DEH CHO
The Deh Cho Bridge is still not bringing in the revenue the GNWT expected, but Finance Minister Michael Miltenberger says that's not the way to look at the bridge.

The Deh Cho Bridge, pictured here last March. The impact of the bridge to life and business in the North is not easily quantifiable, says Finance Minister Michael Miltenberger. - Walter Strong/NNSL photo

In its first year of operation, the bridge brought in $3.6 million in revenues, approximately $400,000 short of the budget estimate of a little more than $4 million.

Current data is not available for the full second year of operation, although as of August, the bridge had generated $6.56 million in revenue. In the 21 months between December 2012 and August 2014, the monthly average works out to approximately $312,000 per month, or approximately $3.75 million per year, still about a $250,000 shortfall.

"Revenues fluctuate throughout the year based on truck traffic, which rises and falls based on economic development and is expected to increase this year with the construction of Gahcho Kue," stated Department of Transportation spokesperson Megan Holsapple in an e-mail to News/North.

The $4-million budget estimate was originally based on an estimation from traffic data gathered between 2008 and 2011, and on expected increases in traffic due to mine construction.

That may still come to pass as construction continues to ramp up this winter at the Gahcho Kue diamond mine project.

But drawing a connection between the bridge's value and bridge revenues is to miss the point of the bridge, according to Miltenberger.

"It's exactly the kind of key economic infrastructure that governments should be investing in, similar to the Mackenzie Valley fibre link, or the Tuk to Inuvik highway," Miltenberger said.

"We should look a the bridge as a key piece of transportation infrastructure. It's increased the quality of life, helped with the cost of living, given enormous convenience to almost 20,000 people who live on the north side of the river."

But measuring that supposed economic impact may be a nebulous proposition.

When originally projected as a $55 million dollar project in 2003, the net benefits of the bridge were calculated to be approximately $38.6 million over the 75-year life of the bridge.

Costs spiked

By 2007, a project update brought bridge costs to $155 million thanks largely to inflationary pressures on materials and labour. These inflationary pressures were not equalled on the savings side of the equation, so net benefits went negative to the tune of a $50.1 million loss, assuming no increases to toll charges.

When the bridge was built in 2012, the final bill was $202 million. An additional $259,000 per year was budgeted for bridge operation and maintenance.

Cost of living statistics for Yellowknife have not decreased since the bridge was opened. Instead, they have increased.

This past October, the consumer price index for Yellowknife was 129 index points, up from 124.8 in Dec. 2012.

There were concerns prior to moving forward with bridge construction that the tolls added to commercial traffic that previously travelled for free could only drive up the cost of living, but Miltenberger doesn't doubt the bridge is bringing economic benefits to the North, despite the absence of economic indicators or statistics to show that.

Cost of living bonus

"The cost of living is a very complex factor, and bridge access is only one of those factors," Miltenberger said.

"I don't think the bridge should be singled out."

Bridge tolls and revenue go into general government revenues as the bridge debt is wrapped into the government's overall debt.

And toll revenue may be going up as the GNWT considers introducing a fourth toll class for vehicles with nine or more axles. The GNWT is considering the toll over the coming months, and no dollar figure has been attached to it.

Even at reduced revenues, the $202 million project will have paid for itself in fewer than 54 years, well within its expected lifespan of at least 75 years.

"In time, the bridge will pay for itself in spades," Miltenberger said.

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