 |
| Backgrounder(s) & FactSheet(s): | Backgrounder |
|
| Backgrounder(s) & FactSheet(s): | Backgrounder |
|
MERRITT – A new maintenance and operations arrangement to manage the Coquihalla Highway will improve services, reduce costs for residents who are frequent travellers and create new infrastructure for the southern Interior, Transportation Minister Judith Reid said today.
Under the new arrangement, the Coquihalla roadbed and right-of-way will remain publicly owned, while a private-sector investor will be sought to assume responsibility for the operation, maintenance and rehabilitation of the highway between Hope and Merritt. Legally binding service and safety standards will be set under a 55-year contract, ensuring long-term reliability and predictability in operations.
“The Coquihalla Highway is a major trade route for the southern Interior and has the potential to be an even stronger economic engine in the future,” said Reid. “As the 17-year-old highway ages, maintenance and rehabilitation costs will grow. These improvements must be made in a way that ensures the 81 per cent of users from outside the southern Interior pay the largest share, and benefits frequent travellers – especially local residents.
“By providing more efficient and reliable operations over the long term, the new model will help transform the Coquihalla to create new economic growth, improved infrastructure and new opportunities for southern Interior residents. The Coquihalla is a great asset. And it can be so much better, with new capital, new energy and a new focus on improved customer service.”
Reid said the new service arrangement will mean:
· Public ownership of the Coquihalla roadbed and right-of-way. · Improved maintenance and rehabilitation. · Guaranteed, legally binding service and safety standards. · Low frequent-traveller rates, to reduce costs for residents. · Fair, limited toll levels. · New regional economic development. · Added revenues for new infrastructure, with no public debt.
The new maintenance and operations arrangement will expand on the successful private-sector model already in place for highway maintenance contracts across B.C. Last November, the government endorsed new, extended 10-year highway maintenance contracts that reduce labour costs by 16 per cent in return for longer-term security. The result is more long-term, reliable service arrangements and better value for taxpayers.
The new arrangement builds on this model, with a number of improvements:
· The contract is for a longer, 55-year period, ensuring greater reliability of service. · The operator will recover costs and revenues by collecting tolls rather than receiving direct payment by government from fuel tax or other revenues. · To offset the province’s foregone toll revenues, the operator will pay an upfront fee for the right to operate the highway, providing revenue for new infrastructure improvements. · The operator will assume risk and future rehabilitation costs.
Services, tolls and safety will be regulated by contract, and new frequent-traveller rates will be implemented for non-commercial vehicles, ensuring better access and protection for residents.
Frequent travellers will pay for a 90-day pass and two round trips, receiving all subsequent trips free during that period. The cost will be $10 for the unlimited-travel pass, plus $10 for each of the first four one-way trips. For all other non-commercial motorists, tolls will increase marginally from $10 to $13 – the first increase since 1988. There will be no increase for commercial vehicles.
However, no tolling changes will be introduced until a new operator is selected – a process that will be concluded by December – and until the frequent-traveller pass is implemented thereafter. Future toll increases will be capped under the contract, in line with the rate of inflation, to ensure fairness and predictability for motorists.
Reid also announced that a mayors’ council will be formed to provide advice and input to the development of the request for proposals. Funds generated through the arrangement will be used for new infrastructure improvements.
In particular, the government announced that it will invest $14 million to complete the four-laning of 8.2 kilometres of the Okanagan Connector between Garcia Lake and Courtney Lake, providing a continuous four-lane highway from Merritt to Westbank.
“As part of our Heartlands Transportation Strategy, the province intends to invest between $250 million and $300 million over three years in the southern Interior alone,” Reid said.
Other projects already launched include $15.6 million to widen Highway 97 between Peachland and Summerland, $22.5 million to upgrade the Swan Lake junction north of Vernon and $16.7 million worth of provincial-federal improvements to Highway 5 at Preacher Hill and Highway 1 near Salmon Arm.
“By establishing legally binding standards for services and safety, the new arrangement will ensure strong incentives for improved customer service,” Reid said. “The result will be increased visitors and investment, as well as new revenues for other infrastructure improvements, creating jobs and opportunities for communities across the southern Interior.”
-30-
| ||||||||||||
