BC Transportation Financing Authority
— Statement of Earnings

Major Capital Projects

Objective

Upgrade the 26-kilometre section of the Trans-Canada Highway to a modern, four-lane standard from the junction of Highway 95 at Golden to the western boundary of Yoho National Park. This highway corridor was originally constructed throughout the 1950s and is mostly two lanes wide. It is an important route for tourism and inter-provincial trade, serving as a gateway between British Columbia and the rest of North America. Additionally, by connecting remote resource extraction sites with processing, manufacturing and distribution centres, this portion of the Trans-Canada Highway is a key part of our province's resource economies, particularly forestry and mining.

The Kicking Horse Canyon project has three phases, of which only the first two are funded and underway.

Costs

The estimated cost is $195 million for the first two phases.

• Phase 1 — Yoho (5-Mile) Bridge (current budget $65 million): The cost of this work is being shared with the Government of Canada under the Strategic Highway Infrastructure Program. The federal portion is $22 million and the provincial portion is $43 million. Expenditures to March 31, 2006, are $56 million. Construction was completed on budget and on schedule in the fall of 2006.
• Phase 2 — Park (10-Mile) Bridge (current budget $130 million): The cost of this work is being shared with the Government of Canada under the Canadian Strategic Infrastructure Fund. The federal portion is $62.5 million and the provincial portion is $67.5 million. The provincial government awarded a public-private partnership to deliver the improvements through a Design-Build-Finance-Operate contract in October 2005. Design and construction by the contractor commenced in November 2005. Expenditures to March 31, 2006, are approximately $29 million.

Kicking Horse Canyon – Park Bridge pier

Note: It is anticipated that there will be a third phase for upgrades from Golden to 5-Mile and 10-Mile to Yoho National Park when federal cost-sharing is secured. Improvements likely will be made over the longer term, rather than within the three-year scope of this service plan. Preliminary engineering work is underway.

Benefits:

• Safer roads and increased capacity on a critical provincial and national gateway;
• Fewer road closures due to slides and accidents;
• Replacement of two major bridges that are nearing the end of their service lives; and
• Economic development through increased tourism and more efficient movement of goods and services.

Risks:

• Challenging climatic and geographic conditions; and
• Managing traffic during construction.

Objective

Construct a new five-lane bridge to replace the existing 48-year-old Okanagan Lake Bridge which is now at the end of its economic and useful life, and reduce the increasing traffic congestion in Kelowna. A competitive procurement process resulted in the selection of SNC-Lavalin as the private partner to design, build, finance and operate the new bridge and related improvements to the highway approaches.

William R. Bennett Bridge construction site

Costs

The bridge and east approach capital improvements are estimated to cost $144.5 million.

Benefits:

• Improved safety for all lake crossing traffic;
• Reduced congestion and travel time including the elimination of the conflict between marine and bridge traffic;
• Anticipated savings of up to $25 million over the 30-year life of the partnership agreement;
• Reliable 75-year life for the new bridge; and
• Economic development through increased tourism and more efficient movement of goods and services.

Risks

Engineering and construction challenges, which are substantially transferred to the private sector through the public-private partnership.

Objective

Implement extensive improvements to the existing highway between Horseshoe Bay and Whistler to improve safety, reliability and mobility. The improvements will make travel along the corridor safer for residents, commuters, tourists and businesses moving goods.

Costs

The Ministry chose a combination of procurement methods to deliver the highway improvements on the Sea-to-Sky corridor. Approximately two-thirds of the capital expenditures for the overall project are being undertaken through a 25-year performance-based public-private partnership between the Ministry and the S2S Transportation Group. The total authorized capital budget for the project is $600 million ($2002). The project is on schedule for completion in Fall 2009. Further information including a Capital Project Plan is available at: http://www.seatoskyimprovements.ca/.

Sea-to-Sky Highway Improvement Project: Newly completed section through Furry Creek

Benefits:

• A safer road;
• Increased capacity;
• Reduced vehicle operating costs;
• Fewer road closures due to slides and traffic incidents; and
• First Nations' participation and opportunities.

Risks:

• Difficult terrain and unstable areas that the highway crosses;
• The need to keep a large volume of traffic flowing while carrying out the improvements; and
• The need to address municipal, First Nations', community and environmental issues.

