Metro Vancouver Regional District cancels wastewater treatment plant deal after delays

The contract to build the new wastewater treatment plant in North Vancouver, B.C., will be terminated, according to the regional district in charge of the project, but the building company says it's still working on it. 

The head of the Metro Vancouver Regional District says it lost confidence in Acciona, the contractor company, after long construction delays and a rising price tag. Jerry Dobrovolny, chief administrative officer for the regional district, says the cost has risen double the original estimate of $500 million.

Dobrovolny says the project is 36 per cent complete, and the project was intended to be completed by 2020.

Additionally, he says the company has asked for another two years to complete the project.

"Choosing to initiate termination was a difficult but necessary decision after considering all other options," Dobrovolny said. 

"Our priority is protecting the interests of our region by delivering this project as quickly as possible with the smallest possible impact to residents."

However, contrary to what Metro Vancouver officials say, Acciona says it's still building the plant.

In an emailed statement to CBC News, Acciona said the project has been "fraught" with unforeseen challenges, and said the regional district has requested more than 1,000 major design changes to the original plan. Acciona also said the district "demanded" the company absorb the costs of the changes and delays. 

"The action today by Metro Vancouver to begin terminating the North Shore Wastewater Treatment Plant contract is regrettable, unnecessary, and certainly not in the longterm interests of Metro Vancouver residents or the environment," an Acciona representative said.

Acciona is also responsible for the construction of the Broadway SkyTrain expansion as well as the Pattullo Bridge replacement. The company was chosen to construct the plant in 2017, which will serve more than 250,000 people. 

Acciona alleges it hasn't yet been paid for about $100 million worth of work the company has completed.

Metro Vancouver says it has upheld the terms of the contract, including making all payments due in a timely fashion, but said Acciona has "missed key construction milestones." 

"This is a last resort, certainly not something we would have wanted to do or a position we would have wanted to be in. At some point we have to say enough is enough,'' Dobrovolny said.

He said the regional district will now work to find a new contractor on an expedited basis.