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Fri December 13 2019

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Edmonton forced to restart procurement for $2.6bn LRT line

13 Nov The Canadian city of Edmonton is having to launch a new procurement process for the Valley Line West LRT project after two companies on the original shortlist pulled out.

The 14km extension from Downtown to Lewis Farms will now be delivered using a design-build-finance model. The Valley Line will have a total length of 27km once it is complete. The estimate for the extension has previously been put at CA$2.6bn.

The new procurement strategy comes after two of the three shortlisted teams withdrew from the previous procurement process in July. The city temporarily paused procurement to study the changing market conditions and evaluate its options before relaunching with a new approach.

The city has chosen the new procurement strategy after engaging with construction industry stakeholders to gain a better understanding of changes in the market’s capacity to build the Valley Line West LRT. The city has decided to procure the light rail vehicles separately and is currently exploring options related to that approach.

“Our goal has always been to deliver the Valley Line West LRT project in a manner that provides Edmontonians with the best value for their money and we’re confident our new procurement strategy will achieve that,” said Bruce Ferguson, branch manager for LRT expansion and renewal.

The city expects to launch the new procurement process with a request for qualifications early in the new year with a view to selecting the successful proponent by the end of 2020. The project is expected to be completed by 2027.

The province of Alberta has promised funding towards the project.

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