Press release from CNW Group
Aecon / Dufferin joint venture reaches financial close on $129 million Air Rail Link "Spur Line" Project
Monday, December 19, 2011
- - Design / Build / Finance partnership with Infrastructure Ontario and Metrolinx - -
TORONTO, Dec. 19, 2011 /CNW/ - Aecon Group Inc. (TSX:ARE) announced today its joint venture with Dufferin Construction Company, a division of Holcim (Canada) Inc., has reached commercial and financial close on the previously disclosed project for the Air Rail Link (ARL) "spur line" and passenger station at Toronto Pearson International Airport (Toronto Pearson). The project is valued at $128.6 million.
Financing for the project is provided by Canadian Imperial Bank of Commerce, Laurentian Bank of Canada, National Bank of Canada, and The Toronto-Dominion Bank. National Bank Financial has acted as Financial Advisor for the project. The ARL "spur line" project is being executed as a design-build-finance project under the Ontario government's Alternative Financing and Procurement (AFP) program.
The joint venture, in which Aecon is a 50% partner, will design, build, and finance the three kilometer elevated guideway connecting the existing Georgetown GO Transit line to Toronto Pearson, as well as a passenger station at Terminal 1.
Aecon and Dufferin will commence construction in the spring of 2012, with completion of the ARL "spur line" and passenger station project scheduled for the summer of 2014.
"Aecon has been part of some of Ontario's largest transportation projects including Highway 407, the Gardiner Expressway, the Queen Elizabeth Way and is now building a part of the Toronto Transit Commission's subway system expansion. We look forward to continuing this history and working with Dufferin Construction, Infrastructure Ontario, Metrolinx and the Greater Toronto Airports Authority, to bring our infrastructure construction expertise to this pivotal transportation network," said Teri McKibbon, Aecon's Chief Operating Officer.
Both Metrolinx and Infrastructure Ontario are Crown corporations of the province of Ontario.
Aecon Group Inc. is one of Canada's largest and most diverse construction and infrastructure development companies. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally. Aecon is pleased to be recognized as one of the Best Employers in Canada.
The information in this press release includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to general global events outside Aecon's control, there are factors which could cause actual results, performance or achievements to vary from those expressed or inferred herein including risks associated with an investment in the common shares of Aecon and the risks related to Aecon's business, including Large Project Risk and Contractual Factors. Risk factors are discussed in greater detail in the section on "Risk Factors" in the Annual Information Form filed on March 30, 2011 and available at www.sedar.com. Forward-looking statements include information concerning possible or assumed future results of operations or financial position of Aecon, as well as statements preceded by, followed by, or that include the words "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or similar expressions. Important factors, in addition to those discussed in this document, could affect the future results of Aecon and could cause those results to differ materially from those expressed in any forward-looking statements.
For further information:
Senior Vice President,
Aecon Group Inc.