North Shore Wastewater Plant fiasco: Contractor alleges misinformation by Metro Vancouver

Acciona Wastewater Solutions, whose contract for the North Shore Wastewater Treatment plant was terminated, has sent a letter to Metro Vancouver, accusing the regional district of spreading misinformation about the troubled project. The letter by Carlos Planelles, Acciona’s Managing Director for North America, outlines allegations of flawed designs, cost overruns, and mismanagement that significantly delayed the project and increased costs.

The letter, dated November 28 and addressed to Metro Vancouver Board Chair John Hurley, was also sent to all Metro Vancouver councillors.

Claims of Public Misinformation

Acciona alleges that Metro Vancouver misrepresented the project’s challenges in public statements, presentations, and official documents, potentially misleading councillors, the media, and the public.

“We are concerned that your fellow councillors, the media, and the public may continue to be misled on several important issues,” wrote Planelles. He attached a summary document outlining Acciona’s perspective on the project’s setbacks, which it blames on flaws in Metro Vancouver’s original designs and decisions.

The company also highlighted its previous offers to complete the project under revised terms. “When Acciona identified fundamental issues affecting the project’s planned completion, we offered to implement alternative measures to complete the project in 2025 for $1.05 billion. This was declined,” Planelles stated.

Design and Site Deficiencies

Acciona claims the project’s original design was riddled with technical flaws and omissions. According to the company, critical systems, such as electrical and HVAC components, were missing from the preliminary design provided by Metro Vancouver, and much of the specified equipment was either unavailable globally or did not fit within the allocated space.

“Many of the other equipment specifications provided by Metro Vancouver could not be incorporated into the final design because there was no space for them,” the letter stated, adding that accommodating the necessary equipment would have required a facility 30% larger than initially planned.

Acciona also criticized Metro Vancouver’s Rail Passenger Lands site choice, describing it as too small for the project’s wastewater treatment volume. The company further alleged that the site is vulnerable to natural hazards, including flooding, tsunamis, and soil instability.

Seismic Regulations and Costly Adjustments

The company says stricter seismic regulations were introduced after the project began, which forced substantial redesigns and construction delays. Initially designed to withstand a magnitude seven earthquake, the plant had to be upgraded to meet new standards for a magnitude nine earthquake. This resulted in significant additional costs, including installing deep rock columns for stability, doubling the amount of rebar, and using stronger concrete.

Acciona also discovered an engineering flaw in the original design, further complicating construction. The delays and adjustments led to a significant increase in costs.

Skyrocketing Costs and Delays

The North Shore Wastewater Treatment Plant project, originally budgeted at $700 million and scheduled for completion in 2020, has ballooned to nearly $4 billion, with an estimated completion date of 2030. Acciona said it previously offered to complete the project under a cost-recovery model earlier this year, but Metro Vancouver declined. “Due to Metro Vancouver’s actions and decision-making, we understand that the project will now cost almost $4 billion with an estimated completion of 2030,” Planelles said in the letter.