Infrastructure Ontario and the Ministry of Transportation said 407 East Development Group, which includes Spanish firm Cintra Infraestructuras SA and SNC-Lavalin, was named as the “preferred proponent” for the Highway 407 East design-build-finance maintain project. It will extend the toll highway from Pickering to Oshawa, east of Toronto.
IO and the Ministry of Transportation said 407 East Development Group, which includes Spanish firm Cintra Infraestructuras SA and SNC-Lavalin, was named as the “preferred proponent” for the design-build-finance maintain project. Cintra and SNC-Lavalin own 43.23 per cent and 16.77 per cent respectively of the firm that operates the existing Highway 407.
IO will start negotiating contract details with the group and will announce the total cost following financial close.
407 East Development was one of three consortia invited to bid in April. The other bidders were: 407 East Development Partners, which includes OHL Concesiones S.L., Global Via Infrastructuras S.A, Borealis Infrastructure Management Inc., Con-Drain Company Ltd and Coco Paving Inc.; and 407 GreenLink Partners, which includes includes Bilfinger Berger Project Investments, Macquarie Group Ltd, Aecon Group Inc. and Fengate Capital Management Ltd.
Highway 407 is currently 108 kilometres long and the original section was opened in June, 1997. It starts in Burlington at the interchange of the Queen Elizabeth Way and Highway 403, about 55 kilometres southwest of downtown Toronto. It then then goes north and east outside of and around the periphery of the City of Toronto, ending at Brock Road in Pickering about 50 kilometres northeast of the downtown core, passing through numerous cities and towns in the regional municipalities of Halton, Peel, York and Durham.
The first phase of the eastward extension project will take the toll road from Brock Road east to Harmony Road in Oshawa. The next phase would extend it to Highway 35 and 115, a four-lane road that connects Peterborough to the 401 in Clarington (formerly known as Newcastle), about 75 kilometres east of downtown Toronto. The total length of 407 East will be 65 kilometres.
The first phase also includes the new 10-kilometre West Durham Link, a new four-lane highway running north and south between Highways 407 and 401. The 407 East extension will be six lanes from Brock Road to the West Durham Link and four lanes to Highway 35 and 115.
Highway 407 East will be owned by the province, which will collect tolls for government revenue. The existing Highway 407 is operated by 407 International Inc., of which Canada Pension Plan Investment Board owns 40 per cent, with Cintra and SNC-Lavalin owning the remainder. In 2011 it had net income of $128.3 million on revenues of $675 million, up from net income of $77 million on revenues of $624.3 million in 2010.
DCN DIGITAL MEDIA
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