$235-million RSR Wastewater project going to tender with tariff contingency

The final contracts and cheques are being signed as the $235-million Red-Seine-Rat (RSR) Wastewater Cooperative project approaches tender this spring and start of construction this fall.

RSR community consultant Gordon Daman was at the March 11 RM of Tache meeting to get final documents approved. He said approval of a contractor for the wastewater plant should come this June and site preparation start this August.

“Quite frankly, we’re ready to go,” said Daman after meeting with Tache council.

He said the plant is planned to be built by 2026, with everything connected and running well before the end of 2028 in order to adhere to the funding and loan agreements with other levels of government and the Canada Infrastructure Bank.

Tache had its $200,915 cheque signed and delivered, locking it into the project that will allow for more growth in its communities that use the Lorette and Landmark lagoons. The piping system connects community lagoons to the large wastewater facility being built north of Niverville.

Tache is one of six municipalities in the wastewater co-op that includes Niverville, Hanover, De Salaberry (for Otterburne only), La Broquerie, and Ritchot. Niverville approved the final financing documents March 4.

The pipes and lift stations will be tendered later and split into three contracts to give smaller local contractors a better chance at competing with the big companies.

Tariff contingency

The U.S.-declared trade war will drive costs up on any construction in Canada.

Tariffs on steel and aluminum of 25 percent have already been put on Canadian companies by President Trump, and counter-tariffs on U.S. steel and aluminum were announced by the federal government to go into effect March 13.

Daman said there is a contingency built into the financing.

“We have contingencies in place to address about 10 percent if we’re over because what has happened is when you look at the projects on a 25 percent tariff, most capital projects one-half is labour, one-half is material, and of the material impacts we could see up to a 10 percent impact on the tariff side,” explained Daman.

He believes the federal government will use any tariffs collected to help public infrastructure projects affected like RSR.

Daman said he has been in touch with the federal government and the Canada Infrastructure Bank, a Crown corporation.

“Our understanding is because it’s the federal government collecting any of the retaliatory tariffs, is that subject to what happens post-election assuming there’s an election called next week, is those retaliatory tariffs that are going to be… charged at the border site [are] beyond worker support through EI at the federal level… the other focus will be on public infrastructure projects, that they will have priority in receiving some of that charged amount back to assist on those projects,” said Daman.

He said his understanding was both the federal governing Liberals and opposition Conservatives have the same position.

“I think there is a recognition by all levels of government whether it’s local, provincial or federal, that we’ve experienced a significant disruption in our relationship with the Americans,” said Daman.

“As Canadians, most if not all of us really do appreciate our neighbours to the south but because of the current administration, specifically the president, that moving forward there’s obviously a different relationship.”

He said if that continues, public infrastructure is critical in changing Canada, Manitoba, and the Southeast’s economy to be less reliant on others.

Daman said Manitoba is well positioned for growth economically if government leaders follow through on their promise to knock down internal provincial trade barriers.

He also pointed to the issues Winnipeg is having in building a new wastewater treatment plant, and that this is an opportunity to grow the Southeast’s industrial and commercial sector.

“We celebrate every time Winnipeg wins because that helps everybody as a province. Right now it’s really critical we have this (RSR) in place because there are going to be industries that may not be able to settle in Manitoba if we’re not up and running because Winnipeg won’t be ready. That’s just a fact,” said Daman.