New replacement George Massey Tunnel to cost $8.5 billion: B.C. government | Daily Hive

Preliminary artistic rendering of the new replacement George Massey Tunnel. (Government of BC)

B.C. Minister of Transportation and Transit Mike Farnworth provided a major update this afternoon on the controversial project to build the new replacement George Massey Tunnel.

The project will now carry a cost of $8.5 billion — more than double its previous cost figure of $4.15 billion, but below the range of $9 billion and $12 billion that has been floated by critics and others in recent weeks.

As well, major construction will now begin in 2027 — as opposed to the 2026 start date established years ago — for a completion and opening in September 2031, instead of December 2030.

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The provincial government first announced on June 15 it had fired the European-led private consortium that was selected almost exactly two years ago to design and build the new tunnel.

While that European-led team will not be involved in major construction work, the provincial government has credited them for advancing a large portion of the detailed technical design and engineering work for building this new eight-lane immersed tube tunnel.

Instead, the provincial government is restarting the bidding process, under a new strategy of splitting up the work into five separate work contracts — as opposed to the previous procurement model of one big contract.

Three weeks ago, the Ministry launched the new procurement process by releasing the Request For Qualifications (RFQ) for the first two work package contracts.

Concept of the new replacement George Massey Tunnel. (Government of B.C.)

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2024 preliminary artistic rendering of the new George Massey Tunnel. (Government of BC)

The largest contract is for the construction of the immersed tube tunnel and south cut-and-cover tunnel entrance and ramp on Deas Island in Delta, with the RFQ for this work ending on July 13, 2027. The second contract is for the north cut-and-cover tunnel entrance and ramp in Richmond, with the RFQ ending on Aug. 8, 2026. From the RFQs, companies and/or consortiums will be shortlisted later this summer to participate in the Request For Proposals (RFP) detailed bidding process for the first two contracts, beginning a few days after the shortlist announcement.

The procurement process for the remaining three work packages will take place in 2027, which will entail: tunnel fit-out (mechanical, electrical, and plumbing); the new 350-metre-long, eight-lane Deas Slough Bridge over the Fraser River channel south of Deas Island between the south tunnel entrance and Highway 99 in Delta; and various highway and civil works.

The detailed design and engineering work is still underway, with the provincial government indicating in last month’s RFQ documents that this work was about 60 per cent complete as of mid-June 2026. It is expected that almost 90 per cent of this design work will be complete before the RFP submission deadline in December 2027.

The provincial government terminated its agreement with the European consortium after the two sides were unable to finalize an agreement, with the group’s higher construction cost emerging as a key sticking point. The cost of their estimate is not publicly known.

Today, Farnworth reiterated the provincial government’s rationale of going back to the procurement process, asserting that splitting up the work into smaller contracts will enable local companies to bid. This is similar to how the provincial government split up the Surrey-Langley SkyTrain into three separate contracts.

Above all, the provincial government strongly believes they will be able to get lower prices, as major construction projects are now winding down and companies are looking for new work.

“One of the great things about the way that the procurement will be is that by breaking it up into smaller parcels as opposed to just one giant component, more British Columbia companies will be able to bid, more Canadian companies will be able to bid, and I think that’s good for the local and Canadian economy,” said Farnworth.

“We also know the market conditions are right now that a lot of companies are very hungry for work as major projects have been wrapping up, and we are expecting everything we’re hearing is that we will get very competitive bids.”

According to the new procurement documents, the immersed tube tunnel will be 828 metres long and consist of eight precast tunnel segments. These segments will be manufactured on Deas Island, floated into position, and sunk into a new trench on the bed of the Fraser River. The roof of the tunnel will then be buried under a thick layer of boulders to protect the structure.

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Preliminary artistic rendering of the new replacement George Massey Tunnel. (Government of BC)

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Concept of the new replacement George Massey Tunnel. (Government of B.C.)

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

When asked, Farnworth emphasized that the project’s design has not changed, and dismissed concerns expressed by local officials over the past week that the depth and length of the tunnel ramps and the location of the new tunnel itself have changed. He says the project is still based on the reference design established in 2023.

