Pattullo Bridge Replacement Project Reaches Financial Close

On February 10, 2020, Aecon Group Inc. (TSX: ARE) announced that Fraser Crossing Partners had reached financial close on the Pattullo Bridge Replacement Project in British Columbia. The total contract is valued at $967.5 million. Fraser Crossing Partners, selected by the Province of British Columbia to design, build and partially finance the project, is a 50/50 joint venture between Aecon and Acciona.

The new four-lane cable-stayed bridge over the Fraser River will provide network connections to New Westminster and Surrey, feature a centre safety median barrier and wider lanes to accommodate both passenger and commercial vehicles, and have dedicated walking and cycling lanes. The project also includes the construction of connecting roadways on the north and south sides of the bridge, grade separations on Highway 17, and the removal of the existing bridge once the new bridge is complete. The new bridge is expected to open in 2023, and full project completion expected in the fourth quarter of 2025, following the removal of the existing bridge.

McMillan represented the financial lenders and hedge providers, The Korea Development Bank, Sumitomo Mitsui Banking Corporation, ATB Financial and CaixaBank, S.A., in connection with the closing of the design, build and financing of the Pattullo Bridge Replacement Project. McMillan was involved in commenting on the RFP and Project Agreement on behalf of the finance parties, as well as negotiating and finalizing the debt structure, term sheet and related financing documents. In addition, McMillan coordinated local counsel in South Korea and Spain in connection with hedging issues. The team was led by Julie Han and Candy Saga and included Shahen Mirakian, Brent Thomas and assisted by student-at law Liam Sako.

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.