Fort Providence (Sep 22/06) - High labour and material costs have put an end to the dream of a bridge across the Mackenzie River near Fort Providence -- at least for now.

Between $90 million and $100 million was earmarked for the project, according to the territorial transport department. But a labour shortage coupled with increasing costs of steel, fuel and other products helped to raise the price considerably, said NWT Premier Joe Handley.

The construction tender for the bridge was initially put out companies with a closing date in 2005. That was later extended to Jan. 20 of this year and then again to March 22.

Until then, the Deh Cho Bridge Corp. had expected to complete the project for $60 million.

But when bids finally closed, costs estimated by the bidding firms put the project at $140 million, said Handley while speaking at the Start Your Engines Transportation and Logistics conference in Hay River, Tuesday.

"Until we find a way to secure that $50 million, the project is on hold. Not abandoned, just on hold," said Daniel Auger, assistant deputy transport minister.

"It's a challenge for us now. How do we find the extra $50 million that we need in order to build the bridge that we all need?"

The bridge will continue to be of strategic importance for the Government of the NWT (GNWT) and negotiations with the federal government for more funding will continue, said Handley. He said without the bridge, certain years mining supplies might not make it to diamond mines and exploration properties along the Tibbitt-to-Contwoyto winter road, which runs northeast from Yellowknife.

Richard Lafferty, owner of Flash Point Facilitators and a resident of Fort Providence, had hoped to do some contract work on the one-kilometre span, but now he's not so sure that will ever happen.

"It is hard to remain optimistic when it was on hold since last spring," he said.

When prices in labour and construction began to rise, the GNWT should have anticipated a larger cost increase earlier on, he said.

"There is no end to the frustration," said Lafferty.