Town of Essex’s Application for Grant for Colchester Sewer Upgrade Denied

Colchester Water Pollution Control Plant not approved for HEWSF funding

By  Sylene Argent, Local Journalism Initiative Reporter Essex Free Press

Council for the Town of Essex received a letter from the Ministry of Infrastructure for the province at the August 12 meeting, noting the application submitted for the Colchester Water Pollution Control Plant under the Housing-Enabling Water Systems Fund (HEWSF) was not approved for funding.

The letter noted the decision was made “following an evidence-based provincial review process.”

It adds the Housing-Enabling Water Systems Fund intake was highly competitive, and demand for funding exceeded what was available. Projects approved were those that most closely aligned with provincial assessment criteria and requirements.

“The provincial assessment criteria included reviewing projects based on housing outcomes, project readiness, critical health and safety aspects, the technical merit of the proposed project, financial capacity, and efficiencies through joint projects,” the letter states.

The Province will, however, launch a second intake for HEWSF, and municipalities will be able to resubmit their project applications or submit new proposals for consideration.

At the April 2 meeting, Essex Council decided to proceed with making an application to the Housing-Enabling Water Systems Fund for the design and construction of the Colchester Water Pollution Control Plant.

Applying, it was noted at the time, could have a large dollar impact to the municipality, if the grant was unsuccessful. That is because the design needs to be completed. However, the design would have a shelf-life for future consideration and get the project shovel-ready for future grant opportunities. Getting this grant could also bring in tens of millions of dollars towards the project.

At that meeting, Council also appointed Stantec Consulting Ltd. to provide engineering design services in the amount of $2,143,065.60 to complete preliminary and detailed design of the Colchester Water Pollution Control, and further authorized the expenditure of $2,453,433.60 to complete the design of the Colchester Water Pollution Control Plant with funding of 16% from the Ward 3 Wastewater Reserve and 84% from the Development Charges Reserves.

The total cost estimate for the phase one upgrades for the Colchester Water Pollution Control Plant was estimated at $42.8M.

It was noted previously that if the grant was denied, the Town would have to pay for the engineering and the design, but it could be shelved and used at a later date. If the Town wanted to look at completing the project around 2031 or later, the municipal contribution would be around $63M, as it would have to fund the entirety of the project, with around $20M in interest. The total estimated debt in this scenario is around $40M.

During the August 12 meeting, Councillor Rodeny Hammond asked about further details about the design plan for the Colchester Water Pollution Control Plant.

Director of Infrastructure, Kevin Girard, noted the Town recently received its 30% submission from the consultant, which is said is a solid 30% completed.

The original timeline was to have the project tender-ready for December. Since there will be a second intake for the HEWSF grant, the plan is to stick to that schedule to ensure it will be ready to be reapplied.

Nothing at this point has changed from a financing perspective, Girard added. He said the Town knows this project “will need to occur. It is just that if we didn’t receive the funding, we’d be pushing this...outside of the typical window. So, we wouldn’t be completing it in 2025, but into future horizons.”

Source - Sylene Argent, Essex Free Press. With thanks