Ottawa’s Trillium Line South Extension

On March 29, 2019, the City of Ottawa and TransitNEXT reached financial close on the Stage 2 Trillium Line south extension, a key component of Ottawa’s C$2.366 billion Stage 2 LRT project. The south extension will add 16 km of new rail and eight new stations, extending the O-Train network farther south from Greenboro Station to Limebank Station, with a link to the Ottawa Macdonald-Cartier International Airport. The project also entails the maintenance of the existing Trillium Line assets, the supply of seven new light rail vehicles and the overhaul of six existing light rail vehicles.

The agreement with TransitNEXT for the Trillium Line Extension is a fixed-price contract worth C$663 million, with SNC-Lavalin providing an additional C$136 million in private capital contributions upfront. When including the long-term cost to maintain and rehabilitate both the existing Trillium Line and its new extension, the total project is valued at C$1.6 billion.

When complete, Ottawa’s Stage 2 LRT Project will bring 77% of Ottawa residents within five km of fast, efficient, clean and reliable rail. The network will result in a fully grade-separated system that spans nearly 64 km to include 41 stations, 85 vehicles and three maintenance and storage facilities.

McMillan represented the lenders to SNC-Lavalin Capital Inc., The Toronto-Dominion Bank and The National Bank of Canada, in connection with the financing to design, build, finance, maintain and rehabilitate an extension of the existing Trillium Line in Ottawa, Ontario. McMillan advised the lenders on the unique risks involved in connection with the project in addition to commenting on the RFP and Project Agreement on behalf of the Lenders, as well as negotiating and finalizing the debt structure and related financing documents. The team was led by Ahsan Mirza and Julie Han and included Tim Murphy, Shahen Mirakian and Brent Thomas.

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.