PPP Canada collective brochure

P3 CANADA

CONTENTS

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P3 foreword Value for Money

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Kokish Hydroelectric Project

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Evan Thomas Water & Wastewater

COMPANY PROFILES ENERGY 4 P3 Foreword: Value for Money:

by Lisa Mitchell 11 P3 Interview with CEO, John McBride 17 P3 Association 22 Kokish Hydroelectric Project

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Edmonton Light Rail Transit System

30 Evan Thomas Water & Wastewater

ENERGY 38 Edmonton Light Rail Transit System 48 Southeast Stoney Trail

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Southeast Stoney Trail

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PPP Canada

PPP Canada Delivering Maximum Value to Taxpayer How one unique approach to infrastructure is overhauling Canada Written by: Ian Hanner Produced: Association

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PPP CANADA

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s the world moves further into the 21st century, much the infrastructure of the last 100 years will need replacement or upgrades, and in Canada taxpayers will know for certain that these projects are being completed with value in mind.

Founded in 2008 as a whollyowned corporation of the Canadian federal government, PPP Canada exists with one mission in mind: to assess the P3 viability of largescale infrastructural projects throughout Canada and to deliver the maximum value on each project to the taxpayers. John McBride, chief executive officer and the first employee of PPP Canada, has the task of steering the company along as it demonstrates the benefits of the P3 model.

“We work with all levels of government in Canada to make sure that P3s are used in a wise and effective way,” McBride said.

“When we work with provinces and municipalities, we have a fund that we can commit to good P3 projects to encourage their use at the provincial and municipal levels. And 6

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we work with the federal government to screen, structure and execute P3 projects.”

How a P3 Works Short for “public-private partnership,” the P3 model transfers a significant amount of risk away from the public to the private sector by structuring payments to a developer out over the useful lifespan of a project, optimizing efficiency, reducing costs and attracting the best talent from around the world.

McBride describes the P3 model as an excellent solution for infrastructural projects that meet a few certain criteria. First, they need to carry a price tag for taxpayers of more than $50 million—though probably more than $100 million— to make the P3 model financially viable while attracting companies to the bidding process. Second, the organization attracting bids for a project needs to be able to specify performance standards over the lifespan of the development, only paying the remaining amount owed after the long-term obligations are

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SRO Dowtown Eastside Vancouver_BC Housing

fulfilled. Finally, successful P3s adopt a whole life-cycle approach, transferring the risks of some, or all, of the components (design, build, finance, operation and/or maintenance) of a project to the private sector and deliver positive Value for Money.

“Part of the advantage of a P3 is that you’re getting the best skill set on the planet with a certain type of expertise to come and help you,” McBride said. “If you’re building a hospital—a community doesn’t normally build a new hospital more than once in a generation. So there usually isn’t expertise built into the institution about how to build a new hospital.”

He added, “It’s kind of like building your own house. By the time you get to your third house, you’ve learned a lot of lessons, but if you’re doing it yourself you’re going to pay the cost of your own inexperience.”

P3s at Work in Canada While a relatively young organization at just five years in business, PPP Canada has an impressive portfolio of large-scale projects under its belt.

Perhaps its most significant project right now, PPP Canada is acting as the lead P3 advisor on the procurement of a bridge to replace the aging Champlain Bridge in Montreal as part of the St. Lawrence project.

According to McBride, PPP w w w. p 3 c a n a d a . c a

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PPP CANADA

Evan-Thomas Water and Wastewater Treatment Facility project Kananaskis Country, Alberta

Canada is actively working with Infrastructure Canada “to complete a study to support their procurement process. PPP Canada

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is similarly involved with Transport Canada and Windsor-Detroit Bridge Authority in the development of the Detroit River International Crossing.�

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With a long list of other ongoing projects, it would seem the private sector is eager to do business in the sector despite the risk that the P3 model transfers to them.

“These are business opportunities for them,” McBride said. “They are experts in their field and they’re experts in knowing how to assess and manage these types of projects and risks.

They’re certainly doing it because they see it as a profitable enterprise for them. And there’s value for taxpayers because they’re better at doing it than the public sector is. So it’s a win-win situation. They can earn business revenues and profits and the governments can reduce risk and get better value.”

A far cry from the days of five years ago when the organization was new and McBride was the only employee— there are now around 60— McBride’s main focus now that PPP Canada is staffed by experts is to raise awareness of the benefits of the P3 model throughout Canada. While the organization’s successes are many, McBride is looking to the future.

