JCRA, the independent financial risk advisory firm, today announces that it has advised the Windsor Detroit Bridge Authority (“WDBA”) on the Gordie Howe International Bridge Project.
The role included drafting the RFP following the preferred bidder selection, assisting the WDBA in evaluating the bids that led to the selection of the preferred proponent and advising the WDBA on the rate and credit spread setting process leading up to and at Financial Close.
The Gordie Howe International Bridge project comprises a fixed-priced contract valued at $5.7 billion with concessionaire Bridging North America (BNA) to DBFOM the bridge. BNA will receive progress payments during construction and a completion payment at the end of construction. The consortium will also receive monthly payments for Operations and Maintenance (O&M) over the 30-year concession. The financial close was on September 28th, 2018.
The Gordie Howe International Bridge project is a once-in-a-generation undertaking. 18 years in the making, it is a 2.5km, six-lane cable-stay bridge with a span over the Detroit River, as well as associated border inspection plazas and connections to the freeway systems in Ontario and Michigan. The project will not only deliver much-needed transportation improvements for international travellers, but also provide jobs and opportunities for growth to the Windsor-Detroit region and includes features that make the project truly distinctive.
The Windsor Detroit Bridge Authority (“WDBA”) was created in 2012 to procure the Design-Build-Finance-Operate-Maintain (“DBFOM”), a project delivery mechanism which is often used to structure the construction of public infrastructure projects such as roads, bridges and airports, and means that the government entity enters into an agreement with a private sector party under which it allocates to that party all of the project’s duties (including designing, constructing, financing, operating and maintaining the project).
Brian Phelan, Director at JCRA, commented: “We’re delighted to have advised the WDBA on such an important project that will have a significant impact on the surrounding Windsor and Detroit regions and beyond. Thanks to JCRA’s involvement, the WDBA were confident that the preferred bidders were compared fairly with regard to the capital markets elements of their respective Financial Submissions and, post BAFO, the preferred proponent, Bridging North America, was held to their pricing and spreads through Financial Close.”
JCRA works with companies to develop flexible and transparent hedging strategies that reduce costs and financial risk exposure throughout the project lifecycle. JCRA’s Project Finance and Infrastructure team advises on both public and private partnerships and project finance mandates. The firm is also a leading advisor to government authorities worldwide, as well as developers, infrastructure funds and institutional investors. The team has expertise in all types of renewable energy projects (on and offshore windfarms and solar), toll roads, bridges, smart metering, power generation and airports.