Valley Line LRT - Stage 1 (Southeast)
Location: Edmonton
Status: In Operation
Value of Partnership: $1.8 billion (construction) and approximately $68 million in service level, rehabilitation and capital payments during 30-year operating period
Type of P3: DBFOM
Handback: 2053
With Edmonton expected to increase in size by 50 per cent by 2040, the city’s multi-phased, 27-kilometre light rail transit urban route will ultimately create 25 new stops and three stations, serving an estimated 100,000 daily commuters.
The 13-kilometre, 11-stop Valley Line LRT – Stage 1 project runs southeast to the city centre from Mill Woods to centre west stop, crossing through Edmonton’s downtown core and integrating directly into the communities it serves.
Construction started on April 22, 2016 and trains opened for passenger service on November 4, 2023.
Under the P3 agreement between the City of Edmonton and TransEd Partners, the private sector consortium is responsible for the design, construction, provision of light rail vehicles (LRVs), financing, operating, maintaining and rehabilitating a low-floor, urban style, light rail transit line.
The deal, which reached financial close in 2016, was the first full DBFVOM deal in Canada since the Canada Line project was undertaken in Vancouver in time for the Vancouver 2010 Olympic and Paralumpic Games.
Under the 35-year P3 agreement, TransEd Partners will operate and maintain the Valley Line for 30 years. The total capital cost for the Valley Line LRT is $1.8 billion with $665 million financed through private capital.
During the 30-year operations period, the City of Edmonton will make availability payments, subject to TransEd Partners performance, consisting of the repayment of capital, operating and maintenance costs, totalling an estimated $68 million.
No revenue-sharing provisions were included in the project agreement. The City of Edmonton retains full control and responsibility over fare setting and resulting fare revenues.
Stage 1 of the Valley Line LRT is largely an at-grade project with several notable infrastructure components including:
The new line is fully owned by the City of Edmonton and operates seamlessly under the Edmonton Transit System banner, offering a seamless transit experience with Edmonton’s extant system.
Partners: City of Edmonton and TransEd Partners, consisting of Bechtel Canada Co., EllisDon Capital Inc., Bombardier Transportation Canada Holding Inc., and Fengate Capital Management
