Leaked Manitoba Hydro report shows Bipole III project cost soars to $4.1 billion; 85% higher than $2.2 billion estimate Hydro currently has before the Public Utilities Board

Surprisingly Minister Wowchuk still telling public the project might come in under $2.2 billion

The Canadian Taxpayers Federation (CTF) released a leaked Manitoba Hydro report today which shows the cost for the Bipole III project is now estimated to be $4.1 billion; up from the $2.2 billion estimate Hydro currently has before the Public Utilities Board. The CTF renewed its call to pursue the more economical and environmentally friendly eastern Bipole III route.

“The government will try and spin this by saying the increased cost is related to this that or the other thing,” said CTF Prairie Director Colin Craig. “The bottom line is that internal Hydro documents show the project’s cost has exploded from $2.2 billion to $4.1 billion. Manitobans simply can’t afford the extra $1 billion it will cost to build a much longer line down the west side of the province.”

Attached to the brown envelope document provided to the CTF was a note that read:

“Your article ‘Ticking Time Bomb,’ Winnipeg Sun, Jan. 26, 2011 is right on the mark. Enclosed is a cost estimate prepared by the Engineering staff of Manitoba Hydro, dated Oct. 5 2010 which shows the cost estimate for Bipole III to be $4.1 billion.

Mr. Brennan, our president did not approve this estimate, and is now moving costs to other accounts to reduce the $4.1 billion number.”

“It’s extremely troublesome that the note suggests Hydro is trying to shuffle expenses around to try and make one of the worst infrastructure decisions in our province’s history not look so bad,” said Craig.

Just as troublesome were comments last week by Minister Rosann Wowchuk to the Winnipeg Sun that the project could come in under $2.2 billion.

“Given the true cost figure, it’s shocking that Minister Rosann Wowchuk is still out telling people the project might come in under $2.2 billion,” said Craig. “Either she is misleading the public on purpose or she has no idea what is happening at the crown corporation she is the minister responsible for. Either way it’s appalling.”

“Manitobans need to stand back and ask why so many current and former hydro employees, the Association of Manitoba Municipalities, the Winnipeg Chamber of Commerce, landowners, the Canadian Taxpayers Federation and so many others are speaking out against the west side route, “ added Craig. “The answer is because it will needlessly cost everyone an extra $1,000 or so.”

To view the leaked document and accompanying note, click here.