Financial close for Edmonton's $1.3bn light rail

TransEd Partners has reached financial close on Valley Line LRT, the largest infrastructure project in the Canadian city’s history.

TransEd Partners, a consortium that includes Toronto real asset firm Fengate Capital Management and EllisDon, has reached financial close on the Valley Line Light Rail Transit-Stage 1 project.

The milestone comes three months after the group was selected to design, build, finance, operate, maintain and supply vehicles for the light rail project under a 30-year contract.

Stage 1 of the multi-phase project encompasses the 13.1-kilometre portion of the system, which includes building 11 stops and one station between Mill Woods and 102 Street. It is expected to cost C$1.8 billion (€1.14 billion; $1.29 billion).

“The Valley Line is a significant part of the City of Edmonton’s transportation plan,” Fengate said in a statement on Thursday. “It will cater to the demands of one of Canada’s fastest growing cities, which is expected to increase in population by 50 percent by 2040.”

The entire Valley Line project will span a total of 27 kilometres with 25 new stops and three stations, making it the largest infrastructure project in the city’s history. Construction on Stage 1 of the project is expected to begin in mid-2016.

The addition of the Valley Line project to Fengate’s infrastructure portfolio increases its total project value to C$12 billion, the investment firm said in the statement. It did not disclose its equity stake in the consortium. A spokesperson did not respond to a request for comment.

Other members of the consortium include Bechtel and Bombardier.