Asset: Transportation
Model: DBFOM
Status: Operational since May 2011
Contract Value: $143.1 million
Estimated Value-for-Money (VfM): $226.1 million
Completion Date of P3 Agreement: XX (35 year contract)
The Autoroute 25 project was Québec’s first P3 transportation project and the first use of an electronic tolling system in the province. It opened in
The 7.2-kilometre, four-lane divided highway runs between Henri-Bourassa Boulevard in Montréal and the Autoroute 440/A-25 interchange in Laval. The new portion included interchanges, overpasses and a 1.2-kilometre, tolled, six-lane bridge with a multifunctional path for pedestrians and cyclists.
The A25 Bridge was also the first cable-stayed bridge to be constructed in the province in more than 40 years. The bridge design was complicated by preserving an environmentally sensitive fish habitat, restrictions on the tower height and the proximity of high-voltage power lines.
The project, which started construction in 2007, was completed two years earlier than would have been possible using a conventional public-sector approach to highway construction.
Total financing of approximately $570 million was committed to the project through a combination of equity, senior bank debt and government payments.
The partnership agreement is performance-based with deductions to the private sector for failure to maximize traffic lane availability, particularly during rush hour, and for failure to meet performance and safety requirements including driving comfort, towing and lighting.
A “gradual toll increase system” provides for minimum revenue protection for the private partner and upside sharing of toll revenue between the private partner and government if toll revenues are 20 per cent higher than revenue projections made by the Quebec Ministry of Transportation’s traffic and revenue advisor.
Background
Prior to construction of Autoroute 25 there was no continuous link between Montréal and Laval. In order to move between the two urban centres motorists had to either take a seven-kilometre detour via the Pie-IX Bridge or an 11-kilometre detour via the Charles-De-Gaulle Bridge. As a result of this inefficiency drivers experienced longer travel times, and there was an overall decline in the quality of life for residents in Montreal-North, Anjou and Rivière des Prairies.
The lack of direct and efficient link between Montréal and Laval also caused major traffic overflow onto Autoroute 40 and suppressed economic development in the region. Montreal’s population is expected to continue growing, contributing to further road congestion, and as such construction of a new, direct route was necessary.
Public sector:
Québec Ministry of Transportation
Private sector:
CCPPP 2007 Silver Award for Project Financing