MTO Rt. Hon. Herb Gray Parkway
Client: Ontario Ministry of Transportation (MTO)
Location: Windsor, Ontario, Canada
Business Segment: Urban Solutions
Industry: Infrastructure
Executive Summary
The 11-kilometer Right Honourable Herb Gray Parkway project is the largest public-private partnership (P3) procured by Ontario’s Ministry of Transportation (MTO) and Infrastructure Ontario. Fluor, as part of an equity consortium, was awarded the finance, design, construction and maintenance scope for this project.
The Rt. Hon. Herb Gray Parkway is the Canadian access road portion of an end-to-end border transportation system that improves the flow of traffic through Canada’s busiest trade corridor and will contribute to the economies of Ontario, Canada, Michigan and the United States.
Client's Challenge
The Rt. Hon. Herb Gray Parkway includes an 11-kilometer, six-lane, below-grade highway featuring wide cut and cover tunnels, connecting bridges and earth-retaining structures. The Parkway is a publicly owned highway and does not have tolls. The Rt. Hon. Herb Gray Parkway will connect to new inspection plazas, the Gordie Howe International Bridge and the U.S. Interstate system. The project also includes construction of surrounding highways, interchanges, local service roads and multi-use trails.
Unique to this project are the naturalized landscaped areas that were built on top of the tunnels and adjacent to the roadway. In total, the project includes more than 121 hectares of native landscaping and 17 kilometers of multi-use trails.
The MTO has continuously emphasized the critical nature of this project, highlighting the importance of expanding and improving this important trade gateway between the U.S. and Canada.
Fluor's Solution
Windsor Essex Mobility Group GP (WEMG), an equity consortium of Fluor Canada Ltd, ACS Infrastructure Canada Inc. and Acciona Concesiones Sociedad Limitada, is responsible for the finance, design, construction and maintenance of the project. WEMG is the operating entity for the 30-year concession management of the Parkway.
The financing mechanism for the project is a hybrid availability structure. The province paid 85% of the capital costs through traditional payment mechanisms at significant completion milestones in the construction of the project. The remaining 15% and maintenance costs over the 30-year period are paid through an availability payment.
WEMG achieved initial total commitment of financing prior to submittal through bank financing involving a club of 11 international banks. A refinancing was also undertaken in 2017 through the issuance of bonds.
Fluor is also a member of Parkway Infrastructure Constructors (PIC), the design-build joint venture for the Rt. Hon. Herb Gray Parkway. PIC also includes Dragados Canada and Acciona Infrastructures Canada.
Conclusion
As part of an equity consortium, Fluor provided the major scope of services for the Rt. Hon. Herb Gray Parkway. The project improves the flow of traffic through Canada’s busiest trade corridor.
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