Massive public builds: The hidden billion-dollar betrayal governments won’t admit

Large public projects almost always cost far more than promised. Toronto’s Union Station overhaul proves it. Initially pegged at $624 million, the final bill ballooned to nearly a billion and arrived late. Big builds like this rarely meet budgets, or deadlines. Overruns are expected, yet governments continue announcing “transformational” projects with the same blind optimism.

Spain offers an even starker warning. In the 1990s, a massive housing boom near Madrid promised homes for tens of thousands. Land was handed to private developers at no cost, regulations eased, and billions flowed in. Then the economy crashed. Tens of thousands of empty condos stood unfinished, many later condemned for safety reasons. Developers walked away with billions. Taxpayers inherited the debt.

When private corporations partner with governments, they negotiate ironclad protections:

• Control of project funds, with the freedom to redirect money as they see fit.
• Immunity from accountability through airtight clauses shielding both public and private players.
• Debt transfer to the public sector.
• Design and delivery left solely to private interests, often without oversight.

Serbia is learning this lesson now. The country launched a massive national stadium project, nine levels, 52,000 seats, symbolizing “Serbian pride.” Costs exploded before construction even began. Despite no visible progress, billions have been spent. Police are now probing corruption, environmental violations, and financial secrecy. The project stands as a case study in how not to build.

Canadians should pay attention. The Ford administration’s deals with auto and battery manufacturers follow a similar pattern. Both Ontario and Ottawa handed billions to corporations through secret agreements the public can’t see. How much money changed hands? At what interest rates? For how long? Who signed? If these companies walk away, what happens to the loans, if they were loans at all?

“Police are now probing corruption, environmental violations, and financial secrecy.”

These unanswered questions erode public trust. When governments operate in secrecy, taxpayers end up financing private profit while absorbing every risk. Political photo ops and ribbon cuttings disguise deeper problems: weak oversight, no penalties, and a culture of corporate entitlement.

History repeats itself with every “nation-building” announcement. From Olympic stadiums to mega-housing projects, countries boast of progress, but rarely profit. Jobs come and go. Budgets crumble. A handful of executives and politicians walk away richer.

True accountability requires more than press releases. Public auditors and ombudsmen must have unrestricted access to contracts, without government interference. Transparency shouldn’t depend on political convenience. Until oversight becomes law, not suggestion, Canadians will keep footing the bill for other people’s ambition.