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Deh Cho Bridge debt on track to be paid off by 2046 despite increasing due to inflation – CBC

Nov 04, 2022

Higher-than-anticipated inflation means N.W.T. will pay about $3.6M more than expected

It’s been almost ten years since the Deh Cho bridge opened. The territory has been paying for it ever since, but recent spikes in inflation mean the debt the Northwest Territories Government took on to help pay for the bridge is going to cost slightly more than was originally expected.

The bridge provides a year-round link between many N.W.T. communities, such as Yellowknife, and Alberta.

Back when the territory first issued the bonds that let it finance the bridge, it projected the final cost would be about $334.6 million — a number that includes a principal loan amount combined with decades of interest payments.

But Canada’s year-over-year inflation rate was 6.9 per cent as of September, instead of the two per cent the territory had estimated. The bond was tied to inflation, meaning the cost has gone up to an estimated $338 million.

Read More: https://www.cbc.ca/news/canada/north/deh-cho-bridge-debt-1.6640155

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