“I’m hopeful that by the end of the next five years, all jurisdictions in Canada will be participating in P3s,” he said. “And that we will have made entries into new sectors of infrastructure. I think that in the next five years people are going to be starting to see more and more of the good results of P3s— on-time and on-budget.

Company Information INDUSTRY

Federal Crown corporation HEADQUARTERS

Ottawa, Ontario, Canada FOUNDED

2008 The Government of Canada has committed to supporting innovative public infrastructure projects, using the Public-Private Partnership (P3) model that deliver maximum value for Canadians, stimulate the economy, create jobs and support long-term prosperity.

To this end, it created PPP Canada, a federal Crown corporation, with an independent Board of Directors reporting through the Minister of Finance to Parliament.

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PPP Canada

P3 Knowledge, Leadership and Expertise Submitted by: Lisa Mitchell Director, Strategy and Market Development PPP Canada

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PPP CANADA

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n Canada, Public-Private Partnerships (P3s) are about retaining ownership of infrastructure while protecting taxpayers by shifting responsibility for unexpected costs -- such as overruns, design flaws, and premature deterioration -- to the private sector. This is achieved primarily through effective and robust risk transfer to the private sector, lender due diligence and the bundling the design, construction, financing, operations and maintenance work associated with an asset into one contract with a single consortium.

P3s can generate greater value for taxpayers when compared to traditional procurements because they consider the whole lifecycle of an asset, encourage private sector innovation, and harness the discipline of capital markets through the use of project finance and lender due diligence. Responsibility for unexpected costs across a project’s lifecycle (i.e. cost overruns, design flaws, and premature deterioration) is also transferred from the public to the private sector where 12

February 2015

appropriate.

P3s are the right procurement solution when the benefits exceed the costs – but how can a government predict unexpected costs? This requires a very detailed assessment of the various risks linked to the asset, as well as an examination of the ancilliary costs associated with P3 procurement.

This process is known as a Value for Money (VfM) analysis.

A rigorous VfM analysis is considered Canadian P3 best practice. Although methodologies can differ between Canadian jurisdictions, they are structured to reflect an unbiased and transparent representation of the benefits and quantitative differences between procurement models.

Value for Money 101 A thorough VfM analysis gives procuring authorities an opportunity to evaluate different procurement options, including traditional (design-bid-build) and P3 delivery models, and examine the qualitative and quantitative differences in order to choose the option that provides

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SRO Dowtown Eastside Vancouver_BC Housing

best value for tax dollars.

Using past projects as benchmarks, a government can evaluate probabilities and assign dollar figures to the various asset-related risks over the life of the contract. In a P3 model, the government can also identify opportunities to transfer, share or retain such risks and engage in an apples-to-apples comparison of different procurement options.

VfM analysis considers the wholeof-life costs of a project, from design, construction and financing to operations and maintenance of the asset. In the planning phase of a project – well in advance of the start of a procurement process –

cost estimates for the P3 option are compared against those of a traditional model, known as the public sector comparator (PSC).

The analysis is designed as a check to ensure that projects are appropriately selected as P3s and that the risk transfer is cost effective to the public sector owner of the asset.

Costs are adjusted to account for different levels of retained or transferred risk, and cash flows are discounted throughout the life of the project in order to provide the net present cost of the project.

This includes an evaluation of any efficiency gains that might be offset by such things as risk premiums to compensate the private partner w w w. p 3 c a n a d a . c a

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PPP CANADA

Evan-Thomas Water and Wastewater Treatment Facility project Kananaskis Country, Alberta

for assuming additional risks for the P3, as well as higher private financing and transaction costs.

If the VfM analysis concludes that these elements (including the additional costs associated with private finance) are offset by the cost savings from transferring selected risks to the private partner, the overall net present costs of the project will be lower under the P3 approach.

The difference between the two estimates, known as VfM, is typically expressed in terms of a percentage of the total overall project cost. In the example below, 11.8% VfM is expected to be generated for the public sector through a P3 procurement.

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VfM analysis is not a static analysis and is refreshed at the awarding of the contract, or Financial Close, using actual costs to confirm the effectiveness of the procurement – yet another check that public dollars are being responsibly spent.

Why Use Private Finance?

We all know private finance costs more – so why do we use it? By asking a private partner to finance an asset, the government can guarantee the company will remain attached to the contract even if unexpected costs arise. Because the private partner is dependent upon the contract’s payment stream to repay its debt and generate a return on its investment, they are

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incentivized to correct deficiencies and absorb cost overruns. In addition, lenders perform extensive due diligence on the private partner’s business plan and throughout the procurement phase. This additional scrutiny provides government with an added layer of security.

