Calgary city council approved a revised Green Line Phase One project scope, capital funding request, and delivery model as recommended by the Green Line Board. To respond to rising costs and potential future escalations and maximize the Green Line's benefits, the City of Calgary said the Green Line Board’s recommendations were based on work done to reduce costs and contractor negotiations during the Development Phase. “Today's decision is more than a decade in the making and sets Calgary up for success for years to come, especially at a time when we are the fastest growing city in the nation,” said Calgary Mayor Jyoti Gondek in a Tuesday press release. “The Green Line is a critical piece of transportation infrastructure that demonstrates all three orders of government are focused on collaboration and co-operation to get megaprojects moving.”The City of Calgary said Green Line main construction for Phase One will now begin by building the core from Lynnwood/Millican in the southeast to Eau Claire downtown, connecting to the Red and Blue Line. It added construction on the rest of Phase One south to Shepard and any future extensions north or south will proceed when additional funding is in place.This decision will allow for new Bus Rapid Transit and bus service in the southeast to provide connections into the Calgary LRT, contributing to the projected opening day ridership of about 32,000 Calgarians. Calgary city council approved deferring construction of the Centre St. S Station and shifting the Four St. SE Station near Stampede Park from underground to street level to expand future regional transit connections and integration with the planned Grand Central Station.Because of extensive efforts during the Development Phase, the City of Calgary said it saved some money. Without additional funding from the Alberta and Canadian governments for Phase One, it said it will increase its spending in the Green Line by contributing $705 million to build the core of Phase One at a total new cost of $6.2 billion — up from the approved budget of $5.5 billion in 2020.Alberta Premier Danielle Smith said the government has agreed to provide the Green Line with up to $1.53 billion in funding."And we have asked them if they are going to go beyond that to rescope the project," said Smith. "We think there's an opportunity to do that with the new events district as well as with the potential to integrate into city hall." Smith said its hope "would be that they would be realistic about what the costs are going to look like and make sure that they build the maximum length so that it reaches into the maximum number of communities." The Alberta government has conveyed the $1.53 billion is the cap. The City of Calgary said it spends money wisely, which has enabled it to manage its portion of the Green Line’s costs. It confirmed current capital investments and municipal property taxes in 2025 will remain unaffected by the increased spending on it. It said the strategy to build LRT projects in Calgary in phases makes more sense because of cost pressures on all infrastructure projects and the financial constraints and competing priorities of its funding partners. This is because it never gets cheaper to build major infrastructure projects.To align with current market dynamics, a change from the Design-Build-Finance contracting strategy to a multi-contracting one was approved. It predicted this change will save about $600 million and allow the Green Line to do contracts on individual parts. “The Board is confident that revising the construction phasing for Phase One, building from Lynnwood/Millican to Eau Claire, is the best approach to control costs, mitigate risks and build the critical core of Green Line,” said Green Line Board Chair Don Fairbairn. “We appreciate that some Calgarians will be disappointed that they will have to wait longer for the new LRT service to reach their community, but starting construction will lay a foundation for Calgary’s sustained growth and ensure the long-term benefits of housing, connectivity, and ridership can be maximized.”It said the benefits from building the core of Phase One remain high. By following through with it, it said it will connect Calgarians to 162,000 jobs within walking distance of stations, remove 15,000 tonnes of greenhouse gas emissions annually, and unlock 70,000 housing units through strategic transit-oriented development along the alignment.Phase One of the Green Line is the largest infrastructure project in Calgary’s history. The $1.4 billion spent on it so far includes $350 million in land acquisition, $400 million on infrastructure such as the utility upgrades nearing completion in the Beltline and downtown, and the new fleet of LRT vehicles scheduled to start arriving in late 2027.The Green Line will work with the Alberta and Canadian governments on approval of the revised funding agreements before signing the project agreements and commencing construction in late 2024. The Green Line Board selected Graham Construction to construct the 78 Ave. SE Grade Separation and Ogden Pedestrian Tunnel Project for the Calgary LRT in 2023. READ MORE: Green Line selects Graham Construction to build 78th Avenue Project in Calgary“Green Line has prioritized opportunities that advance construction, reduce risk, and support local job creation,” said Green Line LRT CEO Darshpreet Bhatti. “Partnering with Graham to deliver this critical project speaks directly to this commitment.”
