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The provincial government’s revised procurement approach to building the George Massey Tunnel replacement project will create benefits for local workers, local companies and local communities.
As British Columbia and Canada face significant economic headwinds because of ongoing difficulties in our trading relationship with the United States, it only makes sense to ensure Canadian companies have the best possible opportunity to participate in and profit from large infrastructure projects.
Generally, on large infrastructure projects like the Massey Tunnel replacement, all of the work is included in one single bid. The sheer scope of the project means only massive, multinational corporations are able to fulfil all project requirements, leaving smaller local companies to fight over the scraps of work that are left over for subcontractors.
Beyond ‘one and done’
When international companies like Acciona (built Site C, based in Spain) and Ghella (building the Broadway subway, based in Italy) win these all-in-one bids, they swallow up a massive amount of the economic benefit derived from the public investment, and they take those profits offshore. Essentially, the benefits of the taxpayer money spent on the project are “one and done.”
In other words, taxpayer money is put forth for the infrastructure, we get the infrastructure, and the money disappears. That equation seems fine at first glance, but it can be much, much better.
With this new procurement approach, the provincial government is looking to extract maximum value from the taxpayer money committed to the Massey Tunnel replacement. By engaging local contractors to deliver smaller bundles of work through the procurement process, they’re in effect giving the large taxpayer investment multiple lives. No more “one and done.”
That money will go to local companies that have permanent offices, with permanent workforces here in B.C. That money will go to more local workers who will spend it at local businesses, creating an economic ripple effect.
And the profit for the general contractors? It stays right here in Canada. The Canadian companies that benefit will reinvest that money to build their companies, support their workforces and put themselves in a position to be able to deliver more critical infrastructure in the future.
A natural fit with ‘Buy Canadian’
This move from the provincial government is consistent with the strategy laid out by Prime Minister Mark Carney late last year. The federal government’s Buy Canadian Policy is designed to super-boost the Canadian economy by ensuring government procurement focuses on made-in-Canada products. According to the prime minister, this will strengthen domestic supply chains, support local jobs and keep public investment circulating in our economy.
The federal policy makes a lot of sense. And with this new procurement approach, it’s clear that the provincial government agrees.
The early work to deliver a replacement for the Massey Tunnel is underway. Project design, technical studies and construction have been taking place since the fall of 2024.
With this new approach, we expect not only the delivery of a world-class piece of infrastructure but also significant economic benefits that resonate across Metro Vancouver, B.C. and Canada. ![[Tyee]](/design-article.thetyee.ca/ui/img/yellowblob.png){kind=small}
Read more: Labour + Industry, Urban Planning
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