The B.C. government is terminating the contract with Cross Fraser Partnership to replace the aging George Massey Tunnel with a modern, toll-free, eight-lane immersed-tube tunnel beneath the Fraser River.

Since September 2024, the province has been working with Cross Fraser Partnership under a design and early works agreement to advance project design, technical studies and early construction activities while working toward a potential final construction agreement.

While significant progress has been made on design and current construction work, the government said agreement on the commercial terms for final construction of the tunnel was not reached. As a result, the government is moving forward with a revised procurement strategy that will divide the remaining work into several procurement packages, allowing a broader range of qualified firms to bid on portions of the project.

As a first step, requests for qualifications will be issued to identify qualified proponents for key phases of the project. Industry engagement, including discussions with international, Canadian and local contractors, confirmed strong market interest in the revised approach.

Construction activity on the project will continue while procurement for future phases is underway. Design work, technical investigations, utility co-ordination and other early works completed will continue to support project delivery.

Early construction work started in January 2026, including tree clearing, utility relocations and preparation for the construction of a casting basin. Temporary infrastructure construction is also underway, including the construction of three jetties for the delivery of materials, a trestle bridge onto Deas Island, access roads and retaining walls for the casting basin on Deas Island.

The new $4B Fraser River Tunnel project was first announced  in 2021 with an opening date set for 2030.