BurlOak
Senior Member
Read the link that was provided - http://www.metrolinx.com/en/docs/pdf/board_agenda/20100519/Five_in_Ten_Board_web.pdf - it provides both the $1.4 billion number in 2008 dollars, and the escalated number, in the year of spending at $2.465 billion. If you look at the cash flows, it's not two years of spending - the spending peaks in 2019/2020 ... that's 12 years of inflation, not 2 (for the peak spending year).
If you go run the numbers, you'll see that the document uses a construction price index of 4% (which is pretty typical). So then you can calculate the actual 2008$ of the $2.465 based on year of spending, and you get about $1.7 billion. So the price seems to have gone up from about $1.4 billion to $1.7 billion. At the same time though Finch seems to have dropped from $1.2 billion to $0.9 billion.
So if the escalated cost has now dropped to $2.3 billion, then the cost in 2008$ must now be less than $1.7 billion ... somewhere in $1.5 to $1.6 billion I'd guess. Or the money is being spent earlier (which isn't how these projects normally work )
But according to the TTC report to Commision (table on page 16), the LRT cost is in 2011 dollars, not escalating dollars.
so either;
1) they are comparing escalated dollars for LRT to current (or 2011) dollars for subway, just to make subway look better, OR,
2) the LRT cost has climbed to $2.3B in 2011 dollars.
Reading the TTC response, it is clearly written the second way.