MONTREAL, Jan. 15, 2014 /CNW/ - he Honourable Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec, was in Montreal today to announce the next steps for the new bridge for the St. Lawrence project following the recent completion of the business case.
The business case includes a rigorous financial and technical analysis of the project and examines different procurement models to determine if cost and other benefits could be achieved using a public-private partnership. The business case confirms that a public-private partnership is the most cost-effective method to deliver the project within an accelerated timeline.
The procurement process will begin with a request for qualifications in spring 2014 which will allow the new bridge for the St. Lawrence to be in service by 2018.
While the final design for the new bridge will only be determined once the procurement process is finished, it will meet high quality standards and have six lanes for traffic, a dedicated corridor for light rail, as well as a multi-use path.
Quick Facts
On October 5, 2011, the Government of Canada announced that it would be building a new bridge to replace the Champlain Bridge.
This bridge is one of the busiest in Canada, with $20 billion worth of international trade crossing it every year. The Champlain Bridge is a crucial corridor for the regional economy and for Canada as a whole.
Construction for the new bridge for the St. Lawrence will start in 2015. The new bridge will be open by 2018 and the rest of the corridor project will be completed by 2020.
Quotes
"I am pleased to reach this significant milestone for the new bridge for the St. Lawrence."
The Honourable Denis Lebel
Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec
"We will deliver a safe, reliable, long-lasting bridge, constructed in a timely, cost effective, responsible manner that meets the expectations of Montrealers."
The Honourable Denis Lebel
Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec
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< link to backgrounder on next steps. >
Associated Links
A new bridge over the St. Lawrence for 2018, says Minister Lebel
Harper government to proceed with new bridge over the St. Lawrence
New bridge for the St. Lawrence website
Backgrounder
Next steps for the new bridge for the St. Lawrence project
Completion of business case
The business case for the new bridge for the St. Lawrence (NBSL) project has recently been completed. Led by PricewaterhouseCoopers (PwC), a world class team of expert consultants performed a rigorous financial and technical analysis of the project. The primary objective was to determine if cost and other benefits could be achieved using a public-private partnership (PPP) model.
The business case is one of several studies that have recently been undertaken to ensure the NBSL project meets high technical and environmental standards while representing value for money for taxpayers.
Public-private partnership
There are significant advantages of using a PPP procurement model. Most notably, a PPP will result in significant value for money for taxpayers. Business case results indicate cost savings between 5 percent and 18 percent compared to a conventional approach.
The PPP model is a contractually binding commitment by the private sector to deliver infrastructure at a pre-determined price with meaningful penalties in case of contract defaults. This provides financial certainty to the government and to taxpayers. It also offers guarantees that the infrastructure will be well maintained for the duration of the concession period irrespective of future budget appropriations, which provides assurances that the infrastructure can continue to be functional for the full duration of its useful life. The private partner will design, build, finance, operate, and maintain the project over the long term. It will assume the risks and commit to deliver the project for a fixed price and by a specific date.
PPP procurement process
A two-phase procurement process will begin with a Request for Qualifications (RFQ) in spring 2014. An RFQ is a public process and open to all interested parties. Bidders are evaluated on their qualifications to carry out the project. A limited number of bidders will then proceed to the Request for Proposals (RFP).
The RFP will be launched in summer 2014. Bidders will submit binding technical and financial proposals, including a fixed price and schedule. Proposals will be evaluated on technical and financial criteria. A preferred proponent will be selected by spring 2015, enabling the new bridge for the St. Lawrence component of the project to be in service in 2018.
Industry outreach sessions are planned in winter 2014 to provide the private sector with greater details on project scope and timelines. This will help maximize competition and ensure higher quality bids and better value for taxpayers. Sessions with small and medium enterprises will also be organized to promote local and regional expertise.
Project overview
The NBSL project is one of the largest infrastructure projects in North America. The project will enhance transportation safety and efficiency in the corridor and contribute to the long-term prosperity of neighboring communities, the City of Montreal and Canada.
Its scope includes the construction of the new bridge for the St. Lawrence, construction of a new île des Soeurs Bridge and highway, reconstruction and widening of Autoroute 15, and surface operation and maintenance of the Clément Bridge and Bonaventure Expressway. It will not include deconstruction of the existing Champlain Bridge, which will be procured separately.
The new bridge for the St. Lawrence will have three lanes for cars in each direction. One additional lane in each direction will accommodate light rail transit (LRT) as recommended by the Government of Quebec. There will also be a path for pedestrians and cyclists.
Preliminary engineering
Arup Canada Inc. evaluated 13 bridge design options for the purposes of the business case. The preferred preliminary design that emerged does not represent a final technical solution, which will be determined through the competitive PPP procurement process.
The preferred preliminary design was chosen following a rigorous, multi-stage evaluation process. Many factors were considered such as construction cost and duration, suitability for LRT, architectural quality and environmental impact. Arup concluded that the optimum configuration would be a three deck, single-level bridge. The public transit corridor would be situated between two decks for cars and trucks. The multi-use path would be next to one of the car decks.
A number of other technical studies are underway to obtain information in advance of the procurement process.
Project costing
Design and construction costs for the NBSL project were estimated from the beginning at $3-5 billion. This constitutes a very preliminary estimate. Cost depends on many factors and the NBSL is a complex project with a large size and scope.
Arup used the preferred preliminary design to develop a more refined cost estimate for the business case. This estimate will not be disseminated at this time because it could influence the competitive procurement process and result in a lower return for taxpayers. Final costs will be determined through the procurement process.
Traffic and revenue forecasts
As part of the business case analysis, Steer Davies Gleave executed traffic modelling and forecasting. A variety of toll rates comparable to current rates in the Montreal region were examined. Rates aim to achieve an appropriate balance between recovering capital costs and maximizing traffic fluidity.
A toll rate for the NBSL project will be established following additional studies and consultations. The A-25 and A-30 rates were confirmed just several months before opening.
Public transit
The NBSL project will include a dedicated public transit corridor. The Government of Canada has been working closely with the Government of Quebec to ensure the integration of an LRT system within the project corridor. Federal funding for the LRT system is available via the Building Canada Plan.
Image with caption: "Summary of project timelines (CNW Group/Government of Canada)". Image available at: http://photos.newswire.ca/images/download/20140115_C8802_PHOTO_EN_35534.jpg
SOURCE: Government of Canada
Marie-Josée Paquette
Press Secretary
Office of the Minister of Infrastructure, Communities and Intergovernmental Affairs and
Minister of the Economic Development Agency of Canada for the Regions of Quebec, Ottawa
613-943-1838
Media Relations
Transport Canada, Ottawa
613-993-0055
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