Morrison Hershfield provided the pre-construction technical report, independent progress review and verification for the toll highway.  We were also retained by the Bank Financiers to conduct environmental due diligence for the west and east partial extensions and interchanges to support required disclosure during the initial public offering.

407 International Inc. awarded a contract to SLF Joint Venture, a joint venture company between SNC-Lavalin Inc. and Ferrovial-Agroman Internacional S.A., as the Contractor, to design and build the Highway 407 west extension, east partial extension and central deferred interchanges.  Bridge-financing was provided by a syndicate of banks prior to 407 International Inc. raising funds in the capital market.

Pre-Construction Technical Report

• Preparation of a technical report on the design and construction of the west and east partial extensions of Highway 407 and the central section deferred interchanges.  The report involved a critical review and assessment of the technical feasibility, environmental implications, economic viability and scheduling constraints of the project as planned
• Obtained data from the documents and information provided by the Privatization Secretariat, Government of Ontario prior to the sale of the Highway 407; and the bid documents supplied by the design-build Contractor
• Provided civil, structural, electrical and mechanical aspects of the proposed design and construction of the highway, as well as environmental approval issues, capital costs, schedule, and the design-built Engineering, Procurement and Construction Agreement between the Owner and the Contractor
• The electronic toll collecting system was reviewed by a specialist retained as a sub consultant to Morrison Hershfield

Within one week of being retained, we assembled and mobilized a multidiscipline team of specialists to conduct all the necessary reviews and studies.  The final report was completed in five weeks and delivered in time to meet the Client’s tight deadline and to the Client’s satisfaction.

Independent Progress Review and Verification

On behalf of Bank of Montreal (as Lenders' Administrative Agent), we undertook a limited review of the Contractor’s work based on:

• Project monthly progress billing and back-up documentation
• Technical reports prepared by others
• Independent Auditor’s reports as carried out in accordance with Sections 5, 6, 7 and 8 of Schedule 20 to the Highway 407, Concession and Ground Lease Agreement (CGLA) between the Crown in Right of Ontario and Ontario Transportation Capital Corporation
• Periodic site visits to verify progress and status of construction
• Certification of the Contractor’s monthly billings
• Preparation of quarterly reports on the technical, economic and financial status of the project

Our monthly and quarterly engineering reviews and verification that the project was technically sound, on schedule and on budget, and certification that the Borrowers’ Written Orders were reasonable, provided the ongoing level of comfort and confidence required and requested by the Lenders during the bridge-financing period.