Walking the Talk: Putting Value for Money to work Value for Money analysis lies at the heart of the Canadian P3 model, and in addition to preparing this analysis for federal procurements, PPP Canada performs intensive due diligence on the VfM analyses prepared for projects seeking support through the P3 Canada Fund, the New Building Canada Fund and at the federal level to ensure that the proposed project truly fits the P3 bill.

P3s deliver value for money because the value of the risk transfer as well as private sector efficiencies and innovation, outweigh the incremental costs of private financing. However, varying and often complex approaches within the domestic market to VfM can be confusing to Canadian taxpayers.

Canada is recognized as a global leader in P3s, in particular for the use and emphasis on VfM analysis as a decision tool for the P3 delivery model. As more projects are realized as P3s in Canada, PPP Canada and other P3 agencies continue to look at ways to refine methodologies, deliver more projects on-time and on-budget, and ensure the best value for taxpayers in the delivery of public infrastructure.

Company Information INDUSTRY

Federal Crown corporation HEADQUARTERS

Ottawa, Ontario, Canada FOUNDED

2008 Lisa Mitchell : Director, Strategy and Market Development

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PPP Canada

P3 Knowledge, Leadership and Expertise Written by: Michelle Coates

Produced by: Mike Magno

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PPP CANADA

Kokish River Hydroelectric Project(Port McNeill BC

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he need for infrastructure renewal is real and governments across Canada have recognized that investing in public infrastructure is an effective way of boosting the economy while delivering tangible results Canadian can see and use every day.

Public-private partnerships (P3s) have proven their ability to deliver value. Governments have seen this model work for projects across the country, with early adopters like Alberta, British Columbia and Ontario leading the way.

When done well and for the right reasons. P3s can be a useful 18

December 2014

procurement tool for governments.

P3s engage the expertise of the private sector and the discipline of capital markets to deliver ontime, on-budget, whole life-cycle solutions to delivering the public infrastructure Canadians need.

Recognizing the growing attraction to P3s, in 2008, the Government of Canada saw an opportunity to leverage its role to enable the consideration of P3s through the creation of PPP Canada, a federal Crown corporation.

Effecting change PPP Canada strives to deliver value

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SRO Dowtown Eastside Vancouver_BC Housing

to Canadians through the effective use of P3s. We are doing this by working with all levels of government to share P3 knowledge and build best practices to change the way people think about procuring public infrastructure. Whether the goal is to procure a wastewater treatment plant for a small municipality or an international airport for a growing territory, value for Canadians is our over-riding focus. That is why we recommend a P3 approach based on a detailed and systematic assessment of value for money.

The federal government has significant direct responsibility

for the provision of national public infrastructure assets and has mandated that all large federal projects with capital costs of more than $100 million be assessed for P3 suitability. PPP Canada is here to provide our federal clients with reliable advice and expertise to help identify P3 viability, perform a thorough procurement options analysis and advise on the procurement of the project.

Our most visible federal advisory engagement to date is the New Bridge for the St. Lawrence project.

Our team has been working with Infrastructure Canada to complete a w w w. p 3 c a n a d a . c a

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PPP CANADA

Evan-Thomas Water and Wastewater Treatment Facility project Kananaskis Country, Alberta

study to support their procurement process. PPP Canada is similarly involved with Transport Canada and Windsor-Detroit Bridge Authority in the development of the Detroit River International Crossing.

We also work with other levels of government to advise and evaluate P3 potential for projects submitted through the P3 Canada Fund. With the first 5-year, $1.2B tranche of the P3 Canada Fund now complete, we are in a position to look back on our successes and the impact the Fund has had on the Canadian P3 market to date. Between 2008 and 2013, the market has expanded significantly. Since the launch of the 20

December 2014

P3 Canada Fund, the number of P3s entering procurement has more than doubled. Between 2009 and 2014, the $1.2B Fund provided up to 25% support to 24 projects, leveraging more than $6B in P3 infrastructure across Canada. The estimated incremental value of these projects compared to traditional procurement exceeds $800 million.

The Fund, combined with our considerable outreach and education activities has had a huge impact in attracting new players to the market – most significantly municipalities. Since launching the P3 Canada Fund, we have confirmed investments

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to 14 municipalities, which make up 68% of the Fund’s overall portfolio. Most notably, 12 of these municipalities were first-time entrants into the P3 market. The entry of municipalities into the P3 market has created demand for a wider range of assets, including water and wastewater treatment facilities, public transit projects, and solid waste management assets.

