The clock is ticking for the Alberta Government to figure out which, if any, aspects of Calgary’s original Green Line LRT project can be used in their new plan — or risk seeing contractors walk away, warns industry experts.
A construction site near 78 Avenue SE in Ogden is one of the only spots where people are still working on the now stalled transit project.
Once construction wraps at the site in November, the workers will be among the 1,000 contractors out of work after the province pulled its $1.53 billion in funding last month.
“If the silence goes on too long, industry will begin to move on,” says Bill Black, president of the Calgary Construction Association.
The province and the city have spent the past few weeks trying to figure out what a possible replacement for the Green Line could look like, and trying to determine of any of the existing contracts can be saved.
“If there is bad timing to put a major revenue generating project like that on hold indefinitely, this is the worst time to pick,” says Black.
He says October is when many companies begin planning next year’s budget, and with a massive question mark around the multi-billion dollar project, it could mean some companies will look elsewhere to fill the gap in their revenue.
Black says the construction industry is all about risk management. Some companies are now facing a decision to either cling onto hope that they’ll be called back soon, or send their workers where a project is guaranteed.
The mayors office said Friday there aren’t any new updates on the fate of the project, but that conversation are ongoing.
The province has said it will likely be December before plans are released.
“If they’re determined to wait until December, then we’re going to be waiting a lot longer before there’s a Green Line in the ground,” says Black.
Gondek has previously said if the province agrees to keep some of the existing Green Line plan, it could save between 600 to 700 jobs.
City council voted in September to wind down the $6.2-billion project after Premier Danielle Smith’s government said it would pull its funding — unless the city altered and extended the line’s route.
The city estimates halting work will cost $850 million on top of $1.3 billion already spent on land acquisition, utility construction and new light-rail vehicles.
Despite concerns that the change of course could delay construction for months if not years, Transportation Minister Devin Dreeshen has said there is a “viable window” in which the project could see track built next year.
With files from The Canadian Press