City Marks Official Groundbreaking for Biosolids Management Facility
The City of Greater Sudbury today officially welcomed the start of construction on the new, advanced biosolids management facility. This major infrastructure project, which has been in the works for several years, is the City’s first Public-Private Partnership (P3).
“Our Government is proud to support projects that stretch tax dollars further, create jobs, and generate economic growth,” said Jim Flaherty, Minister of Finance. “The Sudbury Biosolids Management Facility is a good, forward-thinking solution to wastewater treatment for the City and its residents”.
During a joint announcement held on December 12, 2011, with the City of Greater Sudbury, Tony Clement, President of the Treasury Board and Minister for the Federal Economic Development Initiative for Northern Ontario, announced that the Government of Canada would contribute up to $11 million through the P3 Canada Fund to support the new biosolids management facility project.
The remainder of the project’s construction costs will be financed by the City of Greater Sudbury and N-Viro, the Canadian-owned private consortium selected to design, build, finance, operate and maintain the facility. Ownership of the facility remains entirely with the City.
“I’m so pleased this long-awaited and ecologically important project has reached this milestone,” Mayor Marianne Matichuk said. “I want to thank staff and council for their efforts in making this much-needed project a reality. I especially want to thank Councillors Cimino and Barbeau for their leadership in this project.”
The City of Greater Sudbury has been using tailings ponds near Lively for over 30 years as a disposal site for waste activated sludge from its wastewater treatment facilities. While this was once an acceptable practice, changing environmental standards and recurrent episodes of foul odour have made this disposal method unsustainable. The City is required to cease using the tailings ponds for disposal purposes.
While a number of alternative project procurement methods were available to the City, it was determined that a DBFOM model offered the highest value for money for the community. Indeed, N-Viro’s submission offers value for money of approximately $11 million over the 20-year contract term.
“N-Viro is committed to recovering and reusing nutrients found in our organic waste streams. We are a Canadian company using Canadian born technology to mine essential nutrients from the organic waste stream and lower greenhouse gasses. N-Viro is proud to be a partner with the City of Greater Sudbury in Northern Ontario’s first Advanced Biosolids Management Facility,” said N-Viro’s President, Rob Sampson.
The lump sum construction price of N-Viro’s submission is $63.1 million. Under the DBFOM model, the private sector accepts more of the risk and is responsible for meeting the standards established by the City through the procurement process. However, the City of Greater Sudbury maintains ownership of the facility at all times.
The deal between the City and N-Viro was finalized earlier in June, and N-Viro began mobilizing equipment on June 17, 2013. Construction is scheduled to be completed 24 months from now, in summer 2015.
A final project summary and value-for-money report is scheduled to go before Council on July 9, 2013.