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Collingwood will sign $270M contract with Kenaidan for water plant

Collingwood negotiated new deal with New Tecumseth to ensure $270 million in costs will be covered, which includes providing New Tecumseth with more interim capacity
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A rendering of the new membrane building design for Collingwood's water treatment plant on Sunset Point.

The Town of Collingwood will be accepting Kenaidan’s bid for the water treatment plant expansion, locking in the $270 million price tag for the project.

Following a five-hour in-camera session on April 10, Collingwood council and New Tecumseth council provided a brief update regarding discussions that took place between the municipalities.

During Collingwood’s rise-and-report, Mayor Yvonne Hamlin noted much of the in-camera session included negotiating an updated agreement between the two towns. She said Collingwood council has given direction to town staff to prepare a bylaw to accept the Kenaidan tender price, which was set to expire April 15.

“It looks like we have successfully reached a conclusion that will allow us to proceed with accepting the tender for our accepted water treatment plant, which is awesome news,” said Hamlin.

The entire cost of the Raymond A. Barker water treatment plant expansion project is expected in the $270 million range, with an estimated date of completion in 2031 and more water capacity available as of August 2029.

According to the updated agreement, New Tecumseth will proceed with its portion of the water treatment plant costs, which account for 63 per cent, or $170.1 million.

In exchange, 250 cubic metres of water capacity will be made available to New Tecumseth immediately, with a further supply of 150 cubic metres of Collingwood’s remaining capacity to be made available within the next year. The agreement is subject only to the technical capabilities of the plant.

New Tecumseth and Collingwood will also participate in discussions concerning an interim water solution, subject to proportional cost sharing. In March, Collingwood council voted to hire consultant AECOM to study such options, which is expected to be completed by October 2024.

New Tecumseth is in the midst of completing a wells optimization project. Should excess capacity be found through that exercise, Hamlin said there would be a return to Collingwood of 200 cubic metres per day.

Hamlin also said both New Tecumseth and Collingwood will continue to pursue provincial and federal funding for the project.

“I know this has been a very trying thing,” New Tecumseth Mayor Richard Norcross said to councillors following their vote, while taking time to thank New Tecumseth council, staff and partners. “Everyone worked so hard on this. It’s greatly appreciated.”

To read about how Collingwood is planning to pay for its portion of the costs, which are 37 per cent of the total costs or $99.9 million, click here.


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Jessica Owen

About the Author: Jessica Owen

Jessica Owen is an experienced journalist working for Village Media since 2018, primarily covering Collingwood and education.
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