$250 million in BC funding for new sewage treatment plant for Vancouver

$250 million in provincial funding for new sewage treatment plant serving Vancouver

Artistic rendering of the new Iona Island Wastewater Treatment Plant and area ecological improvements. (Metro Vancouver Regional District)

One of the most expensive infrastructure projects in British Columbia, comparable to the Site C hydroelectric dam in terms of cost, has received the financial support of the provincial government, albeit its new contribution represents a drop in the bucket to cover total project costs.

Premier David Eby announced today the provincial government will provide $250 million in initial funding to Metro Vancouver Regional District towards the first phase of work to build the new replacement and expanded Iona Island Wastewater Treatment Plant.

The new plant will be built immediately adjacent to the existing 1963-built plant, located just northwest of Vancouver International Airport.

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The first phase currently under construction will cost about $750 million, with its preparatory ground foundations work expected to reach completion in 2026. The regional district is covering the remaining first phase cost.

“BC’s population is growing at an unprecedented rate, and with that growth comes increasing demands on our infrastructure and our environment,” said Premier David Eby. “Municipalities need help building climate-resilient infrastructure that provides people with the services they need while protecting nature.”

Site plan of the new Iona Island Wastewater Treatment Plant and area ecological improvements. (Metro Vancouver Regional District)

Footprint of the existing Iona Island Wastewater Treatment Plant. (Metro Vancouver Regional District)

Footprint of the new replacement Iona Island Wastewater Treatment Plant. (Metro Vancouver Regional District)

The majority of the work will be conducted in the middle phases from 2026 to 2034, which will cost an estimated $6.7 billion. The final phase at a cost of $3 billion will be achieved from 2035 to 2042, which will bring the total project cost to $10.4 billion, including contingencies.

This is a critical facility to handle the sewage treatment needs for a catchment area that specifically serves all of the City of Vancouver, University Endowment Lands, and the University of British Columbia campus, as well as parts of Richmond and Burnaby. Currently, about 750,000 people live within the Iona plant’s catchment area.

Ratepayers within this catchment area, specifically within the city of Vancouver, will be responsible for the construction costs of this project. It is anticipated ratepayers will see an annual rate hike of $500 to support the new plant’s construction and operating costs.

Funding from the provincial and federal governments would help lower the cost burden to the relatively small pool of ratepayers within the catchment area.

“I would like to extend my gratitude to the Province for cost sharing in one of the largest and most transformative infrastructure projects Metro Vancouver has ever undertaken,” said George Harvie, board chair of the regional district, and the mayor of Delta. “Together, we are protecting important marine environments, creating jobs, improving resiliency to climate change and taking meaningful steps toward reconciliation.”

Aerial of the existing Iona Island Wastewater Treatment Plant. (Metro Vancouver Regional District)

Artistic rendering of the new Iona Island Wastewater Treatment Plant and area ecological improvements. (Metro Vancouver Regional District)

It should also be noted that the extent of the design and resulting cost is also due in part to federal requirements.

The federal government adopted a law in 2012 that requires a minimum of secondary treatment for sewage treatment plants, with this standard to be met by no later than the end of 2030.

However, based on the new timeline accounting for the construction challenges, the new Iona facility will not begin its operations of secondary treatment until 2034 at the earliest — four years after the federal deadline. Construction on the new replacement facility can only begin after ground improvements are completed.

The entire project will not reach completion until 2041, when additional digesters — a system that breaks down organic matter — are built. Until this additional digester capacity is constructed, the sludge from the Iona facility will need to be transported to other treatment plants elsewhere in the region. It is estimated that 35 trucks per day on average over six years will be needed to transport the sludge.

The new facility also provides long-term capacity, and seismic and flood risk resiliency, given the known natural risks of this specific location.

The regional district is completing upgrades to all five of its sewage treatment plans across Metro Vancouver, including the troubled North Shore Wastewater Treatment Plant project.

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