407 East Development Group General Partnership was awarded the contract by the province to build, finance, and maintain Phase 1 of the new Highway 407 East, which would extend the toll expressway from Brock Road in Pickering to Harmony Road in Oshawa. The consortium is a 50-50 joint venture between subsidiaries of SNC-Lavlin Group Inc. of Montreal and Cintra Infraestructuras S.A. of Spain.
A joint venture involving SNC-Lavalin Group Inc. has been awarded a fixed-price contract, worth about $1 billion, to extend Highway 407 north of Toronto from Pickering to Oshawa.
Montreal-based SNC-Lavalin stated in a press release Wednesday that 407 East Development Group General Partnership was awarded the contract by the province to build, finance, and maintain Phase 1 of the new Highway 407 East, which would extend the toll expressway from Brock Road in Pickering to Harmony Road in Oshawa. The project also includes a 10-kilometre highway that would connect Highway 407 to Highway 401.
407 East Development Group General Partnership is a 50-50 joint venture between subsidiaries of SNC-Lavlin and Cintra Infraestructuras S.A. of Spain. SNC-Lavalin and Cintra own 16.77 and 43.23 per cent, respectively, of 407 International Inc., which operates the existing highway 407, which acts as a bypass around the northern and western periphery of Toronto. Canada Pension Plan Investment Board owns the other 40 per cent. The current highway starts in Burlington, just northeast of Hamilton, where Highway 403 and the Queen Elizabeth Way meet. It goes north and east 108 kilometres, ending at Brock Road in Pickering.
In March, Infrastructure Ontario said it had selected the 407 East Development Group General Partnership as the preferred proponent, and since then has been negotiating financial close, for the first phase. The next phase, which would be a separate contract, would extend the 407 toll route to Highway 35 and 115 in Clarington, formerly known as Newcastle, about 75 kilometres east of Toronto.
The design and build portion of the first phase is expected to take about 3-1/2 years, SNC-Lavalin stated.
“Once completed, the Partnership will maintain and rehabilitate the road for 30 years,” the firm said. “The Partnership has entered into a fixed price contract with a 50/50 consortium made up of SNC-Lavalin Operations and Maintenance and Cintra for the maintenance and rehabilitation of the road over the concession period.”
The other bidders invited in April, 2011 to submit proposals on the first phase, 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 Bilfinger Berger Project Investments, Macquarie Group Ltd., Aecon Group Inc. and Fengate Capital Management Ltd.
DCN DIGITAL MEDIA
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