The Government of Alberta has announced that the Southeast Stoney Trial P3 project has started operations. The project is part of Calgary's ring road.
At the same time, financial close was reached.
Financing for the project came through a combination of public and private funds. Total public funding was CAD$765 million at net current value. During the construction phase, the authorities provided CAD332 million: CAD232 million from Alberta's provincial government and CAD100 million from the British Colombia federal government. During the 30-year O&M period, the authorities will pay the consortium a monthly canon for availability.
With regard to private funding, the ACCIONA-SNC consortium launched a private bond emission, rated "A" by Standard and Poors. Lenders include Sun Life Assurance Company of Canada, The Canada Life Assurance Company, The Manufacturers Life Insurance Company and BCE Master Trust Fund, as well as Computershare Trust Company of Canada as indenture trustee, National Bank Financial Inc. as senior bonds administrative agent, TD Securities Inc., National Bank Financial Inc. and Casgrain & Company Limited.
This project consists of:
The project includes the design, build, operate and partially finance Stoney Trail from 17 Avenue SE to east of Macleod Trail. Managed as a P3 the 33-year agreement includes a 30-year maintenance contract. Construction began in 2010.
Dale Woodroffe, CEO of Chinook Roads Partnership, said:
Chinook Roads Partnership (CRP) is pleased to deliver this complex P3 highway project for the Government of Alberta. Contractors safely overcame the challenges of working over live traffic, and have provided a high-quality design and lasting infrastructure. We are excited to move forward with operations and maintenance, and to introduce Mainroad Chinook Contracting as Alberta's newest highway operator.
Including this new segment, the Alberta government has invested $1.9 billion in Calgary's ring road, one of many projects which deliver on Alberta Transportation's Building Alberta commitment.
The Government of Canada contributed $100 million to this southeast portion of the project through the Major Infrastructure Component of the Building Canada plan.