Collingwood and New Tecumseth Cheers to Provincial Funding Announcement of $70M for Water Treatment Plant Expansion

September 26, 2024
Category: 
Council
Group photo of Collingwood Council, New Tecumseth Council and MPP Saunderson

The Town of Collingwood and New Tecumseth are excited to share that earlier today, Brian Saunderson, MPP for Simcoe-Grey announced that the Ontario government is investing $69,999,999.58 into the Town of Collingwood’s water treatment plant expansion to enable the construction of new homes in Collingwood and the Town of New Tecumseth as part of the Housing-Enabling Water Systems Fund. Both municipalities extend our sincere thanks to the province for critical funding, which will be instrumental in supporting the success of this significant project. 
 
The Water Treatment Plant Expansion Project Tender with the lowest bidder Kenaidan Contracting Ltd. (“Kenaidan”) is estimated to be in the range of $270M.
 
“I am proud to announce that we have secured a provincial grant of $70 million dollars towards our water treatment plant expansion. This project is the largest investment in Collingwood and New Tecumseth’s history and tremendous effort has gone into reaching this point,” says Mayor Yvonne Hamlin. “Numerous meetings and discussions which I have been honoured to arrange and attend with the Premier, Minister Calandra, and the provincial Budget Committee, amongst many others, have yielded results for which we are so thankful.  I very much look forward to continuing to work with the Province to achieve our joint goals to enhance our community."
 
Staff continue investigating all options to finance this project, including contributions from the federal government. We are also developing an advocacy strategy for the upper tiers of government and have an appreciation for the continued support we are receiving from our development community in our efforts. We are committed to finding a solution that gets the plant built, quickly, and without subjecting our communities to financial hardship.
 
“The Province of Ontario’s significant commitment and investment in the Towns of New Tecumseth and Collingwood is remarkable. We have worked together tirelessly to develop partnerships and solutions for funding assistance, and we are grateful for the province’s support that ensures we have the services and water needed to continue to prosper today and into the future,” says Mayor Richard Norcross, New Tecumseth.
 
New Tecumseth and Collingwood are committed to continuing to work collaboratively to ensure the water needs of our respective growing communities are successfully met.  This is an example of how the provincial government and our municipalities have worked proactively to provide the infrastructure and planning, so businesses and people can thrive in our communities.
 
“This is a transformational investment in a generational project that will build sustainable and resilient communities in Simcoe Grey,” said MPP Brian Saunderson. “By partnering with the Towns of Collingwood and New Tecumseth, the Government of Ontario is making sure that the proper linear infrastructure is in place to support responsible growth that includes much-needed housing, schools, hospitals, and businesses.”
 
Background
 
September 12th, 2023, Collingwood Mayor, Yvonne Hamlin and Richard Norcross, Mayor, of New Tecumseth issued a Joint Statement which announced that 3 bids were received from the pre-qualified contractors for the Raymond A. Barker Water Treatment Plant Expansion project.
 
The unofficial low bid was $212M for construction alone. The total project costs are now estimated to be in the range of $270M, and the timeline to complete the project has also been extended by about two years longer than originally projected. Construction of the expansion has begun and the current schedule for commissioning of the 59,000 m3/d is July 2029, with work continuing at the WTP site until 2031.
 
This project is an essential and urgent project for Collingwood, New Tecumseth, and the surrounding area, as it can supply significant additional drinking water to the existing 60km pipeline southerly from Collingwood, and westerly to the Town of the Blue Mountains. Without this plant expansion, we will have limited ability to collaborate with our municipal partners to build new homes, meet provincial housing targets, and continue to support commercial and industrial expansions.
 
Under the Collingwood and New Tecumseth collaborative agreement, grant funding will be used to reduce the overall costs, with the remaining costs shared proportionally to the water taken from the new plant, at 37% for Collingwood and 63% for New Tecumseth. 

For more information about the project, please visit the Engage Page for the Water Treatment Plant Expansion.