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Strabag awarded $255m DBF contract to deliver the second underground segment of the Eglinton Crosstown West Extension in Toronto

Strabag awarded $255m DBF contract to deliver the second underground segment of the Eglinton Crosstown West Extension in Toronto

Construction Front Team by Construction Front Team
February,2024
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Infrastructure Ontario (IO) and Metrolinx have awarded a fixed-price contract of $255 million to STRABAG Inc for the construction of the second underground segment of the Eglinton Crosstown West Extension. This segment encompasses a 500-meter tunnel stretching east of Jane Street to Mount Dennis Station.

The project will be delivered under a Design-Build-Finance contracting framework, and it will follow IO’s public-private partnership (P3) model, shifting relevant risks linked to design, construction, and financing to the private sector.

Eglinton Crosstown West Extension (ECWE) Advance Tunnel 2 Project – About it

Infrastructure Ontario and Metrolinx are delivering The Eglinton Crosstown West Extension project through distinct procurement contracts, including:

  1. The first advanced tunnel stretched from Renforth Drive to Scarlett Road (awarded in 2021 in a $729 million DBF Contract to a JV with Aecon, Dragados, and Ghella)
  2. A second advance tunnel connecting Jane Street and Mount Dennis Station (This package)
  3. An elevated guideway between Scarlett Road and Jane Street (Awarded in 2023 to Aecon under a 290m Design-Build Contract)
  4. Stations, Rail, and Systems 
In 2021, the contract for the Eglinton Crosstown West Extension (ECWE) Advance Tunnel 1 was awarded to West End Connectors JV (Aecon-Dragados-Ghella). This contract represents the first phase of the 9.2-kilometre extension of the Eglinton Crosstown Light Rail Transit (LRT) system, encompassing approximately 6 kilometers of the total 9.2-kilometer extension.

The Eglinton Crosstown West Extension (ECWE) Advance Tunnel 2 Project constitutes the second tunnel segment, spanning from Jane Street to the future Mount Dennis Station (refer to picture below).

Strabag awarded $255m DBF contract to deliver the second underground segment of the Eglinton Crosstown West Extension in Toronto

Related Project and News – Metrolinx and Infrastructure Ontario

  • Aecon to build 1.5km Elevated Guideway for the Eglinton Crosstown West Light Rail Extension
  • We Build-FCC JV will deliver the Pape Tunnel and Underground Stations un Toronto
  • AECOM selected as Metrolinx’s Delivery Partner for Eglinton Crosstown West Extension in Toronto

Eglinton Crosstown West Extension (ECWE) Advance Tunnel 2 Project – Strabag as the DBF Contractor

ECWE Advance Tunnel 2 Project - Scope of Works

According to Infrastructure Ontario, the enabling works for the project are already underway, and significant construction activities is expected to begin later in 2024.

The ECWE Advance Tunnel 2 contract includes the following tasks:

  • Design and provision of mining and tunnelling equipment.
  • Design and construction of the launch and extraction shafts and the tunnel portal located east of Jane Street.
  • Design and construction of the tunnel segment connecting the portal to Mount Dennis Station, employing the sequential excavation method.
  • Implementing modifications at Mount Dennis Station to facilitate the extension of the Eglinton Crosstown LRT service.
  • Reallocation of utilities and adjustments to Eglinton Avenue West to accommodate construction activities.

Contracting Approach - Design-Build-Finance under a PPP framework

The project will be delivered under IO’s public-private partnership (P3) model. Public-Private Partnerships, also known as PPPs, are long-term contracts between a public institution and a private entity to build public assets and provide public services traditionally delivered by the government (i.e., railways, hospitals, prisons, roads, etc.).

In this contracting approach, the private sector is typically responsible for designing, building, financing, operating, and maintaining a new facility, bearing significant risks associated with project development, construction, financing, operation, and maintenance.

However, in the case of the Eglinton Crosstown West Extension (ECWE) Advance Tunnel 2 contract, Infrastructure Ontario opted for a hybrid contract incorporating elements from both Design-Build and PPP agreements. Strabag’s obligations are limited to the project’s Design, Build, and Financing (DBF) aspects, while the Operation and Maintenance (O&M) responsibilities are excluded from the contracted works.

PPP Contract Structure

Suggested Reading:

  • Public Private Partnerships (PPPs): What are they?
  • Design and Build (DB) Contracts – How do they Work?

ECWE Advance Tunnel 2 Project - Strabag team

The Stragbag team is detailed below: 

Role

Company

Developer

STRABAG Inc.

Designers

WSP Canada Inc. and Dr. G. Sauer & Partners Corporation

D&C Contractor

STRABAG Inc.

Financial Advisor

STRABAG Inc.

Related Project and News – Other Projects in Canada

  • Infrastructure Ontario closes RFP for Ottawa Hospital PPP (Civic Campus Redevelopment)
  • Vestas secures 140MW Wind Turbine order from Capital Power in Canada
  • SNC-Lavalin awarded contract to design and build EV Battery Plant in Quebec (Canada)
  • Vestas secures 140MW Wind Turbine order from Capital Power in Canada
Source: infrastructureontario.ca
Tags: Canadacontract awardD&CDBFNorth American Market NewsontarioPPP
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