Metro Vancouver projects $1.9B financing cost for North Shore plant

Metro Vancouver estimates financing the North Shore wastewater treatment plant will cost nearly $1.9 billion over 30 years. The estimate, provided after inquiries from Business in Vancouver, is already included in board-approved estimates of what homes across the region will pay for the project.

Surrey Coun. and Metro Vancouver board director Pardeep Kooner raised the financing costs during a Surrey Connect municipal election campaign event. Kooner had said the plant's revised cost was $5.5 billion if financing were included, but later told Business in Vancouver that the plant's cost remains $3.85 billion. She said residents deserve a clear breakdown of debt-servicing costs in utility rates.

Metro Vancouver said projected external borrowing for the plant is $2.65 billion and borrowing occurs after expenditures are incurred. Development cost charges will offset borrowing by $166.1 million. The $1.9-billion estimate assumes average interest rates of four per cent. Other funding includes federal and provincial funding, development cost charges, settlement revenue and utility rates added to property tax bills.

The regional government also said a $235-million settlement with former contractor Acciona has been applied to its cost estimates. Average household costs are $656 annually for 30 years on the North Shore, $139 annually for 15 years in Vancouver, including parts of Burnaby, $83 in Richmond's Lulu Island West area and $90 in the Fraser region. The settlement reduces average annual household costs by $7 in Richmond, $8 in Fraser, $13 in Vancouver and $44 on the North Shore, depending on household size.