Under the agreement, the province will fund 60 per cent of the capital construction cost, which will be paid during the five-year construction phase. MVP will finance the remaining 40 per cent over the 30-year operating period.
“With this contract with Mountain View Partners in place, full construction of the Southwest Calgary Ring Road is ready to begin creating good family-supporting jobs. We look forward to working together on this vital infrastructure project for the Calgary region, strengthening the local and provincial economy.”
The contract is worth $1.42 billion in 2016 dollars, to be paid over the 35-year term of the contract, and follows a selection process which began in July 2015. Through the 2014 New Building Canada Plan -National Infrastructure Component, the Government of Canada has committed up to 25 per cent of eligible cost, including design, construction, engineering, project management and utility relocations.
The Southwest Calgary Ring Road will be built between Highway 8 and Macleod Trail SE. The project includes reconstruction of Glenmore Trail between Sarcee Trail and east of 37 Street. The project includes 31 kilometres of six- and eight-lane divided highway, 14 interchanges, one road flyover, one railway crossing (flyover), 49 bridges and three river crossings over the Elbow River and Fish Creek.
Two other consortia submitted bids: Valley Link Partners put in a bid for $1.88 billion and Southwest Connect bid $1.55 billion.
The Government of Alberta and the City of Calgary began planning for the Calgary Ring Road in the 1970s. During the 1980s and 1990s, the province bought most of the lands needed for the Transportation Utility Corridor around Calgary where the ring road would be built. When the southwest portion is complete, there will be roughly 91 kilometres of free flowing travel.
Mountain View Partners is a consortium consisting of:
- Project Lead: Meridiam, Kiewit, Ledcor, Connor Clark and Lunn
- Financing Lead: Meridiam
- Design-Construction Lead: Kiewit, Graham and Ledcor.
- Operation and Maintenance Lead: Alberta Highway Services Ltd.
Major construction is scheduled to begin this fall following preliminary work that began earlier this summer. The southwest portion of the ring road is expected to be open to traffic in 2021.