2003/04 – 2005/06 SERVICE PLAN Ministry of Transportation

Resource Summary

BC Transportation Financing Authority — Consolidated Income Statement¹

Rapid Transit Project 2000

Major Capital Projects

Under the Budget Transparency and Accountability Act, a major project is defined as any capital commitment or anticipated commitment that exceeds $50 million.

Project Name: Nisga’a Highway

Objectives:

To facilitate economic growth and development, the province is continuing a seven-year investment program with two components:

• Upgrading the Nisga’a Highway to an all weather two-lane highway.
• Construction of the new Greenville to Kincolith road to open up access to the Village of Kincolith. This project is financed under a cost sharing partnership comprising the federal and provincial governments and the Nisga’a Tribal Council.

Costs:

• The estimated total project cost for the Nisga’a Highway Upgrade is $52 million.
• The estimated total project cost for Greenville-Kincolith (new route) is $34.6 million ($17.5 million provincial share).

Benefits:

• Safety, access and mobility improvements.
• Increased economic development (e.g., tourism).

Project Name: Kicking Horse Canyon

Objectives:

The improvement program for the Kicking Horse Canyon involves upgrading the 26-kilometre section of the Trans Canada Highway between Golden at the junction of Highway 95 and the western boundary of Yoho National Park to a modern four-lane standard. This investment would represent a major service improvement to the Trans Canada Highway and is directed at:

• responding to continual and severe safety problems;
• minimizing road closures due to slides and accidents;
• replacement of two major structures that are nearing the end of their service lives;
• supporting the efficient movement of goods and services;
• facilitating trade and commerce;
• supporting tourism and associated local business opportunities; and
• augmenting the capacity of a critical provincial/national gateway.

Costs:

The estimated capital cost of the improvement program is $730 million (2002 dollars).

The upgrade will proceed in three phases:

5-Mile (Yoho) Bridge ($61 million): The project is being cost shared with the Government of Canada under the Strategic Highway Infrastructure Program (SHIP): $22 million federal and $39 million provincial. Construction is in progress and forecast expenditures to March 31, 2003 are $19.5 million.

10-Mile (Park) Bridge ($150 million): Cost sharing with the Government of Canada is being pursued under the Strategic Infrastructure Fund (SIF), with the objective of concluding a contribution agreement in the near term and proceeding with implementation of the project. Project development activity is in progress and forecast expenditures to March 31, 2003 are $2.7 million. Financing and project delivery options through a public-private partnership are being investigated.

Golden to 5-Mile and 10-Mile to Yoho National Park ($520 million): Implementation is not proposed during the current three-year service plan and would be subject to securing cost sharing with the Government of Canada.

Benefits:

• The net present value of the 5-Mile (Yoho) Bridge and 10-Mile (Park Bridge) sections is $110 million based on safety, travel time, reliability and economic development benefits.

Risks:

• Technical Risk: Rock and slope stability and climatic conditions.
• Financial Risk: Possible construction problems due to difficult topography and material costs.
• Availability of federal funding.

Project Name: Okanagan Lake Bridge

Objectives:

• Widen the bridge from three to four lanes to reduce congestion in peak hours and through the summer. Includes construction of a couplet system in downtown Kelowna to improve traffic flow and the addition of a truck climbing lane on the west side of Okanagan Lake.
• Reduce travel time from the South to the Central Okanagan and facilitate tourism, goods movement and business travel.

Costs:

• The estimated total project cost is $100 million. Financing and project delivery options through a public-private partnership are being investigated.
• Forecast expenditures to March 31, 2003 are $7.5 million for project development and design. A contract for the initial stages of bridge construction is expected to be let in 2003/04.

Benefits:

• The net present value of the benefits of the project is $109.1 million, and includes improved safety, travel time savings and economic development.

Risks:

• Technical Risk: The risks associated with the construction of floating bridges have been substantially reduced in recent years with the introduction of new flotation technologies.
• Financial Risk: Possible construction problems due to engineering challenges.

Project Name: Sea-to-Sky Highway

Objectives:

• As with the Kicking Horse Canyon project, upgrade the highway to improve safety, increase mobility and minimize road closures due to slides and accidents.
• Promote economic development through improved access, especially in relation to tourism, and support the 2010 Olympic bid.

Costs:

• The estimated total project cost is $600 million. Implementation strategy, which is expected to include financing through the private sector, will be finalized in the next few months. Federal funding is being pursued as well.
• Forecast expenditures to March 31, 2003 are $14 million for planning and project development.

Benefits:

• The net present value of the benefits of the project is $900 million, and includes improved safety, travel time savings and economic development.

Risks:

• Technical Risk: Rock and slope stability and climatic conditions.
• Financial Risk: Possible construction problems due to difficult topography and material costs.

Project Name: Rapid Transit Project 2000 (RTP2000)

Objective:

To construct the 21.6 kilometre Millennium Line extension to the SkyTrain rail transit system in the Lower Mainland, and to conduct feasibility studies of two planned further extensions of SkyTrain.

