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Mon May 20 2024

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SNC-Lavalin and Cintra win Montreal highway PPP

24 May 12 A 50/50 joint venture between subsidiaries of SNC-Lavalin and Cintra Infraestructuras has landed a CA$1bn (£621m) highway PPP contract in Canada.

The 407 East Development Group General Partnership has been by the province of Ontario to design, build, finance, and maintain Phase 1 of the new Highway 407 East. The project will be delivered using Ontario’s alternative financing and procurement (AFP) delivery model. 

"We are pleased to have been awarded this very important highway project in Ontario,” said SNC-Lavalin Group executive vice-president and chief financial officer Gilles Laramée. “Once completed the highway will allow for a better and more efficient transportation and flow of goods between Toronto and eastern Ontario.”

The 407 East Development Group General Partnership has entered into a fixed-price contract with the Province of Ontario for the project. Phase 1 of the new highway will extend 22km east from Brock Road in Pickering to Harmony Road in Oshawa.  It also includes a 10km north-south highway east of Lake Ridge Road connecting Highway 407 East to Highway 401.

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“With this award, SNC-Lavalin’s capabilities will be put to work on a large and complex construction project,” said SNC-Lavalin Group executive vice-president Charles Chebl. “We are committed to the Ontario market, and look forward to working with our design-build partner Ferrovial to deliver sustainable transportation infrastructure to the province.”

The design and build portion of the contract is expected to take approximately 3.5 years. Once completed, the partnership will maintain and rehabilitate the road for 30 years. The Partnership has entered into a fixed price contract with a 50/50 consortium made up of SNC-Lavalin Operations & Maintenance and Cintra for the maintenance and rehabilitation of the road over the concession period.

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