WINNIPEG – A costly Winnipeg construction project is at risk of losing millions of dollars in funding if it can’t meet a deadline that’s rapidly approaching.
The federal government, which is paying $25 million of the total bill for the Plessis Road widening and underpass project, agreed to a one year extension in the completion date but with conditions: two lanes of traffic on Plessis must be open to traffic between Dugald Road and Kernaghan Avenue by July 31 this year, and two more by September 30.
“The July 31, 2015 date is aggressive,” city officials warn in a report to be presented to city hall’s finance committee Thursday. “The project continues to experience delays and efficiencies need to be identified to meet the dates in the federal agreement, otherwise Canada may terminate the Agreement or suspend its funding obligations.”
Global News requested more information Wednesday on what kind of “efficiencies” were being considered to speed up the work or avoid further delays, but city spokespeople said no other details were available.
The project to widen Plessis Road and build an underpass at the CN rail tracks was supposed to have been complete in 2014, but complications dealing with the railway and companies that operate underground oil pipelines caused delays.
Transcona councillor Russ Wyatt says he’s confident the project will meet its remaining deadlines, in part because the builder PCL Construction is penalized $10,000 a day for every day they go beyond the target date.
“It’s one of the toughest locations probably to build an underpass we’ve had a total of 3 pipelines that had to be moved. We dealt with owners in Texas and California we also had a railway which is a main line at that location and so we need co operation assistance from the railway,” Wyatt told Global News Wednesday.
“It’s going to be a great project it’s going to be something tremendous for the community once it’s open. Even though it’s been a real inconvenience right now,” Wyatt said.
The project cost was initially pegged at $77 million, with Ottawa and the province paying $25 million each and the city paying $27 million. Cost overruns have added $6.8 million to the bill which the city will have to cover, although officials expect to eventually get that money back from the railway.
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