The Minister also expressed confidence in the new $8.5-billion cost estimate, asserting that the provincial government consulted relevant independent third-party experts with experience in this specific type of project, who confirmed that the figure reflects what the project should cost. He also dismissed concerns that construction of the new tunnel could affect the geotechnical stability of the adjacent existing 1959-built, four-lane tunnel.

He appeared to blame global market conditions for most of the escalation in cost, with the pandemic inducing significant inflation in the prices for construction materials, equipment, and labour. The previous $4.15-billion figure was first established in 2020/2021 during the project’s business case planning process.

With today’s update, the B.C. government is now expected to be responsible for roughly $5.5 billion of the overall cost.

On July 2, 2026, the new Canada-British Columbia Cooperative Prosperity Agreement jointly announced by the federal and provincial governments noted that there will be up to $3 billion in direct federal funding to build the project — but covering no more than one-third of the total construction cost.

In addition to this direct federal funding, there could also be low-interest federal loans and other borrowing capacities to help the provincial government cover its portion of the cost.

“This is a nation-building project that is going to improve transportation to the ports and the movement of goods, not just in British Columbia, but in fact Canadian products. This is a project that is going to significantly improve transportation for commuters in the Lower Mainland,” said the Minister.

“What we’ve always made clear is that this is an important project. It’s a priority for British Columbia, and the federal government has recognised that, and we’re very pleased with their contribution.”

Site preparation and preliminary construction work at the site is underway right now, after it first began in early 2026. This particularly relates to tree clearing, utility relocations, and the construction of the casting basin on Deas Island for the temporary manufacturing plant to create the pre-cast tunnel segments, as well as tree clearing, utility relocations. As well, temporary infrastructure is being built, including the construction of three jetties for the delivery of construction equipment and materials, a trestle bridge to access Deas Island, access roads, and retaining walls.

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Preliminary construction and site preparation work next to the south end of the existing George Massey Tunnel for the future new immersed tunnel project, as seen on June 1, 2026. (Kenneth Chan)

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Site preparation and preliminary construction work for the new George Massey Tunnel, next to the south end of the existing tunnel as seen on May 21, 2026. (Government of B.C.)

Concept visual of the manufacturing facility on Deas Island for the new George Massey Tunnel segments. (Government of B.C.)

Concept visual of how tugboats will move each of the floating segments of the new George Massey Tunnel. (Government of B.C.)

Concept visual of cables being used to position and lower the segments of the new George Massey Tunnel into the trench on the bed of the Fraser River. (Government of B.C.)

Concept visual of a thick layer of boulders being placed over the segments of the new George Massey Tunnel. (Government of B.C.)

In order for the project to enter the major construction phase, this depends 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. The environmental assessment is now expected to conclude in late 2026.

In recent weeks, the BC NDP-led government faced renewed criticism for its decision in 2017 to cancel the new 10-lane George Massey Bridge project — spearheaded by the previous BC Liberals-led government — to replace the aging and seismically-vulnerable immersed tube tunnel built nearly seven decades ago. At the time of the cancellation, the project was very close to awarding the contract, with the start of major construction work just months away.

That new 10-lane bridge and extensive Highway 99 corridor upgrades had a total budget of $3.5 billion, but one fixed-price bid came in at $2.6 billion, which was $900 million lower than the provincial government’s estimate. It was set to reach completion in 2022, and had extensive Bus Rapid Transit (BRT) infrastructure that could be repurposed for future rail rapid transit, including the possibility of SkyTrain.

Critics of the BC NDP’s approach to the project argue that taxpayers are now paying much more for less, along with a lengthy wait that will span nearly a decade by the time the project is completed in 2031, instead of the previous 2022 completion timeline with the bridge project. They argue the new plan offers only a minimal capacity and reliability gain compared with the current counterflow-controlled configuration, as well as far smaller upgrades along the Highway 99 corridor between the south end of the Oak Street Bridge in Richmond and south of the river in Delta. However, the BC NDP maintains its approach provides an untolled crossing, in contrast to the previous project’s tolling model.

In addition to the eight vehicle lanes — four vehicle lanes in each direction — the new immersed tube tunnel will provide an enclosed centre pathway for pedestrians and cyclists.

Existing George Massey Tunnel. (Government of BC)

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