News item, June 10, 2005:
VANCOUVER (CP) – The British Columbia government has signed a deal with a transportation consortium to design, build and manage improvement to the Sea-to-Sky Highway north of Vancouver.
Transportation Minister Kevin Falcon said the project is on time and on budget after he announced the $400 million agreement with the S2S Transportation Group…
In a 2009 letter to the National Post editor, Falcon had more to say about “on time and on budget:
Re: Vancouver Should Pay, editorial, Jan. 13.
This editorial incorrectly stated that the Sea-to-Sky Highway expansion is “behind schedule” and “over budget.” The fact is that the $600-million improvement project is both on budget and on schedule…”
A 2012 report by the Auditor General noted the capital costs were $795 million and reminded that the public private partnership was responsible for building only part of the Sea to Sky Highway:
…the Province (represented by the Ministry of Transportation and Infrastructure) entered into a P3 agreement with the Sea-to-Sky Highway Investment Limited Partnership (a group of private companies) to design, build and finance about two-thirds of the highway improvements and to operate and maintain the entire highway for 25 years. The ministry is responsible for managing the remaining one-third of improvements…
We shall examine whether or not the project was “on budget” or slightly over the
$400 $600 $795 million figure.
From B.C. Public Accounts (updated in FY 2019):
Since actual annual payments are almost 3x the contractual obligation, it looks like the $400 million Sea to Sky Highway improvement project will involve payments to the private partner of $1.5 billion. And remember, the province financed one third of the project’s construction cost while the P3 financed two thirds.