CALGARY — Alberta is scrapping plans to upgrade Deerfoot Trail using a public-private partnership (P3) model.
Instead, the project will be procured in smaller pieces.
“We committed that we would only pursue P3s when we found value for taxpayer money,” said Prasad Panda, minister of transportation, in a statement. “While the government is not going ahead with a P3 approach, we remain committed to making improvements to Alberta’s busiest highway and will move ahead with the necessary upgrades to help people get to their destinations safely and more efficiently.
Panda explained current economic conditions have resulted in pricing volatility and historically high inflation in the construction industry, which means a P3 approach to Deerfoot Trail improvements is not economically viable.
“We will focus on improving the most congested areas on the highway first to improve traffic flow and reduce travel times for commuters in the Calgary region,” he said. “Work is underway to identify the most critical areas for improvement that can be tendered and completed as quickly as possible.”
Panda added that the province will continue to make use of P3s where and when it makes financial sense.
Much of the road was constructed in the 1970s. Since then, Calgary’s population has doubled, more people have access to vehicles and traffic volumes continue to increase. In 2019, the average weekday traffic volumes were 93,000 at Stoney Trail SE and 190,000 at Memorial Drive.
The $210 million will upgrade the highest priority areas, focusing on increasing road capacity and reducing issues caused by vehicles weaving to get on and off the freeway.
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