The estimated cost to replace the George Massey Tunnel in Metro Vancouver has more than doubled, reaching $8.5 billion, according to British Columbia’s Transportation Minister Mike Farnworth. The new estimate marks a significant increase from the $4.15 billion projected in 2021.

Farnworth attributed the surge in costs to inflation, shifting market conditions, and the complexity of delivering a large infrastructure project amid ongoing global challenges. “There has been significant inflationary costs. In fact, it is a global phenomenon that we have seen through the disruption of supply chains, that we’ve seen post-COVID, that we’ve seen with global instability,” he said during a news briefing on Monday.

The planned replacement involves constructing an eight-lane tunnel beneath the Fraser River, connecting Richmond and Delta. The project aims to enhance transportation efficiency, especially for port access and goods movement within British Columbia and across Canada.

The revised budget announcement follows a recent funding agreement between the provincial and federal governments. Under the accord, Ottawa will provide up to one-third of the capital costs, with a maximum contribution of $3 billion. This federal support may include both direct financial assistance and low-cost financing options.

In June, the provincial government decided to terminate its contract with the design-build consortium initially selected to carry out the project. The Ministry of Transportation now anticipates finalizing procurement decisions in 2027, pushing the completion date from December 2030 to September 2031.

Farnworth described the tunnel replacement as a “nation-building project” intended to improve the flow of goods through major transportation corridors, underscoring its economic significance beyond the region. The province emphasized that despite rising costs and adjusted timelines, the project remains a priority for supporting trade and infrastructure development in British Columbia and Canada.