News / MegaProject 888: Contract Awarded for Highway 427 Expansion Project

MegaProject 888: Contract Awarded for Highway 427 Expansion Project

🕔 March 16, 2017
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Infrastructure Ontario (IO) and the Canadian Ministry of Transportation (MTO) have announced that LINK 427 has signed a fixed-priced contract to design, build, finance and maintain the Highway 427 expansion project.

The contract value of the Highway 427 expansion project is approximately CAD616 million (US$458 million), which reflects payments to be made during construction, the substantial completion payment and the monthly service payments before inflation adjustments. Ongoing maintenance and repairs will ensure Highway 427 is kept in good condition over the contract term.

LINK 427's team includes:

  • Developer: ACS Infrastructure Canada Inc. and Brennan Infrastructures Inc. (a member of the Miller Group of Companies)
  • Construction: Dragados Canada Inc., Brennan Infrastructures Inc. and Bot Infrastructure Ltd.
  • Design: MMM Group Ltd. and Thurber Engineering Ltd.
  • Maintenance: ACS Infrastructure Canada Inc. and Brennan Infrastructures Inc.

LINK 427 will focus on design work, and construction is expected to follow in 2017 with completion occurring in 2021. The Highway 427 expansion project includes:

  • A new 6.6 kilometer extension from Highway 7 to Major Mackenzie Drive with:
    • Eight lanes from Highway 7 to Rutherford Road
    • Six lanes from Rutherford Road to Major Mackenzie Drive, and
    • Three interchanges: Langstaff Road, Rutherford Road and Major Mackenzie Drive
    • New median High Occupancy Toll (HOT) lanes
  • A 4 kilometer road widening from Finch Avenue to Highway 7:
    • From six to eight lanes, Finch Avenue to south of Steeles Avenue
    • From four to eight lanes, from south of Steeles Avenue to Highway 7
    • New median High Occupancy Toll (HOT) lanes

Once construction is complete, LINK 427 will receive a substantial completion payment, followed by a series of monthly payments from the Province over a 30-year period. The 30-year period commences when construction is complete. These monthly payments cover routine maintenance, construction, lifecycle repair and renewal of the highway as well as project financing.

    The project has also achieved financial close

    National Bank Financial fully underwrote the CAD79 million bond (US$59 million). The average maturity for the life of the bond is 2037. 

    A group of four banks, Bank of Tokyo-Mitsubishi UFJ, Fédération Des Caisses Desjardins du Québec, Korea Development Bank and Bank of China will provide CAD117 million (US$87 million) in short-term debt for the project. 

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