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TransEd Partners, a consortium composed of Fengate Capital, Bechtel, Bombardier and EllisDon, has reached financial close on the Valley Line Light Rail Transit – Stage 1 project in Edmonton, Alberta (Canada).

Fengate is an equity investor for the project on behalf of a group of institutional investors.

The group was chosen following an 18-month procurement process that accepted proposals from three international teams. It will have to design, build, finance, operate, maintain and supply vehicles for The Valley Line – Stage 1, which will be delivered using a public-private partnership (P3) model. The concession period is 30 years.

The project involves the development of a 13 km LTR line extending from 102 Street Stop to Mill Woods Town Centre. Along the alignment there are 11 at-grade neighbourhood stops and one above-grade station at Davies Station. The line will integrate directly into existing communities, with an initial projected daily ridership of 31,500 passengers, increasing to 42,000 by 2044. 

The equity investor among with the provincial government and the city of Edmonton will support the project. The total investment is estimated at CAD$1.8 billion (US$1.29 billion). The financing included CAD$394-million senior long-term amortizing bonds with final maturity date of September 30, 2050 and a CAD$200-million senior construction period credit facility. 

Construction works are scheduled to begin by mid 2016. Once developed, the LTR line will operate separately from the city's other existing LRT lines.

The Valley Line is a significant part of the City of Edmonton's transportation plan. It will cater to the demands of one of Canada's fastest growing cities, which is expected to increase in population by 50% by 2040. The proposed multi-staged, 27-kilometer urban route will include 25 new stops and three stations, serving an estimated 100,000 daily commuters. The transit line will run southeast to west from Mill Woods to Lewis Farms, crossing through Edmonton's downtown core. 

George Theodoropoulos, Managing Director of Infrastructure at Fengate, stated:

"We are excited to be a part of such an important P3 project in Edmonton. This expansion will have a tremendous positive affect on all transportation routes within and outside of Edmonton."