$1.5 million savings from operations, combined with success in
planning for provincially-mandated upgrades to sewage treatment plants
WINNIPEG - A report released today by the Public Service indicates that the first year of a multi-year contract with Veolia Water North America has already delivered value for the citizens of Winnipeg.
Success was reported in three main areas, including value for residents, capital program delivery and establishment of best practices.
Value for residents
Veolia provided significant engineering expertise resulting in a savings of about $1.5 million or 30 per cent when compared with market rates for engineering services. Under the terms of the agreement, Veolia was compensated for direct costs only.
Capital program delivery
The Process Selection Report on the South End plant and a similar report on the North End plant were submitted to the Province for consideration. To deal with the solids remaining after treatment, and in an environmentally sustainable manner, a biosolids master plan is being developed. This plan must also be considered by the Province for approval. Development of an automation master plan is also underway, which will form the basis for the upgraded treatment plant control systems.
Establishment of best practices
Best practices were established for key administrative and financial systems, including integrated document management systems, information management systems and risk management planning. These systems are the backbone of all program planning and operations for the life of the 30-year contract and are the foundation for future savings.
Veolia staff played a key role in helping the City resolve a major process upset at the South End Sewage Treatment Plant in October 2011. Quick mobilization of Veolia experts allowed the City to get the plant online in a timely manner, and the company has also recommended risk mitigation strategies to minimize the likelihood of such a recurrence, which the City is implementing.
The City of Winnipeg executed an innovative 30-year agreement in April 2011 with Veolia to provide expert advice on the $1.2 billion sewage treatment plant upgrades and plant operations. The City retains ownership and authority to operate the sewage treatment plants and processes.
The terms of the contract stipulate that Veolia posts $50 million in security and outlines a performance-based compensation model to ensure:
- the best in environmental practices,
- accountability, and
- long-term fiscal protection for Winnipeg taxpayers.
The Public Service is required to report annually on the progress of the contract. The report will be considered by the Standing Policy Committee on Infrastructure Renewal and Public Works on July 3, 2012.