Alto high-speed rail project could cost more than originally thought: budget watchdog

Building the proposed high‑speed rail project between Toronto-Quebec City could cost between $75 billion and $113 billion — higher than the official initial estimates, according to a new report from the Parliamentary Budget Office.

New report says Toronto-Quebec City corridor project could between $75B to $113B

Catharine Tunney · CBC News

· Posted: Oct 01, 2026 10:34 AM EDT | Last Updated: 6 minutes ago

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Building the proposed high‑speed rail project between Toronto and Quebec City could cost between $75 billion and $113 billion — higher than the official initial estimates, according to a new report from the Parliamentary Budget Office.

Following a request from the Senate finance committee, the federal budget watchdog released a report on Thursday trying to put a dollar figure on the government's controversial Alto high-speed rail corridor, which promises to connect Toronto and Montreal in about three hours.  

 Alto, the Crown corporation responsible for the major infrastructure project, is also looking at a potential stop in Kingston, Ont.

The Parliamentary Budget Office said based on analysis of international construction experience and assumed characteristics of the proposed Canadian route, the baseline route, excluding Kingston, could cost between approximately $75 billion and $113 billion to construct. 

"This range reflects the considerable uncertainty inherent in large-scale rail infrastructure projects," said the report.

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That's billions more than the official estimates of between $60 billion and $90 billion.

The main drivers of the cost are the tunnels and elevated structures used in the project. The budget watchdog said international evidence indicates that each additional kilometre of tunnel will add $169 million to the total cost of this project, while an additional kilometre of elevated structures will add $153 million.

Adding a stop in Kingston, Ont., is expected to increase uncertainty, the report notes, "due to the counter-balancing effects of easier geography for construction, but higher density of regional populations and greater ecological sensitivity."

Liberal Transport Minister Steve MacKinnon has defended the project as a way to "build a strong economy and create new opportunities for Canadians."

Conservatives call the proposal a costly "boondoggle." The project has also received vocal opposition from Eastern Ontario residents living along the proposed route.