The construction sites of the two future compost treatment plants in Montreal, worth a total of 340 million, have been completely stopped for almost two months due to a contractual dispute, learned The Press.
Posted at 5:00 a.m.
The City of Montreal fears further delays in the commissioning of its facilities. She threatens to sue the multinational Veolia, which was to build and operate them.
According to our information, the workers and machinery of the EBC construction firm left the two sites (one in Montreal East, the other in the borough of Saint-Laurent) on July 15, never to return. EBC was commissioned by Veolia to build the two plants.
In addition to the impacts of COVID-19, the site had already been paralyzed for two months in the winter of 2021 due to conflicts between companies.
Montreal is currently having the contents of its brown bins transported, for lack of outlets near the city. She hoped to be able to start processing some of the compost herself from 2021, a deadline pushed back to November 2022 and which will probably have to be reviewed.
“We are taking Montrealers hostage”
According to two sources in the office of the mayor of Montreal, the disagreement at the source of this desertion affects additional payment requests.
“The situation is completely unacceptable,” said a person close to Valérie Plante, who mentions pecuniary demands that were not provided for in the contract, as well as a conflict between Veolia and EBC.
Montrealers and the city are being taken hostage for a desire to make more profits. […] We have a multinational that is unable to come to an agreement with its subcontractor.
A person close to Valérie Plante
In addition to a formal notice sent in mid-August, the City of Montreal turned to the insurer who had guaranteed the completion of the work on behalf of Veolia, its surety. The City requires that work resume immediately and be completed as soon as possible.
Contacted by The Press, Veolia has been stingy with comments. “Given the commercially sensitive discussions currently underway between the City and the contractors, it is not appropriate for us to comment on the file in detail at this time. “, indicated by email Matt Burgard, in charge of communications for North America. “We recognize the importance of these projects to the community and will continue to work towards a just resolution. »
EBC Construction declined to comment on the case. Johanne Laurin, communications coordinator, sent The Press to the City of Montreal.
Delays and hefty bills
These two organic matter treatment center projects have been in the news for years.
The first, located on Henri-Bourassa Boulevard West, near the A13, will cost the city 175 million, including its operation over five years. According to our information, the City estimates that the site is currently 90% complete. The plant should be able to process 50,000 tonnes of table waste per year to make compost that can be used in agriculture. The City hoped to be able to inaugurate it in November.
The second, a biomethanation center, will be located on the site of the former Demix quarry, at the intersection of Broadway Avenue North and Highway 40, in Montreal East. Its construction and operation during the first five years of its life will cost Montreal $167 million. The facility is expected to swallow 60,000 tonnes of compost per year.
The plants will both cost significantly more than originally anticipated and will be delivered months — if not years — late.
The two construction and operating contracts were awarded in 2019 to Suez, a French company whose North American subsidiary was bought last year by its compatriot Veolia. This explains why the City of Montreal now has to deal with Veolia.
In 2021, the Auditor General of Montreal mentioned an “overall finding of cost overruns and non-compliance with the schedule” in the case of organic matter treatment centers (CTMO). “The CTMO construction project did not follow a sufficiently rigorous process that one would expect for a project of such complexity and scope,” she wrote.