Aecon rejoins consortium awarded US$3 billion Canada-USA bridge P3

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Aecon rejoins consortium awarded US$3 billion Canada-USA bridge P3

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Aecon Group has announced that it has received approval to rejoin Bridging North America, the team selected as the Preferred Proponent to design, build, finance, operate and maintain the Gordie Howe International Bridge through a public-private partnership valued at over CAD4 billion (US$3.06 billion).

The six-lane (three per direction), 2.5km cable stayed bridge will cross the Detroit River, linking Windsor, Ontario (Canada) to Detroit, Michigan (USA). At 853m, its main stay will be the longest in North America. The consortium will operate and maintain it for 30 years.

The Windsor-Detroit Bridge Authority (WDBA) launched the tender for the project with a Request for Qualifications (RFQ) in July 2015. Bridging North America, led by Aecon, ACS and Fluor, was prequalified alongside two other teams in January 2016, and invited to respond to a Request for Proposals issued in November that year.

However, in May 2018, before the team's final proposal was reviewed and submitted, Aecon announced that it was no longer part of the bidding team. The only explanation given for the shock withdrawal was that it was a commercial decision, with company spokespeople refusing to elaborate.

At that time, the company was under extensive review by the Canadian government, due to its proposed acquisition by China Communications Construction Company (CCCI), agreed in October 2017, for around CAD1.5 billion (US$1.15 billion). As reported on this platform, in the last week of May, the government blocked the deal, claiming national security concerns.

It is purely speculative to suggest that these two situations are linked, but it is noteworthy that they coincide.

Bridging North America was announced as the preferred proponent for the project ​in July. As well as the bridge itself, the consortium is contracted to construct and maintain both Canadian and US Ports of Entry and a new road interchange on the US side of the bridge. 

Aecon's statement on its rejoining the consortium reveals some motivations for the decision, stating that the project is "important ... for Canada and the United States ... [and] fits well into Aecon's existing portfolio of projects". It also discloses that the company's request to participate in the project was approved following thorough review by WDBA.

The sponsors expect to achieve financial close by the end of September 2018, with the bridge scheduled to be completed in 2022. 

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