Critics warn beleaguered new George Massey Tunnel could cost at least $9 billion | Daily Hive

Mounting criticism over beleaguered new George Massey Tunnel project, with concerns cost could reach at least $9 billion

Concept of the four northbound lanes for the new eight-lane George Massey Tunnel. (Government of BC)

The BC NDP-led provincial government’s decision to terminate final contract negotiations with the European-led consortium selected to design and build the replacement George Massey Tunnel has sparked sharp criticism from the opposition party and municipal politicians and renewed questions about the cost escalation and timeline of the long-awaited project to replace the regionally vital route with a seismically safe, higher-capacity crossing.

On Monday afternoon, the provincial government announced it had ended negotiations with Cross Fraser Partnership, which is a private consortium comprised largely of some prominent European firms — with decades of experience in building major tunnel projects — and some Canadian firms.

Instead, the bidding process for a contractor will now be completely restarted, with the work split up into smaller contracts rather than the typical approach of having one contractor be responsible for all aspects of the project’s delivery. The original bidding process began in Summer 2023 and led to the Summer 2024 selection of a team led by a company that was deeply involved in building the Channel Tunnel between the United Kingdom and France.

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While preliminary construction and site preparation work will continue, the provincial government has not publicly released a revised project budget, with the previously stated figure of $4.15 billion now being more than five years old — during a period when the market construction prices for labour, equipment, and materials have skyrocketed from rampant pandemic-induced inflation.

The actual figure for the concept of building a new immersed tube tunnel with eight vehicle lanes and a pedestrian/cyclist pathway is now expected to be substantially higher.

According to the provincial government, some progress has been made on establishing the technical design of the new tunnel. The new contractor is expected to continue from where the previous team left off.

Major construction work was supposed to begin in 2026, but that depended on the timely approval of the provincial government’s environmental assessment process, which first began in 2021 and was supposed to finish by late 2024 or 2025. But now, this key environmental assessment process is not expected to reach completion until the end of 2026, with major construction activities potentially beginning in 2027.

2025 revised concept of the new George Massey Tunnel. (Government of B.C.)

The move effectively further delays a project that has already undergone years of political and planning changes since the previous BC Liberal-led government’s 10-lane bridge project was cancelled in Fall 2017 by the then-new BC NDP-led government — even though the bridge project was in a highly advanced stage of procurement and had attracted a fixed-price bid as low as $2.6 billion, which was $900 million lower than the budget of $3.5 billion set aside for the project.

This price for the previous bridge project concept also included much more extensive Highway 99 corridor upgrades between the Oak Street Bridge’s south end and Delta, including larger new interchanges and extensive bus rapid transit infrastructure. At the time of the cancellation, the project was just months away from starting major construction work, with site preparation and preliminary construction activities already well underway at the time.

“Absolutely mind-boggling”

Today, the Conservative Party of B.C. said the latest project update is further evidence of mismanagement by the provincial government.

“The NDP government’s management of the George Massey Tunnel Replacement project is absolutely mind-boggling,” said Ian Paton, the MLA for Delta South under the BC Conservatives, in a statement.

“If they had proceeded with the bridge project that was already under construction in 2018, it would already have been completed, and with lower costs than what we are looking at now.”

BC Conservative transportation critic and Langley-Abbotsford MLA Harman Bhangu asserted the announcement contradicts previous assurances from government that the project remained on track.

Bhangu suggested the cost of the project has more than doubled to about $9 billion, compared to the highly-outdated figure first established in 2020/2021. However, sources have told Daily Hive Urbanized the cost could be much higher than this figure.

“When I raised my concerns about this project to the minister of transportation, he assured me that the costs and timeline were under control,” said Bhangu.

“But this announcement shows this will be another project that goes over budget and over time. No one in the industry believes that this tunnel will cost the $4.15 billion the NDP are claiming; it will likely be closer to $9 billion, and now they’re back to square one on construction. After nearly a decade of delays, the NDP government is again hitting restart, while British Columbians remain stuck in traffic.”

