BC government makes pitch to Trudeau for infrastructure funding

2023 concept: Artistic rendering of the new eight-lane immersed tunnel replacement for the George Massey Tunnel, with the multi-use pathway for pedestrians and cyclists located next to the northbound tunnel. (Government of BC)

As British Columbia’s infrastructure strains under increasing demands, the provincial government pins its hopes on federal aid to alleviate pressing funding gaps for various multi-billion dollar projects.

In a letter to Prime Minister Justin Trudeau, BC Premier David Eby has formally outlined the provincial government’s six major infrastructure project priorities for federal attention.

Eby writes that there is an “urgent need for a federal partner to work with us, as programs critical to the wellbeing of our residents and communities are at risk without coordination and long-term, predictable funding. We need better engagement by Canada, as equal partners in the pursuit of a better and more prosperous future for Western Canadians.”

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The letter, shared with Daily Hive Urbanized by the Office of the Premier, deems the project to replace the aging and capacity-constrained George Massey Tunnel the provincial government’s “top transportation infrastructure priority” for federal funding.

The new eight-lane immersed tunnel under the Fraser River between Richmond and Delta, part of the Highway 99 route, is expected to cost $4 billion, based on major construction work beginning in early 2026 and completing in 2030. In October 2023, Dutch, French, South Korean, and Spanish firms were shortlisted to proceed to the detailed bidding stage of the project.

“Your government has committed to cost-sharing on this nationally important project; however, no substantial financial commitments have been received,” wrote Eby in his letter dated June 20, 2024.

“A meaningful federal contribution to this $4 billion project, commensurate with the scope and historic levels of federal support for similar infrastructure, is essential to ensuring the future of this trade-enabling section of Canada’s supply chain network.”

However, in February 2024, Steven Guilbeault, the federal minister of environment and climate change, made public comments indicating that the Government of Canada had created an internal policy that it would no longer consider funding requests for new road projects that expand the transportation capacity for vehicles.

Conceptual depiction of the new replacement George Massey Tunnel. (Government of BC)

Another priority project for federal funding is BC Hydro’s $3 billion new North Coast Transmission Line, which would provide hydroelectricity for LNG Canada, other liquefied natural gas (LNG) facilities, Port of Prince Rupert, and mines. There were some previous suggestions to have the federal government half of the project’s cost.

Eby says the transmission line is “a foundational, nation-building clean electricity infrastructure project that presents a historic opportunity to advance emissions reductions and avoidance, economic diversification, clean natural resources development, Indigenous economic reconciliation, and future port expansions to the benefit of western Canada, while positioning Canada as a global clean energy and critical mineral powerhouse.”

One of the most expensive forthcoming infrastructure projects within BC will be the new Iona Island Wastewater Treatment Plant near Vancouver International Airport — a project with an estimated cost of over $10 billion, spearheaded by Metro Vancouver Regional District. This is the sewage treatment plant that will serve the growing needs of Vancouver, the University Endowment Lands, the University of British Columbia, and parts of Burnaby and Richmond, and provide the minimum enhanced treatment level of secondary treatment — improved from the existing facility’s ability for only primary treatment.

Construction is well underway on the $750 million first phase for site preparation and groundworks, which will enable major construction work to start in 2026. The regional district is covering $250 million, the provincial government announced a commitment of $250 million in March 2023, and the request being made at this juncture is for the federal government to provide a matching contribution of $250 million. The entire multi-phased project will be built over 15 years.

“A matching federal contribution is necessary to comply with federal regulations and protect this important ecosystem, while offsetting the sustained cost pressures from this project on residents in the region,” wrote Eby.

Preliminary conceptual artistic rendering of the new Iona Island Wastewater Treatment Plant and area ecological improvements. (Metro Vancouver Regional District)

As another priority, Eby is urging “immediate engagement from Canada” on the recent Disaster Mitigation and Adaptation Fund rejections for Abbotsford, Merritt, and Princeton, which were hammered by devastating floods in late 2021.

Federal funding is also being pursued to expand hydrogen and fuel cell technology, with over half of Canada’s companies active in these emerging energy sources based in BC.

Additionally, Eby is seeking a new federal production credit for low-carbon fuels produced in Canada in response to the United States Inflation Reduction Act’s impact of significantly reducing the cost of producing renewable diesel that is being imported into British Columbia. The premier states that this has had the impact of “undermining the viability of domestic fuel production and a significant future industry here that is already growing rapidly.”

Eby commended Trudeau’s recent move to top up the provincial government’s BC Builds housing program with $2 billion in federal funding and financing, in addition to the provincial government’s $3 billion commitment to the program.

Earlier this month, just before the letter was crafted, Eby and Trudeau met in person and discussed these priorities.

“Yesterday, Prime Minister Justin Trudeau spoke with the Premier of British Columbia, David Eby. The two leaders discussed shared priorities related to transportation, the environment, and reconciliation with Indigenous Peoples,” reads a statement by the Office of the Prime Minister on June 19, 2024.

“The Prime Minister and the Premier recognized the importance of their governments working together on key housing and infrastructure projects. They also agreed to continue working toward decarbonizing key economic sectors and advancing clean growth in British Columbia. Prime Minister Trudeau and Premier Eby agreed to remain in close contact as they continue to work together on important issues.”

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