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George Massey Tunnel replacement will cost $8.5 billion, now opening in 2031

B.C. more than doubled its project estimate from $4.15 billion and delayed completion by nine months; federal government will contribute $3 billion.

· 2 min read · HOC Vancouver Desk
George Massey Tunnel replacement will cost $8.5 billion, now opening in 2031
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The George Massey Tunnel replacement will now cost approximately $8.5 billion — nearly double the 2021 estimate of $4.15 billion — with major construction beginning in 2027 and completion now expected in September 2031 instead of December 2030, B.C. Transportation and Transit Minister Mike Farnworth announced Monday.

The updated budget reflects current market conditions, inflation, project scope, and the complexity of building a new eight-lane submersed-tube tunnel beneath the Fraser River. The federal government has pledged up to $3 billion in direct funding as part of a recently signed memorandum of understanding, covering no more than one-third of the total construction cost.

The province fired European contractor Cross Fraser Partnership on June 15 and restarted the bidding process under a new strategy of splitting the work into three separate contracts instead of one large procurement. While the dismissed team will not handle major construction, the province credited them with advancing significant technical design and engineering work.

Site preparation and preliminary construction, including a casting basin on Deas Island for pre-cast tunnel segments, began in early 2026 and continues. The environmental assessment process, which began in 2021 and was originally due in 2024-2025, is now expected to conclude in late 2026. Farnworth said the cost estimate does not include additional features like a second exit in Ladner, which Delta has sought.