Objective

Construct a new high level six-lane bridge with an auxiliary eastbound truck lane to replace the existing Pitt River swing bridges connecting Pitt Meadows to Port Coquitlam. Construct a new interchange at the west end of the new bridge and provide intersection improvements to Lougheed Highway and Kennedy Road.

Costs

The bridge and interchange project is estimated to cost $194 million. The federal government has announced a contribution of $90 million for the project.

Benefits:

• Elimination of traffic congestion, delays, and capacity limitations during peak travel periods;
• Accommodation of future traffic demands stemming from regional growth, development of Dominion Triangle and Burke Mountain, and TransLink's new Golden Ears Bridge;
• Increased road safety through greater traffic separation;
• Reduced interference with marine traffic; and
• Improved marine habitat through a reduction in the number of bridge piers in the river, allowing for restoration of riparian habitat.

Risks:

• Interruptions to construction due to the need to keep a large volume of traffic moving;
• Shortages of skilled labour and increasing world prices for construction materials, and the impact of these on the cost of construction; and
• Finalizing the contribution agreement with the federal government.

Objective

The South Fraser Perimeter Road Project, approximately 40 km long, is a new four-lane, 80 kilometres per hour route along the south side of the Fraser River extending from Deltaport Way in Southwest Delta to 176th Street, with connections to Highway 1, and to approximately 184th Street in Surrey where it will link with TransLink's future Golden Ears Bridge. With connections to highways 1, 15, 91, 99 and 17, and the Golden Ears Bridge, the route will take a significant step toward completing the network of major roads in the region.

Subject to the environmental assessment review currently underway, the current phase of the project includes commencing pre-loading in areas with soft soils along the entire corridor, as well as property acquisition and initial construction activities.

Costs

This phase of the project is estimated to cost $525 million over the next three years. A federal contribution of $100 million for the corridor has recently been announced.

Benefits:

• Improved movement of people and goods through the region via enhanced connections to the Provincial highway network;
• Reduced east-west travel times, particularly for heavy truck movements by providing a continuous highway along the south side of the Fraser River;
• Improved access to major trade gateways and industrial areas, and enhanced development in designated industrial areas along the south side of the Fraser River;
• Improved safety and reliability; and
• Restored municipal roads as community connectors by reducing truck traffic on municipal road networks.

Risks:

• Potential for a delay in environmental assessment certification for the entire project (currently estimated for Spring 2007), which would affect the start date for the current phase of the project;
• Risk of contamination of some sites with soft soils, which may require mitigation prior to the start of the preload; and
• Property cost escalation in key areas due to rapidly expanding development.

Objective

The Port Mann/Highway 1 project includes widening the highway, twinning the Port Mann Bridge, upgrading interchanges and improving access and safety on Highway 1 from the McGill interchange in Vancouver to 216th Street in Langley, a distance of approximately 37 kilometres. The pre-design concept includes congestion-reduction measures such as high occupancy vehicle lanes, transit and commercial vehicle priority access to highway on-ramps, improvements to the cycling network and a proposed toll on the Port Mann Bridge. As well, the new Port Mann Bridge will be built to accommodate future light rail transit.

Current work includes advancing the project through an environmental assessment review, selecting an appropriate procurement method and initiating a Request for Proposal.

Costs

The bridge and highway project, projected to be completed in 2013, is estimated to cost $1.5 billion. 2007/08 costs are estimated to be $12.5 million.

Benefits:

• Reduced congestion;
• Improved safety and reliability;
• Improved local connections across the highway;
• Improved access to and exit from the corridor; and
• Implementation of congestion reduction measures to maintain corridor efficiency and increase transportation choice.

Risks

Shortages of skilled labour and increasing world prices foruction materials, and the impact of these on the cost of construction.

