Why did the scope and cost of the Regina Bypass project change?
The first concept of the Regina Bypass in 2013 was for the south section (seen below) to divert truck traffic off Victoria Avenue East. The cost estimate was roughly $400 million.
There were two other projects also being considered around Regina. Overpasses east of Regina (see below) to provide greater safety to the growing communities in that area. The cost of this project was roughly $400 million.
Another project was in the works to the west of the city (see below) to divert traffic off Dewdney Avenue. The cost of this project was roughly $400 million.
A decision was made to combine these individual components into one project: the Regina Bypass.
So, the original $400 million estimate now increased to $1.2 billion as the project scope increased.
Another number often cited is $1.88 billion* for the Regina Bypass. That number is the total cost of the project. It includes not only construction, but also the transfer of risk to the private contractor, 34 years of regular maintenance, reconstruction, snow removal. At the end of the 34 years, the road will be handed over to the province in “like-new” condition.
Professional cost estimators calculated the cost of building and maintaining the Bypass was $2.2 billion. The $1.88 billion* Graham-team P3 bid was less expensive so it was accepted.
Ernst & Young verified the P3 method will save Saskatchewan people $380 million.
This Bypass is expected to create over 8,200 local construction jobs.
The lead builder on the Bypass is Graham construction, founded in Moose Jaw in 1926. It is being designed by four companies out of Regina and Saskatoon.
Saskatchewan business groups have endorsed P3s as a way to improve infrastructure and create jobs. This includes:
The Government’s total investment of $1.88 billion* includes the full cost of the Bypass over the next 30 years and construction.
The previous estimates were based only on the construction-related costs. The cost of construction alone is in line with the $1.2 billion estimate.
*Note: land acquisition is separate from this cost and is projected at roughly $100 million.