The Regina Bypass Project will cost $1.88 billion. This is a big difference from the province’s initial price tag of $400 million.
In 2013, the price tag jumped from the original $400 million to $800 million, due to the added interchanges at Pilot Butte, White City and Balgonie. In 2014, the price broke the billion-dollar mark when the government decided to use a P3 model and increased to $1.2 billion.
In August 2015, after Sask Builds released the Value for Money Report developed by Ernst and Young, a private consultation firm, the estimated price rose from $1.2 billion to the now $1.88 billion. The most recent price factors in costs of design, finance, operations and maintenance for over 30 years. Land costs are not factored in.
According to the Value for Money Report, the province saved nearly $380 million by choosing a P3 model over a traditional build.
The province will receive some funding from the federal government and stakeholders, but the provincial government will front the majority of the funding. The federal government is to provide $200 million through the PPP Canada Fund. The RM of Sherwood has been asked to provide $10 million and the City of Regina has been asked to contribute $23 million (through a loan granted by the province).The RM of Sherwood and the City of Regina have been asked to make these contributions because the interchanges at Ninth Avenue North and Hill Avenue will benefit their residents.