The world is changing, but there are no end to the changes and uncertainties that will affect business, home and community life.
Read more The Globe and Mail is reporting that a new study by a team of economists and disaster experts predicts the cost of the massive spillway, and the damage to property, infrastructure and the economy, could top $3 trillion.
The study was released Tuesday, two weeks after a series of reports found that the cost could be even higher, and that $3.5 billion was the figure the Government of Canada’s top experts had said was a “conservative estimate.”
According to the study, the cost would be “incredibly large” to cover the spillway’s construction and operation, and would also be much higher for the cleanup and remediation work, including the construction of temporary spillways.
The project, dubbed the Alberta Floodway, was conceived in 1997 and initially cost $1.5-billion to build, including $1-billion for a $1 billion spillway.
The $1-$1.25-billion price tag was based on the cost to build the spillways in the first place.
The government estimated that the spillpath would cost $2-billion, but the costs were much higher in its first two years.
“We estimate that the project will cost $3 billion in total.
This includes costs for the construction, operations, maintenance and operation of the spillwater mitigation, as well as other costs,” the report states.”
This includes the costs associated with the flood mitigation and recovery effort and associated cleanup and recovery activities.”
The study also notes that the estimated cost of flood insurance for homes and businesses is currently $1,100 a year, up from $100 in 2011.
The report notes that it is “likely” that the costs of flood mitigation will rise even higher over the next few years.
The report says the cost will rise substantially over the following five years.
For a home or business with 10 or fewer people, the estimated annual cost of flooding insurance could be up to $1 million.
For a home with 10 to more than 50 people, it could be upwards of $5 million.
“As the cost continues to increase, the total amount of damage that will occur over the long term to property will be substantial,” the study states.
According to a report released last month by the National Post, the report was based largely on a cost-benefit analysis of various spillway projects across Canada.
The government of Alberta is expected to release a full report on the Alberta floodway this fall, which is expected “to be among the most expensive ever.”
The study says that, “given the size and complexity of the Alberta project, the project could easily cost as much as $4.2-trillion.”