Brun-Way Group to complete twinning of Trans-Canada Highway (05/02/07)
NB 141
Feb. 7, 2005
FLORENCEVILLE (CNB) - The twinning of the Trans-Canada Highway in New Brunswick will be completed by the fall of 2007, thanks to the signing of project agreements with the Brun-Way Group.
The announcement was made today by Premier Bernard Lord, Tobique-Mactaquac MP Andy Savoy, Transportation Minister Paul Robichaud, and Brun-Way Group representatives, Atcon Construction Inc. President Robert W. Tozer and SNC-Lavalin Group Inc. President and CEO Jacques Lamarre.
"This is an exciting day for New Brunswick as it marks the final phase to complete the twinning of the Trans-Canada Highway in the province in a more efficient and timely manner," Lord said. "This project builds on Greater Opportunity: New Brunswick's Prosperity Plan to fulfill the government's objective of making New Brunswick an investment magnet for Canada and a gateway for trade in North America."
"The Government of Canada is pleased to contribute to this very important project that will complete the twinning of the Trans-Canada Highway in New Brunswick," Savoy said. "Today's announcement marks an important milestone. Not only will this project bring important economic benefits, it will improve road safety for residents across the province." Savoy spoke on behalf of Transport Canada Minister Jean-C. Lapierre.
Under the agreements, the Brun-Way Group will be responsible for the design, construction and financing of 98 kilometres of highway between Grand Falls and Woodstock, and the selected upgrade of 128 kilometres of existing four-lane highway at a total cost of $543.8 million.
Brun·Way will also be responsible for the operation, maintenance and rehabilitation of 275 kilometres of highway between Quebec border and Longs Creek, and Route 95, between Woodstock and the U.S. border, until 2033. Once construction is completed, the Province will pay an annual price of $18.8 million adjusted for inflation for operation, maintenance and rehabilitation.
The Brun-Way Group is assuming the risks of delivering the highway by Nov. 1, 2007 and for the fixed price offered. They are also bearing risks associated with operation, maintenance and rehabilitation of the highway during the operation, maintenance and rehabilitation period.
The completion of the twinning of the Trans-Canada Highway is expected to create 4,000 person-years of direct employment in the construction industry and an additional 4,000 person-years in spin-off jobs. The Brun-Way Group Joint Venture committed to achieving up to 75 per cent of New Brunswick content for the design and construction phase of the project.
"SNC-Lavalin has been working in New Brunswick for over 30 years, and we are very pleased with this new opportunity to put our expertise in highway design and construction to work for the Department of Transportation," Lamarre said. "This project will not only have a positive impact on the local economy, it will also provide for safer travelling in the region, and we are proud to be associated with it."
"The Brun-Way Group brings together solid local companies partnered with a global leader in a business model designed to maximize economic benefits to build a better New Brunswick," Tozer said. "New Brunswick's engineering and road building industries have a proven track record with the skills and abilities required to build a world-class highway in an environmentally responsible manner."
The construction will commence this spring with the completion scheduled for no later than Nov. 1, 2007. Payment for the highway construction will be made to Brun·Way Group once the highway is opened. The completion of the four-lane Trans-Canada Highway in 2007 is an action priority within the Building Strategic Infrastructure building block of New Brunswick's Prosperity Plan.
"We're very pleased with Brun·Way's proposal, as it represents the best value for the taxpayers of New Brunswick," Robichaud said. "Once completed, the four-lane Trans-Canada Highway will enhance the safety of the travelling public in the province, facilitate our continued participation in international trade and encourage and nurture inter-provincial trade within Canada."
The project is jointly funded by the federal and provincial governments through the Canada-New Brunswick Agreement for the Completion of the Twinning of the Trans-Canada Highway in New Brunswick. The Government of Canada is contributing $200 million toward the project from the $2-billion Canada Strategic Infrastructure Fund.
05/02/07
EDITOR'S NOTE: Attached are a backgrounder on the Trans-Canada Highway Project and a list of the Brun·Way Group team members. For further information concerning the completion of the Trans-Canada Highway, the designated contact is Project Manager Fred Blaney, 506-444-2007. MEDIA CONTACTS: Jacques Gravel, communications, Transport Canada, 613-993-0055, Mona Chiasson, TCH Project communications, 506-453-3091; Alain Bryar, communications, New Brunswick Department of Transportation, 506-453-5634; Dorothy Innes, communications, Brun·Way Group, 506-627-1222.
Backgrounder
In April 2003, the governments of Canada and New Brunswick agreed on a joint $400 million commitment to complete the twinning of the Trans-Canada Highway in New Brunswick.
The Government of Canada's contribution comes from the Canada Strategic Infrastructure Fund (CSIF). Through the CSIF, the Government of Canada collaborates with provincial and territorial governments as well as with municipal administrations and the private sector to meet strategic infrastructure needs throughout the country. The CSIF supports large-scale national and regional strategic infrastructure projects that improve further sustainable growth and the quality of life of Canadians.
