Debates of May 26, 2004 (day 13)

Thank you, Mr. Speaker. I’d like to again ask the Minister responsible for the Deh Cho Bridge project, Mr. Handley, some questions. I draw his attention to two recent bridge projects in the territory that have been marred by cost overruns and a lack of pre-engineering. Willow Creek was supposed to cost $4.5 million, and ended up over $7 million. The river between Two Mountains Bridge was crushed by ice. No ice floe study was done prior to this bridge being put in. Is the Premier aware of these two bridge projects, and what will he do to ensure that these problems won’t happen with the Deh Cho Bridge project?

Mr. Premier, two questions.

Return To Question 138-15(3): Deh Cho Bridge Project Concerns

Mr. Speaker, I’m generally aware of those two projects, two different situations. The Willow Creek Bridge goes back a number of years. There were some design problems with it. I expect that the Department of Transportation has learned from that. In terms of the other bridge where ice removed, it was a much smaller bridge but, again, one that we have concerns about, the inconsistent flow of water and ice in those small streams in that area. Mr. Speaker, the Deh Cho Bridge is a totally different kind of structure. It is a much larger bridge. It is one that the design is a very serious issue, and one that I assure the Member that we’ll be as thorough as we possibly can in reviewing the design that is put forward by the Deh Cho Bridge Corporation. Thank you, Mr. Speaker.

Supplementary, Mr. Ramsay.

Supplementary To Question 138-15(3): Deh Cho Bridge Project Concerns

Thank you, Mr. Speaker. Again, I mentioned this earlier, there hasn’t been an ice floe study on the mass and the volume during spring break up, and the impact that might have on the piers that are going to connect the bridge from one side of the river to the other. I’d like to also ask the Premier and mention this to him that there needs to be an incentive for the Deh Cho Bridge Corporation to not incur cost overruns in this project. This has to be in the agreement. The GNWT should not assume all the risk, and currently, under the agreement that I have seen here, we are assuming all the risk, Mr. Speaker. Can we get this in the agreement that the GNWT does not assume all the risk in this project? Thank you.

Mr. Premier, Mr. Handley.

Further Return To Question 138-15(3): Deh Cho Bridge Project Concerns

Mr. Speaker, if you look at the agreement you will find that the GNWT’s contribution to the bridge when it is built is going to be the cost of operating the ferry, the cost of building and maintaining that ice bridge. Beyond that the costs for the bridge will be recouped through a toll. So whatever the price is, the GNWT is not assuming additional risk. The only risk we would assume would be if for some reason the bridge was never built. Then we have been guaranteeing loans to enable the Deh Cho Bridge Corporation to continue on with their planning and environmental assessment for the proposed bridge. Thank you, Mr. Speaker.

Final supplementary, Mr. Ramsay.

Supplementary To Question 138-15(3): Deh Cho Bridge Project Concerns

Thank you, Mr. Speaker. Mr. Speaker, I think that the GNWT does assume the risk in this because if the bridge is put in at a cost of $80 million, $90 million or $100 million, how are we possibly going to recoup that through toll revenues? It is a risk that the GNWT is going to have, and that is why I feel strongly that the Premier has to get in this agreement a firm price, and the cost overruns cannot be allowed to happen. I’ve seen it firsthand when I was a city councillor, and I’ve also seen it during the life of this last government with the jail. We have to get a firm price, and we can’t allow it to snowball. Thank you, Mr. Speaker.

Mr. Premier.

Further Return To Question 138-15(3): Deh Cho Bridge Project Concerns

Thank you, Mr. Speaker. We certainly won’t make the mistakes those city councillors made on that project.

Hear, hear!

---Laughter

But, Mr. Speaker, the Bridge Corporation are using the time that is available to them now to do more testing on the design of the bridge. They have made some changes to the design as a result of testing. They will be issuing a tender for the project, and we will take every step possible to ensure that there are no cost overruns. Mr. Speaker, on this size of project, that is a substantial challenge for the designers to be able to ever come up with a project that is going to be right on with no change orders. Mr. Speaker, the latest information that we have from the Bridge Corporation is that they are still looking at a $55 million to $60 million bridge. We are waiting, as I said earlier, Mr. Speaker, for an update on that cost estimate, and I would certainly be glad to share that with the Members as soon as we receive it in the next two or three weeks. Thank you.