May 24, 2012
MONTREAL, – SNC-Lavalin is pleased to announce that 407 East Development Group General Partnership (“the Partnership”), a new 50/50 joint venture between SNC-Lavalin and Cintra Infraestructuras’ respective subsidiaries, has been awarded a contract by the Province of Ontario to design, build, finance, and maintain Phase 1 of the new Highway 407 East. The project will be delivered using Ontario’s alternative financing and procurement (AFP) delivery model. The contract is worth approximately $1 billion (net present value).
“We are pleased to have been awarded this very important highway project in Ontario,” said Gilles Laramée, Executive Vice-President and Chief Financial Officer, SNC-Lavalin Group Inc. “Once completed the highway will allow for a better and more efficient transportation and flow of goods between Toronto and eastern Ontario.”
The 407 East Development Group General Partnership has entered into a fixed-price contract with the Province of Ontario for the project. Phase 1 of the new highway will extend 22 kilometres east from Brock Road in Pickering to Harmony Road in Oshawa. It also includes a 10-kilometre north-south highway, east of Lake Ridge Road, connecting Highway 407 East to Highway 401.
“With this award, SNC-Lavalin’s capabilities will be put to work on a large and complex construction project,” said Charles Chebl, Executive Vice-President, SNC-Lavalin Group Inc. “We are committed to the Ontario market, and look forward to working with our design-build partner Ferrovial to deliver sustainable transportation infrastructure to the province.”
The design and build portion of the contract is expected to take approximately 3 1/2 years. Once completed, the Partnership will maintain and rehabilitate the road for 30 years. The Partnership has entered into a fixed price contract with a 50/50 consortium made up of SNC-Lavalin Operations and Maintenance and Cintra for the maintenance and rehabilitation of the road over the concession period.
“We have significant experience providing operations and maintenance services for roads across Canada,” said Charlie Rate, Executive Vice-President, SNC-Lavalin Group Inc.,” and we look forward to combining our expertise with that of our partners to provide added value over the 30-year contract.”
Source: SNC-Lavalin Group Inc