The estimated cost of forest fire damage in the city of Rocky Mountain de Jasper has shot at $ 1.23 billion, partly because the relative isolation of the municipality makes it more expensive to eliminate the debris, they say insurance industry officials .
The new cost estimate for the Forest Fire of July 2024, calculated by the catastrophe indexes and quantification Inc. (CATIQ) and published on Wednesday, is $ 350 million higher than the initial estimate of August of $ 880 million.
And the figure is backed by the Canada Insurance Office (IBC). The office says that the Jasper forest fire, which destroyed a third of the city’s structures, is the second most expensive fire event in the history of Canada, after the Fort McMurray 2016 forest fires that left $ 6.2 billion in Damage.
“We have seen greater costs in Jasper due to its unique geography in the province,” said Aaron Sutherland, vice president of IBC, Pacific and Western.
“We have to move materials beyond what I would do if this event happened in Edmonton, Calgary or somewhere near those communities.”
In addition, the rubble of each of the 358 destroyed structures must be tested for toxins, including asbestos, Sutherland said. “That is adding greater costs,” he said.
After the test, most debris are loaded into trucks and fall 75 kilometers east of Jasper in the West Yellowhead regional landfill, on the outskirts of the city of Hinton, Alta.
But Sutherland added that some material must be transported as far as Edmonton, 365 kilometers east.
Delays could further increase costs
Sutherland said insurance costs could continue to increase, especially if there are reconstruction delays.
The municipality of Jasper says that the elimination of debris is expected to be completed in the middle of spring. The reconstruction can begin once Parks Canada approved decongestations and construction permits.
The IBC, an industry association that represents 66 Canadian household insurance companies, cars and businesses, is helping to coordinate efforts between insurers in Jasper. He warns that the lack of availability of construction workers could slow reconstruction efforts and increase costs.
“When we think of the next steps, the great challenge could be only the work pool in Jasper and its surroundings and the number of qualified builders and contractors to rebuild this community,” Sutherland said.
After the approval of the new reconstruction regulations in Jasper, the construction teams face challenges as the damaged place is rebuilt in a community that will be more resistant to forest fire. Acton Clarkin of CBC reports from Jasper.
The Jasper Recovery Coordination Center (JRCC), composed of representatives of the municipality and Parks Canada, has the task of maintaining reconstruction on the road. He says that contractors from all over the country could be brought to complement the work pool.
There are five reconstruction phases established by the JRCC. The city is currently in phase two, which focuses on site surveys and develop construction plans.
Beth Sanders, Director of Design and Urban Standards of Jasper, has been working with the JRCC on these efforts. She said officials try to work quickly through recovery and phases plans, but noted that operations are constantly updated.
“We are there to help people with all minutiae of the decisions they have to make and answer as many questions as possible so that when they make a request, be as complete as possible,” he said. “Because what we know in the end is when a request is completed, we can advance more quickly,” he said.
Phase three of the Jasper reconstruction plan will focus on the construction of applications and is expected to begin in the coming months.
