Tentatively predicted to run the City of Ottawa $1.8B, it turns out the more realistic cost estimate for the first phase of Ottawa's ambitious transit plan is around $2.1B, according to
CBC.ca:
Light rail between Blair Road and Tunney's Pasture, including a three-kilometre downtown tunnel, will cost $2.1 billion, city staff estimated Friday. That's $400 million more than their December 2008 estimate and $300 million more than the estimate in the city's recent funding request to the federal and provincial governments.
In initial discussions of potential direction for Ottawa's transit plan, the above-mentioned first phase of the was estimated to cost $1.4B. In recent weeks, reports indicated it would climb due to unforeseen
design changes and
land procurement costs. After a more thorough examination, which included consultations with "experienced firms involved in transportation and tunnelling projects" and a review, according to the above-linked CBC story, seems likely to be the best estimate, which City officials will present when appealing to federal and provincial governments for funding.
Although federal officials have been rather quiet in awaiting an official request with hard numbers, Ontario Municipal Affairs Minister and Ottawa West-Nepean MPP Jim Watson has
for weeks been announcing his concern with the affordability of Ottawa's transit plan. This past weekend, as reported in the
Ottawa Citizen, Watson re-iterated his concerns:
"I'm becoming increasingly worried about the city's capacity to bring this project to a conclusion," said Watson, the MPP for Ottawa West-Nepean. "We're very, very concerned. I have to simply question the affordability of this plan."
[...]
"They've designed the plan without an upper-limit budget. The price just keeps going up," said Watson. "We cannot simply send a blank cheque to the City of Ottawa."
Although Watson is concerned with the city's ability to pay for its third of the transit plan, the recently-unveiled $24.7B provincial deficit in Ontario, which will undoubtedly affect the province's ability to offer cash to municipalities. The deficit is the largest the province has ever carried, according to the
Ottawa Citizen. The City is looking for at least one-third of the capital cost of the project from each of the provincial and federal governments, meaning $700M from each level over the course of the first phase.
Funding partners--including, albeit on a smaller scale, citizens of Ottawa--are all likely mindful of the (mostly negative) perceptions of staff and decision makers in this city, which combine to make what Steve Collins refers to as a "trust deficit" in the Ottawa
Metro. That scepticism certainly shines through in Watson's comments. It remains to be seen what federal ministers, particularly Ottawa West-Nepean MP and Infrastructure Minister John Baird, have to say about the recently-announced cost increase.
City staff are convinced that Ottawa can foot their portion of the transit plan.
The cost for the full four-stage transit plan is now an estimated $6.6B, up from the initially-predicted roughly $5B price tag.