Company Information INDUSTRY

Federal Crown corporation HEADQUARTERS

The way forward The ongoing success of the Canadian market has been recognized internationally. With strong capital markets, legal frameworks, private sector experience and capacity we expect the Canadian P3 market to remain resilient.

In the 2013 Economic Action Plan, the federal government renewed the P3 Canada Fund with $1.2B over the next 5 years. It went further announcing that all applications to the New Building Canada Fund will be subject to a P3 screen if eligible costs are estimated at $100 million or more. These announcements underscore the federal government’s commitment to ensuring maximum value through the effective use of P3s and will no doubt have an impact on the number of projects brought to the market moving forward.

PPP Canada remains in a unique position to help formalize best practices and push for greater transparency with respect to P3 projects and the Value for Money they generate so we can continue to lead by example.

Ottawa, Ontario, Canada FOUNDED

2008

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Kwagis Power Limited Partnership

Environmentally Conscious Energy

The Kokish River run-of-river hydroelectric project is more than just a renewable power source as it goes to extra lengths to protect the environment.

Written by: Kevin Smead

Produced by: Michael Magno

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C O M PA N Y N A M E

Powerhouse just downstream of the Kokish River

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or the ‘Namgis First Nation, respect for the environment is a core value. This allencompassing belief is focused on the protection and enhancement of the key watersheds in its ancestral lands on northeastern Vancouver Island. The Kokish River watershed is an important one of these.

The river has been home to a number of industrial operations over the years, but none has brought benefits like the Kokish River project.

This run-of-the-river operation has an installed capacity of 45 megawatts and generates clean, sustainable energy while enhancing the fish populations in the river.

The project is owned and operated by a partnership between 24

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Brookfield Renewable Energy Partners and the ‘Namgis First Nation, called Kwagis Power. For the ‘Namgis, it’s a requirement that the project’s impact on the river’s community and aquatic life must be a positive one.

“In all of the projects and activities that we do, our key goals are respect for the environment, sound management, self-sufficiency, and sustainable prosperity for our members,” Chief Debra Hanuse said: “These are the values that led us to take on the Kokish project.

We are quite proud of our efforts together with our partner Brookfield Renewable. Our project won praise for exceeding environmental requirements and great care was

SECTOR

taken not only to protect but also to enhance fish habitat and fisheries resources in the Kokish watershed. If all goes according to plan, the project will improve fish populations in the river through stream fertilization.”

its environmental certificate and water licence approvals.

Now, the operation is implementing its detailed environmental monitoring and compensation programs, and using innovative technology to protect the Consideration for Aquatic Life river’s fish populations.

Great care was taken to ensure “For example, a feature of this that protection of the river’s facility is what is called a Coanda aquatic life was at the forefront of screen” Hanuse explained. “The the project.

Coanda screen ensures that juvenile Planning of the project began in salmon and steelhead can safely 2004 and was followed by years of migrate out to sea.” studying the river system, gathering The Coanda screen covers the data, and preparing environmental intake weir and prevents the river’s plans. The result met all the young fish and diverse aquatic life requirements of the ‘Namgis First from being drawn into the penstock Nation and of regulators. In late 2011 and turbines. These screens have and early 2012, the project received been successful on other rivers in w w w. b ro o k f i e l d re n e w a b l e . c o m / k o k i s h r i v e r

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Ecofish Research Ltd. - We are a leading environmental consulting firm in renewable energy, passionate to take on your toughest regulatory challenges.

When the Kwagis Power Limited Partnership needed expert help to permit the Kokish Hydroelectric Project, they turned to Ecofish for our reputation as problem solvers. Our innovative mitigation and study designs were key in advancing the project through all phases of development. We continue to support Kwagis during operations, helping them deliver the promise of clean energy.

KOKISH HYDROELECTRIC

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ensuring that juvenile salmonids travel down the river with a high rate of survival.

The extensive care paid to environmental concerns isn’t the only thing that makes this project unique, however.

