Hurontario LRT

On October 21, 2019, the Mobilinx consortium reached financial close of the CAD$4.6 Billion DBFOM contract with Infrastructure Ontario (“IO”) and Metrolinx for the Hurontario Light Rail Transit (“LRT”) Project in Ontario. The contract will require Mobilinx to design, build, finance, maintain, and operate the new transit project over a 30-year term.

The project includes 18-kilometres of light rail transit system that will run along Hurontario Street from the Port Credit in Mississauga to Gateway Terminal in Brampton, 19-stations with connections to GO Transits Milton and Lakeshore West rail lines, and a maintenance and storage facility for the light rail vehicles located south of Highway 407 and west of Kennedy Road.

Design and construction of the LRT will generate employment opportunities, approximately 800 jobs will be created at the peak of construction, and produce benefits for commuters as well as revitalize development along Hurontario Street. When it opens, the Hurontario LRT is expected to move up to 14 million passengers per year.

Metrolinx and IO are delivering the Hurontario LRT via a public-private partnership (P3) contract which transfers the appropriate risks to the private sector. While the LRT will be operated and maintained by Mobilinx, it will remain publically owned by Metrolinx.

McMillan represented the Construction Contractor, Mobilinx Hurontario DBJV, an unincorporated joint venture between Hitachi Rail STS Canada, Inc., Amico Infrastructures Inc., Astaldi Canada Design & Construction Inc., Salini Impregilo Civil Works Inc. and Bot Infrastructure Ltd. McMillan provided legal advice on the Project Agreement, the Construction Contract, related project documents, joint venture organizational documents and tax structuring. McMillan also led negotiations between the Construction Contractor and certain of its major subcontractors. The team was led by Julie Han and Tim Murphy and included Ahsan Mirza, Candy Saga, Peter Willis, Alex Ricchetti, Brent Thomas, Michael Friedman, Jamie Wilks, Scott Martyn and Kailey Sutton.

McMillan’s Project Finance & P3 industry group is made up of lawyers with deep experience in the structuring and execution of major infrastructure projects. We are known for having a collaborative, problem solving approach to closing projects and meeting the requirements and financial objectives of both procurement authorities and private partners. We provide a complete range of services related to infrastructure, including assistance with procurement, construction, financing, environmental review, community consultation, tax and regulatory issues. We have acted on transactions involving all types of public infrastructure arrangements including privatizations, outsourcing arrangements, public-private partnerships, concessions, leases and alternative financing structures. Having acted for parties on all side: lenders, consortia, primary subcontractors and public authorities, we are uniquely positioned to advise and represent all relevant stakeholders.