Signing of the project agreements for the completion of the Trans-Canada Highway in New Brunswick
The Project Agreements establish the obligations of all parties with regard to implementing and carrying out the design, construction, financing, operation, maintenance and rehabilitation of the Trans-Canada Highway Project.
The project includes the design and construction of 98 kilometres of four-lane Trans-Canada Highway between Grand Falls and Woodstock, as well as the selected upgrade of 128 kilometres of existing four-lane highway. It also includes the operation, maintenance and rehabilitation of 275 kilometres of highway until 2033.
The agreements are based on the principles and objectives established by the Province at the start of the project, including the approved business model, and allocation of risk.
The signatories to the Agreements are the New Brunswick Highway Corporation (NBHC) on behalf of the provincial government, its subsidiary the Trans-Canada Highway Project Company Inc. (TCHPC), Brun-Way Construction Inc. (the Developer), Brun-Way Highways Operations Inc. (the Operator) and their guarantors Atcon Construction Inc., SNC-Lavalin Inc. and SNC-Lavalin Group Inc.
There are five Project Agreements: the Trans-Canada Highway Project Agreement, the Design Build Agreement, the Operation, Maintenance and Rehabilitation Agreement, the Section '0' Maintenance Agreement, and the Direct Agreement.
The Trans-Canada Highway Agreement retains TCHPC to carry out the Project, and grants it a license for the use of the highway right of way.
The Design Build Agreement retains Brun-Way Construction Inc. to carry out the design, construction and financing of 98 kilometres of highway between Grand Falls and Woodstock and to carry out selected upgrades to the existing sections of the highway.
The Operation, Maintenance and Rehabilitation Agreement retains Brun-Way Highway Operations Inc. to carry out the operation, maintenance and rehabilitation of 275 kilometres of highway, including the Trans-Canada Highway from near the Quebec border to Longs Creek (west of Fredericton) and Route 95.
The Section '0' Maintenance Agreement retains Brun-Way Highway Operations Inc. to carry out the maintenance of the first two kilometres of highway south of the Quebec border (Section '0') until such time as it is reconstructed as a four-lane highway.
The Direct Agreement establishes the rights and obligations of the parties involved with regard to the financing of the design and construction elements of the Project.
The two main agreements are the Design Build Agreement and the Operation, Maintenance and Rehabilitation Agreement. These two agreements set out the Province's requirements for the project. The schedules to these agreements describe the design standards, construction specifications, and maintenance standards for the Project. Handback standards, which define the required condition of the highway at the end of the contract period, are also established.
These standards and specifications have a performance focus and define the product or service required. The Developer and Operator are responsible for carrying out the work in a manner that meets these requirements. The Operational Performance Measures and Key Performance Indicators, which have been established, allow TCHPC to measure performance against requirements. The Operator is required to implement an asset management system to ensure that the physical assets of the Highway are properly managed during the term of the Operation, Maintenance and Rehabilitation Agreement and meet the handback standards at the end of the contract period.
The Developer and the Operator are required to implement and maintain ISO certified Quality Management and Environmental Management Systems. Certified Safety Management Systems must also be established.
The agreements provide for TCHPC to audit the Developer's and the Operator's operations and management systems in order to ensure compliance with project requirements.
The Developer and the Operator have both made certain commitments for providing economic and industrial benefits and for aboriginal inclusion. These commitments have been incorporated into the agreements.
The Guaranteed Maximum Price for the Design Build Agreement ($543.8 million) is payable once the highway is opened to traffic, with a holdback payable upon total completion of the design and construction. Under the Operation, Maintenance and Rehabilitation Agreement, the annual price ($18.8 million once the entire highway is available to traffic) is paid in monthly instalments and is adjusted for inflation.
Reflecting the fact that this is a multi-year contract extending to June 30, 2033 and that technology and service expectations may change, the agreements also establish procedures for making changes to the requirements.
Certain protection and safeguards for both the Province and the Developer/Operator, such as insurance and bonding requirements are established.
The key deliverable dates are set. The highway must be open to traffic by no later than Nov. 1, 2007, and totally complete by June 30, 2008. The access to the new Upper River Valley Hospital must be available to traffic by June 1, 2007. The Operator is responsible for the operation, maintenance and rehabilitation of the highway until June 30, 2033. NBHC will provide basic maintenance service on the existing sections until June 1, 2005
Please note the above summary is intended as a broad description of the Project Agreements only. To determine the specific rights and obligations of the parties under the agreements, reference must be made to the Project Agreements.
Brun-Way Group Joint Venture (SNC-Lavalin Inc. - Atcon Construction Inc.)
• Brun-Way Highway Operations Inc.
• Brun-Way Construction Inc.
Other team members:
• A.D. Fiander Associates Ltd.
• Aspen Environmental Inc.
• Eastern Designers and Company Ltd.
• Gemtec Limited
• Hillside Consulting Engineers Limited
• R.A. Currie Ltd.
• Ralph Smith Engineering Inc.
• Caldwell and Ross Limited
• Dunbar Construction Ltd.
• Eastern Fence Ltd.
• K-Line Construction Ltd.
• Restigouche Construction Co. Ltd.
• Springhill Construction Limited
05/02/07