Cost to Replace George Massey Tunnel Climbs to $8.5 Billion

The ambitious project to replace the George Massey Tunnel has seen its budget skyrocket, with the estimated cost now standing at $8.5 billion, more than double the initial $4.15 billion price tag. The completion date has also been extended, now slated for September 2031, a delay from the original December 2030 target.

Despite the significant budget increase and timeline adjustment, construction is still projected to commence next year. B.C.'s Minister of Transportation and Transit, Mike Farnworth, announced that the federal government will provide a substantial contribution of up to $3 billion towards the capital costs of the new toll-free, eight-lane tunnel.

Farnworth explained that the initial estimate was based on a 2021 business case and that costs naturally increase as design work progresses. He stated that the $8.5 billion figure was validated by experts in design-build construction and marine construction, with costs further confirmed by a third party.

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The original estimate was done in the business case period of 2021 and obviously an estimate gets refined as you work on the design process.

This project faced a setback in June when the province failed to reach an agreement with its original contractor, 'Cross Fraser Partnership.' Consequently, the project was divided into separate components, allowing local companies to bid on individual parts.

Even with this change in the procurement strategy, Farnworth remains confident that construction momentum has not slowed and that the tunnel's design remains consistent with the original plans.

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When we arrived where we are now with the price of 8.5, we consulted with both experts in terms of the design-build construction area, marine construction, validated by a third party outside of what the cost should be.