The Calgary City Council has approved a revised project scope, capital funding request and delivery model for the Calgary Transit C-Train light rail Green Line Phase 1 project, as recommended by the Green Line Board. The revision, the agency said, will “ensure construction can begin while responsibly addressing the cost inflation that is impacting all major infrastructure projects across North America.”
Calgary Transit said the Green Line Board’s recommendations “were based on the extensive work undertaken to reduce costs through value engineering and design optimization and the direct outcomes of contractor negotiations during the Development Phase.” The Board needed to “respond to rising costs and potential future escalations, while maximizing the benefits identified in the 2020 Council approved business case for the Investing in Canada Infrastructure Program (ICIP) grant application”
The Green Line project has changed from a Design-Build-Finance (DBF) contract to a “multi-contracting strategy,” the agency said. “This change will save approximately C$600 million and allow contracts to be executed on individually negotiated scopes of work.” The change “alignis with current market dynamics.”
“Through extensive efforts during the Development Phase, significant cost savings were created,” Calgary Transit said. “However, without additional funding from the Province of Alberta and Government of Canada for this first phase, The City of Calgary will increase investment in the Green Line by contributing C$705 million to build the core of Phase 1 at a total new project cost of C$6.248 billion, up from the approved budget of C$5.543 billion in 2020. The Green Line board will work with the Province of Alberta and Government of Canada on approval of the revised funding agreements, in advance of signing the project agreements and beginning main construction later this year.”
Green Line Phase 1 construction will start with building the core from Lynnwood/Millican in the southeast to Eau Claire downtown, connecting the existing Red and Blue LRT lines. Construction of the remainder of Phase 1 south to Shepard, as well as any future extensions north or south, will proceed when additional funding is in place. “This decision will allow for new Bus Rapid Transit (BRT) and bus service in the southeast to provide connections into the LRT, contributing to the projected opening day ridership of approximately 32,000 Calgarians,” the agency said.
Construction of the Centre Street S. station and shifting the 4 Street S.E. station near Stampede Park from underground to street level “will better facilitate future regional transit connections and integration with the planned ‘Grand Central Station,’” Calgary Transit noted.
The Green Line, Calgary Transit said, “is moving forward responsibly. The City of Calgary is recognized for its strong financial management practices, which have enabled The City to manage its portion of Green Line’s financial costs. Current City of Calgary capital investments and municipal property taxes in 2025 will not be impacted by the increased investment in Green Line.” The agency added that “it never gets cheaper to build major infrastructure projects.”
“The city-shaping benefits from building the core of Phase 1 remain strong,” Calgary Transit stressed. “In addition to ridership numbers, the revised Phase 1 will connect Calgarians to 162,000 jobs within walking distance of stations, remove 15,000 tons of GHG emissions annually and unlock a maximum potential of 70,000 housing units through strategic transit-oriented development along the alignment. Phase 1 of the Green Line LRT is the largest infrastructure investment in Calgary’s history. The more-than C$1.4 billion spent to date included C$350 million in land acquisition, C$400 million in enabling works such as the utility upgrades nearing completion in the Beltline and downtown, and the new fleet of low-floor light rail vehicles, scheduled to begin arriving in late 2027.
