Deals

Bids in for Ontario highway PPP

Consortia including Macquarie, Balfour Beatty and Cintra are in the race for a 50km extension of Canada's 407 highway. A preferred bidder is expected early next year.

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Three consortia have submitted bids for a public-private partnership (PPP) to build and operate a 50-kilometer extension to a highway in Ontario, Canada, known as the Highway 407 East project.

The consortia, which had been shortlisted by Infrastructure Ontario in March to design, build, finance and maintain the 407 highway extension, include:

– 407 Green Link Partners, including Macquarie Group, Bilfinger Berger, AECON Group, Fengate Capital Management and Kiewit;

– 407 East Development Partners, consisting of Borealis, Global Via Infraestructuras, and OHL Concesiones;

– 407 East Development Group, with Cintra Infrastructuras, Intoll and SNC-Lavalin;

Cintra is an existing 42.3 percent owner of the main 407 highway, while SNC-Lavin is a 16.77 percent owner. In addition to building Highway 407 East, the winning consortium will build a link to Highway 401. The new extension will be a government controlled toll road.

The successful bidder is slated to be announced in early 2012, with project cost and financial close expected to be made public in spring 2012. The Highway 407 extension is set to open to traffic in late 2015.