Would you sign a 30‐year mortgage for a house without knowing the price that you’re paying?

That’s exactly what Winnipeg City Council is being asked to do on Wednesday, May 19th when it votes on whether to approve a 30‐year private‐public partnership (P3) with Veolia, one of the world’s largest multinational corporations, and one with a deplorable environmental and social track record.

Background
In July 2009, Winnipeg’s Mayor Katz and eight councillors voted to move forward on the creation of a private corporate utility to handle Winnipeg’s wastewater, despite widespread public opposition and a vague business plan. Now, once again, city council is rushing ahead with a vague plan before Winnipegers – and even council – are given the details they need to make an informed decision.

If approved, the City of Winnipeg will be locked into a long‐term agreement with Veolia that will involve the design, building and management of Winnipeg’s sewage treatment plant upgrades and expansion plans.

On the basis of a nine‐page summary report written by city staff, and without being given adequate information or the numbers behind it, Winnipeg city councillors are being asked to sign on the dotted line and commit the city of Winnipeg to a 30‐year contract with total estimated operating costs of $1.6 billion and $661 million in capital costs. Councillors haven’t even seen the actual contract that is to be signed with Veolia, and given the confidentiality rules that protect private corporations, the public is unlikely to ever see the contract.

The summary report doesn’t even say how much the City of Winnipeg will pay Veolia for their “expertise."

The summary claims “the 30 year contract is expected to save taxpayers from 10 to 20% of the entire sewage treatment program costs,” but doesn’t say where those savings will come from (besides vague references to “improved design,” “innovation” and “bulk purchasing”;) or offer any numbers to back this claim up.

The summary promises that Veolia will share with the city in the financial risks associated with the project, but doesn’t say what Veolia will get in return for assuming this risk or how much it will cost Winnipeg.

The summary claims “all direct costs will be delivered on a transparent and open book basis and be subject to audit” but Winnipegers – and even city councillors – aren’t even allowed to see the contract before they sign it. This doesn’t sound very transparent.

The summary says “the contract will contain provisions for the City to terminate if ever required” but doesn’t tell Winnipegers how much it will cost to get out of the contract they’ve signed.

Even if it it’s the best deal in the world, there is no way for Winnipegers or their elected representatives to know.

Sound crazy? You can read the summary, the only information to which councilors will have access before making the decision to privatize sewage treatment services in Winnipeg. Elected officials in Winnipeg will not have access to the Veolia contract before making their decision.

For more on the fight to KEEP SEWAGE TREATMENT PUBLIC in Winnipeg, see Winnipeg Council of Canadians