Two major City of Winnipeg waste projects have blown past their budgets as the pandemic affects bidding and a contractor struggles to meet deadlines, according to a briefing presented to the city’s finance committee on Tuesday.

The city is conducting a massive upgrade of its sewage treatment system to meet the requirements of its licence under the province’s Environment Act and reduce the outflow of nutrients into Lake Winnipeg. 

Upgrades to Winnipeg’s South End sewage treatment plant have fallen behind schedule, prompting the water and waste department to estimate additional costs of $16.5 million.

The total cost for the expansion and upgrades to the plant is now pegged at $335.6 million.

The city’s senior water and waste managers say the performance of the contractor is in part to blame for some of the cost increase.

The contractor’s missed deadlines have triggered a dispute resolution process between the city and the company. Part of the extra expenses include the city’s expenses for external legal counsel to address the contractual issues.

The increase also covers additional contract administration, construction management and administration, and increases in shipping costs for material coming from Korea.

The global COVID-19 pandemic has played a part in the delays and the performance of the contractor, and had an effect on market conditions and shipping parts and equipment, according to the briefing.

Senior administrators at water and waste promise more details about the cost overruns and delays in a report due in May. 

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