'It gets us going': Federal government chips in $150 million for sewage plant

More funding for sewage treatment plant CTV’s Jeff Keele has the latest on new funding from the federal government for the north sewage treatment plant.

More money is flowing for Winnipeg's most expensive project, but it might not be enough to save ratepayers from sticker shock.

"It gets us going, but we're a ways off," said Water and Waste Committee Chair Evan Duncan.

Costs for the north sewage treatment plant upgrades have skyrocketed over the last two decades. Recent estimates for the three-phase project are $2.3 billion, or even as high as $3 billion.

All three levels of government have pitched in for phase two of the project. But it has gone over budget by $482 million, so Mayor Scott Gillingham has been asking for help.

The premier recently announced an additional $30 million. Now, in the federal government’s fiscal update this week, there is another $150 million, over four years, starting in 2026.

"All in all, it's welcome news. We're moving in the right direction,” said Gillingham.

The upgrades are needed to increase sewage capacity, which is set to run out in four to six years, and to reduce phosphorus and nitrogen from entering Lake Winnipeg.

Gillingham said he is grateful for the announcement, but more is needed for phase two and the last phase, which could be pegged at $1 billion dollars alone.

"We still have to come up with more money between the city and the province and the federal government to complete phase two, but I do acknowledge this goes a long way."

Premier Wab Kinew said there is a lot of urgency to get the plant built. He said negotiations are ongoing with Ottawa, and he signalled there may be more to come.

"I hope that early in the new year we'll be able to take the covers off the full detailed plan of how we're going to get this North End plant built," said Kinew.

But if there is no more funding from senior governments for the upgrades, the remaining costs may be funded solely through Winnipeg homeowners’ sewer and water rates.

"If we don’t have any further funding, it's not going to be good. It's going to be a real tough pill to swallow," said Duncan.

“Water and sewer rates would go up significantly,” said Gillingham.

A report on what those projected rates could look like is expected at city hall in the new year.