Canada’s federal government has confirmed it will contribute up to C$3bn (€1.85bn) to British Columbia’s Fraser River Tunnel Project.
The updated total project budget is C$8.5bn (€4.92bn) reflecting current market conditions, the most recent information on project scope, inflation and the delivery schedule required for a project of this scale and complexity. The Province of British Columbia will contribute the remaining amount.
In 2022, the estimated cost was C$4.15bn.
“With a committed federal funding partner and a clear path forward, we are continuing to deliver one of the most important nation-building transportation projects in British Columbia’s – and Canada’s – history,” said minister of transportation and transit Mike Farnworth. “This investment will get people and goods moving faster throughout the Lower Mainland, strengthen Canada’s trade infrastructure and support long-term economic growth and jobs. The revised procurement approach we announced earlier this month will help ensure we secure the best value for taxpayers and jobs for local workers while maintaining momentum on this critical project.”
The Fraser River Tunnel Project will replace the aging George Massey Tunnel with an eight-lane immersed tunnel.
On June 15, the province announced it was terminating its contract with the Fraser Tunnel Consortium and launching a revised procurement strategy for the project after concluding the design and early works agreement phase. The new procurement model divides the remaining work into multiple packages, increasing competition and creating more opportunities for Canadian and British Columbia-based contractors.
The Province says that even with the new procurement model, no work has been lost. The tunnel’s design will remain unchanged from the concept designed in 2023, including the anticipated tunnel depth, the length of ramps and the location.
The Province expects the Environmental Assessment Office review process to conclude before the end of 2026, with major construction anticipated to begin in 2027. The estimated completion date has moved from December 2030 to September 2031.
“While the project schedule has shifted slightly, the timeline still remains broadly in line with what we originally anticipated for a project of this scale and complexity,” Farnworth said. “The updated timeline is not the result of the revised procurement approach, but the schedule reflects the time required to complete key planning and approvals processes, while ensuring we continue to deliver the best value for taxpayers. Our focus remains on delivering this critical infrastructure project safely, responsibly and successfully for the region.”
