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The low-ball figure of $4.15 billion allocated to build the Fraser River Tunnel to Replace George Massey Tunnel on Highway 99StatusPre-Construction/NegotiatedValue$4.15BLocationBC-99, Delta BCSectorPublic – State/ProvincialTypeBridges / Tunnels · New ConstructionData as of June 18, 2026 is targeted as the reason behind the B.C. NDP terminating dealings with design-build consortium Cross Fraser Partnership (CFP) and re-tendering in the hope of getting a better deal.

The B.C. government, which re-paced several projects in its 2026 budget for lack of funds, was “unable to reach an agreement with CFP on the commercial terms for final construction,” according to a recent press statement.

“That $4.15 billion figure has not changed since 2021,” said Delta Coun. Dylan Kruger, who put forward an emergency resolution at Delta’s past Monday (June 15) council meeting asking the government to carry out a third-party review of the termination.

But also “how we got here and the cost implications of the cancellation and what the overall budget is,” Kruger said, voicing area residents’ frustration over construction delays.

“No one in the industry believes that this tunnel will cost the $4.15 billion the NDP are claiming; it will likely be closer to $9 billion, and now they’re back to square one on construction,” said Harman Bhangu, B.C. Conservative transportation critic.

Under the new re-tendering process, the project will be broken into five different parcels and Requests for Qualifications have been issued to identify qualified proponents for phases of the project, according to the BC transportation ministry.

The five key contracts are: the immersed tube tunnel and the south portal on Deas Island; the north portal in Richmond; finishing works for the tunnel (paving, mechanical, electrical and plumbing); the new Deas Slough Bridge; and highways and civil works.

Procurement for the first two contracts was initiated June 16 and is design-bid-build with target price contracts.

The Independent Contractors and Businesses Association’s Jordan Bateman called the termination “a disaster” for those living and commuting in the area.

“This crossing could have opened two years ago for less than $3 billion,” he said, speaking of the bridge proposal that was scrapped for the tunnel.

Bateman also sees the NDPs budget constraints as behind the CFP termination.

“The price tag was too much and they could not come to a deal,” he said, adding the delay and re-tendering could push it to $11 billion.

Bateman believes the government is attempting to parcel out the segments so it can still gain political mileage in claiming the tunnel portion came in on budget.

While design and early works has started on the site, Minister of Transportation Mike Farnworth said re-tendering is “taking this back to a competitive process to seek the best possible value for taxpayers.”

“We know the market is hungry for work on major infrastructure projects,” he said.

The parceling will also allow a broader range of qualified firms to bid on the project, Farnworth said. The BC NDP used a similar approach on the Surrey Langley SkyTrain project and the Fraser Valley Highway 1 Corridor Improvement Program.

B.C.’s construction sector, while expressing concern over the delayed project, views the re-tendering as an opportunity for local and Canadian companies.

CFP is a design build joint-venture of Bouygues Construction Canada (headquartered in France), Fomento de Construcciones y Contratas Canada (headquartered in Spain) and Pomerleau B.C. headquartered in Quebec.

“From a roadbuilder’s perspective, we are pleased that this government had decided to divvy it into five different projects,“ said Kelly Scott, CEO for the BC Road Builders and Heavy Construction Association.

While the immersed-tube tunnel portion is European technology, Scott said the other portions translate into opportunity for local companies.

“It will allow our members to bid on that work, grow our economy and keep our people working.”

Scott echoed Farnsworth’s comments on the Fraser Valley Highway 1 Corridor where contract splitting led to more competitive bidding. There is also the opportunity for smaller companies to forge partnerships and gain expertise in working on larger contracts, he said.

However, while CFP’s dealings with government are terminated, Pomerleau is still in the game as an issued statement said: “We acknowledge and respect the province’s decision,” and that it was “proud to contribute” to the project.

“We are entirely committed to fulfilling our current obligations through to completion and intend to actively participate in upcoming procurement opportunities,” it said.

BC Construction Association president Chris Atkinson said the local construction industry views this as a welcomed opportunity for greater participation.

“We are encouraged with this new opportunity that allows us to look for work on major projects,” he said, adding the association’s focus will be on ensuring there is a fair and open procurement process.

The Progressive Contractors Association of Canada is calling for the new procurement process to be “labour-model neutral” in order “to make the most of this less-than-ideal situation” which has been of the NDP’s own making, said B.C. regional director Dan Baxter.

“Open tendering drives competition, which is essential to keeping costs under control and delivering the best value for taxpayers,” he said.

Unions have also come on side with the re-tendering.

Bryan Railton, International Union of Operating Engineers Local 115 business manager said: “This revised process will break the work into achievable procurement packages and allow more local firms to compete for contracts.”

BC Building Trades executive director Brynn Bourke agrees. “The re-tendering of the final construction phase of the project will provide an opportunity for local contractors to participate in building this critical project and maximize the benefits to local communities.”