WINDSOR, ON – It’s going to cost more…correction…it’s going to cost a whole lot more to build a new bridge connecting Canada and the U.S.
The Canadian Press reports Prime Minister Justin Trudeau has been told the cost of the Gordie Howe International Bridge over the Detroit River has ballooned by at least $2 billion due the decline in value of the loonie.
Government officials have also warned the federal government needs to set aside an additional $1.5 billion in the event the Canadian dollar loses more value against the U.S. greenback, meaning it will need to find a total of $3.5 billion more for the project.
This comes as the value of the Canadian dollar against the U.S. dollar on Monday closed a little below $0.72, its lowest level in the last 10 years.
The Windsor-Detroit corridor is the busiest commercial trade crossing between Canada and the U.S. where around a quarter of the goods moved between the two countries pass over the existing Ambassador Bridge or through the Detroit-Windsor Tunnel.
The costs for building the bridge are expected to be recovered through tolls, which are projected to be more than enough to cover the increased expenses.
Soon companies will be selected to build the span, which is expected to be completed in late 2020.