The cost of the York-Spadina subway extension continues to rise and is now $400 million over budget according to a report released today by the TTC.
Toronto would be on the hook for an additional $240 million while York region would owe $160 million. The latest increase brings the total cost of the project to about $3.2 billion.
The project was originally expected to cost $2.6 billion and was scheduled to open last year.
The six stop subway to York Region is almost 80 per cent complete and is expected to open in 2017.
In March the TTC announced the project was at least $150 million over budget and last spring they fired two managers connected with the overrun.
Some of the reasons for the project ballooning by another $400 million are listed as: Claims and settlements arising from disputes involving contractors, legal costs, changes in the scope of the project and underestimated budget for remaining project scope.
Some of these claims are expected to take years to settle and CEO Andy Byford says the $3.2 billion is not the “definitive final number”.
The subway extension has been slowed by a number of issues, including the death of a worker at the York station site in October of 2011 and unusually harsh winters over the last 2 years.