So LRT projects are immune from cost overruns now? Only subway costs can balloon?
It's not that subway projects are more prone to cost inflation, but rather that the Scarbrough Subway Extension project has more unknown factors contributing to uncertainty about the price than the Scarbrough LRT project.
The subway is now estimated to cost at least $3.2 Billion. But because the SSE project is running behind schedule, and not anticipated to open until 2025/2026, City Staff say there
will be additional cost escalations beyond the $3.2 Billion currently budgeted. The magnitude of these escalations will be unknown until we get a revised schedule
Furthermore, only minimal design and engineering work for the SSE project has been completed. That means that we don't really have a good idea of what is necessary to build this infrastructure. So City Staff anticipate that prices will increase by up to $1 Billion above the $3.2 Billion currently budgeted. And note that this $1 Billion price escalation does not include cost escalations due to the delayed schedule. So we have two unrelated factors each addicting significant inflationary pressure on prices.
Detailed design and engineering work is complete for the LRT. That means that we know what is necessary to build it, and have highly accurate pricing estimations. Of course pricing can escalate future, but it won't be anywhere near the magnitude we've seen for the subway extension.
So essentially, all we know at this point is:
- The Scarbrough Subway Extension will cost between $3.2 Billion and approximately $4.2 Billion.
- The LRT will cost $2.9 Billion.