Prime Minister Mark Carney announced on Thursday that the federal government will provide up to $3 billion for the Massey Tunnel replacement project as part of a new agreement with British Columbia. The deal also includes maintaining the North Coast tanker ban and supporting billions in infrastructure investments across the province.
Details of the Agreement
Speaking at the unveiling in Vancouver alongside Premier David Eby, Carney emphasized B.C.'s role as a gateway to a more prosperous and sustainable Canada. The agreement includes $3.5 billion for the North Coast Transmission Line to power LNG and critical mineral projects in northwestern B.C., and $500 million for the expansion of the Red Chris Mine. Additionally, the federal government will support $10 billion in upgrades at the Roberts Bank Terminal in Delta as part of the Roberts Bank Terminal 2 project.
Carney noted that one-third of initiatives advancing through the Major Projects Office come from B.C., and the agreement aims to accelerate that momentum.
Massey Tunnel Replacement Cost Overruns
The funding for the Massey Tunnel replacement comes two weeks after the province terminated its contract with the Cross Fraser Partnership, which had been hired to design and build the new eight-lane tunnel, due to failure to reach a final construction contract. Transportation Minister Mike Farnworth acknowledged that the tunnel would cost more than the original $4.1 billion budget but did not provide a specific figure. Delta Councillor Dylan Kruger said he heard from a federal source that the total cost could reach $11 billion.
Pipeline and Tanker Ban
The agreement was announced on the same day Alberta Premier Danielle Smith planned to provide an update on her preferred route for a new pipeline to the West Coast. The federal government committed to maintaining the North Coast tanker ban, despite Smith's desire to lift it for a northern pipeline route. The agreement also includes a commitment to negotiate an economic and revenue framework for any new pipeline, requiring an environmental liability and emergency response fund for the province and First Nations, as well as an annual royalty payment to B.C.
Premier Eby stated that while he opposes a new pipeline from Alberta, he has no levers to stop it, as pipelines fall under federal jurisdiction. He emphasized that the agreement ensures the tanker ban stays in place and that British Columbians are fairly compensated for environmental risks if a pipeline proceeds.
