Mahsi, Mr. Speaker. My questions are for the Minister of Finance. Two years ago, his colleague, the Minister of Infrastructure, told the Member for Yellowknife North that the all-in cost of the road to Whati was estimated at $175 million. The cost of building the road announced this month is 20 percent higher than that figure. Why are construction costs so much higher now than two years ago? Mahsi.
Masi. Minister of Finance.
Thank you, Mr. Speaker. The direct construction cost, I think the Member made it in her statement before, $185 million. The total capital cost of $214 million, that would include the crude interest, predevelopment costs, and also GNWT costs for geotechnical studies, the EA process, project management, and provide funding for the measures resulting from the EA process Thank you, Mr. Speaker.
I appreciate the Minister's response, but I didn't hear an answer. In two years, the two figures have differed by 20 percent. Can he tell us why that is?
The initial $175 million from the cost two years ago, since then obviously, the price to direct construction cost went up to $185 million. That is a $10 million difference. Maybe the prices of material and things have changed. I am not sure exactly what that $10 million is made up of, but I can get that information and provide that information to the Member.
I appreciate that commitment from the Minister. I don't recall any discussion of the potential costs of operations and maintenance prior to the announcement earlier this month. I note that the Minister of Infrastructure didn't repeat the all-in cost of $411 million in his statement last week. My question is: what efforts did the government make to inform the public of the actual all-in costs of this road, given that it was more than double any estimate that had been voiced publicly?
The direct construction costs are $185 million, as was noted previously. The total capital cost was $214 million, as was noted previously as well as some of the reasons the cost was that high. The $400 million through the P3 partnership, that would represent the total value of the 28-year contract with NorthStar Infrastructure, who are the proponents of the Whati road, of which 25 years of operations and maintenance payments are included.
Masi. Oral questions. Member for Yellowknife Centre.
Mahsi, Mr. Speaker. I didn't hear an answer in that, but I am going to push on. The Minister has said that this P3 project will save over 15 percent compared to a traditional model. Can the Minister provide an explanation or why this would be the case? Thank you.
I believe there was an answer to the Member's previous question in the response that I provided. They wanted to know why it was $411 million, and I explained that was through the 28-year contract with NorthStar Infrastructure. I think that was self-explanatory.
Masi. Oral questions. Member for Kam Lake.
