Vaughn Palmer: Assuming Ottawa refuses a top up, B.C. will have to cover the added $2 billion along with its earlier pledge of $2.4 billion

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VICTORIA — The province took a major hit on its capital budget recently when the New Democrats disclosed that the estimated cost of building the Surrey-Langley SkyTrain extension had jumped, from $4 billion in 2022 to $6 billion today.

A 50 per cent overrun in just two years? That looked bad enough.

But actually, it was worse.

The line is being funded on a cost-shared basis by the provincial and federal governments. As of 2022, Ottawa was committed to a third of the cost while the province agreed to cover most of the rest alongside a minor contribution from local government.

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However, the federal government has capped its contribution at $1.3 billion, effectively leaving the province stuck with its agreed-upon share plus any overrun.

B.C. Transportation Minister Rob Fleming says the province will be lobbying the federal government for a top up.

Not likely will one be forthcoming, for reasons that will be evident from a review of B.C.’s handling of the cost-estimating process.

Two summers ago, the B.C. government put out what it described as a business case for the project, including a cost estimate of just under $4 billion.

The figure was already a third higher than the $3 billion estimate in a business case the New Democrats generated........

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