WINDSOR-DETROIT BRIDGE AUTHORITY SAYS CONSTRUCTION WILL GO AHEAD ON GORDIE HOWE INTERNATIONAL BRIDGE PROJECT
Windsor-Detroit Bridge Authority (WDBA) announced today that they have signed a fixed-priced contract with Bridging North America to design, build, finance, operate and maintain the Gordie Howe International Bridge project. Today’s announcement also signifies that all contractual steps have been completed and construction can begin.
The fixed-priced contract is valued at $5.7 billion (nominal value), which includes the design-build (DB) phase and the operation, maintenance, rehabilitation (OMR) phase. Bridging North America will receive progress payments during construction and a substantial completion payment at the end of construction.
They will also receive monthly payments for operations and maintenance over the 30-year concession (operating) period. The performance-based contract with Bridging North America is structured to ensure that the contractor has the appropriate incentives to meet or exceed the long-term objectives of safety, reliability and capacity WDBA has set for the project.
Bridging North America has presented a 74-month construction schedule to complete the four components of the project with the bridge expected to be in service by the end of 2024.
Bridging North America has been meeting with local companies, organizations and unions to discuss opportunities for partnerships. Representatives have also met with educational institutions to help develop the next generation of skilled trade workers. They anticipate the creation of 2,500 direct, on-site jobs including direct hires, sub-contractors and seconded individuals as well as significant economic benefits that extend to the whole region.
The new Gordie Howe International Bridge will provide for redundancy at the busiest trade corridor between Canada and the United States with improved border processing and highway-to-highway international connectivity. It also addresses future needs and will provide six lanes to meet anticipated growth in traffic over the years to come. With features like a multi-use path for pedestrians and cyclists, LEED Silver rating for buildings and a robust Community Benefits Plan, the project will result
A total CAN$1.033 billion are privately funded, including a long-term (35-year) and medium-term (20-year) bond issuances in the Canadian markets, both with A- rating by Standard & Poors and jointly underwritten by RBC and HSBC. Short-term finance during the construction period includes a bank loan syndicated by five institutions: Royal Bank of Canada, Desjardins du Quebec, TD Bank, Mizuho and HSBC. CAN $93 million of private Equity is injected by the consortium members at the end of the construction period and it is, until then, guaranteed through letters of credit.
Canada congratulates Windsor-Detroit Bridge Authority on Gordie Howe International Bridge project milestone, enabling full construction start
The Government of Canada is making investments that will help create good middle-class jobs, promote trade and productivity, and grow the economy. The Gordie Howe International Bridge will ensure people and goods move safely and smoothly between Canada and the U.S., facilitating economic activity, growth, and prosperity on both sides of the border.
The Honourable François-Philippe Champagne, Minister of Infrastructure and Communities today reiterated the Government of Canada’s support for the Gordie Howe International Bridge, and recognized Windsor-Detroit Bridge Authority (WDBA) for signing the final project agreement with Bridging North America, now its official private-sector partner.
“2018 has been a year of significant milestones for the Gordie Howe International Bridge. While each one so far for this project has been progressively important, today’s announcement is pivotal to the construction start of the bridge. The Government of Canada is 100% committed to the Gordie Howe International Bridge. We are looking forward to the full construction start of this monumental infrastructure project which will play a vital role in supporting the economies of Canada and the U.S., and create opportunities for residents and businesses alike.” – The Honourable François-Philippe Champagne, Minister of Infrastructure and Communities
WDBA’s announcement means the procurement process on the Gordie Howe International Bridge project is complete, and full construction can officially begin on one of Canada’s top infrastructure priorities.
The Gordie Howe International Bridge is a key enabler for the Windsor-Detroit trade corridor, supporting hundreds of thousands of high-skilled, good quality jobs for Southern Ontario and Michigan residents. The project will provide direct highway-to-highway connectivity, and technologically advanced ports of entry to support significant commercial traffic and travellers between Canada and the U.S. for generations to come.
The contract announced today between WDBA and Bridging North America is for $5.7 billion, and covers the design and construction of the project, financing costs, as well as a subsequent 30-year operation and maintenance period. Advance construction on the U.S. side of the project, as well as preparatory work on the Canadian side have already begun and the bridge is expected to be operational by the end of 2024. In addition to the contract value announced today, Canada has invested $559 million from 2006 to March 31, 2018 to get the project to this milestone where full construction can begin.
