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Alberta signs 35-year contract to build Southwest Calgary Ring Road

JOC News Service
Alberta signs 35-year contract to build Southwest Calgary Ring Road

CALGARY – The Alberta government has signed a 35-year contract with Mountain View Partners to design, build, operate and partially finance the Southwest Calgary Ring Road. The design-build-finance-operate (DBFO) contract is worth $1.42 billion.

The province will fund 60 per cent of the capital construction cost which will be paid during the construction phase. The project consists of approximately 31 kilometres of a new six and eight lane divided freeway, plus additional basic and auxiliary lanes, and includes 14 interchanges, river crossing structures at Elbow River, a creek crossing structure at Fish Creek, a culvert at Cullen Creek, three watercourse realignments and additional pre-grading for future interchanges. This project will advance the completion of the Calgary Ring Road.

Through the 2014 New Building Canada Plan, the Government of Canada has committed up to 25 per cent of eligible cost including design, construction, engineering, project management and utility relocations.

Matt O’Brien, president of Connor, Clark & Lunn Infrastructure commented: "We are delighted to be part of the consortium selected to deliver this important project to the Province of Alberta. Our participation in the Southwest Calgary Ring Road project is consistent with our strategy of investing in long duration infrastructure assets with high-quality partners."

Mountain View Partners will start construction in autumn 2016 and the road is expected to open to traffic in 2021. Mountain View Partners was formed by Meridiam Infrastructure North America Corp., Kiewit Canada Development Corp, Graham Capital Partners and Connor, Clark & Lunn Infrastructure, through their affiliate Connor, Clark & Lunn GVest Traditional Infrastructure Limited Partnership and Ledcor Developments Ltd.

"Ledcor is proud to be joining Kiewit and Graham to construct this important Alberta infrastructure project. We are also appreciative of the good working relationship we have established with the other sponsoring partners Meridiam, Kiewit and Connor, Clark & Lunn Infrastructure," said John Kump, senior vice-president of Ledcor Developments Ltd.

The design and construction of the project will be subcontracted to KGL Constructors, a construction partnership consisting of Kiewit Management Co., Graham Infrastructure and Ledcor Group of Companies.

"Graham has been building transportation infrastructure in Calgary and the Province for decades. We are so pleased to be working with all our partners on this great project and on behalf of the hundreds of people who will be working on this project, we are grateful for the opportunity to be working in Calgary," said Tim Heavenor, president, Graham Capital Ltd. and CFO, Graham Group Ltd.

The operations and maintenance will be subcontracted to Alberta Highways Services Ltd. The project attracted significant private debt financing in the form of long-term senior bonds, medium term bank debt and short term bank debt. Financing parties include: Scotia, TD, Desjardins, BTMU, ATB and KfW IPEX-Bank, explains a release.

Ryan Tones, senior vice-president of Kiewit Management Co. said, "We are confident in the combined design and construction experience of Kiewit, Graham, Ledcor and our other partners to deliver a high-quality transportation project for our client and the people of Calgary."

According to the province, using the DBFO model for highways allows the Southwest Calgary Ring Road to be finished earlier than through conventional project delivery.

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