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Annual Service Plan Reports 2004/05
CONTENTS
• Message from the Minister and Accountability Statement  
• Highlights of the Year  
• Ministry Role and Services  
• Report on Performance  
• Report on Resources  
• Appendix: BC Transportation Financing Authority Financial Statements  
OTHER LINKS

Ministry of Transportation  

Annual Service Plan Reports 2004/05 Home
  
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Report on Resources

The ministry dedicates almost all its resources to planning, building and protecting a transportation network that will strengthen British Columbia's economies and communities. It invests heavily in transportation improvements, public transportation, and highway operations to provide this network and keep it safe and reliable. The ministry also diligently monitors the service it provides to ensure the public is getting good value for money. Minimal resources are dedicated to administering key transportation regulations.

The ministry employs a fairly small number of full time employees (FTEs), relative to the size of British Columbia's transportation network. This reflects the ministry's desire to act as a knowledgeable owner who turns to competing private companies to accomplish its objectives. This approach ensures the ministry can obtain current expertise at a competitive price.

The ministry anticipates no major changes in its available resources or the way they are invested.

2004/05 Resource Summary

Estimated1 Other
Authori-
zations 		Total Estimated Actual Variance (Actual minus Total Estimated)2
Operating Expenses ($000)3
Transportation Improvements 13,386 550,000 563,386 565,345 1,959
Public Transportation4 363,474 0 363,474 348,715 (14,759)
Highway Operations5 417,570 6,149 423,719 436,207 12,488
Motor Carrier Regulation 1,786 0 1,786 2,017 231
Executive and Support Services 14,844 0 14,844 14,925 81
Statutory6 335,000 335,000 335,000 0
Total 811,060 891,149 1,702,209 1,702,209 0
Full-time Equivalents (Direct FTEs)7
Transportation Improvements 280 0 280 374 94
Highway Operations 630 0 630 619 (11)
Motor Carrier Regulation 19 0 19 17 (2)
Executive and Support Services 70 0 70 73 3
Total 999 0 999 1,083 84
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)8
Transportation Improvements 473 0 473 960 487
Highway Operations 11,285 0 11,285 5,026 (6,259)
Executive and Support Services 1,522 0 1,522 21 (1,501)
Total 13,280 0 13,280 6,007 (7,273)
Other Financing Transactions ($000)9
Prepaid Capital Advances — Public Transportation 25,200 0 25,200 18,886 (6,314)
Revenue ($000)10
Total Receipts 77,838 0 77,838 64,092 (13,746)
1  Estimated amounts correspond to the Estimates presented to the Legislature on February 17, 2004.
2  The variance display convention has been changed this year to be consistent with the change introduced in the public accounts. Variance is in all cases "Actual" minus "Total Estimates". If the Actual is greater, then the Variance will be displayed as a positive number.
3  The ministry manages its operating budget to the bottom line by monitoring expenditures during the year, identifying potential savings and cost pressures, and reallocating funds accordingly. The ministry received a Supplementary Estimate of $550 million which was granted to the BC Transportation Financing Authority (BCTFA) to fund the Transportation Investment Plan. The ministry also accessed government contingency for $6.149 million to fund infrastructure grants.
4  The variance is due to debt servicing (interest) savings. Interest rates were lower than budgeted.
5  The variance is due to additional highway directional signage, alternative service delivery delays, and costs associated with prior years' emergency repairs that were not recoverable from the Provincial Emergency Program.
6  Statutory consists of $335 million in proceeds from the BC Rail/CN Investment Partnership, $200 million of which was transferred to the BCTFA to support Transportation Investment Plan projects and $135 million of which was transferred to the Northern Development Initiative Trust for economic development.
7  FTE staff usage was over budget due to the large construction program and other initiatives including rest area maintenance.
8  The ministry CRF capital budget was under-expended largely due to delaying the purchase of the new Francois Lake ferry.
9  Prepaid Capital Advances are made to support Public Transportation around the province. The variance is due to revised capital expenditures by British Columbia Transit and Rapid Transit Project 2000.
10  The majority of the ministry's revenue comes from Coquihalla tolls ($50.3 million in 2004/05). Revenue was less than expected due to BC Ferry Services Inc. paying out its debenture earlier than anticipated.

2004/05 Resource Summary —
BC Transportation Financing Authority

Total Estimated1 Actual Variance
(Actual minus
Total Estimated)
Revenue ($000)
Dedicated taxes2 425,280 426,928 1,648
Transfer payments3 750,000 750,000 0
Amortization of deferred contributions4 171,145 175,076 3,931
Other revenue5 4,844 12,864 8,020
Total 1,351,269 1,364,868 13,599
Expenditures ($000)
Amortization 301,827 299,838 (1,989)
Interest6 150,357 134,997 (15,360)
Heartlands roads program7 35,000 11,714 (23,286)
Grant programs8 76,300 77,530 1,230
Operations and administration 3,866 3,499 (367)
Transportation planning9 4,290 31,630 27,340
Total 571,640 559,208 (12,432)
Net Income ($000)
Net Earnings 779,629 805,660 (26,031)
Capital Plan ($000)10
Transportation Improvements 533,968 512,755 (21,213)
1  These amounts have been restated to be consistent with the classification of revenue and expenditures adopted for the 2005/06 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  Transfer payments from BC Rail proceeds ($200 million) and the Consolidated Revenue Fund ($550 million).
4  Contributions toward capital assets are deferred and amortized to income at the same rate as the related highway infrastructure is amortized to expense.
5  Other revenue includes property and economic development revenues, net of related expenses. The variance was due to higher than budgeted land sales.
6  Interest on borrowing used to finance construction work in progress is capitalized. Upon completion, related interest costs are expensed. The variance was due to lower than estimated interest rates.
7  Improvements to Heartlands roads are included in capital expenditures; repairs to Heartlands roads are expensed. Total Heartlands roads program is $75 million per year, and actual expenditures for 2004/05 were $73.1 million. The variance in the expense portion was offset by a greater portion included in capital expenditures.
8  Grant programs include grants paid under the transportation partnerships program for ports and airports, the provincial contribution to the Richmond-Airport-Vancouver Rapid Transit Project, contributions for inland ferries, and other projects.
9  The variance in transportation planning was due to higher than anticipated public-private partnership pre-concession costs.
10  Capital Plan numbers are net of federal funding. The variance was due to capital projects that were delayed.

