Chief Peguis Trail extension cost estimate rises to $755M

February 26, 2025 Canuck

The estimated price tag for the westward extension of the Chief Peguis Trail has ballooned to more than three-quarters of a billion dollars, but city officials say the project still offers big economic benefits for Winnipeg.

A new report estimates building the extension, from Main Street to Brookside Boulevard, will now cost $755.3 million, plus $147 million in interest if the city finances the project entirely through debt.

That’s a more than 68 per cent increase since 2019, when the city estimated it would cost $449 million, with $37.5 million in interest.

Mayor Scott Gillingham says the project is needed to facilitate trade and development around the city’s northwest area.

“What this Chief Peguis Trail extension will do is it’ll unlock much-needed residential development — up to 15,000 homes — and needed employment lands. And ultimately we need to open up employment lands,” Gillingham told reporters at city hall on Wednesday.

The project is one of two major trade route projects planned, along with widening Kenaston Boulevard.

Both projects have been on the city’s list of unfunded infrastructure projects for years, and Gillingham made developing a business case for them a part of his 2022 election campaign.

A cost-benefit analysis included in the report estimates the net economic and social benefits from building the extension would be $98 million over 50 years.

“For a large transportation project such as a road, we take a look at how adding the infrastructure to the city is going to change transportation habits for people,” said Tyler Kroeker, a senior economist at the City of Winnipeg.

A map shows a dotted line connecting Main Street to Route 90. — Mayor Scott Gillingham says the extension is needed to facilitate trade and development in the city’s northwest area. (Darcy Hunter/CBC)

The expected economic benefits include improved traffic efficiencies, added pedestrian and cycling infrastructure, reduced fuel consumption and greenhouse gas emissions.

The report also estimated how much revenue the city expects from new residential and commercial developments the extension would make possible.

Kroeker says that benefit, minus costs, adds up to $1.83 billion over the next 75 years.

Public works chair Coun. Janice Lukes says the recent tariff threats from the U.S. make the project even more important.

“I think the east-west trade corridor aspect has really been elevated with what we’re seeing with tariffs,” the Waverley West councillor said. “Whether it happens in the States or not, I think that this is something that we seriously need to consider.”

Critics of the project, like St. Boniface Coun. Matt Allard, said the project was already too expensive even before the latest estimate.

“We could not spend the money and not build this road, and that would mean that we could either provide better service, or renew our existing facilities that much more,” Allard said in an interview.

“In terms of opportunity cost, in terms of what we could compare it to, I just think it’s a lot of money.”

This won’t be the final cost-benefit analysis for this project.

Gillingham says the city will hire an outside consultant to do a detailed business case study, similar to one being done on the Kenaston widening.

He says he’s confident the provincial and federal governments will come to the table with funding.

City council’s public works committee will discuss the report at its meeting on March 4.

Cost of extending Chief Peguis Trail projected to be hundreds of millions over previous estimate

9 hours ago

Duration 2:16

The cost of a major Winnipeg road project has ballooned. The city now estimates extending Chief Peguis Trail from Main Street to Route 90 will cost more than $750 million. That doesn’t include interest charges if the city takes on debt to pay for it.

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