Meridiam in C$1.8bn Canadian road PPP win

A consortium led by Meridiam and also including ACS and Hochtief reached financial close on a 27km road PPP in Alberta known as the Northeast Anthony Henday Drive.

A consortium led by Meridiam Infrastructure has hit pay-dirt, scoring a financial close on a C$1.8 billion ($1.76 billion; € 1.39 billion) contract for a transportation project in Edmonton, according to Alberta Transportation, a public agency.

The project is a public-private partnership (PPP) to design, build, operate and partially finance Northeast Anthony Henday Drive, cited as the “next stage of building the Edmonton ring road” by Alberta Transportation, a department of the Government of Alberta. The PPP contract has a 34-year term, the department said.

Alberta Transportation estimated the cost of building the ring road using traditional delivery at C$2.18 billion, meaning the PPP approach saved $370 million. The procurement process began in March 2011.

The Northeast Anthony Henday Drive project is a 27-kilometre, six-to-eight-lane roadway that will also include a bridge over the North Saskatchewan River. Partial construction on the road began in the 1970s and 1990s, while the current project began in 2000.

Capital City Link General Partnership (CCLGP) is the name of the Meridiam consortium, also involving ACS Infrastructure Canada and Hochtief PPP Solutions.

Handling design and construction for CCLGP are Flatiron Constructors Canada, Dragados Canada, Aeon Construction Management and Lafarge Canada. Operation and maintenance will be subcontracted to Volker Stevin Highways.

In winning the contract, CCLGP competed against two consortia:

-Edmonton Connect Partners, with SNC-Lavalin Capital leading the project and financing, SNC-Lavalin Constructors, and Graham Building Service, a joint-venture of Graham Building Services and Jardeg Construction Services and well as SNC-Lavalin Operations and Maintenance;

-Alberta Roads Consortium, with Macquarie Group heading the project and financing, Kiewit Management Company handling the design-build component and Alberta Highway Services taking on operation and maintenance.