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SaskLink Global Transportation Partners (SGTP) has signed with the Ministry of Highways and Infrastructure and has reached financial close for the Regina Bypass P3 project in Saskatchewan, a province in central Canada.
SGTP includes the following partners as an integrated team: VINCI Concessions (37.5%), Parsons Enterprises (25%), Connor Clark & Lunn GVest fund (25%) and Gracorp Capital (12.5%).
The project consists of a free flow highway corridor through the Regina Region and includes 61 kilometers - 2x2 lanes - of the Regina Bypass, including 37 kilometers of new construction, 24 kilometers to be renovated and 12 interchanges, together with their access roads and 38 civil engineering structures, for a total of approximately 400 lane-km.
The project will begin on Highway 11 northwest of Regina and run south to Highway 1, then wrap about 5 kilometres south of the city to rejoin Highway 1 on the east. The project includes overpasses at the Pilot Butte Access Road, Highway 48 at White City and Highway 46 at Balgonie.
The project will be developed on a design, build, finance, operate and maintain (DBFOM) basis. The construction works will last about 4 years. It will be carried out by Regina Bypass Design-Builders, a joint venture consisting of Carmacks Enterprises Ltd. (18.75%) - a wholly-owned subsidiary of Eurovia, VINCI Construction Terrassement (18.75%), Graham Infrastructure LP (37.5%) and Parsons Canada Ltd. (25%). After construction is completed, the motorway will be operated and maintained by Regina Bypass Operations and Maintenance, a wholly owned subsidiary of VINCI, for a period of 30 years.
The total project investment is estimated at CAD$1.9 billion (US$1.3 billion). The Government of Canada, through PPP Canada, is investing up to C$200 million in the project.
The project will be financed through bonds issued by the concessionaire. Moody's has assigned A3 rating to CAD$488.2 million of amortizing senior secured bonds due in January 2045 and to CAD$140.4 million of bullet senior secured bonds due in July 2049.
The Regina Bypass is the first transport infrastructure project to be completed in a public-private partnership scheme in the province of Saskatchewan. The bypass is part of the Trans-Canada Highway 1, which crosses the continent and plays an important role in movement of goods. It will also improve mobility by speeding up traffic flows and will increase traffic safety around the city of Regina.
We have recently reported on several PPP projects in Canada: