Macquarie, Hochtief, SNC shortlisted for Alberta PPP

Narrowing down a list of five bidders, Alberta Transportation has asked three consortia to submit proposals to construct and maintain the northeastern leg of the Edmonton Ring Road. Alberta has pledged to commit C$2.3bn to the construction of the entire ring road.

Consortia led by Macquarie, SNC-Lavalin, and Hochtief have been shortlisted to build a portion of a C$2.3 billion (€1.7 billion; $2.4 billion) road project in Alberta, Canada.

The chosen bidder will reconstruct 18 kilometres of highway and build two bridges and 9 kilometres of new highway along the northeast leg of the Edmonton Ring Road, which surrounds Alberta’s capital, Edmonton.

Five bidders responded to a request for qualifications, according to a statement from Alberta Transportation, the province's transportation department. They have now been narrowed down to three consortia shortlisted for the project:

–    Alberta Roads Consortium, led by Macquarie Capital Group, with Kiewit leading design and construction;
–    Capital City Link Group, led by Hochtief, ACS Infrastructure Canada, and MNII Canada;
–    Edmonton Connect Partners, led by SNC-Lavalin;

Alberta Transportation did not specify cost estimates for the northeastern leg, but said in a statement that it was the single largest highway project Alberta has ever undertaken. Alberta Premier Ed Stelmach said in a previous statement that the Edmonton Ring Road has been more than 40 years in the making.

Edmonton: planning next
PPP for ring road

Macquarie Essential Assets Partnership (MEAP), a Canada-focused unlisted fund established in 2003, led construction on the southeast leg of the ring road. MEAP exited its investment last December, when it sold its stake in the southeast leg for an undisclosed sum to a group of investors led by Canadian infrastructure fund Fiera Axium.

In 2008, Bilfinger Berger BOT won a 30-year contract to construct, operate and maintain the northwest portion of the ring road. Bilfinger bid C$1.42 billion for that section of the project, according to a statement. 

Alberta Transportation said it has committed C$2.3 billion to the construction of the entire ring road. A preferred bidder for the northeast leg of the ring road is expected to be announced by May 2012.