Complete BC Transportation Financing Authority Financial Statements are available in the Appendix.

Major Capital Projects

Nisga'a Highway

Objective: Upgrade the Nisga'a Highway from a gravel resource road to an all-weather, two lane highway that meets a 70 kilometres per hour standard. The upgrade is now 75 per cent complete; the remaining segments have been awarded; and construction will begin in early spring, with completion on time in October 2005. The upgrade will better serve Nass Valley residents and resource industries in the area.

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

Lava Lake Construction -- Nisga'a Highway.Benefits

  • Safer roads.
  • Travel time savings.
  • Better access to British Columbia communities.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks: This project has presented engineering and construction challenges due to the rugged terrain. However, few risks remain as the construction left on the Nisga'a Highway upgrade is straightforward gravel and paving work.

Kicking Horse Canyon

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 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 and project status: The estimated cost is $191 million for the first two phases.

  • Yoho (5-Mile) Bridge (current budget $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. Expenditures to March 31, 2005, are $44 million. Construction is on schedule and expected to be complete by fall 2006.
  • 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 and the provincial portion is $67.5 million. The provincial government is pursuing public-private partnership delivery. A request for proposals was issued in October 2004. Design and construction by the successful proponent is expected to commence this fall. Expenditures to March 31, 2005, are approximately $1.7 million.

Note: It is anticipated that in the future 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 the most recent service plan.

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 structures that are nearing the end of their service lives.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks

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

William R. Bennett Bridge (Okanagan Lake Crossing)

Objective: Construct a new five-lane crossing to replace the existing 47 year-old crossing which is now at the end of its economic and useful life, and reduce the increasing traffic congestion. The project includes improvements to the east approach through downtown Kelowna to improve traffic flow, a truck climbing lane on the west side of Okanagan Lake, and an interchange at Campbell Road on the west side of the crossing.

Costs: The new crossing and east approach improvements are estimated to cost $144 million. The increase in project costs is primarily due to escalation in construction costs for steel and cement materials and an overall increase in labour costs. Improvements to the west approach are estimated to cost an additional $20 million. The new crossing will be delivered through a public-private partnership. The west approach works will be delivered through traditional tender.

Benefits

  • Safer crossing and connecting roads.
  • Travel time savings due to relieved congestion.
  • 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.

Sea-to-Sky Highway Improvement Project

Objectives: 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 has conducted a competition to select a qualified team to design, build, finance and operate the improved Sea-to-Sky Highway. Following an extensive proposal review, the S2S Transportation Group was selected as the preferred proponent and contract negotiations were underway as of March 31, 2005. The total capital budget for the project is $600 million ($2002) and expenditures to March 31, 2005 are on budget.

Project Benefits: Additional passing lanes, wider shoulders, improved sightlines and other design innovations will improve safety and reliability. These improvements also will shorten travel times and increase the capacity of the Sea-to-Sky Highway, facilitating increased demand for resident and visitor travel, as well as goods movement.

In addition, the improvements will stimulate tourism throughout the corridor, benefit the forest and agricultural sectors and facilitate new developments. Estimates of incremental economic benefits include $297 million in Gross Domestic Product and 6,000 new jobs. Between 2010 and 2025, following completion of construction, highway users are expected to realize benefits of $873 million.

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, First Nations, community and environmental issues.
  • The unalterable schedule for completing the job.

Rapid Transit Project 2000

Objective: The Millennium Line project, which is mostly complete and is running smoothly, included construction of the 21.6 kilometre Millennium Line extension to the SkyTrain rail transit system in the Lower Mainland.

Rapid Transit Project 2000 Ltd. (RTP 2000) is a provincially-held company incorporated under the British Columbia Business Corporations Act. Its primary mandate is to design and construct the Millennium Line, which links Vancouver and New Westminster via the Broadway-Lougheed corridor. TransLink opened the Millennium Line to Commercial Station on August 31, 2002. During the past year, RTP 2000 continued to work toward completing the final Millennium Line station — Vancouver Community College Station, which will be handed over to the operator in December 2005 and put into revenue service in January 2006. Negotiation of an operating lease with TransLink is nearing completion.

Costs: RTP 2000 continues to forecast a significant under-expenditure of its total budget of $1.17 billion.

Benefits:

  • Rapid transit service for current and future commuters.
  • Reduced congestion.
  • Reduced pollution from automobile exhaust emissions.
  • Slower growth in the demand for new highway infrastructure.
  • Less urban sprawl, due to compact development around transit stations.

Risks: Risks are related to one remaining section, from Commercial Station to Vancouver Community College, which faces standard construction and financial risks and is expected to be turned over to the operator in late 2005.

The RTP 2000 website is located at: http://www.rapidtransit.bc.ca.

 

     
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