Calgary halts construction after province pulls funding for LRT project

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Ontario Construction News staff writer

Calgary’s city council has voted to suspend construction of the Green Line LRT project following the Alberta government’s withdrawal of funding. Initially approved in July, the project has encountered significant challenges as the province announced it would explore an alternate route for a future southeast LRT line.

With 60 per cent of the project design completed and construction already underway, the decision impacts about 1,000 staff, consultants, and contractors, along with over 70 contracts tied to the original alignment.

The city plans to wind down operations over the coming months, prioritizing safety, cost mitigation, value preservation, and operational efficiency. The Green Line Board will oversee this process, ensuring all contractual obligations are fulfilled or transitioned to the city by December 31, 2024. Active construction in downtown Calgary is expected to conclude this fall, while work on the 78 Avenue project in Ogden will continue until November 2024, with final tasks slated for completion by July 2025.

Since its inception in 2017, the project has incurred approximately $1.3 billion in expenditures, including $650 million spent prior to its formal approval in 2021. As the city navigates this unprecedented wind-down, the Green Line Board anticipates that total costs associated with halting construction could exceed $800 million, reallocating funds initially designated for transit infrastructure.

Alberta’s Minister of Transportation and Economic Corridors, Devin Dreeshen, described the council’s decision as “unfortunate”.

“The province’s contribution to the Green Line has never been a blank cheque, and the current alignment put forward by the city is an irresponsible waste of taxpayer dollars,” he said in a statement. “The province promised funding for a line servicing hundreds of thousands of Calgarians in southeast Calgary, not a stub line barely reaching out of downtown.

“It’s unfortunate that some members of Council would rather see the Green Line canceled entirely rather than finding a far more cost-effective and longer above-ground alignment that will actually reach hundreds of thousands of Calgarians in the southeast of the city.”

Dreeshen made it clear that the province will not fund wind down costs.

“Regarding wind-down costs, I don’t see why Alberta taxpayers should be asked to pay for decade-long mismanagement and decisions of past mayors and city council,” he said. “Further, the city is more than welcome to proceed with the project without provincial funding should they insist that the cost of the wind-down is more costly than the committed provincial contribution.

By December, a new alternative route that extends further into southeast Calgary will be provided by the province for consideration.

“When it is ready, we will be happy to talk to the city and discuss with them whether or not to proceed,” he said.

“If the City changes its mind and decides to build a Green Line that serves the needs of Calgary commuters, our provincial contribution remains on the table.” In a message to the community, the Green Line Board expressed gratitude for the public’s ongoing support and advocacy, reaffirming that input from Calgarians will continue to shape future transit decisions.

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