Alberta
Highway twinning from Sylvan Lake to Rocky Mountain House among dozens of infrastructure projects beginning in Alberta
Alberta’s government is investing in roads, bridges, and water infrastructure to strengthen the economy and meet the needs of the province’s growing population.
As Alberta’s population continues to grow so does the need for safe, reliable and effective infrastructure to support communities across the province, attract investment and boost economic development. Maintaining and expanding the provincial road and bridge network is vital for growing communities and expanding market access for local industry.
If passed, Budget 2025 would invest more than $8.5 billion for the Ministry of Transportation and Economic Corridors’ three-year Capital Plan, a $333.7-million increase compared with Budget 2024. This total includes more than $4 billion over three years for transportation infrastructure projects to benefit rural communities across the province, as well as $2.1 billion over three years for projects in the Calgary region, and $2 billion for projects in the Edmonton region.
“We are investing in the transportation and water infrastructure our communities need to address rapid growth, promote economic development and support a high quality of life. These investments help ensure our province remains the best place in Canada to live, work and raise a family.”
The total capital investment in this year’s budget includes $2.6 billion for planning, design and construction of major highway and bridge projects. This work will create thousands of jobs across Alberta, improve traffic flow, and support the development of major trade corridors through projects such as twinning Highway 3 and Highway 11, and major improvements to Deerfoot Trail and Highway 881. Capital investment funding also includes more than $186 million over three years for more than 50 engineering projects to address future infrastructure needs as the province continues to grow.
“These investments in Calgary’s roads and bridges are critical to supporting our growing city. Improved infrastructure means safer commutes, better connections for businesses and a stronger foundation for future growth.”
If passed, Budget 2025 would also include a $1.7-billion investment over three years for capital maintenance and renewal, which extends the life of the province’s existing road and bridge network, keeping the highway network safe and helping industry create and maintain well-paying jobs.
“Building and fixing roads and bridges improves the productivity of Alberta’s economy. Budget 2025 continues investing in critical infrastructure using local materials and labour. The ARHCA applauds Alberta’s leadership and commitment to all modes of trade-enabling transportation.”
In addition to improving and maintaining the provincial highway network, Alberta’s government has allocated $3.9 billion for capital grants to municipalities over the next three years. This includes funding for LRT projects in Edmonton and Calgary, as well as $5 million in new funding to support planning work for a new transit solution connecting the Calgary airport terminal with the future Blue Line LRT extension station.
“Investing in infrastructure is critical to establishing a solid foundation for economic growth, sustainability and thriving communities. As our population continues to grow, we must make smart investments in roads, bridges, water and transportation infrastructure to ensure our communities and businesses remain vibrant, connected and ready for the future.”
If passed, targeted investments in Budget 2025 would also support the growth and prosperity of rural communities by providing $126.8 million over three years to municipalities through the Strategic Transportation Infrastructure Program. This program helps smaller municipalities improve critical local transportation infrastructure.
Additionally, ongoing capital grants totalling $519.7 million over three years in water and wastewater infrastructure will ensure Albertans in every community have reliable access to clean drinking water and effective wastewater services.
Finally, Budget 2025 would provide $240.1 million to build and repair water management infrastructure, including dams, spillways, canals and control structures. This investment provides irrigation for the agriculture sector and flood mitigation for Alberta communities.
Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick Facts
Regional Highlights
North region
- Budget 2025, if passed, invests $1.25 billion over three years in road and bridge construction projects to benefit the North region, including:
- $101 million for Highway 63 twinning, north of Fort McMurray
- $141 million for Highway 881 safety and road improvements
- $87 million for construction of the La Crete bridge
- $69 million for Highway 40 grade widening between Hinton and Grande Cache
- $7 million for the La Loche Connector road – extending Highway 956 from La Loche, Saskatchewan to Fort McMurray
- $4 million for twinning Highway 40 south of Grande Prairie
- $127.5 million for Highway 60 Capital Improvements
Central region
- Budget 2025, if passed, invests $1.4 billion over three years in road and bridge construction projects to benefit the Central region, including:
- $208 million for Highway 11 twinning between Sylvan Lake and Rocky Mountain House
- $98 million for the Vinca Bridge replacement on Highway 38 (near Redwater) as part of work to enhance the high-load corridor
South region
- Budget 2025, if passed, invests $363 million over three years in road and bridge construction projects to benefit the South region, including:
- $106 million for Highway 3 twinning (between Taber and east of Burdett)
- $92 million for the Highway 2 Balzac Interchange Replacement
- $24 million for the Highway 1A upgrade (Stoney First Nation)
- $9 million for the QEII Highway and 40th Avenue interchange ramp (near Airdrie)
Calgary
- Budget 2025, if passed, invests $2.1 billion over three years in road and bridge construction projects, and municipal grants to benefit the Calgary region, including:
- $173.1 million for the Calgary Rivers District and Event Centre
- $484.8 million for Deerfoot Trail upgrades
- $62.4 million for the Springbank Off-stream Reservoir (SR1) project
- $11.9 million for the Bow River Reservoir (Ghost Reservoir Infrastructure Project)
- $100 million for the Calgary Ring Road (West Stoney Trail)
- $8 million for the completion of the Highway 201 Bow River Bridge on the southeast Stoney Trail
- $26.5 million for the completion of the Stoney Trail and Airport Trail interchange
Edmonton
- Budget 2025, if passed, invests $2 billion over three years in road and bridge construction projects to benefit the Edmonton region, including:
- $31.9 million for the Ray Gibbon Drive expansion
- $31 million for the Terwillegar Drive widening from Rabbit Hill Road to Windermere Boulevard
- $52.7 million for the Terwillegar Drive Expansion improvements to the interchange at SW Anthony Henday Drive.
