(News Release) VANCOUVER – Total capital cost of major projects in B.C. continued to rise in the first quarter of 2014, exceeding the record high set in the previous quarter, according to the Association of Consulting Engineering Companies – British Columbia (ACEC-BC)’s BC MPI Review, released today. The BC MPI Review is a quarterly report that provides analysis on the Province of British Columbia’s Major Projects Inventory.
Total capital cost of major projects in B.C. were up 0.9 per cent to $311.8 billion in the first quarter of 2014, a 13.3 per cent increase over the same period last year. Total capital cost represents the combined value of projects identified as proposed, construction started, completed and on hold. Total capital costs have been on a steady upward trend since the third quarter of 2012.
The largest quarterly increase, at 140.7 per cent, occurred in the resort sector with the addition of the new proposed Valemount Glacier Destination Resort, tagged with an estimated capital cost of $800 million. In addition, there is the large upward re-estimation of capital costs for the Garibaldi at Squamish Ski Resort by $2.4 billion to $3.3 billion. On a year-over-year basis, the resort sector was up almost a third (27.9 per cent).
“Unlike the previous quarter, new proposed projects in the first quarter were not just dominated by large resource projects, but showed the wide diversity of projects that are coming down the line in B.C.,” said Sashaw. “The outlook for major project activity and investment in B.C. remains generally positive in the medium and long term, with improved global economic growth expected after 2014.”
Diversity was also highlighted by hospital projects such as the $300 million Penticton Hospital redevelopment; residential projects, including the $250 million Skaha Hills residential development; and utilities projects, especially the $240 million Port Mann Water Supply Tunnel, one of the Lower Mainland’s largest new projects.
LNG and mining projects in the North Coast and residential projects in the Lower Mainland-Southwest still remain significant contributors to capital cost totals. The North Coast region continued to be the location of the most major projects in capital cost at $117.4 billion in the first quarter, down slightly from the previous quarter though 35.3 per cent higher than one year ago. The vast majority of projects are in the proposed stage putting the region with the highest proposed total in the province at $101.8 billion, with the bulk of these proposals in LNG and mining. The Lower Mainland-Southwest region has the next largest project total at $82.4 billion, which was up 2.9 per cent from the prior quarter. However, it continues to have the higher capital cost under construction at $40.3 billion, up 5.2 per cent from $38.3 billion in the fourth quarter. Residential and Residential Mixed-use projects were the largest category under construction as well as in the proposed stage.
Q1 2014 Major Project Inventory Highlights:
Project total capital costs by project status, Q1 2014 vs. Q4 2013:
Project total capital costs by industrial category, Q1 2014 vs. Q4 2013:
- Proposed: 0.8 per cent increase to $206 billion
- Construction Started: 2.5 per cent increase to $84.2 billion
- Completed: 58 per cent drop to $1.3 billion
- On Hold: 4 per cent increase to $20.4 billion
- Accommodation/Food sector: 0.4 per cent increase to $4.7 billion
- Arts & Entertainment & Recreation sector: held steady at $6.7 billion
- Commercial sector: 7.7 per cent increase to $9.6 billion
- Education sector: 3.2 per cent drop to $3 billion
- Health sector: 10.3 per cent increase to $2.9 billion
- Manufacturing sector: 0.2 per cent drop to $30.8 billion
- Mining sector: held steady at $38.4 billion
- Oil & Gas Extraction sector: 0.2 per cent increase to $46.5 billion
- Pipelines sector: 1.1 per cent increase to $28.2 billion
- Public Administration sector: 12.5 per cent drop to $1.3 billion
- Residential sector: 0.9 per cent increase to $25.3 billion
- Residential mixed use sector: 1.3 per cent increase to $26 billion
- Resort sector: 26.4 per cent increase to $15.3 billion
- Transportation & Warehousing sector: 5.5 per cent drop to $24.9 billion
- Utilities sector: 1.1 per cent drop to $48.3 billion
The BC MPI Review is a quarterly report prepared by ACEC-BC that provides insight and analysis on the Major Projects Inventory, published by the British Columbia Ministry of Jobs, Tourism and Skills Training and Responsible for Labour. The Major Projects Inventory, which is published quarterly, lists all major projects that are proposed, planned or underway in British Columbia. These are projects with a capital cost of at least $20 million each within the Lower Mainland and projects valued at $15 million or more apiece in the rest of B.C.