EDMONTON — A month after announcing its money would be off the table, the Alberta government says it’s recommitting its $1.53-billion share towards Calgary’s beleaguered Green Line light rail project.

It’s prompted Alberta NDP Leader Naheed Nenshi to accuse the government of incompetence he claims could still cost taxpayers another $1 billion in penalties over cancelled contracts.

Transportation Minister Devin Dreeshen and Calgary Mayor Jyoti Gondek said in a joint statement Thursday they’ve agreed to continue work on the southern leg of what was a $6.2-billion transit project.

Calgary city council voted to wind it down last month after Dreeshen said the province would pull its funding without a redesign and extension of the Green Line’s route.

The city estimated it would cost $850 million to shut it down on top of the $1.3 billion already spent, but in late September Gondek made a last-ditch effort to ask the province to help salvage some pieces of the project they could agree on.

The two leaders said the province’s previously committed money will be available to support continuing work on the transit line, preserving more than 700 jobs.

In the meantime, a consulting firm hired by the province continues to work on a new alignment to meet Dreeshen’s demand that the downtown section not go underground.

Dreeshen has criticized the Green Line as a multibillion-dollar boondoggle that was poorly engineered and not properly costed from the beginning.

In recent months, the minister has pointed the finger at former Calgary mayor Nenshi – now Alberta NDP leader – calling it the “Nenshi nightmare.”

For his part, Nenshi has blamed the UCP government for delays that led to added costs.

In a statement Thursday, Nenshi said the United Conservative Party government is desperately backing down and trying to solve a catastrophe of its own making.

“Minister Dreeshen told hundreds of workers that they were OK in August, that they would lose their jobs in September, and now in October that they’ll be OK until Christmas. Maybe. These are real people, Minister Dreeshen, and they deserve better from you,” said Nenshi.

Nenshi said financial penalties for cancelled contracts will still cost taxpayers and called for a full public accounting.

As for the city’s previous vision for the Green Line, Gondek told reporters Thursday it is still being wrapped up.

“That project is over. That project was terminated on Sept. 3 when we heard from the province of Alberta that they didn’t wish to carry on with that alignment. This is a new project,” said Gondek.

The final bill for the wind-down remains to be seen, and it’s unclear how spending in the interim might be limited, she said.

“For now, we’re progressing work on an LRT that’s much needed in our city,” she said.

The federal government, which also committed to putting $1.53 billion into the previous iteration of the Green Line, will need to weigh in on whatever the new alignment might be.

The Calgary Construction Association welcomed Thursday’s announcement, saying it gets the project back on track.

“The Green Line LRT is essential not only for connecting hundreds of thousands of Calgarians but also for driving job creation and economic growth in our city,” said president and CEO Bill Black in a statement.

This report by The Canadian Press was first published Oct. 10, 2024.

Lisa Johnson, The Canadian Press