Funding shortfall identified, external approvals not yet in place
WINNIPEG, MB - A report published today by the Winnipeg Public Service provides an update on the Waverley West Arterial Roads Project.
While this major project to provide vital transportation links to the growing residential subdivision is proceeding on schedule, several items depending on external approval have driven the cost estimate up by $20 million to a total of nearly $78 million.
The following items contribute to the current funding shortfall:
- The configuration of Kenaston Boulevard's connection to PTH100 (the south Perimeter Highway) is subject to direction and approval of Manitoba Infrastructure and Transportation. This final direction, needed to proceed with design and engineering, has not yet been received but may lead to additional costs of $5 million depending on the intersection design and layout required by the Province.
- Costs associated with a late construction start, due to a longer than anticipated environmental approval process, are estimated to have cost the overall project an additional $5 million.
- Current estimates for the cost of a partial grade separation (fly-over structure) at Kenaston and Bishop Grandin are projected to be an additional $10 million.
The longer than anticipated approval process and the resulting effects on progress have meant that more accurate cost estimates have not been available until recently. Budget discussions are ongoing with the federal and provincial governments to determine funding options for the up to $20 million in extra costs.
In September 2009, the federal and provincial governments announced funding of the Waverley West Arterial Roads Project through the Building Canada Fund, subject to a tri-level funding agreement. To date, total commitments by the federal and provincial governments amount to $33.2 million (up to $18.2 million federal and $15 million provincial).
The report, which will be considered by the Standing Policy Committee on Finance on Monday, December 3, 2012, is available on the City Clerk's website.