Regina Wastewater Treatment Plant Upgrade Project
Location: Regina
Status: Operational
Value of Partnership: $180.8 million (capital) and $610.7 million (long-term operating)
Type of P3: DBFOM
Handback: 2044
Awards: 2014 Chuck Wills Awards, National Awards for Innovation & Excellence in P3s
After extensive planning, analysis, discussion and debate, which included a local referendum, the City of Regina chose an innovative DBFOM approach and negotiated a 30-year agreement with EPCOR Water Prairies Inc. in 2013.
The contract transferred significant risks to the private sector over the whole life cycle of the project, with estimated savings of $138.1 million compared to traditional procurement.
The project replaced aging core infrastructure, thereby improving energy efficiency, reducing greenhouse gas emissions, meeting higher wastewater effluent quality standards, and improving the water flow into Wascana Creek and the Qu’Appelle River and lake system.
EPCOR successfully completed the facility on time and below budget. The City of Regina retains ownership of the wastewater treatment plant, regulated by the Saskatchewan Water Security Agency. EPCOR will manage operations until June 2044.
It’s important to note that the agreement between the city and EPCOR also addressed the concerns of existing employees with Regina’s WWTP. The facility’s unionized employees were invited to become employees of EPCOR without jeopardizing their rights, salaries, salary levels or vacation time specified under the terms of their collective agreement. The 13 employees who transferred to EPCOR received equal or better benefits through EPCOR’s benefit package while forming a separate bargaining unit of CUPE Local 21.
Partners: City of Regina and EPCOR Saskatchewan Water Partners (incorporated as EPCOR Water Prairies Inc.)
Other Participants:
Public Sector: JD Campbell & Associates – Fairness Advisor; Torys LLP – Legal Advisor; Deloitte & Touche LLP – Financial Advisor; AECOM Canada Ltd. – Technical Advisor
Private Sector: EPCOR Water Services Inc. – Project Lead, Operations & Maintenance Lead, Financing Team; EPCOR Utilities Inc. – Equity Provider; Gracorp Capital Advisors – Financing Lead; Lockerbie Stanley Inc. – Design & Construction Co-Lead; Graham Infrastructure LLP – Design & Construction Co-Lead; Stantec – Design, Construction Team; Norton Rose Fulbright Canada LLP – Legal Advisor
