NBSL Project Update
January 15, 2014
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Presentation Outline
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Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Presentation Outline
•
•
•
•
•
•
•
•
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Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Strategic Importance of Champlain Bridge Corridor
• The Champlain Bridge is one of the busiest bridges in Canada
and has a vital role in the Canadian economy
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Approximately 40-60M vehicles and 11M public transit users/year
$20B in Canada-U.S. trade crosses the bridge every year
• The project is one of the largest infrastructure projects in North
America
• A series of studies have been undertaken to ensure the project
meets high technical and environmental standards while
representing value-for-money for taxpayers
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Business Case
• Prepared by PricewaterhouseCoopers (PwC) in conjunction
with a team of expert technical consultants (Steer Davies
Gleave and Arup-led team)
• Consulting team performed a rigorous financial and technical
analysis of the Project
– Business case adhered to best practices and the methodologies and
principles set out in the PPP Canada Business Case Guide
– Informed by a number of studies
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Preliminary Design and Costing (PD&C) by Arup
Tolling and revenue forecasts by Steer Davies Gleave
• Primary objective of the business case was to examine
different procurement models and determine if cost and other
benefits could be achieved using a PPP
– Business case recommends a detailed procurement model and process,
including a defined scope
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Dissemination of Information
• Backgrounder on the business case is available on Transport
Canada’s website: www.tc.gc.ca/nbfsl
• To protect integrity and public funds, does not include
information that could influence the competitive procurement
process and result in a lower return for taxpayers
– Specific project costs
– Traffic and revenue forecasts
– Financial information such as assumptions, project funding, payment
mechanisms
• Information such as contract amount, value-for-money, and
final bridge design will be made public following the conclusion
of the procurement process in summer 2015
– Consistent with approach taken for projects across Canada (A-25, A-30,
Port Mann Bridge, etc.)
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Presentation Outline
•
•
•
•
•
•
•
•
•
Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Project Drivers
Description
Drivers
1. Public safety
Providing safe and reliable passage for all bridge users
(e.g. pedestrians, cyclists, commuters, car and truck users)
2. Economic
Ensuring the efficient transit of people and goods to and from
Montreal as well as other parts of Canada
3. Fiscal
Carrying out the Project at an acceptable cost
4. Environmental
Constructing a bridge that is respectful of its environment
5. Reliability
Lifespan of 100+ years
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Project Overview
Longueuil
Jacques-Cartier Bridge
Montréal
Autoroute Bonaventure (federal portion)
Victoria Bridge
Alignment with A-10
New Bridge for the St. Lawrence
New île des Sœurs Bridge
and work on île des Soeurs
Reconstruction and widening
of A-15 (federal portion)
Clément Bridge
Brossard
Champlain Bridge
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Project Highlights
NBSL
• Accelerated in-service date of 2018, construction to start in 2015
• Three lanes for cars, one lane for public transit in each direction
• Dedicated public transit lanes will accommodate light rail transit as
recommended by Government of Québec
– Phasing of light rail system will be accommodated
• Multi-use path for pedestrians and cyclists
– To be located on North side of bridge to provide better view of downtown Montreal
• Uninterrupted use of existing Champlain Bridge during construction
A-15
• Three lanes per direction, which will provide consistency throughout
the corridor and mitigate current bottlenecks – in-service date by 2020
– Will heighten safety in the corridor by increasing traffic fluidity
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Project Scope
• The scope of the Project to be included in the PPP is:
– Construction of the new bridge for the St. Lawrence, including Autoroute
10 approaches in Brossard and the installation of tolling equipment and
facilities
– Construction of a new île des Sœurs Bridge and highway on île des
Sœurs
– Demolition of the current île des Sœurs Bridge
– Reconstruction and widening of the federal portion of Autoroute 15,
including the operation and minor maintenance of Autoroute 15 from the
start of the PPP contract
– Operation and maintenance of all newly constructed infrastructure for 30
years
– Surface operation and maintenance of the Clément Bridge and
Bonaventure Expressway
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Outside of Scope
• The following elements will not be included in the PPP
contract:
– Demolition of existing Champlain Bridge
 Unrelated to providing a replacement NBSL corridor
 Will be tendered after corridor is delivered
– Operation, maintenance, and demolition of the temporary île des Sœurs
causeway-bridge
 Causeway-bridge will be built and in service by early 2015, before the
selection of a private partner
– Operation and maintenance of the ice breaking structure
– Lifecycle and major maintenance of the Clément Bridge and the
Bonaventure Expressway
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Presentation Outline
•
•
•
•
•
•
•
•
•
Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Preliminary Design and Costing (Arup)
• Objective was to evaluate bridge options at 5% design, develop
a preferred design, and estimate costs of the preferred option for
the purposes of the business case
– Single vs. multi-level?
