Aecon part of Design Build JV for next leg of Ring Road project
EDMONTON, May 22, 2012 /CNW/ - Aecon Group Inc. (TSX:ARE) is part of a joint venture selected by Capital City Link General Partnership (CCLGP) which has reached the financial close to construct the Northeast Anthony Henday Drive project in Edmonton.
The Capital City Link General Partnership, comprised of subsidiaries of ACS Infrastructure Canada Inc., Hochtief PPP Solution GmbH, and Meridiam Infrastructure responded to the procurement process which began in March 2011. The public private partnership 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. Sections of the ring road were built in the 1970s and the 1990s and the current Anthony Henday Drive project began in 2000 with the construction of the southwest leg.
CCLGP will subcontract the design and construction portion of the Northeast project with an integrated joint venture, in which Aecon has a 22.5 per cent interest. This work will be completed over the first four years of the contract. Other partners in the joint venture for the design and construction portion include Flatiron Constructors, Dragados, and Lafarge.
The project will connect the northwest and southeast parts of Anthony Henday Drive from Manning Drive to Whitemud Drive East. Work includes the construction of 27 kilometres of six- and eight-lane divided roadway, nine interchanges, two road flyovers, eight rail crossing (flyovers), and two bridges across the North Saskatchewan River, for a total of 46 bridge structures. Construction will commence in June, with completion of the project scheduled for the fall of 2016.
"Aecon is proud to be a part of this stage of a pivotal project for Edmonton," said Teri McKibbon, Aecon's Chief Operating Officer.
Aecon has positioned itself to grow in key market sectors, with one half of Aecon revenues now derived from Western Canada. To support this growth, Aecon opened a head office in Western Canada last year. Aecon has previously worked on key infrastructure projects in Alberta such as the Stoney Trail and Crowchild portions of Calgary's ring road. Current projects in Western Canada Aecon is working on include PotashCorp's new process mill near Rocanville, Saskatchewan, Suncor's Firebag meter station in Fort McMurray, work at Syncrude's oilsands mine site, as well as the Waneta hydroelectric facility in British Columbia.
Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients. Aecon is pleased to be consistently recognized as one of the Best Employers in Canada.
The information in this press release includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Forward-looking statements may include, without limitation, statements regarding the operations, business, performance, prospects, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.For further information: