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FOR IMMEDIATE RELEASE
Cobequid Pass: A Major Milestone in
Public-Private Partnership
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November 3, 1997
The opening of Nova Scotia's Cobequid Pass toll highway is a milestone
in the growing trend towards privately financed public-private partnerships
to develop infrastructure, says John Beck, President of Atlantic Highways
Corporation (AHC), the Nova Scotia government's private sector partner in
the development of the highway.
Cobequid Pass opens to the public on November 15, with a free-use period
until November 30. Tolling begins on December 1.
"This is a major milestone because it's the first highway project
in Canada to include private financing," Beck says. "It's the
start of a trend that will see public-private partnerships take the lead
role in developing public infrastructure in Canada."
"As a result of the public-private partnership, Cobequid Pass was
built more quickly, less expensively and with less risk to the
public," he added. Other project highlights include:
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First highway project in Canada to include private financing
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The Nova Scotia government provides no financial guarantees for the
toll-based portion of the debt
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45-kilometre toll highway completed in less than 20 months - record
time for a project of this size
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Atlantic Highways Management Corporation (AHMC), a private sector
firm, will operate the highway on a 30 year contract
The private financing, underwritten by Newcourt Credit Group of Toronto,
represents just over half the $113 million construction price tag. The
financing is backed solely by toll revenues with no financial guarantees
from the province, Beck notes.
"The involvement of the private sector ensured that the highway was
developed much sooner than it could have been under traditional
financing," says Beck, adding that the arrangement protected the
province's credit rating and freed up capital funds for other priorities.
"The provincial government wanted to move quickly to develop this
project to improve highway safety in the region, and the key to moving
quickly was private financing," Beck says. The 45-kilometre Cobequid
Pass provides a safe, convenient by-pass to the existing stretch of the
TransCanada Highway, which has been the scene of 50 traffic deaths during
the past decade.
"Without private financing, the highway could not have been built
until the government had set aside enough capital, which could have taken
another ten years," he says.
In addition, the Cobequid Pass was designed and built in less than 20
months - the most rapidly developed highway of its size in Canada, Beck
says. "We're proud of this made-in-Nova Scotia project and the
dedication to quality demonstrated by our employees."
Another unique feature of the partnership is that the highway will be
operated by a private sector company - Atlantic Highways Management
Corporation, a CHIC subsidiary.
"Operating the highways we build is an important part of Canadian
Highways' fully-integrated approach to highway development," Beck
says. "We are committed to the communities where our highways are
located from before construction starts until decades after the road is
completed."
FOR MORE INFORMATION:
Mitch Patten
Vice President, Communication and Public Affairs
(905) 858-2083
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For More Information Contact:
Highway 104 Western Alignment Corporation
1969 Upper Water Street, Suite 1905, Halifax NS B3J 3R7
Tel: 902-422-6764
FAX: 902-422-6764
Internet:
info@highway104.ns.ca
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Highway 104 Western Alignment Corporation
