The governments of Canada and British Columbia have finalized an agreement for the Canada Housing Infrastructure Fund (CHIF), providing CAD 250 million (about USD 173 million) in federal funding over five years for the first phase of the Iona Island Wastewater Treatment Plant upgrade. The funding matches the Province’s CAD 250 million contribution toward the project in 2023 and aims to address the urgent need for infrastructure to support housing growth and environmental resilience in the Metro Vancouver region.
The funding represents a crucial step toward transforming the 1963-era facility into a state-of-the-art plant capable of serving a growing population — projected to reach 950,000 by 2051 — and meeting modern wastewater treatment standards. The upgraded plant will incorporate tertiary treatment technology to improve water quality discharged into the Salish Sea and support ecological restoration at Iona Beach Regional Park.
Rendering of future IIWWTP. Credit: Metro Vancouver
“Building resilient communities starts with investing in strong infrastructure that delivers essential services to support growing populations,” said the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources.
The announcement aligns water infrastructure investment with efforts to accelerate housing development. The agreement includes measures aimed at reducing upfront costs for builders, including changes to the timing of development cost charge (DCC) payments and extended in-stream protection for projects impacted by Metro Vancouver’s DCCs. These policy shifts are intended to make it easier and more affordable to build homes across the province.
“As communities across Metro Vancouver grow, critical infrastructure such as wastewater treatment ensures neighbourhoods remain livable, enhances quality of life, and supports sustainable growth,” said Wilson Miao, MP for Richmond Centre. “By investing in these systems, we are safeguarding public health and the environment.”
The Iona upgrade is part of the broader CAD 9.9 billion Iona projects that include ecological, resource recovery and climate resilience features, such as biogas recovery for energy, reclaimed water use, and seismic and sea-level rise adaptation. These forward-thinking elements support regional goals for carbon neutrality and sustainable development.
“With 40% of the region’s wastewater treated by the plant, and with growing communities, the need for increased capacity is clear,” said Parm Bains, MP for Steveston–Richmond East. “These upgrades will not only meet the demands of a growing population but also improve water quality, enhance environmental sustainability, and support long-term, resilient infrastructure for future generations.”
The Iona Island Wastewater Treatment Plant project is currently in early works and preliminary design. Construction activities will ramp up in the coming years, with funding under CHIF helping lay the foundation for long-term, sustainable growth and affordable housing development across Metro Vancouver.