The ‘Namgis First Nation received $7.2 million in funding from PPP Canada. This agency manages public–private partnerships (P3s), which are an approach to developing public infrastructure that allows governments to hold the private sector accountable A Unique Partnership for a project’s success over its Part of what makes the Kokish River lifespan. The idea behind the P3s run-of-river project special is the is to transfer to the private sector a partnership between a First Nation major share of the risk associated and a major energy company. Also, for with infrastructure development, the first time in Canada, a First Nation such as cost overruns, schedule is benefiting from the model of funding delays, unexpected maintenance, used for projects developed jointly by or latent defects. Essentially, a P3 the public and private sectors. project ensures that there aren’t

SUPPLIER PROFILE

ECOFISH

Ecofish Research Ltd. are experts in environmental impact assessment, mitigation, compensation, and monitoring. Established in 2000 we have decades of experience in solving the tough problems that regulators and industry face when evaluating and permitting developments. With a team of experienced, skilled professionals, including biologists, hydrologists, chemists, and environmental technicians, we offer a broad range of environmental services including study design, data collection and analysis, reporting, training, strategic advice, agency liaison, environmental management planning, mitigation and compensation planning, and environmental monitoring.

Website: www.ecofishresearch.com

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KOKISH HYDROELECTRIC any surprises for taxpayers and the private sector is engaged via a contract for the life of the asset.

“Once the construction phase is done, all the high standards are met, and all of the risk of any delay is avoided, that’s the point where the P3 funding kicks in,” Hanuse explained. “That’s significant for us because P3 funding basically provided us with the means to stand on our own in terms of securing financing to participate in this

NWP Logo inside box is white

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project from a source other than our partner. It also will provide us with early benefits, so after repaying our loan, there will still be profits that are available for our community.

That’s really important because one of our major goals is to become self-sufficient. The early profits from this project will provide us with the resources that we need to stimulate economic growth in our community and build a better future for our children.”

The Long Term When looking at the life span of the asset, it’s important to take a long term view.

“Our initial contract to supply power to BC Hydro is for an initial period of 40 years, so we have guaranteed income for 40 years,” Hanuse said. “It’s a stable and steady revenue stream. But the Kokish facility can have a lifespan of 100 years with good maintenance, so it could provide benefits for generations.”

While the power agreements are important, the long-term environmental impact is still crucial to the ‘Namgis.

“Throughout the lifespan of the

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project there will be environmental monitoring to ensure that the project continues to meet safety and environmental standards,” Hanuse said. “Over time, the environmental monitoring will create opportunities for the members of our nation to become involved in technical support aspects.”

This helps accelerate the First Nation’s progress toward self-sufficiency. Achieving this will require the ability to create and fund projects such as the Kokish River,run-of-river project which can be challenging.

“Access to capital is a challenge that many First Nations governments face because reserve lands can’t be mortgaged, and therefore unless a First Nation has a lot of other assets it can offer for security, it’s difficult for many Nations to secure financing for economic projects,” Hanuse explained. “An initial loan from our partner Brookfield Renewable opened the door for ‘Namgis participation in the Kokish project.

The loan from P3 Canada has helped us open the door further. By securing a P3 loan on completion of construction, we’re able to repay our loan to Brookfield and stand as our own as a partner in the Kokish project. The low-interest loan from P3 Canada will allow us to build equity in a green energy project within our core territory and realize benefits much sooner than we would have otherwise.”

Overall, the project is not only a model of how sustainability, energy, and environmental concern can come together, it is also of how the public and private sectors can work together to improve energy infrastructure.

Company Information INDUSTRY

Construction HEADQUARTERS

Quebec, Canada FOUNDED

2004 EMPLOYEES

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Evan Thomas Water and Wastewater Plant Rocky Mountain Clear

The recently-upgraded Evan Thomas Water and Wastewat Plant is up to the challenge of keeping the water in one of Canada’s most idyllic regions cleaner than ever.

Written by: Kevin Smead Produced by: Michael Magno

ter

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E VA N T H O M A S WAT E R A N D WA S T E WAT E R P L A N T

Evan Thomas WWTP Headworks and Administration Building

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erving the Kananaskis Country park system west of Calgary in Alberta, the Evan Thomas Water and Wastewater treatment plant is a newly-upgraded, state-of-the-art facility that brings a high standard of clean water to the idyllic tourist destination.

The plant’s upgrade was completed on September 12 of this year under a public-private partnership between the Alberta government and contractor EPCOR.

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The Right Fit The Alberta government selected EPCOR to complete the project under a design-build-financeoperate-maintain (DBFOM) model.

Scope of the upgrades to Evan Thomas included addressing the treatment plant’s current capacity constraints, bringing the treatment plant back to environmental compliance, replacing the aging infrastructure and delivering public health benefits through the introduction of leadership standards

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Evan Thomas WTP and Well Pumphouse

for the areas potable water.

