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 City Centre Tunnel - Roundhouse Olympic Village Elevated - 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