Summary

• Government of Canada confirms funding contribution of up to $3 billion in capital costs for Fraser River Tunnel Project
• Project remains on track for major construction to begin in 2027 as early construction work continues
• Procurement process is underway to strengthen competition, support local jobs and secure the best value for British Columbians

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The Province of British Columbia and the Government of Canada are partnering on the Fraser River Tunnel Project, with confirmation that the federal government will contribute up to $3 billion in capital costs toward construction of the new toll-free, eight-lane tunnel.

The updated total project budget is $8.5 billion, reflecting current market conditions, the most recent information on project scope, inflation and the delivery schedule required for a project of this scale and complexity. This estimate has been validated by an independent third party. 

“With a committed federal funding partner and a clear path forward, we are continuing to deliver one of the most important nation-building transportation projects in British Columbia’s – and Canada’s – history,” said Mike Farnworth, Minister of Transportation and Transit. “This investment will get people and goods moving faster throughout the Lower Mainland, strengthen Canada’s trade infrastructure and support long-term economic growth and jobs. The revised procurement approach we announced earlier this month will help ensure we secure the best value for taxpayers and jobs for local workers while maintaining momentum on this critical project.”

Funding agreement provides boost for major transportation investment

The Fraser River Tunnel Project will replace the aging George Massey Tunnel with a modern immersed-tube tunnel that improves safety, reliability and goods movement throughout the region while strengthening connections to the Port of Vancouver, border crossings and key trade corridors, and reducing B.C.’s reliance on the United States.

The Government of Canada has committed to funding up to $3 billion in capital costs as part of the Canada-BC Cooperative Prosperity Agreement while the Province of British Columbia will contribute the remaining amount.

The Province announced on June 15, 2026, that it would move forward with a revised procurement strategy for the project after concluding the design and early works agreement phase. The new procurement model divides the remaining work into multiple packages, increasing competition and creating more opportunities for local Canadian and British Columbia-based contractors.

“BC Building Trades members have been proud to be a part of the early work on the Fraser River Crossing under a project labour agreement,” said Brynn Bourke, executive director, BC Building Trades. “We’re pleased to see the federal contribution to this critical infrastructure and look forward to continuing to provide the highly skilled local workforce to complete this significant connection for the Lower Mainland.”

The Province successfully used a similar approach on the Surrey Langley SkyTrain project and the Fraser Valley Highway 1 Corridor Improvement Program, where breaking work into multiple contracts helped strengthen competition, improve flexibility and support local companies, creating more opportunities for local and regional contractors to participate.

Even with the new procurement model, no work has been lost. The tunnel’s design will remain unchanged, including the anticipated tunnel depth, the length of ramps and the location, from the concept designed in 2023. Rigorous studies were undertaken before determining the approach for the new tunnel and there will be no impacts to the existing tunnel during construction of the new one.

Requests for qualifications for the first two work packages were posted on June 16, 2026.  The requests for proposals are expected to be issued in early August 2026, with successful companies selected by early 2027. Procurement of the remaining three work packages will occur in 2027.

Work continues toward tunnel construction

Construction activity continues while procurement advances. Early construction work started in January 2026, including tree clearing, utility relocations and preparation for the construction of a casting basin. Temporary infrastructure construction is also underway, including the construction of three jetties for the delivery of materials, a trestle bridge onto Deas Island, access roads and retaining walls for the casting basin on Deas Island, creating approximately 200 jobs in 2026 alone.

The Province expects the Environmental Assessment Office review process to conclude before the end of 2026, with major construction anticipated to begin in 2027. The original estimated completion date for the Fraser River Tunnel Project was December 2030. The new estimated completion timelines have shifted slightly to September 2031.

“While the project schedule has shifted slightly, the timeline still remains broadly in line with what we originally anticipated for a project of this scale and complexity,” Farnworth added. “The updated timeline is not the result of the revised procurement approach, but the schedule reflects the time required to complete key planning and approvals processes, while ensuring we continue to deliver the best value for taxpayers. Our focus remains on delivering this critical infrastructure project safely, responsibly and successfully for the region.”

The Fraser River Tunnel Project is a key component of British Columbia’s efforts to strengthen trade infrastructure, improve transportation reliability and support a growing population. The project will get people and commercial carriers where they’re going faster, while enhancing transit connections throughout the region.

Learn More:

• For information about the Fraser River Tunnel Project, visit: https://www.highway99tunnel.ca/project-overview-frt/
• Read the full Look West: Jobs and Prosperity for a Stronger B.C. and Canada strategy here: https://www.gov.bc.ca/LookWest