The construction cost for the Fraser River Tunnel Project, a new toll-free, eight-lane tunnel, to replace the George Massey Tunnel in Metro Vancouver has climbed to $8.5 billion.
The Government of British Columbia confirmed that the federal government will contribute up to $3 billion in capital costs.
The updated total project budget is $8.5 billion, reflecting current market conditions, the most recent information on project scope, inflation and the delivery schedule required for a project of this scale and complexity. This estimate has been validated by an independent third party.
The federal government’s funding is part of the Canada-BC Cooperative Prosperity Agreement while B.C. will contribute the remaining amount.
The province announced on June 15, 2026, that it would move forward with a revised procurement strategy for the project after concluding the design and early works agreement phase. The new procurement model divides the remaining work into multiple packages, increasing competition and creating more opportunities for local Canadian and British Columbia-based contractors.
The province stated that even with the new procurement model, no work has been lost. The tunnel’s design will remain unchanged, including the anticipated tunnel depth, the length of ramps and the location, from the concept designed in 2023. Rigorous studies were undertaken before determining the approach for the new tunnel and there will be no impacts to the existing tunnel during construction of the new one.
Construction activity continues while procurement advances. 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, creating approximately 200 jobs in 2026 alone.
The province expects the Environmental Assessment Office review process to conclude before the end of 2026, with major construction anticipated to begin in 2027. The original estimated completion date for the Fraser River Tunnel Project was December 2030. The new estimated completion timelines have shifted slightly to September 2031.