– Type of structure?
– 1, 2, or 3 decks?
• The preliminary design does not represent a final technical
solution or final associated costs
– Will only be determined by the selected proponent, through the competitive
PPP procurement process
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Preferred Bridge Design Selection Process
• The preferred preliminary design was
chosen following a multi-stage process
13 options
analyzed
1st
Screening
stage
7 options
developed
further
2nd
Screening
stage
Preferred
Alternative
selected
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Options Evaluated for New Bridge
• Several options were examined as part of our analysis,
including:
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Various configurations for the approaches and the Seaway crossing;
Various span lengths (from 80m to 800m)
Various materials (steel, pre-stressed concrete)
Several levels
Two or three corridors
• The options analyzed include box girder bridges, extradosed
bridges as well as a long span cable-stayed bridge and a long
span suspended bridge
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Screening Considerations
• Many factors supported the option selection process, including:
Construction
– Construction cost and duration
– Construction complexity
– Construction over the Seaway
Operation
– Suitability for a light rail system
– Relative operation and maintenance cost
– Winter suitability
– Transition from buses transit lanes to a light rail system
Project impact
– Environmental impact
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2nd Stage Screening Considerations
Option
Functional Cross
Section
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2
3
Three
corridor
Two
corridor
Two
corridor
Seaway Description
200m main
span variable
depth
concrete box
girders
200m
main span
variable
depth
steel box
girders
Approach Description
Concrete box
girders
Steel box
girders
Recommended Option
Approaches
4
5
Two
corridor
Three
corridor
200m main
span
variable
depth
concrete
box girders
Concrete
box girders
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7
Multi-level
corridors
Multi-level
corridors
200m span
composite
deck arch
bridge
200m span
concrete
cable
supported
bridge
180m main
span
composite
truss bridge
370m main
span
composite
truss deck
cable
stayed
bridge
Steel box
girders
Concrete
cable
supported
bridge
Composite
truss bridge
Composite
truss bridge
 - Seaway
span only
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A multi-level bridge is not recommended because of the additional complexity of the
works on the approaches to the bridge, the visual and environmental impact such
an infrastructure would have on both île des Sœurs and the South Shore and the
complications for the connections to the approach roads
•
A three corridor bridge will ensure a dedicated lane to transit
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Preferred Alternative
• The preferred alternative combines the benefits of two of the
options in order to achieve the optimum configuration
– Box girder for the approach spans, cable supported over the St. Lawrence
Seaway
– Three decks: two decks with three lanes each for cars and trucks; middle
deck for transit (buses, convertible to a light rail system)
– Multi-use path next to one of the car decks
Approaches: Concrete box girder
Seaway: Cable supported
Configuration:
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Project Costing
• Design and construction costs estimated from the beginning at
$3 to $5 billion for the corridor Project
– Based on pre-feasibility study concerning the replacement of the Champlain
Bridge conducted in 2011
– Constitutes a very preliminary, conservative estimate with a wide range of
hypotheses
– Wide range is typical at the pre-business case stage and for a project of this
scope and complexity
• The preliminary design (5% design) for each component of the
Project was used as the basis for estimating design and
construction costs for the purposes of the business case
– At this stage, it is prudent to continue to consider cost estimates as
preliminary
– Final project costs will be determined by the end of the competitive PPP
procurement process
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Cost Comparisons
• The NBSL is not a just a replacement bridge. It will offer new features (a
dedicated transit lane, a multiuse path, a lifespan of over 100 years) and
will meet very high standards
• It is challenging to make simple comparisons with other infrastructure
projects.