- $20.3 million for Highway 16A and Range Road 20 Safety Improvements
- $17.2 million for Highway 19 twinning
- $40.2 million for the Highway 2 and 65 Avenue Interchange in Leduc
Alberta
Alberta Premier Danielle Smith Discusses Moving Energy Forward at the Global Energy Show in Calgary
From Energy Now
At the energy conference in Calgary, Alberta Premier Danielle Smith pressed the case for building infrastructure to move provincial products to international markets, via a transportation and energy corridor to British Columbia.
“The anchor tenant for this corridor must be a 42-inch pipeline, moving one million incremental barrels of oil to those global markets. And we can’t stop there,” she told the audience.
The premier reiterated her support for new pipelines north to Grays Bay in Nunavut, east to Churchill, Man., and potentially a new version of Energy East.
The discussion comes as Prime Minister Mark Carney and his government are assembling a list of major projects of national interest to fast-track for approval.
Carney has also pledged to establish a major project review office that would issue decisions within two years, instead of five.
Alberta
Punishing Alberta Oil Production: The Divisive Effect of Policies For Carney’s “Decarbonized Oil”
From Energy Now
By Ron Wallace
The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate.
Following meetings in Saskatoon in early June between Prime Minister Mark Carney and Canadian provincial and territorial leaders, the federal government expressed renewed interest in the completion of new oil pipelines to reduce reliance on oil exports to the USA while providing better access to foreign markets. However Carney, while suggesting that there is “real potential” for such projects nonetheless qualified that support as being limited to projects that would “decarbonize” Canadian oil, apparently those that would employ carbon capture technologies. While the meeting did not result in a final list of potential projects, Alberta Premier Danielle Smith said that this approach would constitute a “grand bargain” whereby new pipelines to increase oil exports could help fund decarbonization efforts. But is that true and what are the implications for the Albertan and Canadian economies?
The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate. Many would consider that Canadians, especially Albertans, should be wary of these largely undefined announcements in which Ottawa proposes solely to determine projects that are “in the national interest.”
The federal government has tabled legislation designed to address these challenges with Bill C-5: An Act to enact the Free Trade and Labour Mobility Act and the Building Canada Act (the One Canadian Economy Act). Rather than replacing controversial, and challenged, legislation like the Impact Assessment Act, the Carney government proposes to add more legislation designed to accelerate and streamline regulatory approvals for energy and infrastructure projects. However, only those projects that Ottawa designates as being in the national interest would be approved. While clearer, shorter regulatory timelines and the restoration of the Major Projects Office are also proposed, Bill C-5 is to be superimposed over a crippling regulatory base.
It remains to be seen if this attempt will restore a much-diminished Canadian Can-Do spirit for economic development by encouraging much-needed, indeed essential interprovincial teamwork across shared jurisdictions. While the Act’s proposed single approval process could provide for expedited review timelines, a complex web of regulatory processes will remain in place requiring much enhanced interagency and interprovincial coordination. Given Canada’s much-diminished record for regulatory and policy clarity will this legislation be enough to persuade the corporate and international capital community to consider Canada as a prime investment destination?
As with all complex matters the devil always lurks in the details. Notably, these federal initiatives arrive at a time when the Carney government is facing ever-more pressing geopolitical, energy security and economic concerns. The Organization for Economic Co-operation and Development predicts that Canada’s economy will grow by a dismal one per cent in 2025 and 1.1 per cent in 2026 – this at a time when the global economy is predicted to grow by 2.9 per cent.
It should come as no surprise that Carney’s recent musing about the “real potential” for decarbonized oil pipelines have sparked debate. The undefined term “decarbonized”, is clearly aimed directly at western Canadian oil production as part of Ottawa’s broader strategy to achieve national emissions commitments using costly carbon capture and storage (CCS) projects whose economic viability at scale has been questioned. What might this mean for western Canadian oil producers?
The Alberta Oil sands presently account for about 58% of Canada’s total oil output. Data from December 2023 show Alberta producing a record 4.53 million barrels per day (MMb/d) as major oil export pipelines including Trans Mountain, Keystone and the Enbridge Mainline operate at high levels of capacity. Meanwhile, in 2023 eastern Canada imported on average about 490,000 barrels of crude oil per day (bpd) at a cost estimated at CAD $19.5 billion. These seaborne shipments to major refineries (like New Brunswick’s Irving Refinery in Saint John) rely on imported oil by tanker with crude oil deliveries to New Brunswick averaging around 263,000 barrels per day. In 2023 the estimated total cost to Canada for imported crude oil was $19.5 billion with oil imports arriving from the United States (72.4%), Nigeria (12.9%), and Saudi Arabia (10.7%). Since 1988, marine terminals along the St. Lawrence have seen imports of foreign oil valued at more than $228 billion while the Irving Oil refinery imported $136 billion from 1988 to 2020.
What are the policy and cost implication of Carney’s call for the “decarbonization” of western Canadian produced, oil? It implies that western Canadian “decarbonized” oil would have to be produced and transported to competitive world markets under a material regulatory and financial burden. Meanwhile, eastern Canadian refiners would be allowed to import oil from the USA and offshore jurisdictions free from any comparable regulatory burdens. This policy would penalize, and makes less competitive, Canadian producers while rewarding offshore sources. A federal regulatory requirement to decarbonize western Canadian crude oil production without imposing similar restrictions on imported oil would render the One Canadian Economy Act moot and create two market realities in Canada – one that favours imports and that discourages, or at very least threatens the competitiveness of, Canadian oil export production.
Ron Wallace is a former Member of the National Energy Board.
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