Highway 104 Western Alignment Corporation
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Letters to StakeholdersAnnual Report 1997-1998Lee Rankin, PresidentCobequid Pass was built for safety, and although its existence is a remarkable achievement for many reasons, the fact no major accidents have occurred on either the old or new road after six month in operation is evidence the highway is proving itself. Creating the Highway 104 Western Alignment Corporation was key to creating Cobequid Pass. Unique to infrastructure financing in Canada, the Corporation is neither a Crown corporation, nor an agent of the Crown. Its sole purpose is to manage the financing, design, construction, operation and maintenance of Cobequid Pass. With the design and construction complete, the Corporation moved into new quarters last January, and added financial staff and capabilities. The work of managing toll revenues over the next 30 years, the schedule set to repay investors and fund annual and long term maintenance, began. The Corporation's sole source of revenue is tolls. Because the funding for Cobequid Pass flows only through the 104 Corporation, the highway's debt does not belong to the Province of Nova Scotia, nor does the province guarantee the debt. However, because public monies are involved in the highway's financing, and because the Crown wholly owns the 104 Corporation, its operations may be scrutinized annually by the Auditor General. Operating independent of government, the 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. This annual report outlines the structure of the Corporation, its operations and accountability and its relation to other partners. From all perspectives, the past fiscal year has been successful.
Don Piercey, General ManagerCobequid Pass opened for traffic on November 15, 1997, two weeks ahead of schedule after just 20 months of construction. After six months in operations, traffic volumes for cars are steady at 4,000 a day, 1,500 more than forecast, and truck traffic remains on target at 1,700 a day. Over 9,000 transponders, the electronic device that automatically deduct tolls from a prepaid account, have been sold, close to triple the number anticipated. For business, Cobequid Pass is providing a tangible benefit: a fast, efficient and safe route to bring goods and services in and out Nova Scotia, east to international shipping lines and west to major markets. For others, there are now two safe routes through the Wentworth Valley, making the drive relaxed and offering some of the province's best scenery. In addition to financial statements, this annual report provides a detailed explanation of where toll revenue goes (see Maintenance) to meet the obligations to bondholders, Noteholders, the Province of Nova Scotia, and to fund maintenance. Staffs of the 104 Corporation are happy to answer any questions. Please feel free to contact us at the numbers listed on Contact us page.
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