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NBSL Project Update

January 15, 2014


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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

Presentation Outline
Introduction Project overview and scope Preliminary engineering Traffic and revenue forecasts Procurement options analysis Procurement Process Project timelines Key issues Project governance

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
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

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
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 Canadas 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

Project Drivers
Drivers

Description
Providing safe and reliable passage for all bridge users (e.g. pedestrians, cyclists, commuters, car and truck users)
Ensuring the efficient transit of people and goods to and from Montreal as well as other parts of Canada Carrying out the Project at an acceptable cost Constructing a bridge that is respectful of its environment Lifespan of 100+ years
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1. Public safety

2. Economic 3. Fiscal 4. Environmental 5. Reliability

Project Overview
Longueuil
Jacques-Cartier Bridge

Montral

Autoroute Bonaventure (federal portion)

Victoria Bridge

Alignment with A-10

New Bridge for the St. Lawrence


New le des Surs Bridge and work on le des Soeurs Reconstruction and widening of A-15 (federal portion)
Clment Bridge

Brossard
Champlain Bridge

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 Qubec
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 le des Surs Bridge and highway on le des Surs Demolition of the current le des Surs 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 Clment 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 le des Surs 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 Clment 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:
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 1 Three corridor 200m main span variable depth concrete box girders 2 Two corridor 200m main span variable depth steel box girders Steel box girders 3 Two corridor 200m main span variable depth concrete box girders Concrete box girders 4 Two corridor 200m span composite deck arch bridge 5 Three corridor 200m span concrete cable supported bridge Concrete cable supported bridge - Seaway span only 6 Multi-level corridors 180m main span composite truss bridge 7 Multi-level corridors 370m main span composite truss deck cable stayed bridge Composite truss bridge

Seaway Description

Approach Description

Concrete box girders Approaches

Steel box girders

Composite truss bridge

Recommended Option

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 le des Surs 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 le des Surs, a new le des Surs 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


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 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 Canadas 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 sectors 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
Well understood process

x x x x

Allows for Project to be divided into smaller components


Direct involvement by Transport Canada Higher risk of delays and increased costs No recourse for delays or poor performance Less opportunity for private sector innovation 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
Cost overrun and delay risks transferred to the private sector Incentives to fulfill responsibilities over the long term

Harnesses innovation
Payment deductions are made in case of performance failures
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Business Case Recommendation


Procure the Project as a PPP
The Value-For-Money (VFM) and qualitative analysis clearly demonstrate the advantages of procuring the Project using this approach

Advantages include:
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 worlds 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 28

Value-For-Money Analysis
VFM analysis compares the cost of undertaking the Project through traditional procurement to the cost of the Project as a PPP by:
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

Must demonstrate positive VFM which means that it would be less expensive for the Project to proceed to PPP procurement 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

A two-phase procurement approach is recommended


This process is consistent with best practices for large PPP procurements, respectful of PPP Canada guidelines and will be familiar to bidders

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Request for Qualifications (RFQ)


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)


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
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 + Associs 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 Qubec 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 mtropolitaine de transport and the ministre des Transports du Qubec 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
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 External Stakeholder Advisory Committee - Transport Canada - Ministre des Transports du Qubec - Agence mtropolitaine de transport - Infrastructure Qubec - Ville de Montral - Ville de Longueuil - Ville de Brossard

Policy and Communications Group

Technical Group

Procurement Group

Legal Group

Environment and Aboriginal Affairs


Meetings and External Consultations

Architectural Quality
Architectural Review Panel

Engineering and Urban Integration


A15 Working Group

Public Transit
Design criteria working group

South Shore Working Group

Contractual aspects working group

Mobility Montral 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 Canadas website: www.tc.gc.ca/nbfsl

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