Toronto, 7 March 2017
The Ontario Ministry of Transportation awarded the concession contract for the design, construction, financing, operation and maintenance of the 427 Hwy extension project to the consortium led by ACS Infrastructure Canada, Iridium Concesiones Canadian subsidiary, in January 2017 with an initial investment of $ 362 million Canadian dollars. The business completion and signing of the contract took place on March 7 and the financial process will complete on March 10 with the issue of the bonds and once the private financing funds are available to the project.
The winning consortium led by the Canadian subsidiary of Iridium, ACS Infrastructure Canada, with a 50% stake in the concessionaire company, which also includes local company Miller Infrastructures. Dragados Canada, a Canadian subsidiary of Dragados, leads the UTE construction project, which also has the presence of local companies Miller Infrastructures and BOT Infrastructure.
Private financing includes a long-term bond issue of $ 78.5 million subscribed by National Bank Financial Inc. and acquired entirely by Canadian insurance company Manulife Financial. Short-term financing during the construction period is through bank debt for a total of 116.4 million, syndicated by four financial institutions.
The scope of the contract includes an extension of 6.6km and an extension of the roadway along approximately 4km of its current route. The new highway configuration will play a key role in the mobility of the Toronto metropolitan area and access to its Pearson International Airport. The works included in the contract will accommodate the new toll lanes for high occupancy vehicles, another of the initiatives contemplated by the Ministry of Transport.
The ACS Group is currently leading the operational and maintenance tasks of The Rt. Hon. Herb Gray Parkway, another of the Ontario Transit Ministry's flagship projects, whose works were completed in 2015.