Lee Ward, Senior Manager of Project Development at EPCOR, said this model made sense for government, as it afforded them a low level of risk.

“The Alberta Government felt this type of model gave them the most risk transfer and protected them from cost overages and performance issues at the plant,” he said. “It also guaranteed what the operations costs were going to be over the next ten years. They really looked at the risk profile of this project and decided that this was the right choice for them. They’re

somewhat risk averse and didn’t want to take that on, neither the construction nor the operations risk.”

As for why the government selected EPCOR and the publicprivate partnership (P3) model, it came down to a simple factor: cost.

The province performed a Public Sector Comparator, in which they compare options and seek out the best value.

“They look at the costs and how much it would cost for them to go with a traditional model and then compare that against the evaluated bids that come in from the proponents,” Ward explained.

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E VA N T H O M A S WAT E R A N D WA S T E WAT E R P L A N T “EPCOR were lower than that Public Sector Comparator price, which they decided was good value for them.”

Unfortunately, not everything in the upgrade process went smoothly, though the hiccups were far from those anyone could ever predict.

“We had a one in 300 year flood event in southern Alberta,” Ward said, laughing in near disbelief. “This not only occurred in Kananaskis, but all across the southern part of Alberta. It happened in June 2013 and our whole entire site was

Providing solutions that deliver EPCOR is proud to be a P3 partner for water and wastewater treatment projects including the Evan-Thomas Water and Wastewater Treatment Plants in Kananaskis, Alberta and the City of Regina Wastewater Treatment Plant upgrade.

Learn more about EPCOR’s lifecycle approach to P3’s and how we can partner with you by visiting epcorwatersolutions.com

flooded out. In fact, one of our construction trailers floated away.”

Despite these challenges, the project was completed on time with the help of extra manpower and understanding from the Alberta government.

High-Tech Cleanliness Now completed, the plant uses advanced systems to ensure that the water running through it is up to the highest standards.

On the water treatment side, the plant not only uses chlorination, but

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an ultraviolet radiation disinfection system, ensuring parasites such as cryptosporidium or giardia– against which chlorine is ineffective–are inactivated and kept from contaminating drinking water.

“It adds an extra barrier, if you will,” Ward said, “an extra level of protection.”

For wastewater, the plant is equipped with a membrane bioreactor system and a UV disinfection system designed to greatly reduce the amount of residual contaminants that wind up in local waters.

“The amount of bacteria is reduced to a very low, strict level before it’s discharged to the river,” Ward said.

Now, the plant may be looking to install a septage receiving station in the near future.

This would allow for a greater service area for wastewater collection and eliminate lengthy journeys to other treatment facilities for trucks collecting wastewater from holding tanks currently in place throughout the valley.

Thinking Long Term Though still focused on the present, the plant’s owners and operators are already planning further down the line.

“The membrane and UV technology are cutting edge for today’s wastewater systems,” Ward said. “We’re a bit ahead of the curve in terms of meeting federal expectations, standards and guidelines. We think that will take us through for the next 10 or 20 years before we have to

Senior Vice President, Water Canada and Technologies - Dr. Stephen Stanley

“Now completed, the plant uses advanced systems to ensure that the water running through it is up to the highest standards. ” – Lee Ward, Senior Manager

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implement some major upgrades to the plant.”

While planning decades ahead after a major upgrade might be seen as jumping the gun by some, Ward believes if they start looking at future policies and upgrades now, they can remain a step ahead.

“The Department of Fisheries and Oceans has a mandate in Canada to limit the amount of toxicity that goes into the river,” he explained. “It can be caused by contaminants such as ammonia or nitrogen. Those are all elements of wastewater.

As an example of possible changing regulations, in Canada, we’re now looking at going beyond removal of ammonia and nitrogen and controlling the amount of nitrates that are discharged to the river as well. Over the next five years, we could see a requirement to remove nitrates. If we did see that, this plant, with a few tweaks—no major improvements—could handle that, depending on what that new level of requirement is.”

Ward also noted that the plant is ready to grow with the community it serves, allowing for the recreational areas serviced to flourish.

“We have now expanded the plant to allow for expansion of those facilities, which is expected over the next five to 10 years,” he said. “The growth won’t be inhibited by the lack of wastewater facilities. We’ll be able to accommodate that now.”

Thanks to the Evan Thomas Water and Wastewater Plant, those in Kananaskis Country will be able to enjoy clean water for years to come.

