VANCOUVER, B.C. — The PNE Amphitheatre, a long-awaited 10,000-seat open-air venue set to replace the aging original at the Pacific National Exhibition grounds, has seen its budget balloon to nearly three times the initial estimate, sparking debates over accountability in Vancouver's major capital projects.
Originally approved by the city's previous council in 2021 with a projected cost of $65 million, the amphitheatre's budget was increased to $137 million last year by the current council. Then, in a closed-door meeting in May, it jumped again to $183 million — a 180 percent overrun amounting to almost $120 million more than planned. The decision from that in-camera session was only publicly disclosed last month on the city's website, according to a spokesperson.
The venue is slated to open next June, just in time to host Vancouver's FIFA World Cup Fan Festival. While supporters hail it as a vital addition to the city's cultural landscape, the escalating costs have drawn sharp criticism from political figures, taxpayer advocates, and even some insiders who question who, if anyone, bears responsibility for the shortfall.
Mayoral candidate Kareem Allam, who is running with his new Vancouver Liberals party in next October's election, called the overrun "the latest example of Vancouver’s atrocious record of managing major capital projects." In an interview, Allam pointed to similar issues at municipal, regional, provincial, and federal levels, arguing that the city's oversight system is fundamentally flawed.
“One of the challenges that we’re seeing is that in every single one of these major capital projects, staff ultimately drives the process,” Allam said. “What we need is actually a constructively adversarial process, where a project management board reports directly to (city) council in an adversarial way. Not to be violently adversarial, but just to raise issues and questions.”
Allam, who previously served as campaign manager for ABC Vancouver in the 2022 election but has since become a vocal critic of the party, laid some blame at the feet of Mayor Ken Sim and the council's majority ABC party. “Ken was supposed to be the corporate governance guy. Heads should roll. But as the mayor the first one should be his,” Allam stated.
The city attributes the cost increases primarily to external factors. According to a statement from a city spokesperson, the escalation stems from “market-driven cost escalation for materials and labour, challenging ground and soil conditions, global cost pressures affecting construction and upgrades to essential utilities and site-wide improvements.” The PNE, which operates the exhibition grounds, has said the city is responsible for the amphitheatre's delivery.
However, when pressed on accountability for the overruns, the city declined to provide specifics. City Hall made no one available for interviews last week or this week to discuss the issue, leaving questions unanswered about who is ultimately at fault.
Councillor Mike Klassen, an ABC member who chairs the PNE's board of directors, pushed back against suggestions that the overruns reflect broader mismanagement. “I’m struggling to think of this long list of projects that have gone off-track. This is an extraordinary example,” Klassen said in an interview.
Klassen highlighted a key discovery during construction: unexpected underground streams at the site, which complicated hydrological conditions. “A major factor in the amphitheatre’s budget escalation is the hydrological condition of the site,” he explained. Those issues have since been resolved, he added, leading to a finalized budget. “Now we have a final budget, and what we have is going to be an incredible venue.”
Looking ahead, Klassen acknowledged taxpayer frustration but expressed optimism. “For Vancouver taxpayers, they’re not going to be happy to see cost overrun on a project like this, but I think — and I mean this sincerely — there will be a point where that will be in the past, and we’re going to be out there enjoying one of the most fantastic venues the city’s ever seen,” he said.
The in-camera nature of the May budget approval has also raised eyebrows. The city justified the closed-door discussion by noting it “involved sensitive financial and contractual details that could negatively impact procurement negotiations if that information were to be shared in public.” A spokesperson emphasized that “these steps are standard practice to ensure fairness and confidentiality during contract negotiation processes. Once agreements and pricing were confirmed, the finalized budget was shared publicly through the regular reporting process.”
Carson Binda, B.C. director of the Canadian Taxpayers Federation, criticized the city's reticence as indicative of a deeper problem. “Time and time again, taxpayers are on the hook for these big cost overruns with capital projects, and there seems to be a really concerning lack of accountability from the municipalities and regional districts,” Binda said. “That’s a huge problem.”
Binda expressed general support for Allam's idea of project oversight boards but cautioned against adding bureaucracy without clear benefits. “But I think, big picture, the solution here isn’t municipalities going about it piecemeal,” he added. Instead, he advocated for the provincial government to revive the auditor general for local government, an office established in 2013 under the Liberal government to identify efficiencies but eliminated by the NDP in 2021. “Having that arm’s-length provincial body would be a good thing,” Binda said.
Allam, for his part, described the amphitheatre itself as “a fantastic and needed project,” despite the financial hiccups. He stressed the importance of learning from this to prevent future overruns, noting that current oversight often relies on bureaucrats skilled in contract administration but lacking in construction management expertise.
The controversy comes amid other fiscal challenges in Vancouver, including the recent cancellation of the Celebration of Light fireworks due to funding shortfalls and ongoing debates over regional governance, such as a poll showing split support for a Metro Vancouver megacity. As the October election approaches, the amphitheatre's saga could become a flashpoint in discussions about fiscal responsibility.
With construction progressing despite the hurdles, the venue promises to transform the PNE site into a hub for concerts and events. Yet, the lack of clear accountability has left many wondering if systemic changes are on the horizon or if Vancouver's pattern of capital project overruns will continue unchecked.
For now, the focus remains on completion. Officials say the amphitheatre will deliver lasting value, but the path to getting there underscores the complexities of large-scale urban development in a city grappling with rising costs across multiple fronts.