Metro Vancouver pauses independent review of North Shore wastewater treatment plant

An independent review ordered last June into the delayed and over-budget North Shore wastewater treatment plant has been put on hold by Metro Vancouver's board of directors in deference to a legal dispute between the regional government and the original contractor.

"After careful consideration, the board has decided the public interest is best served by resolving the legal dispute with the previous contractor before undertaking the review," said Metro Vancouver Board Chair Mike Hurley in a news release following the board's monthly meeting.

The motion to pause the review was passed in a closed portion of the meeting of Metro Vancouver's 41 directors, so the voting record is confidential.

The North Shore wastewater treatment plant was first announced in 2011 as a $700 million project to replace the existing Lions Gate plant, which is one of the last on the west coast of North America to provide only primary wastewater treatment, meaning it only removes waste from water that floats or sinks.

The estimated cost has since ballooned to $3.86 billion, and the timeline for completion has been extended until 2030 due to factors such as the inflation of construction and labour costs and work that is needed to address design and construction deficiencies, according to Metro Vancouver.

Why the North Shore Wastewater Treatment Plant is more than five times over budget:

Why a new North Shore wastewater treatment plant is years late and over budget

1 year ago

Duration 1:46

Four years late and five times over budget, a new North Shore wastewater treatment plant has confounded both taxpayers and politicians. CBC’s Chad Pawson has more on what's gone wrong.

The project has faced intense public scrutiny over its problems, namely its cost. The independent review is meant to help answer if and where governance over the project went wrong.

In 2017, Acciona Wastewater Solutions LP (Acciona), the contractor, was awarded the project by Metro Vancouver and began construction. In 2021, however, Acciona laid off the majority of its workers at the project site amid accusations from Metro Vancouver that it was not honouring its contract obligations.

In October of that year, Metro Vancouver terminated the contract with Acciona over long construction delays and a rising price tag for the project. It said the new plant, despite being three years late, was only 36 per cent complete.

For its part, Acciona said it was committed to finishing the project, but was dealing with unforeseen challenges such as design changes to the project it alleged Metro Vancouver had demanded.

The acrimony led to legal action involving the two sides. Acciona is trying to recover $250 million in damages and unpaid bills, while Metro Vancouver said Acciona signed fixed-price and fixed-date contracts, and despite revisions to the agreed timeline, failed to meet key construction milestones.

The litigation between Metro Vancouver and Acciona is scheduled to go to trial in March 2027. 

Metro Vancouver shows the hard-won progress at the new North Shore wastewater treatment plant: 

Touring the site of the North Shore wastewater treatment plant

6 months ago

Duration 2:20

Metro Vancouver is showing progress on the five-times over-budget North Shore wastewater treatment plant. Originally slated to be finished in 2023, the new deadline for the plant is 2030. As Chad Pawson reports, Metro Vancouver officials are trying to turn the corner on the project’s problematic past.

Randal Kaardal, K.C., a senior litigator at Hunter Litigation Chambers who is behind the review team, said in a Metro Vancouver news release that the legal dispute is an important part of accountability involving the maligned project.

"The litigation is a public process, and once the dispute with the former contractor has been resolved, the Metro Vancouver Board and the reviewer would be in a better position to complete a review on any outstanding questions," he said.