McMillan Advises Finance Parties on Metrolinx Highway 3 Widening Project

On May 18, 2023, Metrolinx reached financial close in respect of the Highway 3 Widening Project (“The Project”), with a contract value of $138.6 million.

The Project entails the design-build-finance of widening part of Highway 3, which once complete, will extend over 15.6 kilometres, expanding the highway to four lanes from the Town of Essex to the Town of Leamington. The Project is vital as Highway 3 is a critical highway providing regional and international connectivity. Once complete there will be enhanced safety and traffic movement on Highway 3. The widening will also support long-term transportation needs throughout the corridor and improve the movement of goods and people.

The McMillan team, led by Julie Han and supported by Shahen Mirakian and Christina Kim, acted as counsel to the finance parties, namely National Bank of Canada and Fédération des caisses Desjardins du Québec, as lenders and hedge providers.

McMillan advised on risk allocation matters under the Project Agreement and the Construction Contract, as well as structuring, drafting and negotiating the finance documents.

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.