Site preparation and design work to begin within weeks
WINDSOR, ON, Dec. 17 /CNW/ - A major milestone has been achieved ahead
of schedule for The Windsor-Essex Parkway. Infrastructure Ontario and
the Ontario Ministry of Transportation (MTO) announced that the Windsor
Essex Mobility Group (WEMG) has reached financial close and signed a
fixed-price contract with the Province. This means that all contractual
steps have been completed with WEMG and it plans to start full
construction of the Parkway in summer 2011.
Design and construction of the Parkway will provide a sizeable boost to
regional and Ontario economies by directly and indirectly supporting
and creating 12,000 project-related jobs, with the majority in the
Windsor-Essex region. At the peak of construction activity, WEMG
estimates that between 1,200 and 1,300 workers are expected on the
construction site daily.
Upon completion, the 11 kilometre Parkway will ease the movement of
goods and people to and from the Windsor-Detroit border, separate local
and international traffic, and eliminate stop-and-go traffic in
residential areas. With more than 300 acres of green space, 20
kilometres of recreational trails and new community connections,
residents in Windsor-Essex will enjoy an improved quality of life.
The Parkway will be delivered using the province's alternative financing
and procurement (AFP) delivery model. The AFP model transfers most
risks associated with designing, constructing and maintaining the
Parkway to WEMG.
The value of the contract to WEMG is approximately $1.4 billion in
today's dollars. Over the 30-year life of the contract, the total
future payments will add up to approximately $2.2 billion (nominal).
Annual payments to WEMG cover construction, highway maintenance,
lifecycle repair and renewal and project financing. Lifecycle repair
and renewal will ensure the Parkway and surrounding 300-acre green
space and recreational trails are kept in excellent condition over the
Construction of the Parkway is scheduled to begin in summer 2011 and the
Parkway will be open to traffic in fall 2014. Beginning in January
2011, WEMG will start design work on the Parkway, engineering survey
work and soil investigations. As well, it will continue reaching out to
local contractors, businesses, unions and educational institutions
about opportunities and training and begin to obtain all necessary
The Parkway underwent an open, fair and competitive procurement process
and WEMG submitted the proposal that delivered the best value for
Ontario taxpayers, including the shortest construction timeline and
The Parkway is a significant economic opportunity for local workers,
suppliers, and contractors. Since being named the preferred proponent,
WEMG has been meeting with local companies, educational institutions
and unions to discuss opportunities for partnerships. WEMG has a labour
agreement in place with the Labourer's Union Local 625 and is committed
to continuing its efforts to reach agreements with local unions and to
use local labour. As well, WEMG and the University of Windsor have
signed a Memorandum of Understanding.
WEMG key partners include ACS Infrastructure Canada Inc., Acciona
Concessions Canada, and Fluor Canada Limited. WEMG has agreements in
place with local companies, including Hatch Mott MacDonald, Amico
Infrastructure Inc., Dillon Consulting Ltd., LEA Consulting Ltd, Black
& McDonald and AMEC.
Financing for the Parkway was arranged by RBC Financing. ACS
Infrastructure Canada Inc., Acciona Concessions Canada, and Fluor
Canada Limited are equal equity partners in the Parkway.
Infrastructure Ontario will post copies of the project agreement and the
value for money (VFM) report online at www.infrastructureontario.ca in the coming months.
The Windsor-Essex Parkway will remain publicly owned and publicly controlled and will not be a
Infrastructure Ontario is a Crown corporation dedicated to managing some of the province's
larger and more complex infrastructure renewal projects - ensuring they
are built on time and on budget; as well, it is dedicated to providing
the public sector and not-for-profit organizations with long-term
financing to renew their infrastructure.
MTO's goal is to be a world leader in moving people and goods safely,
efficiently and sustainably, to support a globally competitive economy,
a high quality of life and being responsible for all provincial
Bob Chiarelli, Minister of Infrastructure
"The Windsor-Essex Parkway is the most significant, single highway
investment in Ontario's history. The Parkway will be designed with
green features that reflect respect for its surrounding environment and
Kathleen Wynne, Minister of Transportation
"Once the Parkway opens, it will improve the movement of goods and
people in our premier trade corridor. While we are very excited about
easing the flow of traffic, the fact that the project will be a major
catalyst for the Windsor-Essex economy and local job creation is truly
appreciated during these difficult economic times."
