Alberta steers away from P3 funding for Deerfoot improvements

Traffic is backed up on southbound Deerfoot Trail approaching Stoney Trail S.E. after a crash.

The province has announced it's changing its funding approach as it plans major improvements for Calgary's Deerfoot Trail.

Much of the popular thoroughfare was constructed in the 1970s and the city's population has since tripled, prompting the need for redevelopment.

The north-south roadway is maintained by Alberta Transportation, and the province is investing $210 million to upgrade priority areas identified in a 2020 Deerfoot Trail Corridor Study.

Though the government had previous announced it would be funding the upgrades through a public-private partnership (P3), a change in plans was revealed on Tuesday.

"We committed that we would only pursue P3s when we found value for taxpayer money," Transportation Minister Prasad Panda said in a statement.

"Current economic conditions have resulted in pricing volatility and historically high inflation in the construction industry, which means a P3 approach to Deerfoot Trail improvements is not economically viable."

Instead, the government is opting to "procure the improvements in smaller pieces."

"While the government is not going ahead with a P3 approach, we remain committed to making improvements to Alberta’s busiest highway and will move ahead with the necessary upgrades to help people get to their destinations safely and more efficiently," Panda said.

According to the province, approximately 180,000 vehicles use the Deerfoot Trail daily.

"We will focus on improving the most congested areas on the highway first to improve traffic flow and reduce travel times for commuters in the Calgary region. Work is underway to identify the most critical areas for improvement that can be tendered and completed as quickly as possible," Panda said.

NDP Transportation Critic Lorne Dach says the cancellation of the P3 is "good news for Calgarians" who will now be "spared from having to pay tolls."

"The UCP should immediately drop the P3 approach from all projects they are pursuing for schools and hospitals and road improvement," he added.