Deals Case Studies: Alberta, Infrastructure and Transportation

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Alberta, Infrastructure & Transportation

executed a PPP for the $650 million North East Stoney Trail with a group led by

Bilfinger Berger Canada Inc.

advisor to Alberta, Infrastructure & Transportation
PricewaterhouseCoopers

Issue

AIT needed a financial advisor to provide financial and strategic advice for the Northeast Stoney Trail Public-Private Partnership. The project involved the design and construction of a new 21 kilometre divided highway in the City of Calgary as well as the operation and maintenance of certain existing highway segments.

PwC approach

PwC leveraged its global and Canadian experience in public-private partnership transportation projects and its solid knowledge of the leading Canadian investors and lenders to design a deal that satisfied the client's requirements and at the same time was marketable and financeable.

Our team’s work included compiling the Public Sector Comparator (“PSC”), which represents the cost of the project under traditional procurement and the Reference Bid which is the expected cost under a public-private partnership ("PPP") model, developing the value for money ("VfM") analysis to compare the likely costs and benefits of the PPP model to more traditional procurement. PwC also participated in the RFQ and RFP bids evaluation, assisted in drafting the procurement documents, and advised on the commercial structure of the concession.

Client benefits

The deal closed in February 2007 and the project is now underway. The winning consortium, Bilfinger Berger BOT, will receive availability payments with performance deductions. The Net Present Value of the deal is $650 million over a 32 year concession. The procurement process was highly competitive with three bidders competing and the project received the Award of Merit from the Canadian Council of Public-Private Partnerships in November 2007.

PwC Specialists

Richard Deslauriers, CPA, CA, CBV (Partner, Montreal) has more than 15 years of experience in infrastructure and project finance. He was the lead advisor on the A25 highway project in Montreal which closed in September 2007.

Shamshad Madhok, CFA, CA (Associate Partner, Toronto), has a strong track record of leading PPP transactions from inception to financial close. With more than 20 years of business experience, and 10 years of global project finance experience, Shamshad has advised on transactions with a combined capital value of over $3 billion.