Whitehorse company out of running for Dawson sewage plant

There's only one bid left competing for a contract to build a court-ordered sewage treatment plant in Dawson City, Yukon, after territorial officials rejected a proposal from Whitehorse-based Ketza Construction.

The rejection earlier this week leaves Corix Water Systems of Vancouver as the last bidder standing.

The Corix bid has a price tag of $25 million, but the territorial government said cost wasn't a factor in the decision to discount Ketza's plan — which Ketza owner Peter Densmore said  was lower by more than $8 million.

"It was not technically strong enough to be contemplated by the government at any price at all. So this is what happened in this case," government project manager Catherine Harwood told CBC News on Thursday.

"The envelope was returned to Ketza without being opened, so I do not know what their bid was. We don't call this a low-bid type of process because it's not. It's value driven."

Harwood said government officials will further explain next week why the Ketza bid failed to qualify. An announcement on the project will be made within the next couple of weeks, she added.

While nothing has been decided at this time, Harwood said the Corix Water Systems proposal falls within the government's budget for the treatment plant.

"It looks like this is something that we can fund," she said.

Dawson City is under a territorial court order to have a sewage treatment system operating by the end of 2011. The town was charged in 2003 for dumping raw sewage into the Yukon River.

Dawson Mayor John Steins said he trusts the government is looking out for ratepayers by ensuring the town can afford to operate and maintain the system.

"You get what you pay for, OK?" Steins said. "The important aspect is ratepayers in Dawson City don't get stuck with extra rates."