the leaders of the major federal political parties to get engaged in the inquiry process to demand answers on behalf of taxpayers.
Councillors Linda Annis and Mike Bose of Surrey, Daniel Fontaine and Paul Minhas of New Westminster, Kash Heed of Richmond, Ahmed Yousef of Maple Ridge, and Richard T. Lee of Burnaby, say the project lacks transparency, accountability, with financial fallout that will impact taxpayers across the region for 30 years.
In their letter, the councillors say the Government of Canada put up $200 million towards the project, giving the Auditor General the right to investigate how it went off the rails.
Councillor Linda Annis, Surrey: The Government of Canada originally helped to fund this project to help get it off the ground. It’s now been driven into the ground and taxpayers deserve answers.
Councillor Mike Bose, Surrey: If there was ever a project that called for a federal review and audit, it’s this one.
Councillor Daniel Fontaine, New Westminster: The so-called ‘independent review’ announced by the Metro Vancouver Chair this week doesn’t go far enough and won’t provide taxpayers with answers to the questions they’ve been asking regarding how this project went so horribly wrong
Councillor Kash Heed, Richmond: This project is $3B over budget and way behind schedule. It will take individuals with the statutory power and authority of the Auditor General and the House of Commons to help get to the bottom of just what went wrong.
Councillor Richard T. Lee, Burnaby: So far Metro Vancouver has been silent regarding the need for an independent audit. If they don’t respond to the public’s call for a review, then the federal Auditor General should do it for them.
Councillor Paul Minhas, New Westminster: It’s been weeks now and we are still no closer to learning how and why this project went off the rails. Incredibly, even a call by the Premier to conduct an independent review has yet to be responded to.
Councillor Ahmed Yousef, Maple Ridge: We need to learn what went wrong with this project so other jointly funded ventures don’t end up becoming a financial train wreck like this one has become. In short order we will begin construction on the Iona Wastewater Treatment Plant and that piece of infrastructure is three times as costly.
Copy of Letter to Canada’s Auditor General
June 20, 2024
Auditor General of Canada
240 Sparks Street
Ottawa, Ontario
Canada K1A 0G6
Re: Request for audit regarding cost overruns of Metro Vancouver wastewater treatment plant project in North Vancouver
Dear Karen Hogan,
We are writing to bring to your attention concerns regarding significant cost overruns associated with a major wastewater treatment plant project located in North Vancouver.
Canadian taxpayers have already provided over $200M in funding for this project. As this project is funded in part by the Government of Canada, we are of the opinion this infrastructure project falls within the scope of your office.
It is worth noting the wastewater treatment plant was originally scheduled to cost regional, provincial and federal taxpayers approximately $500M. Due to reasons not revealed to the public, this has now ballooned to almost $4B. In terms of percentage, this is likely the largest single budget overrun of a public infrastructure project in the history of British Columbia.
In response to a media query at a news conference on June 17th Premier David Eby informally requested that Metro Vancouver conduct an independent audit of the project. Furthermore, on June 13th we formally requested that BC’s Auditor General conduct a formal audit of the project with a focus on what triggered the massive cost overruns. We are awaiting a formal response from the Auditor General.
On June 18th the Chair of Metro Vancouver indicated he was prepared to conduct an ‘independent review’ of the project, but we don’t believe this will provide Canadians, who have already invested $200M in this project, with the critical answers they have been seeking.
As elected officials within our respective cities, we believe it is imperative to ensure accountability and transparency in the management of public funds, particularly in major infrastructure projects of such critical importance to public health and environmental sustainability. This is of particular importance given the project is partly being funded by the Government of Canada.
Recently the Board of Metro Vancouver approved a tax increase of $590 per year for the next 30 years for all North Shore ratepayers. In addition, all Metro Vancouver rate payers are also being forced to pay increased taxes to cover the projected cost overruns. So as you can see, this will negatively impact the affordability of countless numbers of Lower Mainland residents for decades to come.
The purpose of this letter is to request an audit or investigation into the financial management and oversight of the aforementioned wastewater treatment plant project. Specifically, we are concerned about three key areas which include:
- Lack of Transparency: There appears to be a distinct lack of transparency regarding the reasons behind the cost overruns and how taxpayer funds are being utilized in the project. A special task force was appointed by Metro Vancouver Chair George Harvie to review this project. It was provided with information regarding what triggered the cost overruns, however, due to a confidentiality agreement, they are not allowed to speak to the media or the public.
- Accountability: It is essential to hold responsible parties, whether they are public officials, contractors, or other stakeholders, accountable for any mismanagement or negligence that may have contributed to the cost overruns.
- Impact on Public Resources: Cost overruns in public projects can strain limited resources and lead to budgetary constraints in other vital areas, affecting the overall well-being of Metro Vancouver cities.
Given the magnitude of the concerns surrounding this project, we respectfully urge your office to conduct a thorough audit or investigation into the financial aspects of the wastewater treatment plant project. Such an inquiry would provide much-needed clarity and assurance to the public regarding the responsible use of taxpayer funds and the efficient management of critical infrastructure projects.
Furthermore, by way of this letter which has also been cc’d to all the leaders of Canada’s major political parties, we are calling upon the House of Commons to consider holding committee hearings regarding the lack of competition within the construction industry in Canada. A lack of competition within Canada’s construction industry is but one potential reason that so many public infrastructure projects are going well over projected budgets.
We appreciate your attention to this matter and trust that your office will take appropriate action to address these concerns in a timely and effective manner. Please do not hesitate to contact us if you require any further information or assistance regarding this issue.
Please note we are writing to you as individual elected officials and are not necessarily representing the views of our respective city councils. Thank you for your dedication to upholding accountability and transparency in public administration.
Sincerely,
Coun. Linda Annis, City of Surrey
Coun. Mike Bose, City of Surrey
Coun. Daniel Fontaine, City of New Westminster
Coun. Kash Heed, City of Richmond
Coun. Richard T. Lee, City of Burnaby
Coun. Paul Minhas, City of New Westminster
Coun. Ahmed Yousef, City of Maple Ridge
cc.
Prime Minister Justin Trudeau
Pierre Poilievre, Official Leader of the Opposition
Jagmeet Singh, NDP Leader
Elizabeth May, Green Party Leader