The Yukon government says it will no longer be pursuing its $39.5-million lawsuit filed in 2017 against Corix Water Systems, the company that built the struggling, cost-ballooning Dawson City Wastewater Treatment Plant.
In an official joint announcement on February 28, the Yukon government said the two parties “reached an agreement” and neither party “will pay the other any amount of money in addition to what has been paid to date.”
Any funds B.C.-based Corix has paid to the Yukon government to date will remain confidential.
The problematic treatment plant has cost nearly $1 million per year to operate. By comparison, the nearby City of Whitehorse’s sewage lagoon, which serves a much larger population, only costs between $100,000 – $200,000 per year to manage.
The plant failed to meet water quality standards and other terms of its water licence for years after opening. When combined with other issues it prompted Yukon officials to take legal action over the $34.3-million facility.
Yukon officials had also named Chubb Canada in the lawsuit, the company that held a $12.5-million performance bond against the project.
According to a CBC news report, Community Services Minister John Streicker said the new agreement “includes a non-disclosure agreement which bars him from saying how much money the government left on the table.”
The contractual relationship between Corix Water Systems and the Government of Yukon is now over, the official announcement stated.
The Yukon government recently announced it would be exploring lagoons as an alternative to the Dawson City Wastewater Treatment Plant. Sewage lagoons are used across communities in the Yukon.
Yukon’s Community Services took over operation in the plant from Corix in 2017.
There is no direct timeline as of yet for Dawson City’s exploration of sewage lagoons.
You can read Yukon’s 2019 water and wastewater sector report available here.