Project will create jobs throughout the Greater Toronto Area
TORONTO - Infrastructure Ontario (IO) and the Ministry of Transportation (MTO) announced today Blackbird Infrastructure 407 General Partnership (Blackbird Infrastructure) has signed a fixed-priced contract to design, build, finance and maintain the Highway 407 East Phase 2 Project.
The contract value of the Highway 407 East Phase 2 Project is approximately $1.2 billion, which reflects the substantial completion payment and the monthly service payments before inflation adjustments. Ongoing maintenance and repairs will ensure Highway 407 East Phase 2 is kept in excellent condition over the contract term.
Beginning in March, Blackbird Infrastructure will focus on design work and construction is anticipated to follow in late fall. Phase 2 extends Highway 407 easterly to Highway 35/115, and includes Highway 418 (formerly known as East Durham Link) being the connection between Highway 407 to Highway 401. In December 2017, the initial portion of Phase 2 from Harmony Road to Taunton Road / Highway 418 is intended to be completed, with the remainder to be completed in December 2019.
Once construction of each phase is complete, Blackbird Infrastructure will receive a substantial completion payment, followed by a series of monthly payments from the Province over a 30-year period. The 30-year period commences when the initial phase of construction is complete. These monthly payments cover routine maintenance, construction, lifecycle repair and renewal of the highway as well as project financing.
Blackbird Infrastructure is a consortium of Holcim (Canada) Inc. and Cintra Infraestructuras Internacional, S.L. The construction team leads are Dufferin Construction Company, a division of Holcim (Canada) Inc. and Ferrovial Agroman Canada. Long-term maintenance contractors are Holcim (Canada) Inc. and Cintra Infraestructuras Internacional, S.L.
At the peak of construction, approximately 1,000 workers are expected on-site. Blackbird Infrastructure estimates the majority of the labour will come from the Greater Toronto Area.
Phase 2 of the project:
- extends Highway 407 about 22 kilometers from Harmony Road in Oshawa to Highway 35/115 in Clarington
- builds Highway 418 to connect Highways 401 and 407 with a 10-kilometre north-south freeway; an
- provides eight interchanges; this includes freeway to freeway connections at Highway 407 to Highway 418 and Highway 35/115, and at Highway 418 to Highway 401.
Phase 2 of the Highway 407 East Project underwent an open, fair and competitive procurement process overseen by a third party fairness advisor. Blackbird Infrastructure submitted the proposal which delivers the best value for Ontario taxpayers
Infrastructure Ontario and the Ministry of Transportation are working together to deliver both Phase 1 and Phase 2 of the Highway 407 East Project including Highways 412 and 418 which will be tolled and remain publicly owned and controlled. The entire Highway 407 East Project adds 64 kilometres of new highway to the Provincial Highway System. Once complete, the Highway 407 East Project will help relieve congestion and support the efficient movement of people and goods through the eastern Greater Toronto Area and beyond. It will create opportunities for business, accommodate population and employment growth and provide emergency detour routes for Durham Region. Phase 1 is currently under construction and scheduled to open by late 2015.
IO is a Crown agency of the Province of Ontario that works to deliver public benefits through partnerships with the private sector. IO delivers large, complex public infrastructure projects using a made-in-Ontario modern procurement and project management practice called Alternative Financing and Procurement. IO also partners with the private sector to manage one of the largest real estate portfolios in Canada, provides municipalities and eligible public-sector clients with loans to renew public infrastructure, and leverages its private-sector expertise to advise the provincial public-sector clients on commercial transactions.
Visit www.infrastructureontario.ca for more information.
Ministry of Transportation
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