Winnipeg’s Public Service is recommending that council approve an $815.5-million contract to Red River Biosolids Partners to construct new biosolids facilities at the North End Water Pollution Control Centre (NEWPCC) after a nearly two-year collaborative design process that city officials say identified significant cost-saving engineering changes without sacrificing performance.
The recommendation would move the project from design into construction following the project’s progressive design-build process. If approved by council, construction would begin on facilities expected to start treating biosolids in October 2030 and reach substantial completion by March 17, 2031.
The Biosolids Facilities project is one of three major capital projects comprising the modernization of the North End plant, which treats about 70% of Winnipeg’s wastewater and all sludge generated at the city’s three wastewater treatment plants. The upgrades are intended to replace aging infrastructure, increase treatment capacity to accommodate population growth and bring the facility into compliance with provincial environmental regulations.
The new facilities will receive sludge from Winnipeg’s wastewater treatment plants and process it into reusable biosolids.
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Red River Biosolids Partners was selected as the project’s development partner in July 2024 after council approved the progressive design-build (PDB) delivery model the previous year. Since September 2024, the consortium has worked with the city’s project team to finalize the design, construction schedule and pricing before negotiating the design-build agreement now before council.
The PDB model divides the project into three phases, allowing the owner and contractor to work together during the design stage before proceeding to construction. According to city officials, that collaborative approach identified several opportunities to reduce costs while maintaining the project’s performance and regulatory requirements.
Among the changes were replacing the originally proposed thermal hydrolysis process with thermophilic digestion, consolidating several smaller buildings into larger structures, constructing taller buildings instead of excavating basements, and using steel rather than concrete for portions of the structural framework.
“With biosolids, we found many saving opportunities through adapting the design,” said Lana Obach, major capital project engineer with the City of Winnipeg. “What is notable about these savings is that they were not the result of cutting corners. Instead, it was about making smart design and engineering choices.”
City officials compared the switch from thermal hydrolysis to thermophilic digestion to using “a slow cooker instead of a pressure cooker,” describing it as a simpler treatment approach that delivers the required outcomes while lowering construction costs.
The contract will be funded through the city’s approved capital budgets for the Biosolids Facilities and Nutrient Removal Facilities projects.
The biosolids project is the second of three major phases in the overall NEWPCC modernization program. Construction of the first phase — a new headworks and power supply facility — began in 2021 and is expected to be completed later this summer.
The third and largest phase, the Nutrient Removal Facilities project, carries an estimated cost of approximately $1.5 billion. That project remains in procurement, with three teams shortlisted to compete for the contract. Construction is expected to begin in 2028. This project will treat the liquid part of wastewater before it enters the river.
Together, the three projects represent one of the largest infrastructure investments in Winnipeg’s history.
The city also expects the biosolids project to generate significant economic benefits. An economic impact analysis estimates the project will contribute approximately $620.8 million to Manitoba’s gross domestic product and support 3,770 person-years of employment, while generating additional economic activity across Canada.
The project will also be the first city construction project to implement Winnipeg’s 2022 social procurement directive, which aims to increase participation by Indigenous peoples and other under-represented groups in the construction workforce. The design-build agreement includes minimum participation requirements and stretch targets for skilled trades, apprentices, semi-skilled workers and general labour.
City officials said the procurement process complied with purchasing policies and applicable trade agreements and represents the next stage of an established competitive procurement process rather than a sole-source contract award.
