Deh Cho Bridge focus of N.W.T. emergency session

Northwest Territories' MLAs are being called back to the legislature, six weeks ahead of schedule, for an emergency session to discuss the controversial Deh Cho Bridge project's finances.

Emergency sessions have been rare in the N.W.T. legislative assembly, but Speaker Paul Delorey has scheduled one to start March 23rd so MLAs can talk specifically about recent developments to the $182-million project.

Finance Minister Michael Miltenberger said the government is taking over the bridge project fully, including $165 million in debt, from the Deh Cho Bridge Corp. of Fort Providence, N.W.T.

"We need the approval of the legislature to have the bridge become an asset of the government of the Northwest Territories and be able to reflect it on our books," Miltenberger told CBC News on Monday.

"While we've always committed to backstopping the loan, it'll now be officially be on our books."

Could exceed debt limit

The Deh Cho Bridge had been a joint project between the territorial government and the Deh Cho Bridge Corp., which was to operate the bridge over the Mackenzie River.

But by taking over the project, along with the bridge corporation's debt, Miltenberger said the N.W.T. government's own debt by 2011 could exceed the $500-million limit set by federal legislation.

"I'm very confident that we're going to be able to reach an accommodation with the federal government," Miltenberger said.

"But in a worst-case scenario, at some point within the next year, we'd be over the debt wall there that everybody's been talking about, and we'd have to adjust our expenditures to get in compliance."

Just last week, MLAs wrapped up their budget session by approving an extra $15 million needed to address the bridge project's cost overruns.

"That money will get us through to the end of March, which is why we're convening," Miltenberger said.

Government officials have said the cost overruns were the result of the bridge having to be redesigned, which has led to a one-year delay and the need to produce new quotes for the final phase of construction.

'Recipe for disaster'

Yellowknife Kam Lake MLA Dave Ramsay, who has long criticized the government's handling of the bridge project, said he has feared this kind of scenario would unfold.

"[It's] playing crazy games like that with basically just a front of a company, in the Deh Cho Bridge Corp., that never did have the full amount of equity in the project in the first place," Ramsay said.

"It's a recipe for disaster, and that's exactly what's happening."

Once completed, the bridge will link Yellowknife and other North Slave communities to southern Canada year-round, replacing the current summer ferry service and winter ice road.

The bridge was originally estimated to cost $50 million six years ago. Taxpayers were told they would be on the hook for only $9 million, and tolls collected from the bridge would eventually cover the costs.

With $83 million already spent on the half-completed bridge, MLA may have few options to consider when they reconvene for the emergency session later this month.