North America: Teams bid on Ontario’s CAD 9.2bn Regional Express Rail

23 October 2018 - 12:00 am UTC

Four to five teams have returned qualifications for the Regional Express Rail (RER) package 3 project, Inframation has learned.

Three out of the four teams which submitted proposals will be shortlisted said a source familiar with the procurement. The evaluation could take two months as there is a lot of material to go through, the source added.

The deadline for proposals which was scheduled for 6 September was first pushed back to 27 September and then again to 18 October. Delaying the procurement could give the grantors some time to work out what the new government would like to do with the project, added the source. It is not clear whether the new government will be making changes to the project said a second source.

The four teams identified by Inframation are the following.

– SNC-Lavalin, Siemens and AECOM

– Deutsche Bahn, John Holland and AECON

– Kiewit, MTR

– Fluor Corporation, ENGIE, Grupo ACS and Dragados

A third source briefed said Plenary (North America) is involved in the RFQ process but is not leading a consortium.

The shortlist and RFP will be issued in 2019, according to a spokesperson at Infrastructure Ontario.

As previously reported, the RFQ is set to incorporate a two-step process. In the first step the prospective teams will be required to identify the entity that it proposes to perform operations services.  This could be one of the operators who pre-qualified in the 2017 operator procurement or a new entity. If they are pre-qualified the prospective team moves to phase two. If the operator entity has not pre-qualified they will be assessed on the same criteria as the original operator RFQ requirements.

The project is expected to have a capital cost of CAD 9.2bn (USD 7bn).  Fleet (CAD 2.5bn), Corridor infrastructure (CAD 2bn), Union Station (CAD 900m), Electrification (CAD 2bn), Signaling (CAD 800m), Maintenance facilities (CAD 600m) and other (CAD 400m). It is anticipated that CAD 2bn will be privately financed through a mix of long term debt and equity.

The financing for the project is expected to be raised in tranches to help fund specific phases of construction as opposed to a singular, up-front financing.

Optimus SBR, the fairness monitor on the procurement could not comment on the project and procurement as per their non-disclosure agreement. Metrolinx did not respond to questions in time for press.

Project information

Package 3’s scope includes the build out of on-corridor works including electrification, signaling, maintenance facilities and fleet storage and Union Station reconfiguration. The winning consortium will then operate and maintain the on-corridor works and fleet for a 30-year period.

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Regional Express Rail