Canadian infrastructure developer Aecon Group and its joint venture partner Dufferin Construction Company, a civil engineering firm and a division of Holcim Canada, have reached financial close slightly ahead of plan for a rail link project connecting downtown Toronto to the Toronto Pearson International Airport.
In October, Metrolinx and Infrastructure Ontario named the joint venture preferred bidders for the C$128.6 million (€95.7 million; $125.5 million) Air Rail Link (ARL) spur line and passenger terminal, which will require them to design, build and finance three kilometres (or nearly two miles) of elevated guideway that connects an existing Georgetown GO transit line to the airport.
To help fund the project, the joint venture partners secured debt financing from a string of local banks including the Canadian Imperial Bank of Commerce, Laurentian Bank of Canada, National Bank of Canada and the Toronto-Dominion Bank. National Bank Financial advised the team on the deal.
Although the deal is structured as a public-private partnership (PPP), there is no “long-term operations component” included in the contract, according to an Aecon spokesman. Construction is slated to begin in the spring of 2012.
“Aecon has been part of some of Ontario’s largest transportation projects and is now building a part of the Toronto Transit Commission’s subway system expansion,” chief operating officer Teri McKibbon commented in a press release.
“We look forward to continuing this history and working with Dufferin Construction, Infrastructure Ontario, Metrolinx and the Greater Toronto Airports Authority, to bring our infrastructure construction expertise to this pivotal transportation network,” he added.