Project Timeline

I have received numerous inquiries about the project timeline and why completion has shifted from 2011, to 2012, and now 2014. A couple of key developments have contributed to this change.

When announced in late 2007 it was anticipated the extension would be completed in four years. Here's a rough breakdown of the phases of work:

Note: phases may overlap

• Chartering and planning - 6 months
• Preliminary design - 10 months
• Detailed design - 10 months 
• Tender, award and mobilization - 2 months
• Construction and commissioning in portions or all of 3 construction seasons - 28 months

As the preliminary design progressed, it became apparent there would be limited opportunities to work within the TUC during Stoney Trail / Crowchild Trail interchange construction. The Province's contractor would be doing utility work and constructing the roadway and roadway bridges in the LRT right-of-way, at the same time as work on the LRT track and overhead catenary system should be happening. Given the risks associated with having multiple contractors in such close proximity, it made sense to allow the Province to complete Crowchild Trail construction first, before beginning LRT construction (with the exception of the LRT structures).

A large portion of funding for capital projects throughout the province, including this one, is provided through the Municipal Sustainability Initiative (MSI). As a result of the lagging economy, and lower oil and gas revenues in Alberta in particular, the Province reduced overall MSI funding by $100 million in 2009. 

As explained on the Province's website:

“The Municipal Sustainability Initiative (MSI) is the Province of Alberta’s ten-year funding commitment to provide significant long-term funding to enhance municipal sustainability and to enable municipalities to meet the demands of growth. The MSI funding formula recognizes that if provincial revenue falls, MSI funding levels may have to be adjusted. Given the significant decline in provincial revenue, capital support to municipalities under the MSI will be lower than planned in Budget 2008.”

Other sources of capital funding, such as the Acreage Assessment levied on new development, have decreased substantially with the economic downturn.

As a result, The City of Calgary has adjusted the capital budget to accommodate changes to available funding. Timelines on several projects have been extended or delayed, and some projects have even been cancelled.

The budget for this project has been allocated such that construction can begin in 2012 with estimated completion in 2014. Design will continue through 2010 and some construction, such as the LRT bridges and underground utility work, is underway.  More details on the revised project schedule are shown on the project website.

A couple of noteworthy bullets about capital spending in the 2009 Budget Highlights Brochure:

• $1.1 billion will be directly borrowed each year for the next three years to support capital spending.
• The government recognizes that continued support for building roads, schools, hospitals and other public infrastructure is not only necessary to meet Alberta’s future economic and population growth needs, but is also an effective way to support the economy and jobs.

It is clear the Provincial government intends to continue funding sustainable infrastructure. The economic reality is that in a world of shrinking revenues we will wait in line a little longer.

~ Andy Esarte