Company Information INDUSTRY

Energy HEADQUARTERS

Alberta, Canada FOUNDED

2014 REVENUE

$59.6 Million Project

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City of Edmonton

Edmonton Light Rail Transit S Expected to Improve Quality

Brad Smid, Program Manager for the City of Edmonton, di LRT project will have on surrounding communities and how Written by: Lindsey Ryan

Produced by: Mike Magno

System Project is y of Life in Edmonton

iscusses the anticipated effect the Valley Line w the P3 partnership has played a role.

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CITY OF EDMONTON

Construction is complete on the Metro Line 40

January 2015

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An artist’s rendering of Wagner Station on the Valley Line LRT

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he Valley Line, Stage 1 is a $1.8B low-floor urban LRT line that, upon completion, is expected to build a more compact, sustainable city, offering more transportation choices to Edmontonians while providing high-quality infrastructure to the city as well.

The project, Edmonton’s first P3 (public-private partnership), is a 13 km LRT line between downtown

and Mill Woods. With the Metro Line coming to completion this year, the Valley Line is the City’s newest priority.

In regards to the Valley Line, Brad Smid, Program Manager for the City of Edmonton, explains that the Request for Qualifications process (RFQ) has been completed and they began the Request for Proposals process (RFP) this fall.

Upon completion, the Valley Line

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PARTNERING WITH PURPOSE

Image credit: DIALOG

As the Lead Consultant for the Owner’s Engineering Team, AECOM is proud to support the delivery of Edmonton’s first low floor urban style light rail transit system. Our aim is to serve our community through our commitment, our work and our passion. Combined with our innovative, technical solutions, AECOM will continue to do what we do best — deliver solutions that create, enhance and sustain the world’s built, natural, and social environments.

www.aecom.com

CITY OF EDMONTON

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will have multiple positive effects on the community. Smid states, “This project is a real transformative project for Edmonton; we are really trying to shift towards a more compact urban form in the city while also improving the livability and making it a more dynamic city. So the LRT—the Valley Line specifically—is one of the catalyst projects that the city is proceeding with to really kick off the transformation.”

More Than Just a Transit Project The project will be completed in

SUPPLIER PROFILE

several phases and is currently undergoing the RFP process. This process will last about 15 months and in this time the three privatesector teams invited to bid on the project will make submissions to show that they understand the requirements of the project, followed by their design submissions in early 2015, and finally submitting their financial proposals in the fall of 2015, which will determine the winning private-sector contractor.

Smid expresses the importance of the project and how it will affect the city. He explains that the City has been working to transform the

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CITY OF EDMONTON

CONSTRUCTION

communities of Edmonton and strengthen the connection between transportation, land use and quality of life among residents.

“We’re really looking to tie communities together and really support some redevelopment and infill development in mature neighborhoods and enhance the quality of life for Edmontonians.

One might think of LRT as a transportation project, and it is, but it’s about more than just moving people from point A to point B; it’s really about linking communities, providing highquality infrastructure and improving quality of life,” Smid details.

Brad Smid

Government Funding When asked how such a large project is being funded, Smid replies, “It’s being funded by all

An Edmonton skyline w w w. E d m o n t o n . c a / v a l l e y l i n e

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CITY OF EDMONTON

Churchill Square on New Year’s Eve

THE STEWART GROUP:

MOVING THE FUTURE The Stewart Group is an innovative strategy firm that has created a track record of success delivering special advisory services to governments and private sector clients interested in building sustainable public transportation systems.

We are helping the City of Edmonton with project oversight, governance and procurement support including the creation of a successful funding advocacy campaign. Together with the Edmonton team we have achieved a remarkable milestone: the launch of the Valley Line P3 Project.

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CONSTRUCTION

three levels of government —the city is taking the lead on this and is contributing $800M of the $1.8B, the provincial government of Alberta is contributing up to $600M, and the federal government is contributing $400M, which includes a $250M contribution from PPP Canada.”

According to Smid, obtaining the funding from all three levels of government can often be a challenge so receiving the support and commitment from city council and the other levels of government has really allowed the project to move forward.

Because this is the city’s first P3 project, other unique challenges have arisen as well.

“This is the city’s first P3 contract so it’s a whole different way of delivering a project and we’ve had to develop new procurement documents — such as the RFQ and the RFP, and the draft project agreement— and it’s quite a change from what our city council, citizens and our administration is used to doing. It’s a good challenge; it’s been very interesting and rewarding for our team to go through this and I think it will have great results,” Smid continues, “It’s very innovative and quite unique.”