Costs:

• The total project cost of the Millennium Line is currently forecast to be $1.12 billion, versus its approved budget of $1.17 billion.
• Transfer of the capital assets to TransLink by way of an operating lease agreement is pending.

Benefits:

• Rapid transit service for current and future commuters.
• Reduced congestion and automobile exhaust emissions, and reduced demand for new highway infrastructure.
• Compact urban development focused on transit stations, and reduced pressure on green space at the perimeter of Greater Vancouver.

Risks:

• As of early 2003, the Millennium Line is mostly complete and running smoothly to Commercial Station. Construction and financial risks are limited to one remaining station and associated guideway at Vancouver Community College. A construction start on this section is anticipated in 2003 under a new right-of-way agreement with the Burlington Northern Santa Fe railroad.

Significant Capital Programs

In addition to the major projects described above, the following capital programs will have a significant impact on the transportation system during the term of this service plan.

Northern and Heartland Roads

Objective:

• To improve road access for resource industries and for northern and rural residents.
• Through a significant increase in annual investment, to improve the northern and heartland road network so that 43 per cent of the network is in good condition in April 2006 compared with 34 per cent in March 2003; and in addition, to improve the condition of 2,600 kilometres of roads that are currently in very poor condition.

Costs:

• Budget in 2002/03 totalled $10 million network-wide plus $20 million dedicated to oil and gas roads.
• An additional $75 million per year will be invested in 2003/04 through 2005/06.

Benefits:

• Safe and reliable road access to heartland areas.
• The general improvement of roads, the extension of the driving season on many roads and the lifting of load restrictions is expected to leverage investment in oil and gas, mining exploration and development, forestry, agriculture and wilderness-based tourism.
• The reconstruction of the road network will reduce the requirement for unplanned, high-cost emergency repairs.
• By setting program priorities in consultation with Regional Transportation Advisory Committees, the province will solidify partnerships with industry and local government.

Risks:

• The program may be subject to unplanned adjustments in response to flooding, slides and other natural events.

Border Crossing Program

Objectives:

• Enhance the free flow of goods through B.C.’s busiest border crossings through 28 projects at the border or on highway approaches. The program will combine infrastructure improvements and investments in transportation technology.
• Provide economic benefits to a range of goods-producing sectors, reduce border crossing delays for the trucking industry, and improve security.

Costs:

• The estimated total program cost through 2006/07 is $242 million. Of this, British Columbia is to provide $135.5 million, while the federal government is to contribute $102 million under the Strategic Highway Infrastructure Program and the Border Infrastructure Fund. Other partners are to contribute $4.5 million.
• Forecast expenditures to March 31, 2003 are $4 million, cost-shared among the province, the federal government and other partners under the Strategic Highway Infrastructure Program.

Benefits:

• The net present value of all projects is $569 million.
• The program may help to establish a pattern of federal participation in transportation programs that support interprovincial and international trade.

Risks:

• Cost estimates are based on preliminary information.
• Some partner funding has yet to be finalized.
• Aggressive implementation is required to meet the federal program horizons.

Highway Rehabilitation

Objective:

• To keep the provincial highway network safe and reliable, and to prevent deterioration from 2002/03 levels, when 76 per cent of highways and 80 per cent of bridges were in good condition. This is to be achieved through the resurfacing of approximately 5,000 kilometres of highway through 2005/06, including 24 bridge decks, the replacement or rehabilitation of 115 structures, and continued investment in seismic retrofitting and in safety improvements such as guardrail installation.

Costs:

• Projected investment from 2003/04 through 2005/06 is $146 million per year.
• Budget in 2002/03 was $135 million. (In the previous three-year service plan, projected investment in capital rehabilitation was given as $165 million. This included $30 million for northern and heartland roads, now described as a separate program).

Benefits:

• Improved highway safety.
• Protection and enhancement of economic activity on provincial highways.
• Reduced incidence of highway failure and the requirement for closures and reconstruction.

Risks:

• The program may be subject to unplanned adjustments in response to flooding, slides and other natural events.

Okanagan Corridor Improvements

Objective:

• To improve safety and capacity improvements in the Okanagan corridor, beginning with the four-laning of Highway 97 north of Swan Lake.

Costs:

• Projected expenditures from 2003 through 2006 are $50 million, excluding the reconstruction of the Okanagan Lake Bridge.
• There were no major program expenditures in 2002/03.

Benefits:

• Support for trade and tourism in a significant north-south corridor.
• Reduced congestion in urban areas.

Needles Bridge Study

Objectives:

The ministry is undertaking a technical feasibility study on the option to replace the Needles Ferry, which links the communities of Fauquier and Needles, with a bridge. It is anticipated that a bridge will be feasible.

Costs:

• Confirmation of the costs to build the bridge will occur after the technical feasibility study is complete.

Benefits:

• The movement of people, goods and services will be unrestricted, unlike the current ferry operation.