August 25, 2008

Number, value of major British Columbia construction projects increases

RICHARD GILBERT

staff writer

The value of current and proposed major construction projects in B.C. shot up $39.5 billion in the second quarter of 2008, reaching a record high of $169.7 billion, according to the B.C. government’s Major Projects Inventory.

The report, released on Aug. 14, tracks the growth of large-scale construction projects in the province.

There were 863 major capital projects, worth an estimated record $169.7 billion, which were planned or had started construction between April and June 2008.

This is an increase of 30 per cent in estimated value from the same time last year, when 826 major capital projects were planned or under construction, worth an estimated $130.2 billion.

“We are pleased to see an increase in the number of major construction projects in B.C., as this is a positive sign that there will be construction activity beyond the Olympics,” said Philip Hochstein, president of the Independent Contractors and Businesses Association (ICBA) in a press release.

“While the economy is still sound, there is no doubt that the construction market has cooled somewhat from the frantic pace of the last few years and we are now in a buyers’ market.”

The capital cost of the major projects listed as still under construction was estimated at $60.6 billion.

Of the 17 projects, the largest are the Royal Jubilee Hospital Patient Care Centre in Victoria and the River Rock Casino expansion in Richmond.

At the same time, thirty-three projects valued at about $1.9 billion completed their construction phase, including the Abbotsford Regional Hospital and Cancer Centre, the Creekside Residential Development in Whistler and the William R. Bennett Bridge in Kelowna.

According to Hochstein, the provincial and municipal governments have been holding back on some major infrastructure projects while the market was overheated, but now would be the perfect time for the public sector to launch major projects.

“B.C.’s construction industry now has the capacity to take on new public sector infrastructure projects,” he said.

The quarterly major projects inventory in B.C. has increased for twenty straight quarters.

“We are continuing to see impressive numbers in large-scale construction projects across B.C.,” said Technology, Trade and Economic Development Minister Ida Chong in a press release .

“This is a clear signal that British Columbia’s economy remains strong and vibrant.”

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