Government to Save Money with P3 Model on Bypass Project MICHELLE Nicholson
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August 11, 2015 VOLUME 4 • issUE 33 • DELiVERED WEEKLY TO WhiTE CiTY, EMERALD PARK, PiLOT BUTTE, BALGONiE, ZEhNER, EDENWOLD & sURROUNDiNG AREAs • Government to save money with P3 model on Bypass project MICHELLE NICHOLSON he provincial government held a media event on Wednesday, August 5 to disclose that the final cost for the TRegina Bypass project. The final number is $1.88 billion. Previously, the project was pegged at $1.2 billion. “The original estimate was based on general construction costs of the Bypass,” Minister Responsible for SaskBuilds, Gordon Wyant, said, “since that time there’s been an increase in the scope of the project. There’s two new interchanges that are being built as part of the project, significant amount of work that has to be done with respect to the utilities that need to be moved. There’s 430 points of conflict between the utilities, pipelines and the like, that have to be dealt with. Those weren’t calculated into the original estimate. That was a contract esti- mate for the construction of the bypass. So once everything is factored in, including the maintenance contract over the thirty-year period, that’s how we get to $1.88 billion. The original number was based on our best estimate of what it would cost to build a bypass in construction. “By using the P3 we’re not only saving (L-R) Rupen Pandya - President and CEO of SaskBuilds, Gordon Wyant - Minister Responsible for SaskBuilds, Nancy Heppner - Minister of hundreds of millions of dollars…we’re also Highways and Infrastructure and Nithi Govindasamy - Deputy Minister of Highways announced Aug. 5 that the price of the Bypass Project Photo: Michelle Nicholson delivering a highway six years faster than we has hit $1.88 billion. could have achieved it through a traditional approach,” Wyant said. and on budget within the numbers we’ve reimburse the contractor,” MP for Regina- “The first set of interchanges on the east Regina Bypass Partners is the name of the announced,” Wyant said. Qu’Appelle Andrew Scheer said, “It’s bank- side of Regina will be done in 2017,” Min- private group of companies responsible for The project will save the province $380 able. The province knows it’s there, they ister of Highways and Infrastructure Nancy construction and maintenance of the proj- million when compared to costs associated know they’ve been approved for it, and they Heppner said, “the one at Pilot Butte will ect. They are bringing cost-saving and time- with a traditional build. access it as they need it.” be done in 2019. There [are] some issues saving innovations to the project, Wyant “We do a calculation in terms of what this Scheer said the Federal government does with major pipelines and utility moves that said, including a design “that reduces the project would cost to build it in a traditional a business case analysis on the projects they will delay the opening date for the one in amount of earthworks which will contribute way. We add in all the costs in terms of con- fund “[to] make sure it all adds up.” Pilot Butte but the other ones will be open to the savings,” “an innovative approach struction, maintenance, everything gets put “This is the largest federal investment in in 2017.” to paving,” that will require less servicing, in to a formula. We know how much this Saskatchewan’s history. And by investing the Nithi Govindasamy, Deputy Minister of “new roundabouts to allow higher intersec- would cost to build it in a traditional way. $200 million from the Federal government it Highways said all of the land required for tion capacity” and “significant savings from Then we can compare that number to the really shortened the timelines,” Scheer said the project has been secured. The province the use of local resources.” number that comes in through the bidding and pointed to the three levels of govern- purchased 50 per cent of the land on a “will- Regina Bypass Partners will face financial process… and that’s how we come up with ment working together to address highway ing seller-buyer basis,” and negotiations on penalties for not meeting deadlines of sev- the value of the money calculation we’ve safety issues. prices continue on land being expropriated. eral hundred thousand dollars per day. announced today,” Wyant explained. Survey work has begun on the project Two new overpasses will be included “One of the great advantages of P3’s is the The federal government is putting $200 and Tim Heavenor, Chief Financial Officer at 9th Avenue North and Hill Avenue in transfer of risk from the owners to the pro- million into the project. for Graham Construction and President of Regina, to accommodate future growth Min- ponent. So we don’t anticipate any increase “As the project timelines are completed Regina Bypass Partners said you can expect ister of Highways and Infrastructure Nancy in the amount that we’ve announced today. the money flows from the federal govern- to see workers on site during evenings and Heppner said. The project we expect will be built on time ment to the provincial government and they weekends. ONLINE AUCTION BID NOW ONLINE AUCTION BID NOW Online Bids FARM • AG & INDUSTRIAL • COMMERCIAL • VEHICLES Close August BUSINESS INVENTORIES • REAL ESTATE • APPRAISALS UNRESERVED 306-757-1755 17th BID WWW.MCDOUGALLBAY.COM 1990 Peterbilt 378 Kubota RTV1100 2016 Southland 2015 CEM Trailer T/A Stainless Steel 1997 Ford L9000 NOW! T/A with Picker Diesel Side by Side Tandem Axle Ball Hitch Tandem Axle Ball Hitch At Noon 100BBL Tank Truck Deck Trailer, 2-7000 lb Utility Trailer w/ Ramps LOREN • RILEY • DALLAS • DAN • CORY 2 2 THE STAR | SERVING WHITE CITY, EMERALD PARK, PILOT BUTTE, BALGONIE & SURROUNDING AREAS | AUGUST 11, 2015 CLAAS celebrates open house in Emerald Park MICHELLE NICHOLSON wouldn’t change anything for the next store And once we made that decision we worked and we’re using this as a template right now out of a temporary facility just next door. oug Tibben is a happy man. He is for the next location,” said Tibben. Seeing all this come together has been excit- General Manager of CLAAS’s new A staff of 15 works out of the centre now, ing,” Regional President for CLAAS global Canada West Harvest Centre in Emer- and he expects to add more staff in the next sales Leif Magnusson said. He confirmed Dald Park. August 5 the company celebrated one to two years. Saskatoon will be home to the Emerald Park shop will be used as the the grand opening of their new 16,000 the next project and there is a third project template for future builds. square foot building, home to a maintenance already in the planning stages. “It’s significant for the province in that shop, parts department, sales and adminis- Tibben was attracted to CLAAS because CLAAS is a world-wide company based trative offices. of the ‘mom and pop’ feel of the company. out of Germany that are very much on top “This is home base for us. We’re very “Helmet Claas still owns it. Second gen- of agriculture around the world and they excited to be in Emerald Park. The loca- eration Claas. It’s the only one of its type in like to situate in places that have a strong tion here was chosen primarily to be part the world,” Tibben said. “It’s a family busi- agricultural economy and a strong future of all the other dealerships in the area. We ness. The way people are treated, the way in agriculture. They’ve made that evident wanted to make sure that we were where customers are treated, it’s like you’re the to me today in that they’ve chosen Sas- only customer in the world,” he enthused. katchewan as one of those places and we’re Darlene Tibben and Doug Tibben at the the customers come and this is the area,” August 5 grand opening of the CLAAS Can- Tibben said. Mirroring the culture of the corporate head proud of that,” Saskatchewan’s Minister of ada West Harvest Centre in Emerald Park. Tibben said the building style will be office, Doug’s wife Darlene also works at the Agriculture, Lyle Stewart said.