Green Line LRT Budget Balloons to $5.5 Billion, Council Demands Answers
Rising construction costs and scope changes have pushed the project far beyond its original $4.65-billion estimate.
Calgary City Council has called an emergency committee meeting after learning that the Green Line LRT’s budget has ballooned to $5.5 billion, nearly $900 million more than the most recent estimate of $4.65 billion approved in 2020.
What Went Wrong
Project officials attribute the cost increase to construction inflation, supply chain disruptions, and design modifications required to address geotechnical challenges discovered during the downtown tunnelling assessment. Labour costs alone have risen approximately 18% since the project was initially costed.
“The global construction environment has changed dramatically,” said Green Line general manager Darshpreet Bhatti. “Every major infrastructure project in North America is facing similar pressures.”
Council Frustration
Several councillors expressed frustration with the lack of early warning about the overrun. Councillor Dan McLean called the situation “a failure of oversight” and demanded a full independent review of project governance.
“Calgarians trusted us with this project, and we owe them transparency,” said Councillor Sonya Sharp. “We need to know exactly where every dollar is going before we move forward.”
Options on the Table
Council directed administration to present three options: proceed with the full scope at the higher budget, reduce the project scope to fit the original budget, or phase construction over a longer timeline. A decision is expected by June.
The federal and provincial governments, which have committed $2.6 billion in combined funding, said their contributions remain capped at the previously agreed amounts, meaning any additional costs would fall to Calgary taxpayers.
Transit advocates warned against scaling back the project, arguing that a shortened line would fail to deliver the ridership needed to justify the investment.
