44
45
CANADIAN INDUSTRY ONLINE - FEBRUARY/MARCH 2014
all success. The following information
covers success related to procurement.
Despite an international econom-
ic downturn during the procurement
phase of the Parkway, many interested
bidders from Canada and around the
world participated in the process. The
Province’s planning and due diligence
process coupled with a competitive
procurement environment enhanced
Infrastructure Ontario’s ability to ne-
gotiate on behalf of the Province a con-
tract price that was significantly lower
than its budget estimate. Through the
alternative financing and procurement
model (AFP) contract, Infrastructure
Ontario transferred many risks to the
consortium, providing a value for
money savings of $325.4 million to the
Province.
•
The AFP model ensures appropri-
ate public control and ownership.
It transfers appropriate risk to the
private sector and provides value
for money.
•
At the outset of procurement, there
was a lot of upfront disciplined
planning by the Province.
•
The planning process also provided
an opportunity for the consortium’s
team members that are responsible
for construction and maintenance to
provide input into the project’s de-
sign.
•
Costly change orders are discour-
aged during construction because
there is a fixed AFP contract.
•
Financial penalties motivate the con-
sortium to provide a shorter time-
frame for construction.
•
As well, the financial lenders review
the project plans regularly to ensure
agreed to milestones are being met.
The consortium does not receive
payment until the project is com-
plete and this condition motivates
it to stay on track and complete the
project in the timeline agreed to.
•
The AFP contract has detailed
checks and balances in place to en-
sure the consortium complies with
the requirements of the Project
Agreement; the checks and balances
also apply to the public sector to en-
courage efficient decision-making.
What are the continued econom-
ic benefits of the Parkway post-com-
pletion?
MTO:
The Rt. Hon. Herb Gray
Parkway will help create about 12,000
project-related jobs through direct em-
ployment related to construction activ-
ity and indirectly through numerous
supporting suppliers and service pro-
viders. The majority of these jobs are in
the Windsor-Essex region.
In addition to jobs, many of the
construction materials used to build
the Parkway are being sourced locally
providing opportunities for local busi-
nesses and suppliers.
The local Port Authority has re-
ported that they have seen an increase
in the amount of aggregates that are
being brought into the port as a direct
result of Parkway construction.
The Governments of Canada and
Ontario recognized that Windsor and
Essex County contribute significantly
to the prosperity of the provincial and
national economies, particularly Can-
ada-U.S. trade. That is why both levels
of government made significant trans-
portation investments in this area. Rec-
ognizing that the long-term solution of
construction of the Parkway and a new
international crossing would take time,
we implemented short and medium-
term measures to relieve congestion
and improve traffic flows to existing
crossings until a new one is in place. A
$300 million strategy called – Let’s Get
Windsor Essex Moving – is just one
of the many ways we stimulated the
economy leading up to full construc-
tion of an end-to-end transportation
system.
Once the end-to-end border
transportation system is complete, it
will provide a direct route connecting
Highway 401 to Interstate 75 in Michi-
gan, improving the safe and efficient
movement of people, goods and ser-
vices across the U.S. /Canadian bor-
der.
HERB GRAY PARKWAY
