|Home||News||Volker Stevin Highways part of JV that reaches financial close on next leg of Ring Road project|
Volker Stevin Highways Ltd., a Canadian VolkerWessels company, has entered into a contract with Capital City Link General Partnership (CCLGP). CCLGP is a partnership comprised of Meridiam Infrastructure NEAH ULC (a subsidiary of Meridiam Infrastructure North America Inc.), ACS NEAH Partner Inc. (a subsidiary of ACS Infrastructure Canada Inc.) and HOCHTIEF NEAH Partner Inc. (a subsidiary of HOCHTIEF PPP Solutions North America Inc.), to operate and maintain the Northeast Anthony Henday Drive Project (the Project) for a 30 year period commencing 2016 when traffic availability is achieved.
CCLGP was awarded the public-private partnership (P3) and will design, build, operate and partially finance the project at an overall value of $1.81 billion (2012 dollars) as part of the 34-year contract. The construction of the ring road has been a long-term project, with the current Anthony Henday Drive construction beginning in 2000.
This project includes 27 kilometers of six- and eight-lane divided roadway, nine interchanges, two road flyovers, eight rail crossings (flyovers), and two bridges across the North Saskatchewan River, for a total of 46 bridge structures. CCLGP will start construction in June 2012, with completion of the project scheduled for the fall of 2016.
The design and construction of the project will be subcontracted to a construction joint venture made up of Flatiron Constructors Canada Limited, Dragados Canada, Inc., Aecon Construction Management Inc. and Lafarge Canada Inc. The operations and maintenance will be subcontracted to Volker Stevin Highways Ltd.
Volker Stevin Highways Ltd. will operate, maintain and perform minor rehabilitation for the project for a 30 year period commencing on achievement of traffic availability for the project. Volker Stevin Highways Ltd. expects to earn over $600 million CDN in revenue from this project over the term of the contract. This project supports the corporate strategy of growth for Volker Stevin Canada, expands on the 20+% of Alberta's highway maintenance market share that we currently control, and continues the international exposure of our strengths and expertise.