MPI shuts down failed IT project as costs drive up

Manitoba Public Insurance is slamming the brakes on technology upgrades due to growing costs. Jeff Keele explains.

Manitoba Public Insurance says it is closing Project Nova, an initiative to update the technology for insurance and driver licensing, including adding online services.

Nova was announced in 2019, with a budget of $85 million. To date, MPI says the Crown corporation has spent $164 million on the project. It decided to pull the plug when estimates showed the costs would increase to $435.7 million. On top of that, none of this included a fourth and final phase.

MPI said NOVA was plagued with delays, ineffective governance, procurement problems, and significant changes in leadership. It says the pandemic and the 2023 strike also impacted plans.

Satvir Jatana, president & CEO of MPI, said the aspirations never met the Crown corporation’s capacity or capabilities.

“Project timelines were unrealistic,” said Jatana. “It is clear Nova has experienced significant missteps, and I would even be so bold to say failures.”

In early 2023, the then CEO of MPI was replaced after the former PC government ordered a review.

The current NDP government has now asked the auditor general to probe Nova.

MPI said it will still move ahead to replace the outdated technology but is promising “a more pragmatic approach,” including breaking down plans into smaller projects to better predict costs and timelines.