Highway 104 Western Alignment Corporation
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Administration and Accountability
BackgroundCreating the Highway 104 Western Alignment Corporation was key to creating Cobequid Pass Toll Highway. The Government is the sole shareholder of the Corporation, which is categorized as a Government Business Enterprise. Its sole purpose, by statute, is to oversee the financing, design, construction, operation and maintenance of the Cobequid Pass. The Corporation's mandate is to manage revenue collection, to maintain the schedule to repay investors, and to fund annual and long term maintenance until the debit is fully paid in 2026. The Highway 104 Corporation is financially sustainable and responsible for its own debt, and does not have to rely on a
Government debt guarantee.
Because some public monies were involved in the highway’s initial financing, and because the Highway 104 Corporation is wholly owned by the Crown, its annual operations may be scrutinized by the Auditor General. Operating independent of government, the Highway 104 Corporation is the entity that permitted non-recourse financing, meaning private investors can lay no claim on government assets or money in the unlikely event toll revenue should fail to provide a return on investment.
AdministrationOne of the Corporation's primary administrative responsibilities is ensuring toll revenue is collected and distributed according to the agreements signed by the government of Nova Scotia, Atlantic Highway Corporation, and CIT Financial Limited, formerly Newcourt Credit Group, the Bondholder's Representative. This responsibility includes maintaining budget control, issuing payment directives, and ensuring that parties to the agreements are meeting obligations in timely fashion. It also means keeping communication lines open and direct between all parties. The administration of Highway 104 Western Alignment Corporation is led by its General Manager, Paul Richard, P. Eng. and by the Controller, Eva Hislop, CMA. Patricia M. Belleza provides administrative and accounting support. AccountabilityThe financial activities of the Corporation are carefully scrutinized by CIT Financial Limited and the Department of Transportation and Infrastructure Renewal. In addition, the Corporation engages Grant Thornton LLP to provide audit reports in accordance with Generally Accepted Auditing Standards.
The Highway 104 Western Alignment Corporation is represented on the Department of Transportation and Infrastructure Renewal’s Steering Committee, and meetings are schedule regularly with Atlantic Highway Management Corporation Limited executives. The Auditor General of Nova Scotia has the right to review the Highway 104 Corporation's activities as it did in 1996 and 2002.
MaintenanceThe Department
of Transportation and Infrastructure Renewal provides maintenance on the
Cobequid Pass Toll Highway under the terms of the Annual Maintenance Agreement.
The majority of this work consists of snow and ice removal during the winter
months. The Department also performs annual line painting, guardrail replacement
and
The Corporation also funds Major Maintenance work on the Cobequid Pass facility, which has included in the past crack filling, sealing and micro-surfacing of the asphalt surface, replacement of lane controllers for the toll system, and a new emergency power generator at the Toll Plaza. These works were funded through the Corporation’s Major Maintenance Reserve Fund, and involved no public moneys. Atlantic Highway Management CorporationThe toll operations are run by Atlantic Highway Management Corporation Limited (AHMCL), a subsidiary of the contractor, Atlantic Highways Corporation (AHC). Both are now owned by Aecon. AHC guaranteed the highway for three years, which was an unprecedented warranty period at that time, and all deficiencies were repaired at their expense.
AHMCL currently employs about 40 people at the Toll Plaza, most from Cumberland and Colchester Counties. Aecon is an alliance of the project management and engineering firms Ambro Constructoion Ltd. and BFC Construction Company.
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Copyright © 2004 Highway 104 Western Alignment Corporation
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The electronic tolling system managed by AHMCL links vehicles
carrying a transponder to a computerized account and automatically deducts the
toll. 