The provincial government has almost doubled its contribution to a regional water pipeline after the cost of the project has increased significantly.
The Town of Okotoks announced in a press release on Oct. 19 that the Foothills Okotoks Regional Water Project received a $14.2 million funding boost through the Province’s Water for Life program.
The new money is in addition to nearly $16 million in provincial funding announced in July 2022.
When the original funding was announced, the province’s contribution was said to cover about 45 per cent of eligible project costs.
In the most recent announcement, Devin Dreeshen, minister of transportation and economic corridors, said the additional funding means that 45 per cent of the project’s eligible costs will continue to be covered by the province.
This additional funding means the province's contribution is now $30.1 million.
Okotoks CAO Elaine Vincent said in a statement that the eligible costs have increased to approximately $65 million.
She said the total cost estimate for the project is not yet being released.
"At this point in time, the total anticipated cost is not being released to protect the integrity of the procurement processes," Vincent said. "Once the procurement process is complete and costs are confirmed, the project costs will be released."
The approved capital budget for the project, drafted in 2021, was approximately $55 million, she said.
Increased scope of the project and high levels of inflation have impacted cost estimates, she said, and the Town and Foothills County are exploring options to reduce costs.
Costs not covered by provincial funding will be covered through grants and off-site levies, and not by taxpayers, the Town said.
The pipeline will supply water from the Bow River to water treatment facilities in Okotoks and Foothills County, and will serve Okotoks as a supplemental water source.
Okotoks Mayor Tanya Thorn welcomed the additional funding.
“Okotoks Town council and administration are incredibly grateful to be receiving this additional funding support from the Province,” Thorn said.
Highwood MLA RJ Sigurdson said the extra funding will ensure the project is completed as soon as possible.
“With Okotoks and Foothills County continuing to see growth and economic development, it is essential that they have a reliable, quality water supply,” Sigurdson said.
The pipeline is expected to be up and running by August 2025.
Funding for the Water for Life Programs comes through the Alberta Municipal Water/Wastewater Partnership (AMWWP), which provides cost-shared funding to eligible municipalities to help build municipal water supply and treatment facilities.
This is an update to a story published online on Oct. 19.