Despite the challenges, there are not many P3 transit projects so Smid is excited for what it will bring to the city of Edmonton.

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The Southeast Stoney Tr

The benefits of being a P3

Garry Lamb, Southeast Stoney Trail (SEST) Project Manag discusses the final phases the project— how being a P3 pr what it will bring to the community upon completion.

Written by: Lindsey Ryan Produced by: Mike Magno

rail Project

ger at Alberta Transportation, roject has been beneficial and

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C O M PA N Y N A M E

SE Stoney Cranston Blvd Interchange - Photo credit to Keith Walker – Peak Experien

S

ince the 1970’s, bringing an additional road network to Calgary and Edmonton has been identified as a provincial priority. In 2003, construction of the provincial project officially began and the project has since been moving along sequentially 50

February 2015

around Calgary in four different quadrants. Starting in the west and moving to the east, the Northern half of the project is now complete and in 2009, the third quadrant of the Calgary Ring Road project, the Southeast Stoney Trail (SEST), was commenced.

SECTOR

nce Imagery

About the Trail The Southeast Stoney Trail consists of a six lane roadway which runs 25 kilometers from 17th avenue SE to just east of Macleod Trail. There are nine interchanges, 27 bridges, one road flyover and two rail flyovers. This $769M public private

partnership (P3) is the second largest highway project in Alberta.

The project was awarded to Chinook Roads Partnership (a jointventure between SNC-Lavalin Inc. and Acciona S.A.) in March 2010 and being a P3 project, the designbuild contract also includes a 30 year w w w. s estproject.ca

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THE SOUTHEAST STONEY TRAIL PROJECT

SE Stoney Deerfoot Tr Interchange Area - Photo credit to Keith Walker – Peak Experience Imagery

maintenance and operation agreement.

With a predicted traffic availability date of October 1, 2013, the project was only slightly behind schedule, opening on November 21st, 2013. The road has been open since then and is already improving the traffic flow in the area.

“We’re seeing traffic volumes in the upwards of 50,000 vehicles per day which shows that it is a much needed project for the area because it’s being well utilized already,” explains Garry Lamb, SEST Project Manager at Alberta Transportation.

Currently Stoney Trail is open to traffic, offering 70 kilometers of roadway, which is about 70% of the total project, and upon completion it will

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CONSTRUCTION

offer approximately 100 kilometers of roadway.

Due to the harsh winter conditions, the project is temporarily on hold but Lamb expresses that the road is proving to handle the weather well.

He states, “We’ve gone through a full winter season last year and the start of winter season this year. Winter driving conditions are always challenging but I think this road is behaving well and it’s being well maintained. The public is being served appropriately by a high quality road that is operating well in both winter and summer conditions.”

P3 Benefits The SEST has experienced multiple benefits from being a P3 project. The contract was signed in March 2010 and only two and a half years later

by November 2013, the road was open to public traffic. According to Lamb, this is an impressively quick construction turn-around time for the size and scale of the project.

Additionally, Chinook Roads Partnership’s bid of $769M was well below the estimated $1.8 billion predicted for the project. And because there is only one contractor working on the project, all risks such as weather delays or inflation are assumed by the contractor.

In regards to the project’s funding, Lamb explains, “On this particular project the province has contributed over $200M during the construction phase, the federal government also contributed $100M during the construction phase and the contractor is paid the remaining costs

SE Stoney Chaparral Blvd Interchange - Photo credit to Keith Walker – Peak Experience Imagery

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THE SOUTHEAST STONEY TRAIL PROJECT

SE Stoney - Deerfoot Trail Looking West - Photo credit to Keith Walker – Peak Experience Imagery 54

February 2015

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in monthly payments over 30 years plus their operation and maintenance costs over the 30 years.”

Community Improvement While it’s almost impossible to receive a positive response from everyone in the community surrounding a project, Lamb is proud to report that a majority of the Calgary citizens are happy with what the SEST means for the community.

Opening the SEST has certainly reduced congestion and improved traffic flow in the area for both individual and commercial users.

“We’re pleased that the road is open and its being well used by the public. That’s a sign of success in our world; it’s obviously meeting a need and its operating safely.”

Additionally, an Environmental Management System (EMS) has been implemented to manage the potential impact the SEST will have on the environment. There have been written procedures and regulatory requirements that have been met to ensure the protection of the wildlife surrounding the project.

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PPP CANADA 100 Queen Street, Suite 630, Ottawa, Ontario K1P 1J9 www.p3canada.ca