Newsletter - February 1999 The Town of New Tecumseth to proceed with water supply project The Town of New Tecumseth has formed a Public-Private Partnership with SNC Lavalin Inc. and Con-Drain Company (1983) Ltd. to design and construct a new 57 km water transmission pipeline from Collingwood to Alliston, Ontario. The Town had previously completed an Environmental Assessment Study that identified the surface water supply source from Collingwood as the preferred solution. This pipeline project has become a priority for the Town of New Tecumseth in order for it to meet future water supply needs, specifically those of the Alliston industrial area and Honda of Canada Manufacturing. As well, local communities have expressed an interest in and a need for additional water. An extensive process was undertaken by the Town in developing this project, including a Request for Strategy, a Request for Expression of Interest, and finally, a Request for Proposals from four short-listed consortia. SNC Lavalin Inc. and Con-Drain Company (1983) Ltd., who form a private sector consortium, presented the most acceptable proposal, and were the lowest bidder. The financing structure for this $27.3 million project consists of the following: SNC/Con Drain will provide $2.9M in debt financing; the Province of Ontario will provide $11.1M in debt financing and an additional $5M in the form of a provincial grant; the Town of New Tecumseth will supply $7M in equity financing to be recovered from development charges; and the Town of Collingwood Public Utilities Commission will provide an additional $1.3M, also in equity financing. As outlined in the Environmental Assessment Study, the proposal initially requires the Town to accept 6,000m3 of water per day which will see rates targeted in a range of up to $.60/m3. The Town of New Tecumseth retained the Ontario Clean Water Agency to manage the proposal process for the water transmission pipeline, and continue managing the project, to completion. For further information contact: Sterling W. Zeran, Town Manager, Town of New Tecumseth at (705) 435-6219, or John Carter, Project Manager, Ontario Clean Water Agency at (416) 314-4617. |