Status Report on Transformational and Major Crown Projects

Gordie Howe International Bridge

Development of a new crossing over the Detroit River between Windsor, Ontario and Detroit, Michigan.

The project consists of four major infrastructure components: Canadian port of entry (POE), the international bridge, U.S. POE, and a connection to Interstate 75 in Michigan. Canadian, Michigan and U.S. governments are directly involved. The Canada-Michigan relationship is governed by a Crossing Agreement, signed in 2012. Infrastructure Canada is the lead department for the Government of Canada, but procurement and project oversight are the responsibility of a Crown corporation, the Windsor-Detroit Bridge Authority, established specifically for this purpose in 2012. The project will be delivered through a public-private partnership (P3).

The Windsor-Detroit corridor is Canada’s most important trade conduit with the United States. In 2013, more than 2.3 million trucks carrying $100 billion per year in trade used this corridor. The value of this trade exceeds the value of Canada’s trade with any other country. That represents 30% of Canada-U.S. trade carried by truck. More than 99% of trucks in this corridor use the Ambassador Bridge. The Ambassador Bridge is 86 years old with two lanes in each direction. A new crossing is required to handle forecast traffic demand and to provide redundancy in case of adverse events.

The Project is designed to achieve the following substantive objectives:

• Provide new border crossing capacity to meet increased long-term international trade and travel demand;
• Improve system connectivity to enhance the continuous flow of people and goods;
• Improve operations and processing capabilities at the border; and
• Provide alternative and secure crossing options (i.e., network redundancy) to mitigate risks of any disruptions or blockages of crossing facilities in the region.

Industrial

The investment in new border infrastructure will result in a number of positive economic impacts. Studies concluded that the direct and indirect (e.g., materials, equipment, services) impacts of the entire border infrastructure project will lead to the creation of approximately 23,000 jobs; including approximately 13,000 direct, and 10,000 indirect employment opportunities. This is particularly noteworthy in that Statistics Canada has reported that the Windsor-Essex region has maintained one of the highest unemployment rates in Canada. Ancillary benefits of these jobs are expected to result in increases in consumer spending, as personal income and company profits improve in the region.

Additionally, the project will provide significant opportunities for local businesses to participate in construction- related aspects of the project’s implementation.

Transportation

This project will improve not only the efficiency of the border crossing in the region, but will also provide direct highway connections, thereby reducing costs associated with shipping, and greenhouse gas emissions and other pollutants resulting from idling vehicles. The project will provide redundancy and additional capacity for the next several decades.

Economic

Given the significant interdependency of the Canadian and American economies, industry groups that rely on the Windsor-Detroit corridor have been unanimous in calling for a new bridge to ensure that traffic at the border flows efficiently and that the international supply chain remains strong.

Security

Border inspection agencies in both countries are working with project proponents to ensure that the proposed border processing facilities meet future trade and travel demand and security requirements at the border crossing. The POEs are being developed in consultation with the Canada Border Services Agency and the United States Department of Homeland Security, Customs and Border Protection Branch, to provide sufficient areas for primary inspection-lane booths and on-site secondary inspection of people and goods. The designs will allow for dedicated NEXUS and Free and Secure Trade lanes and will provide for a substantial improvement of border processing capabilities including areas for permanent gamma ray inspection equipment.

With almost $2 billion (Canadian dollars) daily in cross-border trade with the United States, keeping the trade system open and flowing efficiently is critical to ensuring both countries economic prosperity. It is equally critical to protect the border against potential threats to our health, security and economy. Redundant infrastructure will help keep the border open in case of incidents at other crossings.

Infrastructure Canada

Windsor-Detroit Bridge Authority (WDBA)

Canada Border Services Agency, Canadian Food Inspection Agency, Environment Canada, Fisheries and Oceans Canada, Public Works and Government Services Canada, and Transport Canada

Parsons
26777 Central Park Boulevard, Suite 275, Southfield, Michigan 48076

Bridge Technical Advisor
Parsons
625 Cochrane Drive, Suite 500, Markham, ON L3R 9R9

Geotechnical and Foundation Investigations:
Golder Associates Ltd.
309 Exeter Road, Unit #1, London, ON N6L 1C1

The project is currently in the implementation phase with Canada acquiring land in Windsor and with the WDBA responsible for all the early works, relocating utilities and procuring the P3 partner. Land acquisition and utility relocation in Detroit is also ongoing.

• Environmental assessment launched with 15 options considered. Achieved: February 2005.
• The U.S. Record of Decision was issued; and Ontario and Canadian authorities determined that, with the implementation of mitigation measures, the project is not likely to cause significant environmental effects. Achieved: January through December 2009.
• Commencement of construction to build the Ontario Access Road. Achieved: August 2011.
• Crossing Agreement concluded by Canada and Michigan. Achieved: June 2012.
• Establishment of the Windsor-Detroit Bridge Authority. Achieved: October 2012.
• Presidential permit for construction issued. Achieved: April 2013.
• U.S. Coast Guard permit issued: May 2014.
• Appointment of the CEO and Board of Directors of the Windsor-Detroit Bridge Authority and the Board of Directors of the International Authority. Achieved: August 2014.
• Canada – U.S. Federal Plaza Arrangement concluded: February 2015.
• Launch of the P3 Request for Qualifications: July 2015.
• Canadian Early Works contract start: August 2015.

• Approval and necessary authorities were provided in December 2006 to continue advancing the development of a new Detroit River crossing for the Windsor-Detroit Corridor.
• The March 2007 Federal Budget supported the development of a new Detroit River Crossing for the Windsor-Detroit Corridor and provided $10 million over three years for this purpose.
• The Detroit River International Crossing (DRIC) project has been identified as a Major Crown Project as the total value is beyond the $100 million threshold. The entire project cost for Canada was estimated at $2.01 billion. Preliminary Project Approval to provide authorization to expend resources to fully define the Detroit River International Crossing Project was sought and granted in December 2007.
• In 2008, Transport Canada received approval to enter into negotiations for the acquisition of properties in Windsor, Ontario, for the Canadian-half of the new international bridge and its Canadian customs plaza.
• In 2009, Transport Canada sought approval for expenditure authority for Phase I of land acquisition.
• Budget 2010 provided $10 million to cover expenses related to moving the project from the planning to implementation phase.
• In 2012, Transport Canada sought approval of amended preliminary project approval and expenditure authority for Phase II of land acquisition.
• Budget 2013 provided $25 million for DRIC team funding and pre-procurement activities.
• Budget 2014 provided an additional $470 million for pre-procurement and procurement activities.
• Approval of the 2015–16 WDBA Corporate Plan including the Operating and Capital Budgets.