Three groups qualify to bid on northeast Edmonton ring road
Final leg of Northeast Anthony Henday Drive moves closer to construction
Edmonton… The Alberta government has asked three groups to submit proposals to develop the northeast section of Edmonton’s ring road as a public-private partnership (P3).
The three groups are:
- Alberta Roads Consortium
- Capital City Link Group
- Edmonton Connect Partners
Five teams responded to the Request for Qualifications issued in March. The submissions were evaluated based on company experience, personnel, past performance, and financial capability. The groups are consortia composed of financing, construction, design, and maintenance companies.
“I was very pleased by the strong response we received from industry for this project,” said Luke Ouellette, Minister of Transportation. “The strong response shows that industry has confidence in Alberta and the province’s economic future.”
The Request for Proposals will close in March 2012. Bids from the three consortia will then be evaluated against a traditional delivery estimate to ensure they represent good value for taxpayers. The successful proponent is expected to be chosen by May 2012, with construction beginning as early as summer 2012 and completed by fall 2016. To ensure a fair, competitive bidding process, government will not release cost estimates until proposals are received.
The Northeast Anthony Henday Drive project includes construction from Manning Drive to Whitemud Drive (east), reconstruction of Yellowhead Trail from east of the North Saskatchewan River to east of Sherwood Drive, and reconstruction of Sherwood Park Freeway from west of 17 Street. This is the single largest highway construction project the province has undertaken to date with 27 kilometres 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 48 bridge structures.
Using the P3 process, the road will be finished three years earlier than through conventional delivery. To date, the Alberta government has committed approximately $2.3 billion toward the construction of the Anthony Henday Drive. Visit www.transportation.alberta.ca/1701.htm for more information on the Edmonton ring road.
The Alberta government is working to build a better Alberta by fostering economic growth, strengthening our health and education systems, investing in infrastructure, supporting safe and strong communities and ensuring a clean and healthy environment.
Backgrounders: List of bidders, map of the Northeast Anthony Henday Drive, and more information on P3s
Northeast Anthony Henday Bidders
Alberta Roads Consortium
Project Lead: Macquarie Capital Group Limited
Financing Lead: Macquarie Capital Group Limited
Design-Construction Lead: Kiewit Management Co.
Operation and Maintenance Lead: Alberta Highway Services Ltd.
Capital City Link Group
Project Leads: HOCHTIEF PPP Solutions North America Inc., ACS Infrastructure Canada Inc. and MNII Canada I, LLC
Financing Lead: ACS Infrastructure Canada Inc.
Design-Construction Lead: Flatiron Constructors Canada Limited
Operation and Maintenance Lead: Volker Stevin Contracting Ltd.
Edmonton Connect Partners
Project Lead: SNC-Lavalin Capital, a division of SNC-Lavalin Inc.
Financing Lead: SNC-Lavalin Capital, a division of SNC-Lavalin Inc.
Design-Construction Leads: SNC-Lavalin Constructors (Pacific) Inc. and Graham Building Service, a JV of Graham Building Services LP and Jardeg Construction Services Ltd.
Operation and Maintenance Lead: SNC-Lavalin Operations and Maintenance Inc.
Map of Anthony Henday Drive Northeast
- 27 kilometres of six- and eight-lane divided roadway (9 kilometres of new highway construction and 18 kilometres of highway reconstruction)
- nine interchanges
- two road flyovers
- eight railway crossings (flyovers)
- two bridges across the North Saskatchewan River
- 48 total bridge structures
- Manning Drive (partly completed with the Northwest Anthony Henday Drive project)
- 153 Avenue
- 130 Avenue
- Highway 16 (Yellowhead Trail)
- Broadmoor Boulevard at Highway 16
- Sherwood Drive at Highway 16
- Baseline Road
- Sherwood Park Freeway/Wye Road
- 17 Street at Sherwood Park Freeway
- Various CNR/CPR Rail Crossings
- Victoria Trail Flyover
- Petroleum Way Flyover
Alberta’s public-private partnerships for highways
Design, Build, Finance, Operate (P3) Process
- Under this process, a private-sector partner is responsible for the design, construction, partial financing, and operation of a roadway for 30 years. Once the road opens to traffic, government makes monthly payments to the partner over 30 years. Government may advance funds during construction to lower the monthly payments.
- Government is guaranteed a fixed price and delivery date for the road. The private contractor assumes risks such as inflation and weather-related delays. The contractor can be penalized for late delivery.
- Government also receives a 30-year warranty on the work. Under traditional delivery, warranties are usually only one to two years.
- Part of the process includes a comprehensive evaluation of a project’s suitability for a P3. P3s are used only when there are clear benefits to government and taxpayers.
- Previous P3 projects have included the southeast and northwest legs of the Edmonton Ring Road and the northeast and southeast legs of the Calgary Ring Road.
Request for Qualifications (RFQ) – COMPLETED
- The RFQ determines potential partners’ qualifications and short-lists potential partners to three proponents. RFQs usually take up to three months to prepare, submit, and review.
- Potential partners may be headquartered or operate in any part of the world.
- Potential partners are usually consortia of engineering, construction, financing, and road maintenance companies.
Request for Proposals (RFP) – UNDERWAY
- The three potential partners identified by the RFQ are invited to submit proposals for the project. Three bidders are optimal because the competitors have a reasonable chance of success and the process remains competitive should one of the bidders withdraw.
- Preparation, submission, and review of proposals take approximately 11 months.
- Proposals are evaluated to determine if they represent good value. A proposal’s net present value, or its value in today’s dollars, is used to compare the proposals with each other and with the traditional delivery estimate. If all proposals exceed the upper limit of the traditional delivery estimate, the project does not proceed as a P3.
Final Contract Award – MAY 2012
- Government awards the contract to the qualified proposal with the lowest net present value.
- The successful proponent enters into an agreement with government.