The City of Winnipeg is being urged to review its next step on a massive sewage plant upgrade, as some critics argue the latest proposal would produce too few local jobs and economic spinoffs.
Instead of awarding the next $95-million contract within the north end sewage treatment plant upgrade, councillors should instead order a third-party review of the process the city used to assess bids for the work, two delegates told the water, waste and environment committee meeting on Tuesday.
A city report proposes a joint venture to design the construction project for the $1.035-billion biosolids facilities phase of the massive project.
JOHN WOODS / FREE PRESS FILES
A recent report proposes a joint venture to design the construction project for the $1.035-billion biosolids facilities phase of the North End Sewage Treatment plant.
“The report that was provided in order to make a $1-billion decision was a (10-page) report with limited information… This is a mega project. This needs sophisticated oversight,” said Ramona Coey, executive director of both the Mechanical Contractors Association of Manitoba and the Electrical Contractors Association of Manitoba, in an interview.
Coey said the recipient of the contract would have a massive advantage in competing for the broader construction project contract.
“Essentially, they will have the inside track on completely understanding how that project will roll out … No contractor is going to bid on a contract that another contractor has designed because their bid will not win,” she said, noting it can cost hundreds of thousands of dollars to complete a bid on a project this large.
Coey said she fears the current plan won’t produce enough of an economic return in Manitoba.
A city report estimates the design contract would create $200,000 of gross domestic product benefits and two person years of employment for Manitoba, compared with $63.5 million of GDP and 497 person years of employment for the rest of Canada.
Tanya Palson, executive director of Manitoba Building Trades, said the report also lacks detail on potential social procurement benefits of the development. In 2022, city council approved a call to require companies that bid on all future construction contracts for the north end treatment plant upgrade to set targets to employ workers who are Indigenous or from other under-represented groups in the workforce.
Palson told the water and waste committee it’s critical that Winnipeggers benefit from the jobs created by the project.
“(The upgrade is) down the street from some of Canada’s most impoverished postal codes,” she said.
Manitoba Building Trades represents 13 skilled trade unions. Palson said the group would like to see a clear commitment that the upgrade will produce local job, training and mentorship opportunities.
The city staff report recommends that Red River Biosolids Partners, a joint venture of Aecon Water Infrastructure Inc., Oscar Renda Contracting of Canada Inc. and MWH Constructors Canada Ltd., be awarded the $95-million “development phase agreement” contract.
During Tuesday’s meeting, water and waste officials told the committee the report’s economic analysis reflects only the initial planning stages of the work and the fact most head offices aren’t located in Manitoba.
Cynthia Wiebe, the department’s manager of engineering services, said far more local labour will be expected during construction. For example, Wiebe said 90 per cent of employees who have worked on the first phase of north end sewage treatment plant upgrades are local employees and about 22 per cent identify as Indigenous.
She said exact social procurement targets for the upcoming work are still being determined.
“We want to work with social procurement stakeholders as we work through this… to establish good baselines,” said Wiebe.
The committee took two lengthy breaks from the public meeting to hold confidential discussions with staff before postponing a vote on the contract Tuesday afternoon. The next meeting to hold the final vote could be scheduled as soon as Thursday.
Coun. Brian Mayes, the committee’s chairman, said councillors still have more questions for city staff about the project.
“We’re trying to do our due diligence. It’s a big contract, so (there are) lots of questions from the councillors, which I think is a good thing,” said Mayes.
The St. Vital councillor said he is concerned that the design contract isn’t expected to create a more substantial boost to the local economy.
“It’s a lot of money to be spending. You want to make sure… you’re getting employment and economic stimulation,” said Mayes.
The staff report says the city received just two bids for the contract, the second from a joint venture of Graham Infrastructure LP and PCL Constructors Canada Inc.
The biosolids facilities project is the second phase of the sewage plant upgrade. The broader, three-phase project is expected to cost at least $2.38 billion, which one recent, unofficial estimate suggested could surge up to around $3 billion.
joyanne.pursaga@freepress.mb.ca
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Joyanne Pursaga
Reporter
Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.
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