B.C. Re-tenders George Massey Tunnel Project After Talks Collapse
The province has cancelled its agreement with the construction consortium and is opening bidding for the $16-billion replacement tunnel project after failing to reach commercial terms.
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British Columbia is taking the George Massey Tunnel replacement project back to open bidding after negotiations with its lead contractor fell apart.
The Fraser River Tunnel Project, announced in August 2021, will replace the 65-year-old George Massey Tunnel with a new toll-free eight-lane immersed-tube tunnel featuring three general-purpose travel lanes and one dedicated transit lane in each direction, plus a separate multi-use path for walking, biking, and active transportation.
The province had been working with Cross Fraser Partnership — a bid team comprised of Bouygues Construction Canada Inc., Fomento de Construcciones y Contratas Canada Ltd., Pomerleau BC Inc., and Arcadis Canada Inc. — since September 2024 under a design and early works agreement. Early construction work started in January 2026, including tree clearing, utility relocations, and preparation of a casting basin on Deas Island where tunnel sections will be built.
On Monday, June 15, the Ministry of Transportation and Transit announced it is cancelling its agreement with Cross Fraser Partnership. "While significant progress has been made on design and current construction work, agreement on the commercial terms for final construction of the tunnel was not reached," the ministry said.
The province will now divide the remaining work into several procurement packages to strengthen competition and allow for more local contractors to bid. Transportation Minister Mike Farnworth said the move will help seek better value for taxpayers.
"We've received good value from the contractor and have made steady progress with the design, thanks to their work. However, this project is critical to British Columbia's future, and we are taking this back to a competitive process to seek the best possible value for taxpayers," Farnworth said.
The John Horgan Dam, the most recent major hydro project, ended up costing about $16 billion.