A rendering of the Alto high-speed rail project.Supplied

Jerome Gessaroli is a senior fellow at the Macdonald-Laurier Institute and leads the Sound Economic Policy Project at the British Columbia Institute of Technology.

Without a single track laid, the Alto high-speed rail project is barrelling toward a costly fiscal reckoning.

Size is a major factor. Alto is estimated to cost $60-billion to $90-billion and cover more than 1,000 kilometres. For an infrastructure project of that scale, even minor planning errors can add billions in public costs. Compounding that risk, Ottawa has proposed accelerating construction by roughly four years, effectively locking in fiscal and political commitments before routes, station locations and land requirements are resolved.

There is nothing wrong with wanting Canada to pursue large projects that could add long-term value. Ambitious infrastructure can play a constructive role in economic development and national cohesion. Concern arises when an initiative is sold through aspirational language – described as a “game-changer,” a “generational investment” or a way to "turbocharge" the economy – before its costs, scope and risks are clear.

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