CALGARY City Council has approved a revised project scope, capital funding request and delivery model for Phase 1 of the Green Line light rail project. The council says this will responsibly address the cost inflation “that is impacting all major infrastructure projects across North America.”
The council has accepted recommendations made by the Green Line Board, based on work to reduce costs through value engineering and design optimisation, and informed by the outcome of negotiations with contractors during the development phase of the project.
According to Calgary City Council, these changes respond to rising costs and potential future increases, while maximising the benefits identified in the project business case approved by the council in 2020, part of the grant application made to the Investing in Canada Infrastructure Programme (ICIP).
Main construction for Phase 1 will now start with the core section from Lynnwood/Millican in the southeast to Eau Claire in the city centre, connecting with the existing Red and Blue LRT lines.
Construction of the remainder of Phase 1 from Lynwood to Shepard, as well as any future extensions north or south, will proceed when additional funding is in place.
The council has also approved a change in procurement strategy for the project, moving from a design-build-finance (DBF) model to awarding a series of contracts to build Phase 1. According to the council, this is expected to save $C 600m ($US 432.9m).
Despite extensive efforts to cut costs during the development phase, in the absence of additional funding from the Province of Alberta and the Canadian government, the City of Calgary has been forced to increase its financial contribution to Phase 1.
It will now provide $C 705m towards the revised total project cost of $C 6.25bn, up from the budget of $C 5.54bn approved in 2020.
The City of Calgary will now work to obtain approval of revised funding arrangements from provincial and federal governments, before signing project agreements and beginning main construction later this year.
The council says that Phase 1 of the Green Line is the largest infrastructure investment in Calgary’s history. Over $C 1.4bn has been spent to date, including $C 350m for land acquisition and $C 400m for enabling works now nearing completion.
A new fleet of 28 low-fleet LRVs was ordered from CAF in 2021, with the first LRVs due to arrive in Calgary in late 2027.
“The board is confident that revising the construction phasing for Phase 1 is the best approach to control costs and mitigate risks," says Mr Don Fairbairn, chair of the Green Line Board.
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