Yellowknife (Mar 16/05) - The project manager for the Deh Cho Bridge Corporation doesn't think higher steel prices will hurt the project.

Currently, the total cost for the bridge will come in at about $60 million, said Deh Cho Bridge project manager Andrew Gamble, adding the project costs will be revised again once the contract bids come in.

The previous steel price hike was accounted for in 2004 cost estimates.

"The price of steel spiked over a year ago," he said. "It has levelled off and is starting to stabilize."

If the contracts went out today, Gamble admitted the price to build would likely go up by about 15 per cent - or roughly $9 million - however, he stressed there are other factors at play that will more than off-set that increase.

Low interest rates will more than even out any fluctuation in the price of steel, he said.

"We're planning on a bond issue through TD Securities," he said. "A year ago when we did the last estimate, we were assuming a real return bond rate of around 4.5 per cent - we're now expecting it to be closer to 3.5 per cent."

Currently, the construction schedule calls for a tender to be issued in late spring with the work to begin before Christmas this year. Chief Operating Officer for the Bridge Corp., Michael Nadli said his people are working hard to ensure the structure is up and in use before the end of 2006. Expectations are the bridge corporation will receive firm prices by mid-summer.

"Really, what we estimate doesn't mean much," he said. "It's what the contractors bid that really counts."

There is no change in the plan to pay for the bridge by charging a $5/tonne to $6/tonne toll on commercial traffic.

"If we can't keep them in set limits, the project won't proceed," said Gamble, adding the NWT and Nunavut Chamber of Mines expressed some concern a year ago, but has since withdrawn its objections. In 2004, Gamble estimated the tolls would cost the largest users, Snap Lake, Diavik and Ekati, about $1.5 million annually.

Gamble added he was unhappy with the regulatory pace for the bridge's development.

"We applied for permits two years ago and over a year ago were referred to the Mackenzie Valley Environmental Impact Review Board for environmental assessment," he said. "We've adjusted schedules a few times based on events beyond our control and frankly, we still don't have the permits."

The project is still awaiting the minister to sign off on the environmental assessment, he said.

Eric Yaxley, an environmental scientist with INAC said the review of the bridge, "looks very favourable and there seems to be agreement there will not be any adverse affects caused by the project."