Ottawa ordered review for new bridge over cost concerns: documents
$4.8 billion the expected cost of Gordie Howe International Bridge
OTTAWA— Officials overseeing construction of a new crossborder bridge in Windsor cobbled together a variety of costsaving measures on government orders over concerns that expenses were in danger of exceeding spending targets, newly released documents show.
Internal and external advisers helped officials find savings on the Gordie Howe International Bridge “without significantly changing the risk” to the government, noted one slide from a presentation that was delivered to senior government officials last October. Insiders say the Crown agency overseeing the project heard concerns from the three bidders vying to build and operate the bridge about meeting the government’s budget expectations.
A group of deputy ministers was briefed about the spending review, the effects on cash flow, the risks to private capital and project timelines. All dollar figures have been blacked out from the documents obtained by The Canadian Press under the Access to Information Act on the grounds the information could harm Canada’s economic and financial interests.
The Liberals will find out in the next few weeks if the savings identified in the “affordability review” will yield the intended results when financial bids are filed. The winning bid will be selected in June and construction is expected to start in the fall and take four to five years to complete.
The entire bridge project is expected to cost $4.8 billion.
In return, the government and private company that is to build and operate the new crossing, together hope to collect enough toll revenue over the first 30 years of its life to recoup the cost.