A company formerly responsible for building a wastewater treatment plant in North Vancouver, British Columbia, calls the cancellation of the deal “regrettable, unnecessary” and contrary to the interests of the community.
The Metro Vancouver Regional District announced Friday that it had terminated its contract with Acciona when the price of the plant rose from $ 500 million to $ 1 billion.
But Acciona says it has done about $ 100 million in contract work on the North Shore wastewater treatment plant, for which it says it has yet to be paid.
The company said in a written statement that the project had been “fraught with unforeseen challenges” including “flaws in the design provided by Metro Vancouver as part of the initial bidding process.”
The company says its officials have met with regional authorities over the past six months to negotiate a way forward, and it is “unfortunate that Metro Vancouver has chosen to take this unnecessary and counterproductive step.”
On Friday, the regional district administrative director said the project was 36 percent complete while according to Acciona’s schedule it is expected to be 55 percent.
It was to be completed by 2020.
Jerry Dobrovolny said it was unusual to sever ties with a contractor, but the decision was made to protect taxpayers from additional costs.
This report by The Canadian Press was first published on October 17, 2021.