Funding & Procurement
2011
March 2011
The CRD, the Ministry of Community, Sports and Cultural Development and Partnership BC agreed to undertake a joint Market Sounding to solicit industry input from concessionaires and contractors in order to determine interest in the proposed wastewater procurement strategy. Eleven market sounding interviews were held between 17 January 2011 and 28 January 2011.
The results of the recent market sounding indicate that there is a strong market interest in the procurement strategy approved by the CRD for the McLoughlin WWTP and the biosolids energy centre.
2010
September 2010
On September 8, 2010 the CRD submitted an addendum to the business case in support of the application for provincial funding of the wastewater program. The addendum reflects the program configuration as seen in Amendment No. 8. Read the Business Case Addendum and the Letter to Minister Stewart from CRD Board Chair Geoff Young concerning the Addendum.
August 2010
The Minister of Community and Rural Development, Ben Stewart, has specified a recommended course of action for procurement and governance decisions. The letter was received by CRD Board Chair Geoff Young on July 28, 2010. Read the letter from Minister Stewart.
February 2010 Procurement Open Houses for Core Area Residents
In February, the CRD held two Open Houses on procurement options for the Core Area Wastewater Project. Residents were given the opportunity to learn about procurement options, talk with staff and give feedback.
- Read the Procurement Brochure (PDF
) - A report on the public consultation process was produced by the CRD. Read the Report on Consultation.
Procurement Models Under Consideration
Six models for procurement were detailed by the CRD's consultants. They range from a fully public, traditional Design-Bid-Build (DBB) to a Public Private Partnership (P3) Design-Build-Finance-Operate-Maintain (DBFO).
Read about the Procurement Option Details.
A report on procurement options was produced by the CRD's consultants and submitted to CALWMC on January 13, 2010. This report details public, private and hybird options for the procurement of the wastewater treatment project.
Funding Avenues
Funding for Wastewater Treatment will be split three ways, with the Federal and Provincial governments contributing one third each for construction costs, and the Core Area residents contributing a third. Operation costs of treatment plants, once they are in place, will be the responsibility of the CRD's Core Area residents.
The province of BC has agreed to contribute one-third of the funding for wastewater treatment. However, a condition of the funding is that CRD examine the feasibility of the project being procured using a public-private partnership model.
To examine if a public-private partnership is feasible, a business plan for the wastewater treatment program is required. The plan must meet the requirements of Partnerships BC's best practices to qualify for funding consideration by both the provincial and federal governments
Procurement Peer Review Team
In order to remain objective in reviewing procurement options for the Core Area Wastewater Treatment Program, the CRD has solicited the services of a Business Case Peer Review Team. The team is chaired by Gordon Culp, who also chaired the 2009 Peer Review Team; their collective expertise helped CRD and Committee members in determining viable options for wastewater treatment. The new Business Case Peer Review Team members have no previous involvement in the CRD project, thus bringing a fresh perspective to bear; they have no preconceived ideas of the best solution and none have any vested interest in the outcome of the project. The following document provides a brief bio of each member, highlighting their qualifications.
- Read the Peer Review Team Biographies (PDF )
- Read the March 2010 Peer Review Team's Report on Procurement and Business Case Options
- Read the March 2010 Presentation on Procurement Options by the Peer Review Team
2009
Wastewater Treatment Study Funding Grant
In April 2009, the Governments of Canada and British Columbia announced that the CRD would receive federal and provincial financial support to plan wastewater treatment for its core area municipalities. Each government committed to contributing up to $3.33 million dollars towards eligible costs of the wastewater treatment study, with the CRD contributing the remaining third, for a total of $10 million dollars. This money is dedicated to the planning phase of the wastewater management program, including resource recovery options, site identification and procurement analysis.
Procurement Strategy Survey
A procurement strategy survey was conducted in Summer 2009 to ascertain interest from public and private sectors in resource recovery options in wastewater treatment and to seek input and feedback on procurement issues and options. The survey results, expected in Fall 2009, will be used to help plan resource recovery options in the Core Area.
- Resource Recovery Market Sounding Backgrounder (PDF )
- Resource Recovery Market Sounding Questions (PDF )
Procurement Strategy Discussion Papers
With the completion of the market sounding process, Ernst & Young will be proceeding with the next steps in the preparation of the overall business case. These will include the following series of discussion papers, which will be presented to the committee in Fall 2009.
Discussion Paper Topics
- Procurement Analysis Planning: Scope and Options (PDF )
- Business Case and Procurement Option Review
- Draft Business Case and Procurement
2007
Procurement Strategy: Market Sounding Questionnaire
The CRD conducted a Market Sounding to gauge and confirm both public and private sector interest and to seek input and feedback on procurement issues and options for wastewater treatment in two key areas:
- Procurement methodology used for delivering the planned project
- Packaging of the components of the planned project in a manner that will enable the CRD to achieve its goals and objectives
- Market Sounding Backgrounder and Questionnaire (PDF )
The deadline for responses was November 16, 2007. Survey results can be read in the following PDF.
Business Advisory Services
Ernst & Young Orenda Corporate Finance Inc. was retained to provide business advisory services for the project. These included:
- Preparation of a risk register and analysis of the risk profiles for each procurement option under consideration
- Preparation of a multiple criteria analysis for each procurement option, including the
establishment of evaluation criteria - A detailed financial analysis, including the preparation of a public sector comparator for use in the assessment of delivery alternatives
- Market sounding of the private sector's capability and capacity to design and implement part, or all, of the wastewater treatment program
Completion of the business plan is slated for mid-year 2009.
Questions about Procurement? Procurement FAQS
Provincial Commitment to Funding
Business Case in Support of Funding
from the Province of British Columbia: This business case is a request for funding from the Province of British Columbia –
Ministry of Community and Rural Development (MCD) and to move forward with procurement implementation of the Capital
Regional District’s (CRD) Core Area and West Shore Wastewater Treatment Program. CRD is seeking funding for one-third of eligible costs.
Business Case in Support of Funding: Infrastructure Canada’s Building Canada Fund This Business Case is a request for funding from the Building Canada Fund - Major Infrastructure Component. CRD is seeking funding for one-third of eligible costs of the Capital Regional District’s Core Area and West Shore Wastewater and Sewage Treatment Programs. The submission was accompanied by a Letter to Minister Baird.
A reiterated commitment to funding was made by Minister Bill Bennett in a letter to the CRD on August 27, 2009.
Read the Letter from Minister Bennett (PDF )
In the Speech from the Throne, February 12, 2007, the Province committed to funding one-third of the CRD Wastewater Treatment Project:
"Your government will fund up to one-third of the costs of a new sewage treatment facility for Greater Victoria."
Read the Speech from the Throne (PDF )
The Province also committed to one third funding during the 2006 UBCM address.
Read the 2006 UBCM Address (PDF )