What will the project cost?

NORTHWESTCONNECT GENERAL PARTNERSHIP had the lowest bid price at $1.42 billion in today’s dollars, which includes the cost to design, construct, maintain, and finance the project. The cost of doing the same work through traditional delivery methods is estimated at $1.66 billion in today's dollars.

The Alberta government will advance $500 million during construction and then start payments over 30 years to NORTHWESTCONNECT once the northwest leg of Anthony Henday Drive opens to traffic.

Wouldn't it be cheaper for government to build the road in the usual manner?

No. The NORTHWESTCONNECT proposal is well below the traditional delivery estimate. By using a P3, the contractor's control of the overall schedule provides the flexibility to innovate, take advantage of economies of scale, and use resources more efficiently. For a project of this scale, traditional design-bid-build delivery does not provide this flexibility.

How can you ensure the P3 won't be more expensive?

The three proposals were evaluated against a public sector comparator to ensure they represent good value for government and taxpayers. If clear benefits could not be demonstrated, the project would not have proceeded as a P3.

Why do you use net present value?

The $1.42 billion is the net present value of the project or the value in today's dollars of all the design, construction, repair, maintenance work, and financing for the project over 30 years. Net present value was used to evaluate the three proposals so that an ‘apples to apples’ comparison could be made between them and the traditional delivery estimate. The payments over 30 years plus the $500 million in advance payments during construction represent government's financial commitment over the life of the contract.

The contract between the Alberta government and NORTHWESTCONNECT is similar to offering a homeowner a fixed payment schedule over 30 years that includes all the costs of purchasing and operating the home over that time period. This protects the homeowner from inflation and ensures maintenance and/or renovations are done when needed. The Alberta government receives similar protection through the contract with NORTHWESTCONNECT.

Why did the government decide to make $500 million in advance payments to the project?

The $500 million in advance payments reduces the overall financing cost of the project while maintaining enough private capital to ensure appropriate risk transfer to NORTHWESTCONNECT owner and lenders. Similar advance payments were made for the southeast Edmonton ring road P3 ($75 million in advance payments) and the northeast Calgary ring road P3 ($300 million in advance payments).

What is the capital cost for constructing Anthony Henday North?

As part of the P3 agreement, the province does not provide the component costs of the bid, such as the capital cost for construction. The total cost of the project is $1.42 billion (NPV), which includes the cost to design, construct, maintain, and finance the project.

What are the team members of NORTHWESTCONNECT?

'NORTHWESTCONNECT GENERAL PARTNERSHIP' is the corporate entity, owned by Bilfinger Berger, that has enterered into a Design/Build/Finance/Operate (DBFO) contract with the Province of Alberta for Northwest Anthony Henday Drive.

Northwestconnect has in turn contracted with "Flatiron Graham Parsons, a Joint Venture" for the Design/Build portion of the project.

Flatiron Graham Parsons, a Joint Venture, has subcontracted the design to Earth Tech.

Why was a P3 considered for this project?

A business case that compared conventional delivery to a P3 concluded that this project is a strong candidate for the P3 process. The project's scope and lack of environmental and geotechnical issues are other factors that favour the P3 process. The Alberta Advisory Committee on Alternative Capital Financing also recommended a P3 be considered for this project.

What are the advantages of using a P3?

One advantage is the project can be built and in service two years earlier than conventional delivery. Secondly, government is guaranteed a fixed price and delivery date for the project, which means risks such as inflation and weather-related delays are borne by the contractor. Thirdly, the work comes with a 30-year warranty, while most projects delivered conventionally only have one or two-year warranties.

When does construction start?

Construction started in August 2008 and will be completed in November 2011.

Why is construction faster than through conventional delivery?

The contractor's control of the overall schedule is more flexible and allows for more efficient use of resources.

Why did the P3 project not include the northeast section across the North Saskatchewan River?

