Lexpert Special Editions

Special Edition on Infrastructure -Sept 2015

The Lexpert Special Editions profiles selected Lexpert-ranked lawyers whose focus is in Corporate, Infrastructure, Energy and Litigation law and relevant practices. It also includes feature articles on legal aspects of Canadian business issues.

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Gangbar, Leonard A. Bennett Jones LLP (416) 777-7478 gangbarl@bennettjones.com Mr. Gangbar is consist- ently involved in the development, structuring and financing of complex mixed-use urban projects, and all related multi-party agreements governing their interconnection and use. Gillott, Roger J. Osler, Hoskin & Harcourt LLP (416) 862-6818 rgillott@osler.com Mr. Gillott focuses on con- struction litigation, arbitra- tion and dispute resolution at all levels of court and tribunals. He advises on risk management in construc- tion contracts, and tendering and procurement in the public and private sectors. Godber, H. John Borden Ladner Gervais LLP (514) 954-3165 jgodber@blg.com Mr. Godber focuses on M&A, corporate finance, private equity, securities and international joint ventures for closely and widely held companies, and regularly advises clients on infrastructure and network transmission projects. Gilbert, Geoffrey G. Norton Rose Fulbright Canada LLP (613) 780-3764 geoffrey.gilbert@nortonroseful- bright.com Mr. Gilbert practises in the area of project finance, with an emphasis on public- private partnerships and infrastructure transactions. He regularly advises project sponsors and lenders, among others, on large and innova- tive projects in Canada. Glaholt, Duncan W. Glaholt LLP (416) 368-8280 dwg@glaholt.com Mr. Glaholt, C.Arb, is one of Canada's most highly recommended construction lawyers, with experience in energy, infrastructure and mining projects. He is a fellow of the CCCL, ACCL and IACL, and author of leading titles on construction law and ADR. Graham, Gary D. Gowling Lafleur Henderson LLP (905) 540-3255 gary.graham@gowlings.com Gowlings' Hamilton found- ing partner, Mr. Graham is a business law lawyer. A former President of Westinghouse Canada Inc., he has been ad- vising clients in the manufac- turing, energy and broader public sectors for 25+ years. 14 | MUNICIPAL P3S LEXPERT ® RANKED LAWYERS ter System or the Goderich Water & Waste- water System are simple Maintain and Operate contracts for $2.48M and $5.2M, respectively. On the other end of the spec- trum, the Ion Stage 1 LRT project in the Region of Waterloo is worth $1.48B over the life of the contract and is a DBFOM." One answer is to bundle projects, which is still fairly uncharted territory, but one that has seen some innovation and success, says Godyne Sibay, a partner with McCar- thy Tétrault LLP in Toronto. "Ontario is now using a $100M threshold for its P3 projects. e municipality should likewise consider a $100M threshold in capital costs in considering a P3, and likely even higher if it's a 'Design, Build, Finance, Operate and Maintain' model," she says. "is is because with the trans- fer of both lifecycle and operating risk under a DBFOM, there is much greater complexity in the procurement and man- agement of the project over the typical 30-year term. e related costs and commitment to this long-term partnership are too much of a burden on lower-value projects." Sibay sees challenges in project bundling where there are multiple sponsors. In a municipal context, a $35M water treatment facility on its own would not jus- tify a P3 approach. But bundling four such projects together (across separate munici- palities) would reach that critical $100M threshold. e projects must also be essen- tially the same. Police facilities, schools and water treat- ment plants, Sibay says, are ideal to bundle as the single Project Company, and the design and construction team can achieve significant efficiencies through duplicating design, engineering and construction. To do this, she says, "municipalities (or other co-sponsors) appoint a single pro- curement authority, Infrastructure Ontario (IO), for example, to run the procurement, and IO enters into a single Project Agree- ment with the lead private-sector partner, as was done in the delivery of many of the Pan Am venues. Infrastructure Ontario and Toronto 2015 represented the Cities of Hamilton and Milton as well as York University under a single procurement and a single Project Agreement to develop two stadiums and a velodrome facility." Another example is Saskatoon's Civic Operations Centre project, says Sibay. "is project will co-locate the new Saska- toon Transit Operations Facility and the City's first Snow Management Facility for the permanent snow storage decontamina- tion facility as part of the Civic Operations Centre for the City of Saskatoon." LACK OF PROCESS CONSISTENCY Although municipal P3 projects are not yet a reality in Québec, says Robert Borduas, it's only a matter of time, as the province has a rich expertise developed by Infrastruc- ture Québec on provincial projects such as Highways 25 and 30, CHUM Research "P3S HAVE NUMEROUS ADVANTAGES; FOR EXAMPLE, YOU ALMOST SYSTEMATICALLY ACHIEVE THE TIMETABLE, ON TIME AND ON BUDGET, WITH A FIXED PRICE FOR YOUR OPERATION AND MAINTENANCE." – Robert Borduas, Norton Rose Fulbright Canada LLP

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