Kerry-Lynne Findlay, the newly-elected B.C. Conservative party leader, also criticized the BC NDP’s handling of the project.

“This is yet another example of extreme incompetence from the NDP government wasting taxpayer’s money. The NDP have proven time and time again that they cannot be trusted to deliver the infrastructure projects B.C. needs,” said Findlay.

The announcement has also drawn concern from elected officials in the City of Delta, where the tunnel directly serves as a key transportation link for communities south of the Fraser River and the rest of Metro Vancouver.

Existing George Massey Tunnel. (Government of BC)

Traffic congestion at the George Massey Tunnel due to the major October 2024 collision. (Government of BC)

Traffic congestion at the George Massey Tunnel due to the major October 2024 collision. (Government of BC)

Delta city councillor calls for independent review

Delta city councillor Dylan Kruger, under the One Delta party, is calling on the provincial government to commission an independent review into the failed final contract negotiations and disclose updated information about the project’s finances and schedule.

He plans to bring forward a member motion to Delta City Council, urging the provincial government to undertake an independent review of the circumstances surrounding the collapsed negotiations, including the financial impacts of ending the procurement process, costs incurred to date, and revised estimates for both the project’s budget and completion date.

“British Columbians deserve answers. The Province has confirmed that negotiations with the contractor broke down, yet it has not disclosed what this means for the project’s budget, completion date, or the millions of taxpayer dollars already spent on planning, procurement, and design,” said Kruger.

“The Massey crossing is a critical trade corridor and transportation link for Delta, Metro Vancouver and the entire province. Residents have every right to know how much this decision will cost and how many additional years of delay they can expect… This project is too important and too expensive for British Columbians to be left in the dark. Transparency and accountability are not optional.”

Like the B.C. Conservatives, Kruger pointed to the cancellation of the previous 10-lane bridge project nearly a decade ago, arguing that residents and businesses could already be using a new crossing had that project proceeded.

Delta mayor George Harvie also added to the chorus of criticism the provincial government is now facing over the extensive delays and apparent steep cost escalation, stating that the announcement “raises more questions than answers.”

“The public deserves to know whether this procurement restructuring will keep the project on track for completion by 2030, or whether British Columbians are being asked to wait even longer for a replacement crossing that is already years overdue,” said Harvie.

“With the Province now restructuring procurement, our community needs clear answers regarding project costs, timelines, risks, and whether this revised approach will realistically keep the project on schedule.”

Delta’s mayor also highlighted that the poor reliability of the existing four-lane, counterflow-controlled tunnel has had a major economic impact on the South of Fraser.

“Businesses south of the Fraser River already face challenges attracting and retaining employees. Commercial and industrial operators continue to absorb increasing transportation costs, while residents face daily uncertainty about whether they can reliably reach work, school, medical appointments, or family commitments,” continued Harvie.

He reiterated the municipal government’s request for the provincial government to incorporate a second exit from Ladner as part of the new tunnel’s design, asserting that this additional component is crucial for public safety, emergency access, traffic management, and community connectivity.

Existing George Massey Tunnel. (Government of BC)

However, the union representing thousands of specialized construction trades workers welcomed the provincial government’s new approach, as the smaller contracts created by the new bidding process could potentially encourage more local companies to participate.

“Doing things the right way sometimes requires some extra time. The Massey Tunnel replacement project is perhaps the most important piece of active infrastructure in the Lower Mainland. It must be completed and it must be done right. We support the decision to retender the project,” said Bryan Railton, the business manager for the International Union of Operating Engineers Local 115.

“This revised process will break the work into achievable procurement packages and allow more local firms to compete for contracts. That means a broader economic impact in local communities. Our members will continue to bring their skills and expertise to this project as it progresses through the current stage toward completion.”

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