Projects list grows ahead of storm
DERRICK PENNER
Sun
Wall Centre Richmond – $250 Million
Hotel Georgia redevelopment – $400 Million
UBC-Okanagan engineering management building
BC Place Stadium upgrades
Grand Villa Casino expansion, Burnaby
NewPort Village, Port Moody
Developers started work on 31 large projects worth almost $ 2.4 billion in construction value from July to September, the provincial government reported Monday in its major projects inventory.
Just before the meltdown of world financial markets, proponents piled on another 47 projects worth $ 5.5 billion, raising the inventory of projects planned and underway to 843 projects worth almost $ 175 billion.
However, a construction industry official said he expects a slowdown because of tight credit, projects being put on hold and poor commodity markets.
Economic Development Minister Ida Chong said the state of financial markets does spark concerns about the future health of the inventory, but added that the province remains confident construction can remain robust.
“ There are still investors out there,” Chong said in an interview, “ and they need to know that if they actually look at Canada and British Columbia, that we make sure they are aware of British Columbia’s situation.”
She said that situation includes a deficit-free provincial budget, political stability and a solid labour market.
Chong said ministry officials thought the major projects inventory might shrink a bit, since many projects related to the 2010 Olympics wrapped up in the third quarter.
The fact that it didn’t “ shows there is healthy construction activity in the province,” she said.
The inventory tracks projects worth $ 15 million or more outside of the Lower Mainland and $ 20 million or more within the Lower Mainland. Chong noted that it has increased in value for 21 consecutive quarters.
Some 379 projects worth almost $ 66 billion are under construction, and Manley McLachlan, president of the B. C. Construction Association, said that’s enough to give building contractors steady work for the next six to eight months.
However, employment in the sector beyond that time frame will depend on how many proposed projects go ahead. “ If we’re not seeing a lot of new projects rolled out, then we will see layoffs of a substantial nature.”
McLachlan said he expects some slowing of construction activity. Some of the projects on the list are resource-related and dependent not only on the availability of credit, but also on the health of commodity sectors that are being deeply hurt by the economic downturn.
However, McLachlan added that because the inventory grew in the last quarter, “ we should still take comfort in what that says about the intent of investors. It still paints a pretty good picture of the province as a place to invest.”
The construction industry also likes Premier Gordon Campbell’s statement last month that the province intends to ramp up its capital spending.
McLachlan acknowledged conditions will change, but the prospect of the province fast-tracking projects “ gives us confidence that we’re not going to see this huge drop in activity levels.”
Chong said provincial efforts will be aimed at accelerating projects that are on the books but have been delayed by other factors.