Institute on Municipal Finance and Governance Munk School of Global Affairs
Canada Line Private Sector and Public Transit
March 26, 2012 Jane Bird
Vancouver
Airport
Richmond
Oakridge Station Route
Waterfront Vancouver City Centre Tunnel Yaletown - Roundhouse Olympic Village Elevated Broadway - City Hall At-grade Station King Edward
Oakridge - 41st Ave.
Langara - 49th Ave.
Marine Drive
Templeton Bridgeport
Aberdeen Sea Island Centre YVR - Airport
Lansdowne
Richmond - Brighouse
Objectives
• High capacity system to serve well developed, growing corridor/airport • Completion pre 2010 • Well integrated with existing system/adjacent development • Public/private finance • Optimal risk transfer over project life
Public & Private Partners
Nominal-millions of dollars Federal Province YVR TransLink City of Vancouver Private Sector
*In addition, $166 Million of the Province’s contribution will be recovered by INTRANSITBC through performance payments during the operating period. These contributions, plus a Provincial conditional contingency, total $435 million ($nominal) Commercial Structure
• DBFO • 35 year concession
• Public owns asset/sets fares
• Construction – milestone payments
• Operating Period – availability payments
Payment Mechanism - Construction
British Columbia TransLink Vancouver Airport
Vancouver ‘Canada Line Inc.’ Canada
Concession Agreement
Milestone Payments Independent Engineer
SNC-Lavalin BCIMC & CD InTransitBC Lenders
Construction Contract (SNC-Lavalin) Operating Contract Payment Mechanism – Operating Period
Fare Revenue TransLink Bus Cost Savings
British Columbia Canada Line Inc. Provincial Deferred Contribution Concession Agreement
Operating Payments
Debt Service InTransitBC Operating Costs
Shareholder Distributions Maximize Value for Money
• Buy the best system for the lowest lifecycle cost • Pay only for performance over 35 years
• Optimize risk transfer • Keep private investment at-risk
• Meet affordability constraints