The multi-year Transportation Investment Plan for British Columbia was announced in February 2003. Excluding the major capital projects already discussed in the previous section, other key components of the plan include:

• Highway Rehabilitation — Investing $438 million over three years (2007/08 through 2009/10) in road and bridge surfacing, bridge rehabilitation, seismic retrofits and highway safety improvements.
• Interior and Rural Side Roads — Making these roads safer and more reliable, and improving connections between communities. The Ministry is investing $180 million from 2007/08 through 2009/10 to renew the northern and rural road network.
• Heartlands Oil and Gas Road Rehabilitation Strategy — Rehabilitating the existing public road infrastructure in the Northeast region of the province to help eliminate seasonal road restrictions and extend the winter drilling season for oil and gas exploration, thereby attracting new investment and creating jobs. This rehabilitation is being done in partnership with the Ministry of Energy, Mines and Petroleum Resources. Projected investment through 2008/09 is $84 million.
• Mountain Pine Beetle Strategy — Maintaining and rehabilitating the road and highway network to mitigate impacts that the catastrophic mountain pine beetle outbreak is having on the provincial road system. The Ministry is investing $90 million over three years to ensure that mountain pine beetle-attacked wood can be economically transported in an efficient and safe manner and help ensure that the goals and objectives of British Columbia's Mountain Pine Beetle Action Plan are met.
• Border Crossing Program — Enhancing the free flow of goods approaching and through British Columbia's busiest border crossings. Approximately $252 million will be committed to infrastructure and technology developments. British Columbia and provincial partners will provide $150 million, with $102 million from the federal government's Strategic Highway Infrastructure Program and Border Infrastructure Fund.
• Gateway Program — Developing a proposed program of road and bridge improvements along and across the Fraser River to address congestion and improve the movements of goods, people and transit throughout Greater Vancouver. The program represents an investment of about $3 billion over 10 years. Proposed projects include:
• South Fraser Perimeter Road, a primarily new east-west route along the south side of the Fraser River;
• North Fraser Perimeter Road, a set of improvements to existing roads from Coquitlam to Maple Ridge, including the Pitt River Bridge project; and
• Port Mann Bridge/Highway 1, which involves twinning the Port Mann Bridge, upgrading interchanges, and improving access and safety along Highway 1 from Vancouver to Langley.
• Okanagan Corridor Improvements — In addition to replacing the Okanagan Lake Bridge with the new William R. Bennett Bridge, supporting trade and tourism through approved expenditures of $118 million over the next three years for projects that will reduce congestion. These projects include four-laning Highway 97 between Summerland and Peachland, upgrading highways 97 and 33 within Kelowna, and four-laning Highway 97A north of Vernon to Armstrong.
• Cariboo Connector — Widening the 460-kilometre portion of Highway 97 from Cache Creek to Prince George to increase safety and decrease travelling times, while providing northern communities with a first-class trade corridor that meets the needs of a rapidly expanding economy. Phase 1 of the program, begun in 2005/06, will include approximately $200 million in projects initiated over a five-year timeframe.
• Other Highway Corridors and Programs — Improving the performance of highway corridors through projects such as passing lanes, four-laning, left turn slots, realignments and safety upgrades. Projected investment from 2007/08 to 2009/10 is approximately $387 million.
• Transportation Partnerships Program — Helping communities and regions realize economic growth through contributions to strategic British Columbia port and airport developments, and helping to make cycling a safe and attractive alternative transportation option for commuters. To boost tourism and create new jobs and economic development opportunities, the program is partnering with others to expand airports and build a new container handling facility at the Port of Prince Rupert, the closest port in the Americas to the rapidly growing Asia Pacific market. The Ministry is reserving $33 million over the next three years for this program, $6 million of which is directed to cost-sharing the development of community cycling networks.
• Canada Line — The Canada Line project is a jointly funded (British Columbia government, Vancouver International Airport, federal government and the Greater Vancouver Transportation Authority) rail-based rapid transit line that will link central Richmond, Vancouver International Airport and Vancouver's downtown business district. The project is being delivered by the Greater Vancouver Transportation Authority through its subsidiary Canada Line Rapid Transit Inc. The province has committed to make $435 million in contributions.
• Environmental Enhancement Fund — Investments of $2 million annually to directly restore, protect and enhance environmental resources linked to the provinces highway infrastructure. Projects include restoration of fish passages at highway stream crossings to help fish runs such as Pacific salmon return to their former levels, acquisition and protection in perpetuity of environmentally sensitive properties, big game translocations to reduce wildlife accidents, and fish and wildlife habitat enhancements such as construction of habitat ponds and channels.