6.0
INVESTMENT STRATEGY

6.1
COSTS OF THE RTP

CAPITAL COSTS

Pre-engineering capital costs were estimated for the regional rapid transit and highway network identified in Schedules 1 and 2 based on industry-standard unit costs, and costs for similar types of road and transit facilities. In some cases, broad assumptions were made with respect to the need for structures, tunnelling and other higher-cost construction activities. Contingencies are included in the unit costs to reflect minor property acquisition and other cost uncertainties. For transit, a cost component for transit vehicles and operations, and maintenance facilities was also included in the capital costs. It is important to note that these costs may vary based on alignment, technology, station spacing and design, and other project scope factors that will be determined during the Benefits Case Analysis (BCA).

The estimated costs relate only to the upgrade and expansion of the regional transportation network and do not include deferred maintenance (“state of good repair”), any required investment to upgrade the accessibility of facilities, investment in local transit or local roads, or the extension of the regional transportation network outside of the GTHA. The transit capital costs are net of existing funding (e.g. Spadina Subway extension, AcceleRide, Mississauga Transitway).

Capital costs also include capital costs for the programs described in the RTP’s Strategies that are designed to improve the efficiency and capacity of the system. This includes up to $20 million per year for active transportation infrastructure and up to $50 million per year for capital improvements at mobility hubs.

Capital costs for highway improvements are limited to the costs for controlled-access expressways and are estimated to be an additional $5 billion. They include projects that are in the Ministry of Transportation’s five-year capital program for expansion and the 25-year High Occupancy Vehicle network proposal as of July 2007, but do not include widening or extension of non-controlled-access local or provincial roads, or capital improvements beyond the current Ministry of Transportation capital program.

OPERATING AND MAINTENANCE COSTS

Operating and maintenance cost estimates are provided for the regional rapid transit and highway network identified in Schedules 1 and 2, including both new and existing services. These costs also include program costs described in the RTP, such as TDM measures and other directions that are designed to make more efficient use of the road and transit network. Costs do not include local transit or regional bus services, although it is important to note that these services would have to be increased and/or adjusted to provide connections to the regional network.

Cost estimates are based on current delivery methods, and headway and operating speed assumptions adopted in the model. As with capital cost estimates, operating costs will vary depending on technologies and operating conditions that will be determined as part of the Benefits Case Analysis.

For transit, at full build-out and with full program implementation, operating and maintenance costs are estimated at approximately $1.5 billion per year. For controlled-access expressways, operating and maintenance costs are estimated at $230 million per year, and include rehabilitation and reconstruction. They do not include costs related to non-controlled-access local or provincial roads.