Interest costs for bridge $8B on estimated $3.5B project

B.C. will pay $8 billion in interest over the next 50 years on the George Massey Tunnel replacement bridge, according to an internal government document.

The project backgrounder, which was obtained and released by the B.C. NDP, shows total interest costs for 2017 to 2068 — the entire construction and tolling period to debt retirement — are forecast at $8 billion, before federal assistance.

The figure, which has not previously been revealed, includes $4.9 billion in long-term bonds, $2.2 billion in short-term borrowings and $900 million for a “private partner.”

Project costs are estimated at $3.5 billion, including construction, allowances for inflation and interest during construction.

“The only people that want to build a bridge there are B.C. Liberals and when we, the Opposition, have asked for information about that cost, we get back blank pages,” said NDP Leader John Horgan. “We were given a leaked document that shows that the actual cost is not the $3 billion it started out as or the $3.5 billion they’re now admitting to, but it could be as high as $12 billion when you build in the interest costs over time.”

When asked why the cost of the interest payments hadn’t been revealed earlier, Liberal Leader Christy Clark dodged the question, instead focusing on the party’s history as “good money managers” and saying that the bridge will not result in higher taxes.

“It’s going to come in on budget, it’s going to come in on time and we’re going to get it done like we said we would,” Clark said.

The Liberals call the Massey “B.C.’s worst bottleneck” and have advocated for replacement because they say the tunnel is seismically unsound and difficult for emergency responders to access. Construction on the 3.3-kilometre-long, 10lane toll bridge is expected to be finished by 2022. Preconstruction work is already underway.

Greg Moore, who chairs the Metro Vancouver board of directors, reiterated Friday the “expensive” bridge has the support of one local government and does nothing to encourage transit.

“This bridge will have a direct negative effect on the livability of this region,” Moore said.