Abbotsford, British Columbia, October 21, 2011
Archived - Government of Canada and City of Abbotsford to Invest in Stave Lake Water Project
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Investments to increase water supply; public-private partnership expected to lower life cycle costs, deliver long-term, environmentally sustainable plant for the City of Abbotsford
On behalf of the Honourable Jim Flaherty, Minister of Finance, the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway and Member of Parliament for Abbotsford, today announced that the Government of Canada will contribute up to $65.7 million through the P3 Canada Fund towards the Stave Lake Water Project.
“This is another example of our Government’s commitment to support important infrastructure projects that meet the needs of Canadian communities like Abbotsford,” said Minister Fast. “The Stave Lake Water Project will not only deliver a long-term solution for the City’s water supply, but will also produce economic benefits and deliver greater value for taxpayers.”
Minister Fast was joined at the event by George W. Peary, Mayor of Abbotsford. In accordance with provincial laws, in order to implement this project, the City must seek electoral consent through a referendum on borrowing and long-term contract authorities. This referendum will take place in conjunction with the municipal elections on November 19, 2011. If approved, the City will move forward with the procurement of the project. Once selected, the private partner will design, build, partially finance and operate the project through a 25-year performance-based contract.
“By making this significant investment in Abbotsford, the federal government is once again providing our community with critical support for future economic prosperity,” said Mr. Peary. “The support of our federal partners for the Stave Lake Water Project means that we will be able to provide our community with the vital resource it so desperately needs.”
“The P3 Canada Fund has seen tremendous interest in water and wastewater projects, and the Stave Lake Water Project will be Canada’s first large P3 in this sector,” said Greg Melchin, Chair of PPP Canada Inc.’s Board of Directors. “After a detailed review of the project application, PPP Canada is satisfied that the City of Abbotsford clearly established public benefit and demonstrated that the procurement of the project is well structured and will achieve significant value for money as a P3.”
While the City of Abbotsford will always retain control over the water source and all of the assets, as a P3, a private partner would be responsible for the treatment and delivery of Stave Lake water to the Abbotsford water system. The P3 method is efficient and is expected to result in lower life cycle costs for the City of Abbotsford.
Phase 1 of the Stave Lake Water Project will provide Abbotsford with an additional 100 million litres of water per day by 2016. At this level, it is anticipated that no further expansion will be required until 2031.
Future phases of development will be completed as they become needed, and will ultimately increase the water supply from Stave Lake from the initial capacity of 100 million litres per day to 400 million litres per day.
For further information, media may contact:
Mary Ann Dewey-Plante
Office of the Minister of Finance
Department of Finance
Manager, Corporate Communications and Marketing
City of Abbotsford
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