Cost-Benefit Analysis of Highway 40 Twinning

An economic impact study conducted by Nichols Applied Management Inc. shows that a proposed 19-kilometre twinning project on Highway 40 near the City of Grande Prairie is expected to generate a net social benefit of approximately $483.7 million. The study, also highlights additional benefits of the project that include travel time cost savings and improvements to highway safety. Download the complete Cost-Benefit Analysis of Highway 40 Twinning [PDF - 681 KB].

Highway 40 is an important artery in western Alberta connecting the region, which includes the County of Grande Prairie, City of Grande Prairie and MD of Greenview, as well as oil and gas and forestry infrastructure, to the wider highway network in the south.

This study is a tool that helps to better understand and quantify the value of investing in infrastructure improvements to this critical transportation link..

In December 2018, the provincial government announced its plans to twin the first 19-kilometre stretch of the highway. While initially, construction was expected to begin in 2022, with the road fully operational in 2024, no announcement has since been made on a project start-date.

The County along with local municipalities and stakeholders continue to advocate for a commitment to a timely start to the project.

Traffic safety on the highway is a particular concern, due in part to traffic volumes, road configuration, truck traffic and weather. Every day, more than 10,000 vehicles travel along the section of highway to be twinned. Volumes have been increasing over the past several years largely as a result of increased resource-based activities in the area.

Traffic volume will continue to grow with major developments being planned or already underway along the highway. One of those is the proposed world-class Tri-Municipal eco-Industrial Park – a partnership between the County, the City and Greenview. Highway 40 is also located on the Montney Formation, one of the most prolific natural gas and shale oil plays in North America, and provides the only access to some of the area’s major oil and gas infrastructure.

Highway 40 also serves Alberta-based businesses and residences moving in and out of the region. Out-of-province travellers and businesses also frequent the route.

The net benefit of the project was estimated over a 30-year time horizon (2022 to 2052) using real 2018 Canadian dollars.

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