$650 Million Calgary Ring Road P3 Project Closes

Published: Thursday, 15 February 2007

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he Davis Projects team effected commercial and financial close of the $650 million Calgary Ring Road project for Stoney Trail Group (STG), the Bilfinger Berger BOT Inc. consortium. STG was selected as preferred proponent in mid-December and financial close was achieved within less than 60 days of project award, the shortest close period for a P3 project in Canada. The lenders were Fortis and Dexia, out of New York and Montreal, respectively. The 30 year commercial bank debt was wrapped by a financial guaranty product provided by FGIC, New York, who also provided a wrap for the interest rate swaps from Fortis and Dexia and a debt service reserve bond.

The underlying Project Agreement between Alberta Transportation and STG was based on the project agreement settled for the Edmonton Ring Road project. Yukiko Kojima and Andrew Burton negotiated and settled the drop down contracts betwen STG and the construction joint venture of Parsons, Flatiron and Graham Construction on the one hand and the operation and maintenance contractor, Carmacks, on the other.

This is the first project Bilfinger Berger in Canada has won outside British Columbia. Involved on this transaction were:

Toronto: Ian Bendell, Andrew Burton, Mitch Mostyn, Tobor Emakpor, Eric Belli-Bivar, Irina Schnitzer

Vancouver: Linda Parsons, Doug Buchanan, Yukiko Kojima, Kate Bake-Paterson, Danielle Park, Catherine Gibson

Edmonton: David Stratton, Rob Seidel, Colin Lipsett, Rachel Hamilton

Sheinin & Company : Sandy Sheinin, Shane Onufrechuk