SOMBA K'E/YELLOWKNIFE - A project troubled from its inception, Canada's auditor general says she would not be surprised to see the cost of the Deh Cho Bridge exceed $182 million.

Sheila Fraser tabled a full audit on the Deh Cho Bridge, the largest public infrastructure project ever undertaken in the NWT, in the legislative assembly Tuesday afternoon.

The bridge has been rife with controversy and accusations of mismanagement from the beginning of its construction in 2008, forcing the government to take on the full debt of the now estimated $182-million project. It was projected to cost $55 million a decade ago.

Now, Fraser said residents should be prepared for the price tag on the project to rise even higher as the Department of Transportation has not addressed what would happen should the bridge be completed late.

"I can tell you in all honestly that I will not be surprised if the final cost of this bridge is more than $182 million," said Fraser.

In her report, which was completed in October 2010, Fraser states there is still significant work that needs to be completed such as electrical distribution, catwalks and toll collection equipment that she did not see reflected in the schedule or budget.

Weledeh MLA Bob Bromley said he agrees the project puts the territory in a vulnerable position.

"She (Fraser) has pointed out that all risks are not fully covered and fully managed to the extent they could and should be. She's calling for an action plan to clarify how that will get done," Bromley said.

Transportation Minister Michael McLeod said the bridge is close to 85 per cent completed and the department has only used about $300,000 of its $2-million contingency fund.

"She's made it clear she's not satisfied that we didn't put a bigger contingency fund in place to deal with a project of this size," McLeod acknowledged. "It's been a year and we've virtually not touched it ... Something may come up but so far, so good in this phase."

He said overall, the Department of Transportation generally agrees with the auditor general's assessment of the project, although he said right now, the department is on track to complete the bridge on budget and on schedule, with the opening slated for November.

"This is an operational budget of the government's involvement, not anything else," he said.

Fraser said although originally touted as a partnership with the private sector, the project became publicly funded with all the additional costs and risks resting with the government.

"When you have a public-private partnership, it is important that both partners assume risks ... We see here that the Deh Cho Bridge Corporation (the Dene and Metis of Fort Providence) really never assumed risk," she said. "They had very little financial capability and the government even assessed that the technical capability was limited. The risks really were on the government from the very beginning."

She said the GNWT waived approval of the bridge designs so construction could start, despite the Department of Transportation's concerns about the design.

This made Bromley uneasy. He said it is clear the Department of Transportation's best advice was not to go forward with the concession agreement until the bridge design was confirmed.

"Yet in February 2008, they went ahead with that against the Department of Transportation's advice ... Someone in the government made the decision to go ahead despite that. To me, that's a huge issue and we need to get to the bottom of that."

The Department of Transportation took over the project when the Deh Cho Bridge Corporation was declared in default of a $165-million government-guaranteed loan. Fraser said while quality assurance and quality control have improved over the project's development, risks remain relating to the schedule, scope and cost.

"The department needs to assure the legislative assembly and the public that it has measures in place to manage the risks that remain," she said.

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