A road for all reasons, says PM
The Province
New Democrat questions role of private financing
Prime Minister Stephen Harper came to a Surrey warehouse yesterday to sing the praises of a $1-billion South Fraser Perimeter road as a response to tough economic times.
Despite opposition from environmentalists and local residents and questions about the availability of private financing for major projects, Harper and Premier Gordon Campbell claimed the project would create 7,000 new jobs in B.C. by 2021.
"B.C. has never been more important to Canada," Harper said. "This is exactly the kind of thing our economy needs [in these tough economic times]
"This announcement is about where we are headed as a country. This is the great economic opportunity of the century before us. That's why B.C. is more important today to Canada than at any time in our history," he declared.
"This is a very large project. It will help move tonnes of goods and thousands of commuters," said Harper.
Campbell, who stood beside Harper on the podium, said the project will lead Canada into the "Asia-Pacific century."
"This will improve [peoples'] quality of life. It will benefit all of Canada," Campbell said.
He said B.C. loses about $1.5 billion every year to problems associated with traffic congestion.
"It keeps people away from their families," he said. "Truckers spend 75 per cent of their time in slow-moving traffic."
Many of the details of the project had already been made public. The federal government is contributing $365 million toward the $1-billion project and the province $635 million.
Officials revealed yesterday that three companies will bid on becoming part of a public-private partnership.
The prequalified bidding teams are the Fraser Transportation Group (which includes Zachry American of Texas), the South River Connector (which includes Bilfinger Berger) and the Riverway Partnership (which includes SNC-Lavalin).
The company chosen will pay to build the road and then will be paid back by the province over the life of the contract, likely to be 20 years.
Campbell discounted concerns that privately raised funds aren't available given financial institutions' current lending difficulties.
"This is the kind of project which financial institutions look at. There are secure long-term returns for the investor," he said.
Security personnel kept about 20 placard-waving protesters well back at Fraser Surrey Docks where Harper spoke.
"Building a highway is yesterday's solution to tomorrow's problems," said Ben West of the Western Canada Wilderness Committee.
"It's a step in the wrong direction. People are asking for investments in green infrastructure. There should be more buses and a light-rail strategy for the Lower Mainland," he said.
Surrey resident Tom Jaugelis said traffic congestion will be increased rather than reduced.
NDP critic Guy Gentner, the MLA for Delta North, questioned what role private investors will play if the financing has already been put up by governments.
"The budget was supposed to be $800 million to $1 billion. Governments have already put that amount up. What's the role of the P3?" he asked.