• Cost depends on many factors and the NBSL is a complex project with a
large size and scope
– Not only includes the new bridge for the St. Lawrence (3.4 km), but
also highway work on île des Sœurs, a new île des Sœurs Bridge
(470m) and the reconstruction of the federal portion of Autoroute 15
(3 km)
– New bridge for the St. Lawrence includes six lanes for traffic and a
dedicated public transit corridor to accommodate a light rail system
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Presentation Outline
•
•
•
•
•
•
•
•
•
Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Traffic and Revenue Forecasting
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A variety of toll rates comparable to current rates in the Montreal region
were examined
– Rates aim to achieve an appropriate balance between capital cost
recovery and maximizing traffic fluidity
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Additional studies and consultations will be completed prior to the
establishment of a toll rate for the Project
– A-25 and A-30 toll rates were only confirmed a few months before
opening
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Presentation Outline
•
•
•
•
•
•
•
•
•
Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Procurement Objectives
• Ensure the Project meets Transport Canada’s design,
operational and lifecycle performance criteria
• Deliver an infrastructure of the highest quality while being
mindful of the use of public funds
• Enable appropriate risk allocation and mitigation with
creditworthy counterparties
• Benefit from the private sector’s innovative solutions and
best practices for similar projects
• Ensure a fair, transparent, competitive procurement
process
The choice of procurement model will greatly impact the
attainment of these objectives
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Traditional Model
• Under this approach, would likely use Design-Bid-Build (DBB)
– Project design procured separately from project construction
– Transport Canada would hire an engineer to complete the design and divide
Project into different components
– A separate contractor would likely be retained for the construction of each
component
– Transport Canada would supervise all construction work
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Well understood process
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Allows for Project to be divided into smaller components
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Direct involvement by Transport Canada
x
Higher risk of delays and increased costs
x
No recourse for delays or poor performance
x
Less opportunity for private sector innovation
x
Design does not benefit from input of construction contractors – could result in a
lack of constructability
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PPP Approach
• Under this approach, would use Design-Build-Finance-OperateMaintain (DBFOM) model
– Long-term responsibilities bundled together and transferred to private sector
partners
– All components of the project combined into the same contract
– Commitment to deliver Project for a fixed price and by a specific date
– Payments only made at specific milestones
x
Up-front planning and procurement costs higher
– Typically longer planning and procurement (although time is made up
during construction) - significantly reduced time in this Project
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Cost overrun and delay risks transferred to the private sector
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Incentives to fulfill responsibilities over the long term
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Harnesses innovation
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Payment deductions are made in case of performance failures
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Business Case Recommendation
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Procure the Project as a PPP
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The Value-For-Money (VFM) and qualitative analysis clearly demonstrate the
advantages of procuring the Project using this approach
Advantages include:
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Adherence to the project timelines
Substantial risk transferred to the private partner: incentives for construction to be
completed on budget with penalties for late delivery
Model supported by several major road and bridge projects which have been
successfully carried out in Canada during the past ten years (e.g., A-25 and A-30 in
Quebec, Golden Ears Bridge and Sea-to-Sky Highway in B.C., etc.)
Design which better takes into account construction constraints and operating needs
as a result of an integrated team
Opportunity to attract the world’s largest and most sophisticated bridge and road
designers and builders, with the partnering of key local businesses
Competitive process induces greater incentive for design and construction
methodology innovations
Enhanced traffic management during construction since a single consortium will be
responsible for the entire corridor
Preventive and lifecycle maintenance are contractual obligations
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Value-For-Money Analysis
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VFM analysis compares the cost of undertaking the Project through
traditional procurement to the cost of the Project as a PPP by:
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Estimating Project costs
Developing assumptions for the financial analysis
Developing financing structure for the PPP model
Identifying, quantifying and allocating risks
Estimating whole-life, risk adjusted cost of each procurement model
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Must demonstrate positive VFM – which means that it would be less
expensive – for the Project to proceed to PPP procurement
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The PPP procurement model indicates cost savings between 5% and
18% of the traditional model cost
•
A sensitivity analysis confirmed the robustness of the findings in the
face of varying assumptions
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Presentation Outline
•
•
•
•
•
•
•
•
•
Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Procurement Process
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A two-phase procurement approach is recommended
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This process is consistent with best practices for large PPP procurements,
respectful of PPP Canada guidelines and will be familiar to bidders
1.
