A month after Council made the difficult decision to move forward on building the core (read more about that decision here), the Province has decided to remove its support ending an active procurement and further delaying the construction of the Green Line. It's mind numbing that we are where we are right now, but it may not be all bad news. Read on to learn more...

Let’s start with the bad news:

After the latest letter from Minister Dreeshen, the second active project procurement has been lost, putting a decade of due diligence, planning, land assembly, and enabling works at high risk of being scrapped. The real and potential sunk costs are significant, and any way forward will be even more expensive as risk factors are considered in contractor negotiations. Pausing a project of this magnitude also introduces major complexities.

Even with low inflation, costs for large infrastructure projects add up quickly. While the Province is optimistic about commissioning a study and proposing a different alignment, project professionals are warning me that it will take years, not months. The broader vision of creating a full North-South transit corridor with a well-thought-out downtown section appears to be rapidly deteriorating.

Now, for the silver lining:

In July, to save the remaining procurement, Council had to adopt a multi-contracting strategy, as market conditions had shifted significantly, requiring a move away from the previously recommended Design Build Finance (DBF) model. This would have placed most of the financial and project delivery risk on us. Now, with the Province stepping in to take control of the project, there’s an opportunity to shift that risk to the level of government better suited to handle it. Other provinces have already modernized by assuming delivery and management risks, and it’s time for Alberta to follow suit.

Politically, the Province is focusing its study on the southern alignment (from downtown to Seton), which keeps the vision of the Green Line alive for Southeast Calgary and Ward 12. If the Province delivers the full Seton-to-downtown line, it will have a transformative impact on the region, greatly improving how families plan their lives for the better.

This is an active conversation and negotiation with many more updates to follow.

Don't hesitate to reach out with questions, concerns or feedback.

Evan Spencer

Cllr, Ward 12

[email protected]