Tuesday, October 25, 2011

Water Treatment Plant Update

GE Awarded $7.9 Million Contract
Nanaimo's new water treatment plant is one step closer to reality with the council decision to award a $7.9 million contract to GE Water for the supply of a membrane filtration package for the South Fork Water Treatment Plant.

There were two other competing bids from Pall Canada Ltd. and Siemens Industry Ltd., Pall bid $10.5 million and Siemens bid $10.8 million. Hopefully Nanaimo will not be in for an unpleasant surprise down the road, as buying a system which costs 30% less than two major companies should raise a few alarm bells. Just why is it that much cheaper?? Is there a reason?

According to the staff recommendation the first phase of this contract will include the Engineering Services and Demonstration Testing at a cost of $516,139. The second phase which includes the actual order to build and supply (but not install) the equipment is said to cost $7.1 million. This presumes their product successfully passes the testing phase.

It was also noted that there were some changes to the RFP which will be negotiated and agreed to before formal execution of the overall agreement.

The longest operating plant in North America using this technology is the plant that opened in Kamloops in 2005 for just under $49 million, so once again, Nanaimo is on the cutting edge of new technology.


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