The Yukon government won't be turning the Dawson City sewage treatment plant over to the municipal government as originally planned. The territory will continue to own and operate the facility.

The $25 million plant was built 4 years ago, and Community Services Minister Currie Dixon said it's never worked as well as intended. He also said it's costing more than expected to operate.

"We've got this large and complex piece of infrastructure, so it's incumbent on us to try and make it work and try and make it work well," Dixon said.

"I think the Yukon government is better positioned to do that than the city of Dawson."

Currie Dixon

'It's incumbent on us to try and make it work,' said Community Services Minister Currie Dixon. (CBC)

The territorial government has hired Corix Utilities, the company that built the plant, to operate it until a warranty expires in 2017. The government said it will ensure that a qualified operator is ready to take over after that.

Dawson mayor Wayne Potoroka said in a statement that the town is pleased with the new arrangement. He said the municipality will continue to help pay for the plant's operation.

Dixon could not say what the annual operating costs are.