IRVING, Texas--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) announced today that Windsor Essex Mobility Group (WEMG), an equity consortium of Fluor Canada Ltd. (Fluor), ACS Infrastructure Canada Inc (ACSIC), and Acciona Concessions Canada Inc (Acciona), was notified by Infrastructure Ontario (IO) and Ontario's Ministry of Transportation (MTO) that it has been named as preferred proponent for the finance, design, construction, operations and maintenance of the Windsor Essex Parkway Project in Windsor, Ontario, Canada. Fluor will book its portion of the project into backlog when the contract is signed, financial close has been achieved and a notice to proceed has been issued by IO, all which are expected to take place before the end of the first quarter of 2011.
The selection as preferred proponent now allows WEMG to complete final negotiations with IO and all activities leading to a financial close. WEMG beat out two other international consortia to win the project.
The Parkway is the Canadian access road portion of an end-to-end border transportation system that will improve the flow of traffic through Canada’s busiest trade corridor and will contribute to the economies of Ontario, Canada, Michigan and the United States. The system will include new inspection plazas, a new international bridge and a direct connection to the U.S. Interstate system.
“This is another strategic and prestigious win for our infrastructure team, as it further demonstrates Fluor’s expertise in using the availability financing mechanism, which is currently being utilized and explored by many transportation clients across North America,” said Patrick Flaherty, senior vice president of Fluor’s Infrastructure business line. “It also demonstrates our expertise and experience outside the U.S., and strengthens our position for potential future projects in Canada over the next 5 years.”
Fluor is also a member of Parkway Infrastructure Constructors (PIC), the design-build joint venture which will be performing all of the design and construction activities for the project. PIC also includes Dragados Canada and Acciona Infrastructures Canada. Subcontractors to the design-build joint venture include: Hatch Mott MacDonald, AMEC, Dillon Consulting, Lea Engineering and local sub-contractor Amico Infrastructure.
The Windsor-Essex Parkway will be an approximately 11 kilometer, six-lane, below-grade freeway featuring wide cut and cover tunnels, connecting bridges, and earth-retaining structures. The project will also include construction of surrounding local service roads, interchanges, landscaped parklands, and recreational walking and cycling trails. Unique to this project will be the public parks and other landscaped green spaces that will be built on top of the tunnels and adjacent to the roadway. In total, the project will include more than 300 acres of green space and 20 kilometers of recreational trails. The Parkway will be a publicly owned highway, and not a toll road.
The project is the first phase of a program to connect Highway 401 in Ontario to Interstate 75 in Michigan, by way of a proposed new crossing over the Detroit River. The project represents the most significant single highway investment in Ontario's history. The MTO has continuously emphasized the critical nature of this project, emphasizing the priority of expanding and improving this critical trade gateway between the US and Canada, and the need to provide a stimulus project to generate much-needed jobs in the region.
The financing mechanism for the project is a hybrid availability structure. The province is paying 85 percent of the capital costs of the project through traditional payment mechanisms, paid at significant completion milestones in the construction of the project. The remaining 15 percent and the costs of operating and maintaining the project over the 30-year period are paid through an availability payment. WEMG achieved total commitment of financing prior to submittal through bank financing involving a club of 10 international banks.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the world's most challenging and complex projects. Through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in the fields of engineering, procurement, construction, commissioning, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 200 company and had revenues of $22 billion in 2009. For more information visit www.fluor.com.
Fluor CorporationMedia RelationsKeith Stephens, 469-398-7624orBrian Mershon, 469-398-7621orInvestor RelationsKen Lockwood, 469-398-7220orJason Landkamer, 469-398-7222