Quebec Ministry of Transportation
entered into a PPP for the $500 million Highway A25 with a group led by
Macquarie Infrastructure Partners
advisor to the Ministry
Quebec Ministry of Transportation (MTQ) wanted to complete Highway 25, a $500 million project consisting of a new bridge and 7 km of highway. Looking for an innovative way to procure and finance the project, the MTQ turned to PwC to help them create a public-private partnership (PPP). We acted as the MTQ's financial and process advisor from the conception of the project to its financial close.
This was the first major PPP in Québec, the first PPP for the Québec government and the first PPP in Canada to be financed mostly by tolls. PwC used its Canadian expertise in project financing and PPPs as well as the highway PPP expertise of its international network to guide the MTQ through this transaction. We performed the value for money ("VfM") analysis, developed the procurement process, drafted the tender documents (RFQ, RFP, etc.), developed the payment mechanism, and assisted the MTQ's other advisors in drafting the technical requirements and the concession agreement. Once bids were received, we acted as the MTQ's representative with the bidders and as part of their negotiation team, participating in bid evaluation and assisting with finalizing the transaction.
The transaction was successfully completed in September 2007. The procurement process schedule was adhered to, three compliant bids were received and the winning bid provided the MTQ with substantial value-for-money compared to traditional procurement.
The quality of the project has been recognized by our peers, winning the Silver Award for Project Financing from the Canadian Council of PPP and the 2007 North American Deal of the Year from Euromoney/Project Finance magazine.
Recognizing the success of the A25, the government of Québec is undertaking many more projects as PPPs.
Richard Deslauriers and Jacinthe Charbonneau are recognized leaders in creating value for their clients through PPP, project financing and other innovative approaches to procuring and financing infrastructure and transportation projects.