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Evan Thomas Water/Wastewater Treatment Plant


Evan Thomas Water/Wastewater Treatment Plant

Location: Kananaskis, Alberta

Status: In Operation

Provincial/Federal/Municipal: Provincial

Value of Partnership: $59.6 million (Total project cost) 

Type of P3: DBFOM

Financial Close: October 2, 2012

Substantial Completion: August 2014 

Handback: 2024

The Evan Thomas Water/Wastewater Treatment Plant is a central utility for the Kananaskis Valley, a year-round tourism destination due to its location within a provincial park and its proximity to an ecological reserve and recreational areas.

In 2024, the project became the first public-private partnership (P3) in Alberta — and one of the first in Canada — to reach maturity and undergo handback at the completion of its P3 agreement. To date, the Value-for-Money (VFM) demonstrated at the signing of the Agreement remains true to the last cent.

Background

Initally built in the early 1980s, the plant's facilities in the early 2000s no longer met Alberta Environment standards, water distribution and storage systems did not meet fire flow requirements mandated by the Fire Underwriters Insurance Advisory Organization, and the wastewater treatment plant was not able to meet the increasing capacity demands of the growing population. 

The Government of Alberta assessed procurement delivery options and concluded a P3 design-build-finance-operate-maintain approach delivered stronger Value-for-Money (VfM) and set clear expectations for both construction costs and long-term operations.

By using a P3, the government estimated it would save $2.41 million over 12 years (in 2012 dollars), compared to a traditional design-bid-build approach, and the project would be delivered at a guaranteed fixed date. 

In 2011, the province issued an RFP to strengthen the valley’s capacity to supply treated water and manage wastewater while preparing the system for long-term operational needs. It selected EPCOR Water Services Inc. as its preferred proponent for the project.

Construction & O&M

Construction on two new larger plants along with improvements to the water storage and distribution system started in October 2012.

In June 2013, a significant natural disaster occurred when parts of southern and central Alberta including the Kananaskis region, experienced significant rainfall that triggered catastrophic flooding. This was deemed the worst flooding event in Alberta’s history to date. 

To keep to schedule, EPCOR flew in materials, people and fuel throughout the flooding. The army assisted EPCOR by providing safe transportation into the plant and in getting the generator restored to running order. Through these tremendous efforts, construction of the facilities was completed in August 2014.

During the operational phase, another devasting event – the COVID-19 pandemic – occurred, which resulted in significant disruptions to numerous businesses and had a profound impact on the economy. Operations of this facility are essential given it supplies drinking water to the users at Kananaskis Improvement District. Despite during this tumultuous time, Evan Thomas maintained operations by leveraging support from other local EPCOR resources. 

Results of Using P3

  • 100 per cent uptime delivery of water and wastewater services to customers and public over the last 12 years. 
  • No public health concerns in 12 years. 
  • No customer complaints about odours, noise, or any other operational issue over the last 10 years. 
  • Maintained ISO 14001 environmental certification. 
  • Excellent relationship formed between EPCOR and the Alberta government's P3 team throughout the 12 years operating the facility. 
  • Zero change orders, disputes and insurance events in the Operational Term. 
  • Evan Thomas achieved 20 per cent to 30 per cent water loss reduction through the implementation of a multi-year leak detection program using internal specialists resulting in decreased chemical and power costs. 
  • Reduced operational expenses by increasing energy efficiency at site. This included electricity and propane reduction.
  • Repurposing the wastewater treatment sludge as a fertilizer for agriculture processes. This was purely a value-added proposition.

Partners:

Public: Alberta Infrastructure

Private: EPCOR Water Services Inc., Lockerbie-Stanley (LS) and Stantec