Canada Line Rapid Transit Inc.
entered into a PPP for the $1.9 billion Canada Line (formerly Richmond Airport Vancouver Line) with a group led by
SNC Lavalin Inc.
advisor to Canada Line Rapid Transit Inc.
Business advisors were needed to advise the client on the method of procurement, analysis of options, calculating value for money and other procurement matters. PwC won the business advisor role through a competitive tender.
PwC took on several key roles in this mandate, including business case development and the production of feasibility and procurement option analysis studies. We also conducted risk analysis and quantification, developed a public sector comparator and shadow bid through financial modeling, and provided financial and commercial advice and support throughout the procurement stage (including advice on procurement structuring, tax and accounting issues). Finally, we assisted in negotiations with the bidders.
The project reached financial close and the private partner was selected, which provided innovative construction methods and as a result the province is expected to achieve a $92m Net Present Value in savings compared to a traditional procurement. The project went on to win numerous international awards including Project Finance Magazine’s 2005 North American Transport Deal of the Year and 2005 North American Infrastructure Deal of the Year.
Esther Tse (Managing Director, Vancouver) has more than 25 years of experience in the evaluation, structuring, negotiating and financing of large and complex projects including a solid portfolio in transportation projects.