Dwight Duncan, Member of Provincial Parliament, Windsor-Tecumseh
"The Parkway is an essential part of our government's commitment to
renew aging infrastructure across the province. The design and
construction of this project will make a difference in the lives of
many people in our community by providing well needed jobs and
Sandra Pupatello, Member of Provincial Parliament, Windsor West
"Today is a great day for the people of Windsor-Essex. We are getting a
state-of-the-art freeway that will create thousands of jobs and improve
the quality of life for thousands of people across the region for many
years to come."
Bruce Crozier, Member of Provincial Parliament, Essex
"We're following through on our commitment to Windsor-Essex residents by
building a solution now that combines community benefits with
transportation benefits in a truly unprecedented and innovative
Juan Santamaria, Windsor Essex Mobility Group, Chief Operating Officer
"Our team is thrilled to have reached this very important milestone and
look forward to working with our partners and businesses in the
community over the next 34 years to design, build and maintain a
state-of-the art freeway that will be built not only for today, but for
generations to come."
Jim Lyons, Windsor Construction Association, Executive Director
"Many members of the Windsor Construction Association will play an
active role on the Parkway during its design and construction. Already
several of our members have partnered with the winning team as
contractors and suppliers."
The Windsor Essex Mobility Group partners with local businesses in
The Windsor Essex Mobility Group (WEMG) recognizes the importance of
partnering with local businesses, professional associations, unions and
educational institutions for The Windsor-Essex Parkway. These
partnerships will help to strengthen the local economy, create jobs and
training, and ensure the success of the project during its design,
construction and operation.
Partnerships with local businesses
WEMG has partnered with:
Hatch Mott MacDonald, a design firm with a local office in Windsor.
Amico Infrastructure Inc., a local excavation and foundation contractor
Local consulting engineers, Dillon Consulting Ltd, LEA Consulting Ltd
Black & McDonald, a local electrical business
Much of the construction and maintenance work will be performed by local
labour force and local subcontractors. Full construction of the Parkway
will begin in summer 2011. Just before construction begins, WEMG will
begin to actively recruit people locally to work on the Parkway. At the
peak of construction, WEMG estimates that between 1,200 to 1,300
workers are expected on the Parkway site daily. Design and construction
of the Parkway will result in other economic spin-offs. It is estimated
that construction of the Parkway will create approximately 12,000
project-related jobs, with the majority in the Windsor-Essex region.
WEMG estimates it will spend hundreds of millions of dollars on local
labour, local supplies, and materials over the lifespan of the project.
In addition to partnering with local businesses, WEMG has an agreement
in place with the Labourer's Union Local 625. WEMG is committed to
continuing its efforts to reach agreements with other local unions and
to employ local labour. Further, WEMG and the University of Windsor
have signed a Memorandum of Understanding. It is working towards having
a formal agreement in place early in the new year.
The Parkway will create and sustain many jobs for skilled and
experienced construction trades workers such as: operating engineers,
labourers, carpenters, electricians, landscapers, equipment operators,
and truck drivers. There will be business opportunities for local
haulage companies and suppliers (i.e. cement, piping, etc), as well.
Other employment opportunities will be available for engineering,
accounting, quality control, safety, project control and finance.
For information about employment opportunities related to the Parkway,
visit www.weparkway.ca and click on the OPPORTUNITIES tab.
Establishment of local office
The Windsor Essex Mobility Group will establish a local project office
in the Windsor area in the second quarter of the new year. Details
about the project office will be posted when available at www.weparkway.ca.
The Windsor Essex Mobility Group Partners
The Windsor Essex Mobility Group's (WEMG) key team members are three of
the world's largest and most successful infrastructure developers.
Currently, they are working on more than 110 projects in 40 countries,
including well-known projects in Canada.
