The City of Calgary’s Green Line LRT project is in jeopardy after the Government of Alberta threatened to withhold provincial funding unless the project scope is reviewed by an independent third party.
“There are serious concerns with the City of Calgary’s new business case for the Green Line LRT project that was submitted to the province on August 15th. The new alignment serves too few Calgarians, reducing ridership by 40 percent while the total project cost has risen by about 14 per cent,” said Devin Dreeshen, Minister, Transportation & Economic Corridors in a statement.
“The Green Line was initially supposed to be 46 kilometres and include 29 stations at a cost of $4.6 billion. It has now been reduced to 10 kilometres with 7 stations at a cost of $6.2 billion. In short, with this plan Calgarians are getting less for much more.
“As the provincial government, we have an obligation to ensure taxpayer dollars for infrastructure are allocated efficiently and in a manner that will benefit the largest number of Albertans possible.”
That’s why, we are taking a more active role in aligning the Green Line and will contract a qualified and independent third party to provide alternate above ground solutions for the Green Line that integrate the Red and Blue lines along 7th Ave, and run to the future Grand Central Station at Calgary’s new Arena Entertainment District, and then continue above ground to the community of Shepard and beyond.”
In a statement, Calgary Mayor Jyoti Gondek indicated that with the scope of change to the project being requested by the province, the city would no longer be able to afford the cost of the project.
“We have been fiscally responsible with this project. We have tried to deliver it within the budget we had before us with our other two funding partners. Unfortunately, the delay that will come with this review that’s been requested and the uncertainty in the market will elevate costs on this project,” said Gondek.
“We can no longer be the order of government that’s holding the debt financing and all of the financial risk on this project. So today we will be having a conversation as a council on how to transfer that financial risk away from Calgarians and over to the provincial government.”
Dreeshen said the province will determine next steps after seeing a new alignment from the yet-to-be determined independent third party.
“Throwing good money after bad is simply not an option for our Government.”
Featured image: (City of Calgary)
