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Table 7 - Horizontal Initiatives

1. Name of horizontal initiative: Sydney Tar Pond and Coke Ovens Remediation Project

2. Name of lead department(s): PWGSC

3. Lead department program activity: Greening of Government Operations Services

4. Start date of the horizontal initiative: May 12, 2004

5. End date of the horizontal initiative: March 31, 2014

6. Total federal funding allocation (start to end date): $280 millon
($280 million + $120 million Province of Nova Scotia's (NS) share = total project funding of $400 million)

7. 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. The website for the provincial agency is http://www.tarpondscleanup.ca. The website for the Environmental Review Panel is http://stpco-review.ca

8. 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.

9. Governance structure(s): Memorandum to Cabinet dated April 2004 defined the federal lead for the project.

  • MOA between Province of NS and Government of Canada was signed on May 12, 2004. This document describes the management of the project, which includes the following:
    • Interim Cost Share Agreement (ICSA), the funding agreement, which carried the project until the end of the 2006-2007 fiscal year. The ICSA included funding for the other federal departments involved as detailed below, as well as the following expenditures:
      • 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.
      • 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.
      • PWGSC has ensured that the project description and the Environmental Impact Statement, which have been subjected to an environmental assessment pursuant to the Canadian Environmental Assessment Act (CEA Act), respects the scope of the project as defined in the MOA.
      • A Joint Environmental Assessment was initiated pursuant to the CEA 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.
      • An Environmental Management Plan (EMP) has been established to address and mitigate potential environmental impacts throughout construction.
  • A Final Cost Share Agreement (FCSA) includes the main Remediation Project and began in fiscal year 2007-2008 until 2014. On May 31, 2007 Treasury Board Decision #833589 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.
  • A Regulatory Management Plan is being developed with the provincial Department of Environment and Labour, 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.

10. Federal Partners 11. Federal Partner Program Activity (PA) 12. Names of Programs for Federal Partners 13. Total Allocation
(from Start to End Date)
14. Planned Spending for 2008-2009 15. Expected Results for 2008-2009
1. Environment Canada     $7.64 million   Provision of advice to PWGSC on technical issues, historical studies and scientific issues related to contaminated sites
2. Health Canada     $4.41 million $ Provision of advice to PWGSC on issues related to human health, technical issues and risk assessment
3. Department of Justice **     $3.00 million $(See note below) Mass Tort
(class action suits)
  Total $15.05 million Total $  

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

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

Note: This figure for the Department of Justice (DoJ), represents an approximation of the expected balance remaining from the full allocation of $3 million based on DoJ's Work Plan and Budget estimate, dated July 14, 2005. Any additional funds will require DoJ to seek approval from Cabinet.