Request for Qualifications (RFQ)
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Public process open to all interested parties
Bidders evaluated on several qualifications to carry out the Project successfully
Short listing of a specific number of bidders
2.
Request for Proposals (RFP)
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Short-listed bidders will submit binding technical and financial proposals, including
a fixed price and schedule
Proposals will be evaluated to verify compliance with technical (including
architectural quality) and financial criteria
–
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Industry Information Sessions
•
Information sessions are planned in winter 2014 in order to keep
industry apprised of the Project and upcoming milestones
– These sessions are essential to ensuring continued market interest in the
project which will maximize competition, ensure higher quality bids and
better value for taxpayers
– These sessions will also provide an opportunity for interested businesses
to interact and explore opportunities to establish partnerships
•
The information sessions will provide greater detail with respect to
issues such as:
– Project scope;
– Detailed timelines and key milestones; and
– The project financing structure
•
Sessions with small and medium enterprises will also be organized to
promote local and regional expertise
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Presentation Outline
•
•
•
•
•
•
•
•
•
Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Project Timelines
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Presentation Outline
•
•
•
•
•
•
•
•
•
Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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Architectural Quality
• Prescriptive architectural directives will be developed in
collaboration with an architectural review panel
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The directives could address elements such as structural form, lighting, views to
and of the bridge, etc.
• The design will be developed by world renowned architect Poul Ove
Jensen, supported by local firm Provencher Roy + Associés and
members from the Montreal design community
–
Role will be to develop clear directives to be adhered to by the proponents
• The directives will be incorporated in the procurement documents
and bidders will be required to comply with them
• The directives will be made public at the RFP launch; the final
design of the bridge will be made public at the end of the RFP
process
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Public Transit
• The Government of Canada has clearly stated that the Project will
include dedicated transit lanes
• In June 2013, the Government of Québec confirmed that a light
rail transit system is the preferred mode of transit for the corridor
• Accordingly, the Government of Canada has been working closely
with the Agence métropolitaine de transport and the ministère des
Transports du Québec to ensure the integration of a light rail
system
• The Government of Canada will provide the right of way for the
light-rail system within the Project corridor
• Federal funding for the light rail system is also available via the
New Building Canada Plan should Quebec wish to prioritize the
project
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Presentation Outline
•
•
•
•
•
•
•
•
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Introduction
Project overview and scope
Preliminary engineering
Traffic and revenue forecasts
Procurement options analysis
Procurement Process
Project timelines
Key issues
Project governance
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External Project Governance Structure
Integrated Project Team
Transport Canada, PPP Canada, Public Works and Government Services Canada
Policy and
Communications Group
Technical
Group
Procurement
Group
Legal
Group
External Stakeholder Advisory
Committee
- Transport Canada
- Ministère des Transports du Québec
- Agence métropolitaine de transport
- Infrastructure Québec
- Ville de Montréal
- Ville de Longueuil
- Ville de Brossard
Environment and
Aboriginal Affairs
Architectural
Quality
Engineering and
Urban Integration
Public
Transit
Meetings and External
Consultations
Architectural
Review Panel
A15 Working Group
Design criteria working group
South Shore Working Group
Contractual aspects working
group
Mobility Montréal –
Champlain Sub- Committee
Meetings and External
Consultations
Legend:
Project Team
Technical components
External Stakeholders
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For more information on the project,
please consult the new bridge for the
St. Lawrence section on Transport
Canada’s website:
www.tc.gc.ca/nbfsl
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