Financial close achieved on Waterloo Region Light Rail Transit project

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Financial close achieved on Waterloo Region Light Rail Transit project

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Aecon Group Inc. announced last week that the GrandLinq consortium and the Region of Waterloo (Canada) have achieved financial close on the Region of Waterloo Stage 1 Light Rail Transit (LRT) project.

The GrandLinq consortium is formed by: Plenary Group Canada Ltd.; Meridiam Infrastructure Waterloo; LRT ULC Aecon Construction and Materials Ltd.; Aecon ConcessionsPeter Kiewit Infrastructure Co.Kiewit Canada Development Corp.; Mass Electric Construction Canada Co.; Keolis SAKeolis Canada Inc.; AECOM Canada Ltd.; STV Canada Construction Inc. and CIBC World Markets Inc.

The region had originally estimated the capital costs for construction of stage 1 of the LRT component of the project at CAD$545 million. The Grandlinq proposal had an estimated cost of CAD$532.1 million. That doesn't include land acquisition and rolling stock costs.

The total costs for the rapid transit system are estimated at CAD$818 million. All three levels of government have announced funding commitments for the project, including CAD$300 million from the province, one-third of the eligible costs up to CAD$265 million from the federal government and CAD$253 million from the region.

The project will be developed on a design, build, finance, operation, and maintenance (DBFOM) basis for a period of 30 years.

The Stage 1 LRT Project is a major part of the Region's Rapid Transit Project, as approved by Regional Council in June 2011.

GrandLinq Contractors, a partnership between Aecon and Kiewit, will perform the design and construction portion of the project. Work is anticipated to commence in the second quarter of 2014 and is scheduled for completion in 2017. As previously disclosed, the value of Aecon's portion of the construction contract is expected to be approximately C$250 million.

Financing for the project was arranged by Alberta Treasury Branches as lender and CIBC World Markets Inc. was senior bond underwriter. Alberta Treasury Branches is a financial institution and crown corporation owned by the Province of Alberta.

Teri McKibbon, Aecon's President and Chief Operating Officer, said:

"We are pleased to work with our partners to deliver this significant transportation project for the Region."

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