John Laing enters Canada Transit PPP market to deliver Hurontario Light Rail Transit Project
- Transformational transit project connecting municipalities in the Greater Toronto and Hamilton Area and enhancing transport options for local communities
- Builds on John Laing’s long and successful history of investment and delivery of complex rail schemes, including the Denver Eagle commuter rail project in USA and Sydney Light Rail in Australia
- Reinforces John Laing’s commitment to the rapidly expanding Canadian Transit PPP market
John Laing, the international active investor and partner behind responsible infrastructure and renewable energy projects, is a member of the Mobilinx consortium. Mobilinx was selected for the design, build, finance, operation and maintenance of the Hurontario Light Rail Transit (HuLRT) project in Ontario, Canada, which is part of the Ontario Government’s commitment to expand transit in the Greater Toronto and Hamilton Area. The Mobilinx consortium includes equity partners Salini-Impregilo S.p.A., Hitachi Rail STS S.p.A. Astaldi Canada Enterprise Inc., Transdev North America Inc., and Amico Concessions Inc. John Laing has a 35% equity interest in the project. The consortium successfully achieved Financial Close on October 21st, 2019.
The HuLRT consists of an 18km line from the Port Credit GO station in Mississauga to Brampton Gateway Terminal in Brampton, providing an alternative transport mode to driving and improving connectivity within and between the two municipalities. The project includes 18 surface stops and 1 below grade station, a fleet of 28 light rail vehicles, and an operations, maintenance and storage facility. The HuLRT will also be fully integrated with municipal transit systems including connections to GO Transit lines and transitways.
365bet体育官网Bringing together experience from its involvement in more than 140 infrastructure projects, expertise in project finance and risk management, and a dedicated team of asset management professionals that work shoulder-to-shoulder with project partners, John Laing is committed to delivering innovative infrastructure solutions that respond to public needs, empower sustainable growth and create value for all stakeholders. John Laing is a global leader in Transit PPP and very proud to play a key role in many of the largest most complex Rail schemes across the globe, including Denver Fastracks Eagle in the USA, Sydney Light Rail in Australia and the Intercity Express Programme in the UK.
Construction of the project is scheduled to be complete in 2024. The project’s approximate $2.1 billion in capital costs will be financed by Mobilinx’ financing solution, which includes:
- Equity capital invested by John Laing and its equity partners;
- A short-term construction bank facility provided by National Bank of Canada, HSBC Bank Canada, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, Ltd.;
- Long-term bond issuances, fully underwritten by National Bank Financial Inc. and HSBC Bank Canada; and
- Progress and milestone payments provided by the Infrastructure Ontario and Metrolinx.
365bet体育官网Mobilinx’s Financial Advisors who supported the development and execution of the financing solution are HSBC Securities (Canada) Inc. and National Bank Financial Inc.
365bet体育官网The HuLRT delivers welcome environmental benefits, including projected reductions in air pollutants and greenhouse gas emissions attributable to the project’s associated replacement of existing diesel bus services and expected modal switch to transit, which is expected to significantly reduce congestion along this primary corridor. HuLRT also will deliver a new Operation, Maintenance and Storage Facility that will achieve LEED® Silver accreditation. The project’s strong sustainability attributes are further supported by the Green Evaluation completed by S&P Global Ratings, which resulted in a score of E1 (the highest score on S&P’s Green Evaluation scale) and confirmation that the project’s senior secured bonds are aligned with the Green Bond Principles 2018 (GBP).
The project is also expected to generate significant employment opportunities, both during the construction period as well as during the subsequent 30-year operations and maintenance period.
365bet体育官网“We are delighted to have been selected to deliver the Hurontario LRT, an important transportation project for the Greater Toronto Area” said John Laing Regional MD, Anthony Phillips. “With our active approach and long history of delivering complex Transit PPP projects, we brought together a strong team with seasoned construction and operations and maintenance partners to ensure the success of the project. The residential and business communities of Mississauga and Brampton want a reliable, environmentally friendly transit option which this project will provide. John Laing will be instrumental in the delivery of the Hurontario LRT helping to transform the communities in which it invests.”
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