The Canadian Government is to provide up to $65.6m to the City of Abbotsford, British Columbia, for the Stave Lake water project under the P3 Canada Fund.
As part of the project, the City of Abbotsford will enter a 25-year contract with a private partner to design, build, partially finance and operate the project.
Under phase I, the Stave Lake water project will provide an additional 100 million litres of water per day to Abbotsford by 2016.
The City of Abbotsford will retain control over the water source and all assets, while the private partner will be responsible for the treatment and delivery of Stave Lake water to the Abbotsford water system.
Canadian Minister of Finance Ed Fast said that the project will deliver a long-term solution for the city's water supply problems and provide economic benefits for the taxpayers.
