The B.C. government has been forced to take over the entire $2.4-billion cost of the Port Mann Bridge project after plans for a partnership with a private consortium fell through.
Transportation Minister Kevin Falcon says the province was unable to work out a financing deal with the Connect B.C. Development Group, which included the Australian-based Macquarie Group.
Falcon blames a `challenging capital market' for the failure and says the government will use a fixed-price contract to build the 10-lane span to replace the current five-lane bridge over the Fraser River.
He says the project remains on schedule for completion in 2013 and the contractors, Peter Kiewit Sons and Flatiron Constructors, will be responsible for any cost overruns.
Falcon says the cost of the bridge will be recovered by electronic tolls of about $3 a car.
At an announcement earlier this month, Falcon said the cost of the toll could go up each year, depending on inflation and it was estimated that the tolls could be in place for up to 40 years.
But now that the project is no longer a public-private partnership, there is speculation this might change.
The Port Mann bridge project includes widening the Trans-Canada Highway from Vancouver to Langley and upgrading interchanges along the route.
Highway 1 will also be expanded in the project, with an extra lane in both directions leading to the bridge.
With files from The Canadian Press