Each of WEMG's team members has proven experience and capabilities in
financing, designing, constructing, operating and maintaining some of
the world's most complex projects.
WEMG's key team members include:
ACS Infrastructure Canada Inc. www.grupoacs.com
Since 1994, ACS has ranked the number one transportation developer by
industry experts; currently, ACS is ranked as the #2 developer on the
Forbes magazine contractor list.
North American projects include: A-30 project in Montreal; South Fraser
Perimeter Road in Vancouver; the Fredericton-Moncton highway in New
Brunswick and the I-595 freeway in Florida.
ACS is working on projects valued at $4 billion (U.S.) in North America.
Acciona Concessions Canada (Acciona) www.acciona.com; www.acciona-na.com
Acciona has been ranked the ninth contractor worldwide by Forbes Magazine.
It has a reputation for sustainable development and being socially
Acciona has numerous projects in Canada, including:
South East Stoney Trail in Calgary; the Royal Jubilee Patient Care
Centre Hospital in Vancouver; Fort St. John Hospital in British
Columbia; and A-30 project in Montreal (in partnership with ACS).
Fluor Canada Limited (Fluor) www.fluor.com.
Fluor was named the best Design-Build firm in North America in 2009 by
Engineering News Record.
In 2009, it executed more than $1.2 billion of projects.
It employs 1,600 staff in Canada.
Fluor offers full services in engineering, procurement, construction and
WEMG's team members have a track record of partnering with local
businesses. Already, WEMG has partnered with some of the most reputable
companies in the Windsor-Essex region for the Parkway project. Local
partners include but are not limited to: Hatch Mott MacDonald, Amico
Infrastructure Inc., Dillon Consulting Ltd., LEA Consulting Ltd, AMEC
and Black & McDonald.
The Parkway will create and sustain jobs in the Windsor-Essex region,
beginning during the design phase and continuing throughout
construction and operation of the Parkway. The local economy will be
boosted further through the purchase of supplies and equipment during
PROJECT COSTS OF THE WINDSOR-ESSEX PARKWAY
The Contract with the Windsor Essex Mobility Group
The Windsor Essex Mobility Group (WEMG) has signed a contract with the
Province to design, build, finance and maintain The Windsor-Essex
Parkway (the Parkway) and will receive annual payments from the
province over a 30 year period. These payments cover:
lifecycle repair and renewal (of the Parkway and community features for
The contract with the Windsor Essex Mobility Group is for a fixed price
of $1.4 billion in today's dollars, to be delivered by a fixed
completion date. The alternative financing and procurement (AFP) model
transfers most project risks to WEMG - the private sector. For
instance, the contract agreement makes WEMG responsible for increases
in costs due to design errors and omissions, project management and
sub-contractor co-ordination, increases in construction material prices
and labour costs, schedule and project completion delays, and other
related constructions risks. In the past, many of these risks were the
responsibility of the public sector.
The Province's 30-year maintenance agreement with WEMG will ensure the
Parkway will be kept in excellent working condition over the term of
the agreement. WEMG is responsible for repair and renewal of the
Parkway throughout the contract term. For example, if potholes and
pavements need repair or the electrical systems need repair or
replacement parts, the private sector is responsible for keeping them
in good repair. The public sector has built in a 30-year guarantee for
these physical features.
Annual Payments to WEMG
The Province will invest $1.4 billion, the value to deliver the Parkway
today (also known as the net present value). WEMG will receive annual
payments from the Province. Over the 30 year life of the contract, the
total payments will add up to $2.2 billion (nominal cost). Annual
payments to WEMG are performance-based and these can be withheld by the
Province if WEMG does not meet the agreed to performance standards,
which are based on MTO's performance-standards.
Additional Project Costs
To date, Ontario has invested more than $277 million, including $229
million for property.
The following banks will provide financing for the Parkway during
construction: Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Caja Madrid,
Banesto, Crédit Agricole CIB, Dexia Crédit Local, ING Capital,
Santander, Société Générale, and WestLB AG.
SOURCE Infrastructure Ontario
For further information: For further information:
|Paulette den Elzen |
Windsor Border Initiatives
Ministry of Transportation