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No federal cash, no Deh Cho bridge

Jason Unrau
Northern News Services

Yellowknife (May 17/06) - Premier Joe Handley wants Ottawa to pay for one-third the cost of the proposed Deh Cho Bridge across the Mackenzie River, or the project is dead in the water.

"We know we cannot finance a $140, $150 million bridge with a six-dollar toll," he said Tuesday. "The only way this could work is if the federal government put in some money and I'm asking for $50 million."

NNSL Photo/graphic

Andrew Gamble, manager for the Deh Cho Bridge Corporation, says unless the federal government kicks in some capital for the deal, the idea of a bridge across the Mackenzie River could remain just that.


Handley is meeting with Minister of Transport, Infrastructure and Communities Lawrence Cannon Thursday.

"My argument is the highway to Yellowknife is part of the national highway system," the premier said.

When asked if he would accept a 'strings attached' financial commitment tied to a future revenue sharing deal with Ottawa, Handley replied, "If we had a better share of the resource revenues we wouldn't need to ask for support, but because we don't we have no other options."

Andrew Gamble, manager for the Deh Cho Bridge Corporation, says unless the federal government kicks in some capital for the deal, the idea of a bridge across the Mackenzie River could remain just that.

"If this thing doesn't work at a certain toll rate, then there needs to be some capital infusion in order to make it viable," said Gamble, referring to the $6 per tonne charge for all commercial freight going over a completed bridge. He added that with no plans to increase the toll, current traffic volumes would make it impossible to recoup the investment.

"Can the premier get the feds to contribute?" asked Gamble. "We need that answered before we make a final decision."

In 1975, a Public Works Canada concept for a bridge came with a $25 million to $30 million price tag. It then increased to $60 million 30 years later and most recently Premier Joe Handley, speaking at an Edmonton Meet The North conference, pegged the final cost at $140 million. He called the bridge a top priority for the North.

The price tag for the bridge rose dramatically after tenders from potential builders came in last March - all well above the $60 million figure the government and Deh Cho Bridge Corporation had hoped for.

"Whatever the final cost is, including construction, financing and insurance, the equity is $5 million and the rest needs to be borrowed," said Gamble.

"At current interest rates and projected revenues the question is, can the debt be serviced? And it's doubtful right now."