Government reviewed which segment of the North Edmonton Ring Road, the northwest or northeast, should proceed first and recommended that the northwest segment from west Yellowhead Trail to Manning Drive Freeway proceed first. There are a number of issues that still need to be resolved for the remaining northeast segment from Manning Drive Freeway to east Yellowhead Trail. These issues include land acquisitions, geotechnical evaluation for the river crossing, and concluding discussions with environmental and other regulatory agencies. While the northwest segment moves forward, government continues to move ahead with final planning on the northeast section.

When will the ring road be completed?

Alberta Transportation is in the process of completing the functional design for the northeast section of Anthony Henday Drive. Government has set the goal of completing the ring road by 2015.

When will the interchange at Stony Plain Road and Anthony Henday Drive be completed?

Construction on the Anthony Henday/Stony Plain Road interchange is expected to start in spring 2009 and open to traffic in fall 2011. The Stony Plain interchange will be a full systems interchange with free flow in all directions and will include seven bridges.

When will the interchange at Callingwood Road, Lessard Road and Cameron Heights be completed?

Alberta Transportation is completing the design of the Callingwood Road and the Lessard Road interchanges and this work is expected to be completed in the coming months. Design work on the Cameron Heights interchange is expected to begin in the coming months.

Will Northwest Anthony Henday Drive spur development in the northern area of Edmonton?

As we have a plan in place for access from neighbouring communities, we would expect economic development to occur in surrounding areas.

How will the land within the Transportation/Utility Corridor (TUC) be used?

The land within the TUC is primarily set aside for roads, utilities and pipelines. We will accommodate pedestrians and cyclists along most of the crossroads; however, the construction of multi?use trails is not part of our mandate.

After construction is completed in 2011, areas of the TUC may be available to lease for surface use. See Alberta Infrastructure’s website, www.infrastructure.alberta.ca, for information on leasing land within the TUC.

How will Northwest Anthony Henday Drive affect traffic on Edmonton’s major arteries?

The ring road will give motorists traveling through northern Edmonton an alternate route. By design, ring roads are meant to route traffic around the city with limited access or exit points. For this reason, the basic design calls for greater distances between interchanges.

How did NORTHWESTCONNECT become involved in the P3 and why?

One of the major advantages of a P3 is that the design and build teams work together. The process slows down and there are more construction challenges when they work separately. Working together, planning and building is done congruently and this shortens timelines. The other major advantage is that the risk lies with the developer, which encourages us to work as efficiently as possible.

How do I get a construction contract or job?

Please click here to fill out a brief application, or call our hotline at 1?888-220-2335.

How will the project benefit Edmonton?

Northwest Anthony Henday Drive will help to ensure the efficient flow of traffic in one of the fastest?growing cities in Canada.

Northwest Anthony Henday Drive will also ease pressure on major arteries in northern Edmonton.

Northwest Anthony Henday Drive will also create opportunities for construction contracts and employment. We also purchase local goods and services, whenever possible.

Why are we closing 167 Avenue?

We need to construct a detour at 167 Avenue to build the Campbell Road bridge. We are currently negotiating with both Edmonton and St. Albert on the best solution, as there are a couple of design alternatives.

Tell me what the timelines are like for Northwest Anthony Henday Drive.

There is a tremendous amount of work to be completed by fall 2011, when the 21-kilometre north leg of the ring road will open to traffic. Work is moving ahead as quickly as possible to ensure the roadway is completed on schedule.

NORTHWESTCONNECT GENERAL PARTNERSHIP will be working on earthworks through to 2010, and piling for bridges starts before Christmas 2008 and continues until the middle of 2010. Bridge concrete work starts in late winter 2008 and continues to mid?summer 2011. NORTHWESTCONNECT will start road surfacing work by mid?summer 2009 and continue through to early fall 2011.

What kind of construction work can you do in winter months?

When the ground is frozen, many of our construction activities cease; however, we do continue some road-building activities through the winter season. We can continue drilling and casting concrete piles for bridge foundations, and driving steel piles for bridge foundations. In late winter, we can start bridge concrete work.

Why do you seem to be running some crews 24 hours a day?

During construction, we are committed to accommodating traffic?flow and to alleviating impacts on local communities. We operate night shifts away from residential areas at some locations during construction in order to meet our deadline of late fall 2011.

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