Project will help boost local economy and create jobs throughout the Greater Toronto Area

TORONTO -The Ontario Ministry of Transportation and Infrastructure Ontario have completed negotiations with 407 East Development Group General Partnership, the consortium selected to deliver the first phase of the Highway 407 East extension.

The extension will improve the transportation network in Durham Region, creating more capacity and connections to Highway 401 and Highway 35/115. It will also create opportunities for businesses, accommodate population and employment growth and provide emergency detour routes for the Durham Region.

The project will extend Highway 407 from Brock Road in Pickering to Harmony Road in Oshawa and connect it to Highway 401 with the West Durham Link. Construction will help strengthen the economy, creating 900 construction jobs.

Beginning in June, 407 East Development Group General Partnership will start work on the project, including design, engineering and soil investigation work. The design and construction of the project is expected to take 43 months. It will be open to traffic by the end of 2015.

The Province will own Highway 407 East, establish customer service standards, set toll rates and retain all revenues generated by tolls on Highway 407 East.

The contract value of the project is approximately $1 billion in today's dollars.

407 East Development Group General Partnership will receive annual payments from the Province over a 30-year period. These payments cover design, construction, lifecycle repair and renewal of the highway for 30 years, as well as project financing. Over the 30-year life of the contract, when adjustments for anticipated inflation are made, the contract value is $1.6 billion. Ongoing maintenance and repairs will ensure Highway 407 East is kept in excellent condition over the contract term.

407 East Development Group General Partnership is a consortium of Cintra Infraestructuras S. A. and SNC-Lavalin. Financing for the project to 407 East Development Group General Partnership was provided by BMO and Desjardins, who are also acting as lenders and bond underwriters.

The tendering process for phase one of Highway 407 East was open, fair, competitive and overseen by an independent fairness monitor. 407 East Development Group General Partnership submitted the proposal that delivered the best value for Ontario taxpayers.

Highway 407 East will be delivered using the province's alternative financing and procurement delivery model, which is managed by Infrastructure Ontario.

Infrastructure Ontario will post copies of the project agreement and the value for money report online at in the coming months.

Infrastructure Ontario, a Crown corporation, delivers some of the province's larger and more complex infrastructure renewal projects, ensuring they are built on time and on budget. It also manages one of the largest real estate portfolios in Canada, including providing asset management and property and land management, and provides the public sector and not-for-profit organizations with long-term financing to renew public infrastructure.

For more information about the procurement of this project, visit


“The development of new highway infrastructure is an essential element of Building Together, Ontario's 10-year infrastructure plan. The extension of Highway 407 East will help drivers move more efficiently, support local businesses by providing better access to communities, create jobs, and strengthen our economy for many years to come.”

Bob Chiarelli, Minister of Infrastructure, Minister of Transportation


Paulette den Elzen
Infrastructure Ontario

Bob Nichols
Ministry of Transportation

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