Prince Rupert’s three-year major water upgrade project is progressing amid significant cost overruns, prompting a strategic reassessment by the City.
The project’s initial estimate was $130 million, but now it faces a budget increase of approximately 30 per cent due to ongoing market volatility and rising construction costs.
So far, the City has spent approximately 20 per cent of the allocated budget, but only 15 per cent of the total work has been completed.
“With construction costs continuing to rise and the overall program becoming more expensive than initially anticipated, staff have begun reassessing the project to ensure the critical infrastructure is the main priority,” said Jordan Schmidt, the City’s director of operations, in his April 28 report to the city council.
“The overarching strategy remains to prioritize the replacement of large-diameter arterial mains before progressing to smaller lines, ensuring the most critical components for potable water circulation are addressed first,” said Schmidt.
The Big Infrastructure Gap (BIG) project
The City launched the BIG water upgrades project in the aftermath of the 2022 Local State of Emergency, which saw over 30 water main breaks and 15 service line failures in Rupert. The program was designed to replace 26 kilometres of high-risk water and sewer infrastructure, focusing on large-diameter arterial mains crucial for ensuring safe and reliable potable water service.
Progress
Since the capital work began, construction has been completed on 1st Avenue East, 7th Avenue East, and Applewhaite/Montreal Circle. Major underground work on Crestview Drive is also finished, with only final paving needed between Overlook and Rushbrook. Work on Shawatlans Road is currently underway and is approximately 60 per cent complete.
Director Schmidt acknowledged project delays on Shawatlans Road.
“So that [section] is the biggest, most expensive piece of the project. It is significantly behind. We did run into some permitting challenges and there’s some challenges with unique parts and design work on that. We’re about six months behind on that specific piece right now,” said Schmidt during the regular city council meeting on April 28.
“As far as the entirety of the project, we’re behind on it, but we are moving to speed up the process right now.”
Construction on Bacon Street will begin in early May, followed by Alfred Street later this summer.
To help complete the project, the Coast Tsimshian Northern Contractor Alliance (CTNCA) is assisting the City by engaging several local contractors. To manage costs and broaden participation, the City will issue traditional Requests for Proposals (RFP) in specific corridors, such as an upcoming section of 11th Avenue East, allowing more companies to bid on the work.
City staff are reassessing the remaining project corridors to tackle escalating construction costs. Based on this reassessment, they will return to the Council with a revised financial outlook and recommendations for future phases.
“Managing a capital program of this scale has highlighted challenges related to existing staff capacity, particularly in meeting compliance and regulatory requirements,” said director Schmidt in his report.
“As a key lesson learned, staff are exploring the engagement of additional consulting resources to support program delivery. It is expected that this support will more than pay for itself through project cost savings by reducing delays, improving procurement and design coordination, and identifying construction efficiencies.”
