P3 Canada Fund, a merit-based program with the objective of supporting P3 infrastructure projects in Canada, has announced that it is investing up to C$250 million to support the construction of the City of Edmonton's new Light Rail Transit (LRT).

The total value of the project is up to C$1.8 billion.

A private sector proponent will be selected to design, build, finance, operate and maintain the new light rail transit project over a 30- year period. By entering into a long-term P3 agreement, the City will transfer significant risks over the whole lifecycle of the project to the private sector, allowing the City of Edmonton to realize greater value for taxpayers' dollars. Edmonton will retain ownership of the infrastructure, will be the fare setter and revenue collector, and will ensure safety and security standards are maintained.

The Feasibility study was prepared by PwC.

The project

The project includes the construction of the southeast leg of the Southeast to West LRT (Valley Line), running 13.2 kilometres from Mill Woods to downtown Edmonton. The line is an urban style low-floor LRT that will integrate directly into existing communities, with an initial projected daily ridership of 28,000 passengers, increasing to 49,000 by 2044.

The project also includes the construction of a signature bridge spanning the North Saskatchewan River, a 350-metre tunnel, and an operations and maintenance facility for the new line.

Source: P3 Canada