ARCHIVED - Public Works and Government Services Canada

Name of Horizontal Initiative: Sydney Tar Ponds and Coke Ovens Remediation Project

Name of lead department(s): PWGSC

Lead department program activity: PWGSC Special Purpose Allotment

Start date of the Horizontal Initiative: May 12, 2004

End date of the Horizontal Initiative: March 31, 2014

Total federal funding allocation (start to end date): $282 million for PWGSC cost share with the Province of Nova Scotia. (The Province of Nova Scotia's share is up to $120 million for a total project cost of $402 million.) Costs outside of the cost share are: PWGSC federal lead oversight $25.8 million, Environment Canada $7.6 million and Health Canada $5.5 million.

Description of the Horizontal Initiative (including funding agreement): Remediation of Sydney Tar Ponds and Coke Ovens comprises federally and provincially owned land, which were contaminated as a result of a century of manufacturing steel. The project is in support of the federal government's sustainable development initiative, recognizing the environmental, social and economic dimensions of the Sydney area. The project will have long-term benefits for all Canadians. When remediation is complete, Nova Scotia will take ownership of the lands. Any remaining contaminants will be managed and monitored by the Province of Nova Scotia in accordance with the Memorandum of Agreement (MOA). The website for the provincial agency is http://www.tarpondscleanup.ca.

Shared outcome(s): The project will result in environmental, economic, and social benefits for Nova Scotians, First Nations Communities and all Canadians. Downtown Sydney will have new land to be developed, which will aid in rejuvenation of the economically depressed area.

Governance structure(s):

• Memorandum to Cabinet dated April 2004 defined PWGSC as the federal lead for the project. MOA between Province of Nova Scotia and Government of Canada was signed on May 12, 2004. This document describes the management of the project.
• The Interim Cost Share Agreement (ICSA) with the Province of Nova Scotia, signed on October 20, 2004, provided for interim governance and funding until the end of 2007-2008 fiscal year and for undertaking preventative works and preliminary works as set out in the MOA.
• Preventative Works includes design and construction of the Battery Point Cofferdam, which separates the Tar Ponds from Sydney Harbour, removal of the Cooling Pond, realignment of the Coke Oven's Brook, and relocation of the Whitney Pier Waterline.
• Preliminary Works includes the environmental assessment review, project description development, remediation pre-design and design, selection of independent engineer, development of the cost to complete mechanism and work breakdown structure, risk assessment strategy (Risk-based Audit Framework - RBAF), Results based Accountability Framework (Results-based Management and Accountability Framework - RMAF) and the creation of the Sydney Tar Ponds Agency as a single purpose entity to deliver the project.
• The Sydney Tar Ponds Agency (STPA) was set up by the Province of Nova Scotia to manage and implement the project. Its operating charter was established on August 18, 2004.
• An Independent Engineer (IE) was jointly appointed in October 2005, to monitor and confirm the engineering and financial integrity of the project as work progresses. A Project Management Committee (PMC), which includes senior representatives from both the federal and provincial governments, has been established to oversee all aspects of the project.
• RMAF and RBAF were established.
• A Joint Environmental Assessment was initiated pursuant to the Canadian Environmental Assessment Act as a Comprehensive Study until a decision of the Minister of Environment referred it to a review panel process in May 2005. The parties entered into a Joint Panel Agreement on July 13, 2005 and thereafter conducted a joint environmental assessment of the project by an independent joint review panel. The panel released its recommendations July 2006. The parties each considered the report of recommendations of the panel and formally issued a joint response to the recommendations on January 28, 2007 identifying related project changes.
• An Environmental Management Committee (EMC) was formed in keeping with the Environmental Assessment and Review Panel recommendations. This committee is chaired jointly by the federal and provincial partners. The EMC provides oversight on all aspects of the environmental management of the project. The EMC is also tracking the implementation of panel recommendations throughout the life of the project, and allows stakeholders an opportunity to meet and discuss technical project details as they relate to environmental considerations.
• A Protocol Agreement to govern Federal/Provincial/First Nations relations, with the objective of establishing a procurement strategy for meaningful economic participation of First Nations, was signed on October 28, 2005 by the federal, provincial and First Nation's officials. Set asides were established for competition among Canadian First Nations businesses.
• An Environmental Management Plan (EMP) has been established to address and mitigate potential environmental impacts throughout construction.
• A Final Cost Share Agreement (FCSA) was signed on September 27, 2007 with the Province of Nova Scotia which includes the main Remediation Project and began in fiscal year 2007-2008. The FCSA serves as the legal instrument to govern and fund the Project to its completion in 2014. On May 31, 2007, Treasury Board granted approval of the terms and conditions of the Final Cost Share Agreement, and associated funding for the cost shared activities, as well as for costs of federal operations of Environment Canada and Health Canada. The FCSA incorporates the Environmental Assessment panel recommendations, reaffirming funding commitments and further delineating the governance structure.
• A Regulatory Management Plan is being developed, with the provincial Department of Environment, to ensure regulatory obligations are adhered to.
• A Local Economic Benefits Policy (LEB) provides a framework to optimize economic benefits from the cleanup for the local community.

($ millions)

Federal Partners	Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	Total Allocation (from 2004 to 2014)	Planned Spending for 2009-10	Expected Results for 2009-10
PWGSC Cost Share: PWGSC Operating	Federal Lead	Sydney Tar Ponds and Coke Ovens Remediation Project	$282,240 $25,870	$43,024 $3,162	PWGSC's project team is carrying out its oversight role to ensure the project is complying with the project agreements.
Environment Canada	Provision of advice to PWGSC on technical issues, historical studies and scientific issues related to contaminated sites.	n/a	$7,640	$677.6	Provision of advice to PWGSC on technical issues, historical studies and scientific issues related to contaminated sites.
Health Canada	Provision of advice to PWGSC on issues related to human health, technical issues and risk assessment.	n/a	$5,500	$550	Provision of advice to PWGSC on issues related to human health, technical issues and risk assessment.
Total			$321,250	$47,413.6

Results to be achieved by non-federal partners (if applicable): The Sydney Tar Ponds Agency, a single purpose entity, was established by the Province of Nova Scotia to manage and implement the project.

Contact information: Randy Vallis, Director, 295 Charlotte Street, Sydney, NS B1P 6J9 (902) 564-2543