Resource Summary

Ministry of Transportation

1	These amounts have been restated, for comparative purposes only, to be consistent with Schedule A of the 2006/07 Estimates.
2	Transportation Improvements: Operating Expenses are reported net of funding from external sources, primarily the BC Transportation Financing Authority (see next page).
3	Public Transportation: Operating Expenses include government transfers to British Columbia Transit, service fees to British Columbia Ferry Services Inc., as well as amortization and debt servicing costs for prepaid capital advances to British Columbia Transit and Rapid Transit Project 2000.
4	Other Financing Transactions: Disbursements — Public Transportation includes prepaid capital advances to British Columbia Transit for buses, and to Rapid Transit Project 2000 for construction of the Millennium SkyTrain Line (completed in 2005/06).
5	The majority of the ministry’s revenue comes from Coquihalla Tolls (approximately $53 million annually) and the federal contribution to coastal ferry service (approximately $26 million annually).

BC Transportation Financing Authority — Income Statement

1	These amounts have been restated to be consistent with the classification of revenue and expenditures adopted for the 2006/07 and subsequent years’ budgets.
2	Dedicated taxes include 6.75 cents per litre motor fuel tax and a provincial sales tax on short-term car rentals of $1.50 per day.
3	Contributions towards capital assets are deferred and amortized to income at the same rate as the related highway infrastructure is amortized to expense.
4	Other revenue includes property and economic development revenues.
5	Interest on borrowing used to finance construction work in progress is capitalized. Upon completion, related interest costs are expensed.
6	Improvements to Heartlands roads are included in capital expenditures; repairs to Heartlands roads are expensed. Total Heartlands roads program is $75 million per year to the end of 2007/08, then $55 million for 2008/09.
7	Grant programs include grants paid under the Transportation Partnerships Program for ports and airports, the provincial contribution to the Canada Line rapid transit project, and other projects.
8	Capital Plan numbers are net of federal funding.

Major Capital Projects

Kicking Horse Canyon

Objective: Upgrade the 25-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.

The Kicking Horse Canyon project has three phases, of which only the first two are funded and underway. The third phase can proceed when federal cost-sharing is secured.

Costs: The estimated cost is $191 million for the first two phases.

• Phase I — Yoho (5-Mile) Bridge (estimated cost is $61 million): The cost of this work is being shared with the Government of Canada under the Strategic Highway Infrastructure Program (SHIP). The federal portion is $23 million and the provincial portion is $38 million. Construction is on schedule and expected to be complete by fall 2006.
• Phase II — Park (10-Mile) Bridge (preliminary estimate $130 million): The cost of this work is being shared with the Government of Canada under the Canadian Strategic Infrastructure Fund (CSIF). The federal portion is $62.5 million. Design and construction began in fall 2005 under a public-private-partnership model. Trans-Park Highway Group was selected to design, build, finance and operate the section of the Trans-Canada Highway between Golden and Yoho National Park.

Benefits:

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

Risks:

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

William R. Bennett Bridge

Objective: Construct a new five-lane bridge to replace the existing 47 year-old Okanagan Lake Bridge, which is now at the end of its useful life. SNC-Lavalin will design, build, finance and operate the new bridge and related improvements to the highway approaches.

Costs: The bridge and east approach improvements are estimated to cost $144 million.

Benefits:

• Safer crossing and connecting roads;
• Travel time savings due to relieved congestion;
• Increased tourism and more efficient movement of goods and services;
• Replacement of an aging structure which is becoming increasingly expensive to maintain; and
• Expected private partnership savings of $25 million over the 30 year life of the agreement with SNC-Lavalin.

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

Sea-to-Sky Highway

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. S2S Transportation Group was selected to design, build, finance and operate the improved Sea-to-Sky Highway.

Costs: The total capital budget for the project is $600 million ($2002).

Benefits:

• A safer road;
• Increased capacity;
• Reduced vehicle operating costs;
• Fewer road closures due to slides and traffic incidents;
• First Nations’ participation and opportunities; and
• Additional benefits resulting from private partnerships, such as:
• 20 kilometres of additional passing lanes;
• 16 kilometres of additional median barrier;
• Additional highly reflective pavement markings to enhance safety;
• 30 kilometres of additional shoulder and centre-line rumble strips where most effective;
• Improved lighting and roadside reflectors for additional safety; and
• Improved highway maintenance in response to weather conditions (three road/weather information sites).

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;
• The need to address municipal, community and environmental issues; and
• The unalterable schedule for completing the job in order to support the 2010 Olympic and Paralympic Winter Games.

Pitt River Bridge and Mary Hill Bypass/Lougheed Highway Interchange

Objective: Construct a new high level six-lane bridge 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.

Costs: The bridge and interchange project is estimated to cost $180 million. The federal government has announced a contribution of up to $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:

• The need to keep a large volume of traffic moving during construction;
• Shortages of skilled labour and increasing world prices for construction materials, and the impact of these on the cost of construction;
• The potential need to add a seventh bridge lane to accommodate east-bound truck traffic; and
• Finalizing of the contribution agreement with the federal government.

Nisga’a Highway

Objective: Upgrade the Nisga’a Highway from a gravel resource road to an all weather, two lane highway. The contractor will complete the project in late spring 2006.

Costs: The estimated total cost for the seven-year program is $52 million.

Benefits: Better access to British Columbia communities.

Risks: Few risks remain as the final construction is straightforward gravel and paving work.

Transportation Investment Plan

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 (2006/07 through 2008/09) in road and bridge surfacing, bridge rehabilitation, seismic retrofits and highway safety improvements.
• Heartlands Roads — Making Heartlands roads safer and more reliable, and improving connections between communities. The ministry is investing $205 million from 2006/07 through 2008/09 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.
• Mountain Pine Beetle Strategy — Maintaining and rehabilitating the road and highway network to mitigate impacts the catastrophic Mountain Pine Beetle (MPB) outbreak is having on the provincial road system. The ministry is investing $90 million over three years to ensure that MPB-attacked wood can be economically transported in an efficient and safe manner and help ensure that the goals and objectives of the Provincial MPB 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 improvements. 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. The net provincial expenditures over the next three years are projected to be $43 million.
• Gateway Program — Developing a proposed program of road and bridge improvements along and across the Fraser River to address congestion and improve the movement 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 by projects that will reduce congestion, including four-laning Highway 97 between Summerland and Peachland, upgrading highways 97 and 33 within Kelowna, four-laning Highway 97A north of Vernon to Armstrong and upgrading key intersections with the Trans-Canada Highway.
• 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 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 2006/07 to 2008/09 is approximately $283 million.
• Transportation Partnerships Program — Helping communities and regions realize economic growth through contributions to strategic British Columbia port and airport developments. To boost tourism and create new jobs and economic development opportunities, the Program is partnering with others to expand airports and to 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 $48 million over the next three years for this Program. A portion of this program funding is also directed to cost-sharing on the development of community bicycle networks, helping to make cycling a safe and attractive alternative transportation option for commuters.
• Canada Line — The Canada Line project is a jointly funded (British Columbia government, Vancouver International Airport, federal government and the Greater Vancouver Transportation Authority (GVTA)) 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 GVTA through its subsidiary RAVCO. The province is committed to make $435 million in contributions.