Metro Vancouver and the Spanish multinational Acciona have resolved their legal disputes over the cancellation of the North Shore wastewater treatment plant. As part of the settlement, Acciona will pay $235 million to Metro Vancouver, according to a joint statement.
Background of the Lawsuits
Acciona had filed a lawsuit demanding $250 million for the terminated contract, while Metro Vancouver countersued for $1 billion. The cases were scheduled for trial in B.C. Supreme Court in March 2027.
Project Cost Overruns
The North Shore wastewater treatment project has experienced significant cost increases since the original contract with Acciona was canceled. Initially budgeted at $700 million, the project's cost has ballooned to over $3.8 billion. PCL Constructors West Coast Inc. was brought in to complete the work, with a new completion target of 2030.
Independent Review Planned
Metro Vancouver board chair Mike Hurley announced that an independent review of the project will proceed now that the litigation is settled. The review was initially planned in June 2024 but was paused during the legal proceedings.
“The North Shore Wastewater Treatment Plant Program is one of the most important projects currently underway for the health and well-being of this region, and we are very aware of residents’ concerns about the project,” said Hurley in a statement. “It is important to us at Metro Vancouver to have a thorough, independent review of this project so our residents get the transparency they deserve and Metro Vancouver can continue to strengthen delivery of our critical infrastructure projects.”
Details of the Settlement
Hurley emphasized that the settlement avoids the risks, costs, and delays of a trial. “Settlement provides a clear path forward, avoiding trial and its associated risks, costs and delays,” he said. “Metro Vancouver can now focus fully on delivering this critical infrastructure project for the region.”
The independent review process will be discussed at upcoming Metro board meetings. Metro Vancouver has not disclosed the legal costs incurred before the settlement, nor whether any of the $235 million will be used to mitigate tax increases for residents.
Project Purpose and Impact
The treatment plant will replace the Lions Gate facility, which only provides primary-level wastewater treatment. Located between Philip and Pemberton avenues in North Vancouver, the plant will serve 300,000 residents. Funding will come from residential utility rates, with households in North Vancouver expected to pay an additional $590 per year.
Acciona had argued that the site conditions made it impossible to design and build the project without significant changes, and that Metro Vancouver failed to make certain payments and refused to acknowledge problems with the original contract.
