The Site C hydroelectric dam will be completed, but the price tag will be higher than estimated.
Site C was projected to cost $8.3 billion to complete, but the government now estimates the project will total $10.7 billion.
An estimated $4 billion has been spent so far on the dam and the NDP government was debating whether to continue construction or cancel the work midway through the job.
The government says the province risked a credit downgrade and debt-servicing costs of up to $150 million annually if the project was cancelled and the treasury absorbed the $4 billion loss.
Premier John Horgan says the decision was made with a heavy heart, but that his government is making the best out of a bad decision.
Horgan was asked about what the decision to proceed will mean for reconciliation between his government and First Nations in the province.
The B.C. Utilities Commission, the province’s independent energy regulator, concluded in its assessment released last month that the dam is over budget and behind schedule.
(The Canadian Press)