WINNIPEG — The second phase of the bus rapid transit project is under budget by $120 million.
The city released the new figures Tuesday morning.
Initially, the project was projected to cost close to $600 million but now the estimate is $467.3 million.
Mayor Brian Bowman said the savings come from innovations and lower construction costs associated with the P3 bidding process.
“That’s something we want to see more of course at City Hall, we’re constantly looking for how can we be more innovative, how can we be more efficient with tax dollars,” said Bowman
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Since the city is splitting the cost of the project with the other two levels of government, Winnipeg Transit Director Dave Wardrop said the city’s share of the savings would be approximately $35 million.
Wardrop said there are three big changes to the design plan that have brought the price tag down.
Two tunnels, one for the bus rapid transit corridor and one for active transportation, have both been changed to overpasses and another active transportation section has been moved away from rail lines.
However, Wardrop also admitted market conditions and historically low interest rates played a part, “We’ve also had a lot of really good fortune, the stars have really aligned for us,” he said.
How the extra money will be spent isn’t clear yet. That decision will be made by city council in the future.
The changes to the rapid transit project will be unveiled at a public meeting in mid-July.