Hey there, time traveller!

This article was published 11/3/2015 (2019 days ago), so information in it may no longer be current.

Costs keep increasing for the troubled Plessis Road widening and underpass project.

City officials are concerned they won’t meet a July 15 deadline to open two lanes of traffic, necessary to qualify for federal funding.

An administrative report to Thursday’s meeting of the finance committee shows the project cost has increased another $2.5 million since mid-November.

The cost of the project was originally set at $77 million, with Ottawa and the province each contributing $25 million and city hall the remaining $27 million.

The project cost is now set at $83.8 million, with the city’s share at $33.8 million.

While project costs have escalated, the commitment from Ottawa and the province has not increased, leaving city hall responsible for the additional cost.

The Plessis Road project includes widening and construction of a rail line underpass. It was supposed to have been completed in 2014 but was pushed back a year because of delays caused by scheduling work around the needs of CN Rail and the oil companies that maintain underground pipelines around the project site that had to be relocated.

Ottawa agreed to the one-year delay but put in place firm new dates or it would withdraw its $25 million: July 15, 2015, two lanes of Plessis have to be opened between Dugald Road and Kernaghan Avenue; Sept. 30, 2015, four lanes of Plessis have to be open.

City officials reported in mid-November that the project cost had increased $4.3 million. Now, officials said the project is $6.8 million over budget.

Officials remain concerned about meeting the July 15 deadline.

"The July 31, 2015 date is aggressive," states the administrative report to the finance committee. "The project continues to experience delays and efficiencies need to be identified to meet the dates in the federal agreement, otherwise Canada may terminate the Agreement or suspend its funding obligations."

Dealing with the additional costs, the report states the city has to pay those costs but expects CN Rail – which is responsible for a portion of the project costs – will cover the $6.8 million over expenditure, and probably a lot more. The railroad has yet to make any payments on the project.

However, the report notes that city hall will have to negotiate CN Rail’s final contribution. If both sides can’t agree on the railroad’s share, the issue will be resolved by the Canadian Transportation Agency.

aldo.santin@freepress.mb.ca