Parliamentary Budget Office to Review Costs of Gordie Howe Bridge

The Parliamentary Budget Office (PBO) has agreed to a New Democrat MP’s request to undertake a review of the costs of the Gordie Howe International Bridge.

The NDP said on Aug. 4 that the PBO had accepted MP Heather McPherson’s July 21 request to investigate the bridge’s “financial costs relative to initial government estimates, including contract changes, legal actions, and cost overruns and accountability.”

McPherson previously said at a July 29 House of Commons government operations committee meeting that Canadians deserved answers on the bridge deal, and to know “why the prime minister misled the media,” according to Blacklock’s Reporter.

The $6.4 billion Gordie Howe Bridge connecting Detroit with Windsor officially opened on July 27, and has six traffic lanes, 16 toll lanes, and 60 inspection lanes.

The bridge’s opening became a controversial subject in Canada in recent months due to its delayed opening by the United States and differing interpretations of a new deal signed between Ottawa and Washington.

Under the original 2012 agreement between Canada and Michigan, 100 percent of the tolls collected from the bridge’s operations would go to the Canadian government until Ottawa fully recouped the expenses from fronting the full cost of construction. After that, half of the toll revenue would go to the state of Michigan.

While the bridge was set to open in early June, it was delayed by the United States as the two countries came to an updated agreement.

The full text of the agreement, posted online on July 21, said Canada will share 50 percent of the bridge’s net revenue during its first 15 years of operation with an economic development fund that is “solely controlled” by the U.S. government. The agreement does not mention interest costs or repayment of the construction debt of the bridge.

However, Prime Minister Mark Carney had said on July 12 “net profits” would be 50–50 with Washington after Canada had its debts repaid. Carney said July 16 that Ottawa would split revenues with the United States over the first 15 years “after operational costs,” and that the sharing of toll revenue would not happen until Canada’s debt is repaid.

On July 23, when Carney was asked by a reporter if he had lied about the details of the agreement, he said he had been referencing the terms of the deal “perhaps imperfectly.” Carney said he was referencing the original deal with Michigan that has no sharing of tolls until Canada’s debt is repaid, while “in parallel” there is a 15-year agreement for payments to Washington based on net revenues after operating expenses.

During the July 29 committee meeting, the Conservatives had introduced a motion to order the Infrastructure Department to release “all drafts” of the proposed agreement around the bridge, to request that the PBO analyze the deal, and invite federal officials to testify on the bridge.

The committee adjourned without a vote on the motion, as Liberal MPs who hold the majority voted to end the meeting early.