The Yukon government is refusing to explain a $5-million discrepancy between the cost of Dawson City's new sewage treatment facility, a district heating system and the cash budgeted to pay for it.

Last year, Vancouver-based Corix Water Systems was awarded a $24.8-million contract to build the treatment plant.

At the end of March, the government announced it had federal funding to build an adjacent district heating system for an additional $4.5 million.

But as Darius Elias, the Liberals' critic for Community Services, pointed out during Wednesday's question period, this fiscal year's budget earmarks more than $34 million for the entire project.

"The Dawson City sewage treatment project was projected to cost $24.8 million just eight months ago. Now, add the $4.5-million district heating and you get $29.3 million but, according to the Yukon Party government's recently released budget, the project has been allocated $34.3 million,” Elias said.

"Why has this project gone over-budget by $5 million?”

Standing to answer a question period volley for the first time in his political career, Steve Nordick, the newly appointed Cabinet Commissioner for Community Services and Public Works, said that budget figure "is all-inclusive from beginning to end” and denied the project is over-budget.

Nordick is the Yukon Party MLA for Klondike.

Calls to the Department of Public Works to determine what the nature of what appears to be a $5-million contingency fund for the project were not returned as of press time early this afternoon.