OTTAWA – The federal and B.C. governments will announce today a $40-million increase in the public contribution for an expanded convention centre on the Vancouver waterfront.

The additional $20 million apiece from both levels of government will increase the total projected value of the Vancouver Convention and Exhibition Centre expansion to $535 million.

Construction is expected to begin later this year and conclude by the fall of 2008, allowing the facility to be used as the main international media centre for the 2010 Olympic Games in Vancouver.

The expanded centre is also intended to be a powerful magnet for convention-goers, giving a huge boost to the local economy.

The two levels of government will each contribute a total of $222.5 million, with the tourism industry chipping in the remaining $90 million.

Environment Minister David Anderson (Victoria), federal Infrastructure Minister Andy Mitchell, and John Les, the B.C. government’s minister of small business and economic development, will jointly make the announcement at the Canada Place site.

The two governments originally committed $202.5 million in late 2002, but there soon was talk that the initial project cost estimates were too low.

The federal government expressed a willingness to increase its commitment as long as Ottawa wasn’t exposed to further cost overruns.

“Additional construction money was requested from the province. Negotiations ensued, and in response to the province being willing to put up an additional $20 million we put up an additional $20 million,” a federal official said Wednesday.

The Treasury Board recently approved the full federal contribution.

The additional funds to be announced today are being described as necessary to ensure proper integration of the old and new parts of the convention centre.

Premier Gordon Campbell said in December that Vancouver lost out on 50 conventions over a 12-month period, costing the local economy about $150 million, because the existing centre is too small.

He said the expanded centre would spark an extra $229 million a year in delegate spending and “support” 7,500 new jobs.

Tourism Vancouver chairman Terry Bubb, who will attend today’s event, has previously said that the industry’s share of $90 million could be raised through voluntary levies on tourists using taxis or tour busses.

Bubb also suggested that Olympic-linked sponsorship deals could generate cash to contribute towards construction costs.

© The Vancouver Sun 2004