Metro Vancouver, the regional government that operates the Greater Vancouver Water District, has taken another step toward completion of a major crossing in its long-term water security program as excavation winds down on the Annacis Water Supply Tunnel beneath the Fraser River.
The 2.3-km, 2.6-m-diameter steel main, linking New Westminster and Surrey, is being delivered under a CA$288-million contract first awarded to Traylor Aecon General Partnership in early 2022, with total project completion targeted for 2027, according to utility and contractor announcements.
Engineering consultant COWI, which designed the tunnel’s slurry-wall shafts, lining system and ground improvement, said Sept. 8 that its work on the project is entering its final phase.
“Resilience is at the heart of this project,” said Nedim Alca, COWI’s North America market director. “What makes this milestone so significant is not just the completion of another tunnel — it’s the culmination of years of collaborative design, innovation, and precision engineering to meet the region’s future water needs.”
Alca added that the tunnel “represents a critical link in Metro Vancouver’s long-term plan to secure a reliable water supply, even under the most demanding conditions … one that will quietly serve millions of people every day, well into the next century”
Cross-section of the Annacis Water Supply Tunnel shows its 2.3-km alignment beneath the Fraser River, with shafts extending 45 to 60 m below ground on either side. Image courtesy of Aecom
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Map of the Annacis Water Supply Tunnel alignment between New Westminster and Surrey, showing the tunnel’s entry and exit shafts beneath the Fraser River. Image courtesy of Aecom
The Annacis tunnel is one of five under-river water supply tunnels Metro Vancouver is constructing to replace aging crossings and ensure service continuity in the event of a major earthquake. Together, the program represents more than CA$2 billion in planned capital investment.
The utility’s 2025–2029 financial plan allocates $468.6 million for the Second Narrows Water Supply Tunnel and $495 million for the Stanley Park tunnel, with additional funding earmarked for the Lulu-Delta crossing.
A July draft of the 2026–2030 capital plan reviewed by ENR projects household water rate increases of 2.5% in 2026, rising to 5% by 2028 as construction accelerates.
Even as infrastructure spending ramps up, Metro Vancouver noted in its Summer 2025 Water Supply Update that per-capita water demand has declined steadily since 2010, a trend the utility attributed to densification, plumbing code changes, more efficient appliances and public outreach.
Still, overall demand has remained steady as population growth offsets conservation gains. The City of Vancouver’s 2025 Water Demand Management Strategy calls for cutting consumption another 15% by 2030 and moving to universal metering by 2040.
Future supply projects are also advancing. In December 2024, Metro Vancouver selected Jacobs as program manager for the Coquitlam Lake Water Supply Project, which will expand capacity from the region’s largest drinking water source with additional treatment and distribution designed to withstand climate impacts.
Metro Vancouver’s Water Supply Outlook 2120 report underscores the importance of that project, noting: “Once complete, the Coquitlam Lake Water Supply Project will help meet the region’s growing need for drinking water well into the next half century.”
Other planned works include the Stanley Park tunnel, replacing a 1930s-era main, and the Lulu-Delta crossing to support Richmond and Delta.
Regional officials have framed the multi-decade program as a push to build redundancy into a network vulnerable to seismic disruption. A presentation to Metro Vancouver’s Water Committee in late 2024 outlined an “impact mitigation framework” emphasizing early contractor engagement, permitting coordination and contingency planning to manage project delivery risks.
That framework was developed with broad stakeholder engagement and drew strong support: “Overall positive feedback was received, including appreciation for the development of the Framework and support for a consistent, transparent, equitable and fiscally responsible approach to mitigating impacts to all members,” according to the report presented to the Water Committee in November 2024.
As the Annacis tunnel nears service, planners say the investment is intended to operate quietly in the background—infrastructure the public will only notice if disaster strikes.
