NewsBilfinger Berger Project Investments (BBPI) has successfully reached financial close on the 30-year $1.4bn (NPV) design, build, finance, operate, maintain and rehabilitation contract for the Northwest Anthony Henday Drive Project in Edmonton, Alberta.
Forming a 21km segment of the Edmonton Ring Road, this project will become part of a key transportation route around the City of Edmonton. The development involves the design and construction of approximately 8km of a new 6-lane divided roadway and 13km of a new 4-lane divided roadway between Highway 16 and Manning Drive. The new road facility will include 8 interchanges, 5 flyovers, and 2 railroad crossings.
Luke Ouellette, Minister of Transportation said, “Anthony Henday Drive Northwest will significantly improve traffic in Edmonton’s north end when it opens in 2011. Using the made-in-Alberta P3 highway solution will mean this roadway is built two years sooner and at a cost savings for Albertans.”
Construction of the project, scheduled to commence on August 1st 2008, will be conducted by a design-build joint venture comprised of Flatiron Constructors Canada Ltd, Graham Infrastructure, A JV and Parsons Overseas Company of Canada, Ltd.
Once open to traffic BBPI will be responsible for managing the roadway over a 30-year term. During this time, Carmacks Maintenance Services Ltd. as subcontractor to BBPI will provide the operations and maintenance of the facility, while BBPI will assume responsibility for rehabilitation activities.
The financing for the project consists of both public and private investment.
$57m in equity has been contributed by BBPI to the project. An additional $620m in funds have been secured from RBC Capital Markets, DEPFA BANK plc, Dexia Credit Local S.A and Fortis Bank S.A/N.V.
$500 million has been committed by the Province of Alberta in the form of progress payments to cover capital costs. BBPI will also receive payments from the Province throughout the 30-year Operating Period related to operations, maintenance and major rehabilitation activities.
It is anticipated that the highway will be open to traffic in November 2011.
