Runway Extension Project Budget Climbing

By 250 News

The cost of the runway extension project for the Prince George Airport has started to climb.

Although the Airport Authority has been trying to secure $33 million dollars for the project, the cost of the project has now climbed to $36 million.  That’s nearly 10% more than originally budgeted.

Airport Authority Board Chair Jim Blake says the cost increases are, primarily, related to paving.  “Just as we saw with the City of Prince George’s tender for paving contracts in the past coupe of weeks, those costs are escalating pretty quickly.”  Earlier this week, the City announced it would have to scale back it’s paving program for the 2007 season because of significant increases in the cost of paving.  The increases are linked to increased costs of labour, oil, aggregate and extra environmental measures.

Blake says the project is also looking at a Cat II landing system “It allows you to have lighting down the idle of the runway as well,” which Blake says provides a higher level of safety and security.

As for where the extra dollars will come from, Blake is optimistic.  The addition of the Air Canada flight to Calgary  alone will add $600 dollars per day for that flight without increasing costs to the airport.  Revenue from the Airport Improvement fees cannot be used  for this cargo  project.  Blake believes the extra $3 million will be covered by increased revenue through cargo flights, although he won’t rule out asking the Provincial and Federal Governments to up their contributions.  “We would hope the Governments will recognize the costs have increased and we have made them aware of that as we go along and we would, naturally, welcome any further contribution they might have in that regard.”

The Airport Authority secured an $11 million dollar loan from the Northern Trust, and has been waiting for the Federal and Provincial Governments to come through with the balance.  The Federal Government had indicated it was in for $11 million, but then called for more information.  Blake says the Airport is getting very close to the point where the money will be delivered.  “The two levels of government are cooperating, one is looking at the engineering side of the project, the other is looking at other aspects of the project.  Consultants have been hired to look at the project and certainly there are no flags in our way that would cause us to have any concern at this point.” 

Blake expects the consultants will have a final report by the end of June, and anticipates a funding announcement shortly thereafter. 

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