Green Line LRT procurement process stopped in its tracks due to provincial funding uncertainty

More delays for Green Line Calgary's multi-billion dollar Green Line project faces new delays. Timm Bruch reports.

Calgary — The City of Calgary is delaying the next steps of the Green Line LRT project, which could potentially put a complete pause to the original plan to start the first phase of construction in 2021.

The procurement process for the first phase — which comes with a $5.5 billion price tag — will be delayed for an indefinite period of time as the city looks for more certainty regarding the provincial government’s financial commitment.

The news was confirmed Wednesday evening in a Green Line newsletter update from the city that said the process is now on hold.

"The city has made the decision to pause the Segment 1 procurement schedule to provide time to conclude the work with the province," it read.

"We do not believe it is responsible to continue with the current procurement while discussions with the province are evolving."

Council had already approved the massive LRT expansion this past summer by a vote of 14-1, with plans for the new line to be built from 16th Avenue N. to Shepard.

The city had additionally been conducting work to choose a construction firm that would build the first segment in the south from Ramsey to Shepard, having held a request for proposal process in July.

All of that is now on hold as the province continues discussions with the city.

“I am very irritated about this,” said Mayor Naheed Nenshi.

“Fundamentally, what we’ve got here is ... the Government of Alberta continuing to drag its feet. We were told that there would be a quick review in July with this program, which is totally fine. It’s a $1.5 billion commitment from the province, so we want to get it right. (But) it’s now been six months, and we’ve never seen the report or the review they’ve done.

“We have no idea what it is they actually want.”

In October, Transportation Minister Ric McIver sent a letter to Nenshi, noting the provincial review of the project had been completed.

The review identified "a number of concerns related to risk and certainty as the project is currently designed, including estimated costs, contingencies, governance structure and procurement."

On Thursday, McIver told CTV News he’s been forthcoming with the municipal government. “The city is very well aware of what the issues are, despite what the political people say,” he said. “The city doesn’t know how they’re going to get into downtown and how much it’s going to cost and they are not sure that they can avoid a major cost overrun.”

The mayor and several councillors dispute that claim, arguing their consultants and engineers have done enough.

In fact, multiple councillors tell CTV News they believe the province is purposely delaying the project until after Calgary's next civic election in October 2021, speculating the UCP would rather deal with a different municipal government.

McIver says that’s not the case.

“The public posturing and politicking isn’t going to help,” he said. “I’m not interested in making threats. I am interested in telling the city that they need to work with us.”

McIver echoed those statements on Twitter last week and remains firm that this is not a political issue related to Calgary’s election.

"I’ve long been committed to improving public transit in Calgary," he tweeted.

"Alberta maintains its commitment of $1.53 billion for the Green Line & the Green Line WILL move forward once the City and Province complete the required due diligence."

McIver added that there was no refusal to work together with the city, citing the fact provincial officials immediately began working with Calgary’s Green Line project team in October and met twice weekly to address concerns.

Ward 12 Coun. Shane Keating doesn't believe the city's concerns have been addressed.

"I have talked to city officials and what I stated is that there have been many discussions, however that is where it ends," Keating said in a tweet.

"The city has not received one word or one number on paper to clarify concerns. The City has sent numerous documents and data to the province and asked for a response from that information and no response is given."

Vice-chair of the Green Line Committee, Jyoti Gondek also took to Twitter.

"I disagree that the waiting is healthy. We made the decision in June 2020 with 17 clear points on how to manage procurement and risk," Gondek tweeted.

"Why will the province not tell us what they disagree with? Jobs and stimulus are on the line," she said.

Gondek demanded that the province release a full consultant’s report outlining all concerns, and hopes the city and province can talk through any disagreements.

Nenshi stated last week that he would also be happier once he sees the province’s full report in its entirety.

Nenshi says the project still could potentially begin on time, but that the city is “looking at a figure that is in the tens of millions of dollars for every several months of delay.”

Despite all of the concerns, Green Line committee member and Ward 6 Coun. Jeff Davison remains confident that the project will start on time.

In a Facebook Live town hall conducted Wednesday evening, Davison said it makes sense for all partners to find common ground before proceeding with the largest infrastructure project in the city’s history.

"You don’t want to have issues popping up on a project of this size and scope down the road so you really want to be thorough at the planning stage that you’ve worked through all the problems," Davison said.

"You need to know you’ve worked through all the issues and that you know you’re able to set yourselves up for a successful delivery of the project you’re trying to achieve."

There is no word on how long the pause on procurement could last. The city has already spent more than $500 million securing land and preparing for Stage 1 of Green Line construction in southeast Calgary.