Capital costs of major infrastructure projects throughout B.C. hit a record high of $312 billion in the first quarter of 2014, spurred by resort projects and residential complexes.
Overall costs actually exceeded this new record since a number of projects were submitted with no cost estimates to the B.C. Major Projects Inventory, the Association of Consulting Engineering Companies (ACEC) reported July 10.
The ACEC analyzed data released by the Ministry of Jobs and found total capital costs were up 13.3% compared with the same period the year before.
Furthermore, capital costs grew 0.9% compared with the last record high reached during 2013’s fourth quarter.
“The outlook for major project activity and investment in B.C. remains generally positive in the medium and long term, with improved global economic growth expected after 2014,” the ACEC report said.
“A lower Canadian dollar will benefit B.C. exporters but higher costs for imported machinery and equipment will detract.”
The resort sector accounted for the biggest quarterly increase, rising 140.7%.
The Valemount Glacier Destination Resort, which has an estimated cost of $800 million, was responsible for much of that growth. Capital costs for the Garibaldi at Squamish Sky Resort were re-estimated during the first quarter and grew from $2.4 billion to $3.3 billion.
Compared with the same period last year, the capital costs associated with the resort sector increased 27.9%.
Project totals in the North Coast region, where many companies have been proposing LNG and mining facilities, were the highest throughout B.C. and accounted for $117 billion.
The Lower Mainland placed a distant second with project totals estimated at $82 billion. Most of those costs were associated with residential and mixed-use properties.
“Resource projects will require higher commodity prices to be financially viable,” the report said.
“Growth of residential and commercial projects will remain project-specific until export growth lifts the domestic economy.”
Other big projects to break ground in B.C. in the first quarter include the $1-billion Tsawwassen Mills development, Concord Pacific’s $1-billion condo development on False Creek and a $235-million biomass facility in Fort St. James.
