Town of Oliver borrows up to $6.5M to repair canal

Photo: Town of Oliver

The Oliver canal where it goes underground near Gallagher Lake

After years of pleading in vain with the federal government, the Town of Oliver will bite the bullet and borrow up to $6.5 million to start repairs to its canal.

Council voted this week to approve the borrowing of the funds with the hope they won’t need to spend it all. 

“We are not going to be borrowing any more than we have to,” said CFO Doug Leahy Monday, explaining they hope to reduce costs throughout the 20-month construction process. 

It is expected the project will cost $11.48 million, $5M of which will come from the provincial government. Despite years of lobbying, the federal government refused to contribute to the project. 

The municipal loan will require a 14 per cent increase in rates to pay off. Construction on the “low head siphon” option that council selected — which will use smaller pipe and pumps than previously planned — will commence mid-2020.

The Oliver canal has been operating at reduced capacity since a rockslide damaged it at Gallagher Lake in 2016. The repairs will move the canal away from the rockfall prone area.

The 100-year-old Oliver canal brings water to 1,400 hectares of farmland along its 17.4-kilometre route between Vaseux Lake and Hester Creek.