George Massey Tunnel project restarts with new procurement strategy
B.C. is terminating its deal with the European contractor and splitting work into smaller contracts to control costs, Premier David Eby said.
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The provincial government has scrapped its agreement with the European-led contractor building the new George Massey Tunnel, opting instead to restart the procurement process with a strategy aimed at lowering costs and opening doors for local bidders.
On June 17, the government announced it had exercised a termination option in its preliminary agreement with Cross Fraser Partnership, the consortium selected in July 2024 to design and build an eight-lane immersed tube tunnel to replace the aging, seismically vulnerable four-lane tunnel currently in use.
Premier David Eby defended the decision Tuesday at a FIFA World Cup press conference, saying cost escalation with the selected contractor prompted the move. The new approach will split the work into several smaller contracts rather than one comprehensive deal, allowing more local companies to bid on manageable portions.
"The number one goal here is protecting taxpayer dollars," Eby said. "We're able to have more local companies bid, which brings increased competition, which brings a better price for taxpayers."
The project's official cost estimate of $4.15 billion, set five years ago, is now widely considered outdated due to pandemic-era construction inflation. Recent scrutiny has suggested the real cost could reach $9 billion or higher, though the government has not released a revised figure. The new procurement process is expected to provide clearer cost projections as work moves forward.