The preferred contractor for Regina’s sewage treatment plant project has been selected, and the bid is lower than initially budgeted, the city announced Thursday.

However, the new price tag for the project won’t be known until the city finalizes the contract with EPCOR Saskatchewan Water Partners six to eight weeks from now.

The Edmonton-based municipally owned utility beat out two other bidders for the contract to design build, finance, operate and maintain the new plant through a public-private partnership with the city.

The city says EPCOR was selected after it submitted the lowest proposal price for its compliant technical submission.

The proposed price came in lower than the $224.3 million budget the city had projected for construction, long-term operations and maintenance of the plant.

Excavation work at the site is scheduled to begin in early June, and construction is expected to be completed by Dec. 31, 2016, when the city will be required meet new federal environmental regulations.

The EPCOR Saskatchewan Water Partners team includes:

• EPCOR Water Services Inc. – project lead, operation and maintenance lead, financing team

• Graham Infrastructure LP – design and construction lead

• Lockerbie Stanley Inc. – design and construction lead

• Stantec – design, construction team

• Gracorp Capital Advisors – project lead, financing lead

According to city documents, the two unsuccessful bidders – Prairie Water Partners and Wascana Environmental Partners – will each be paid a $250,000 honorarium to help cover the cost of participating in the process.