Cost of Howe bridge project under federal scrutiny

Officials overseeing construction of a new cross-border bridge in Windsor cobbled together a variety of cost-saving 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 with work to take four to five years to complete. The entire bridge project is expected to cost $4.8 billion. Infrastructure Minister Amarjeet Sohi said all of decisions on the project were aimed at “de-risking

The project has to get done, otherwise the consequences would be catastrophic to the Canadian economy.

the project as much as we could to move forward.”

In return, the government and the private company that’s 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. If revenues over that time fall short, federal officials expect to recoup spending over the total life of the bridge — 99 years.

“The project has to get done, otherwise the consequences would be catastrophic to the Canadian economy,” said NDP MP Brian Masse, who represents the Windsor West riding. “We’ll have to see how they steer through the complications of a (public-private partnership) and I just hope the government has a backup plan,” he said of concerns raised about the project in recent weeks.

The private owners of the existing Ambassador Bridge across the Detroit River are lobbying the administration of U.S. President Donald Trump to force Canada to use American steel in exchange for continued presidential approval. .