The Yukon Government says despite lengthy delays, cost overruns and an impending court battle, it still expects the Dawson City sewage treatment plant to be completed on time.

The government confirmed it is withholding payment from the main contractor involved in the project until a dispute with its subcontractor is resolved.

Corix won the initial bid and hired Han Construction out of Dawson City as subcontractor. Han Construction has now asked the government to withhold further payments on the project because it claims it isn't being paid for work already done.

NDP MLA Lois Moorcroft asked what the government is doing to keep the troubled project on track.

“Corix bid $25 million,” she said. “After 13 change orders, the Yukon government has paid $26.6 million to date, and now we have hit another bump in this long saga. What will this mean to the cost and completion of this court-mandated project to keep raw sewage out of the Yukon River?”

Public Works Minister Wade Istchenko said the Yukon Government isn't involved in any court dispute between contractors and subcontractors. He said he still expects the work will be completed this winter.

Moorcroft said that might be tough if workers and subcontractors don't get paid and refuse to work.

Dawson City has been under a court order to build a new sewage treatment facility since 2003, when the town was fined for dumping toxic sewage into the Yukon River.