BRUN-WAY GROUP AWARDED TRANS-CANADA HIGHWAY CONTRACT IN NEW BRUNSWICK
SNC-Lavalin Inc. and its joint venture partner in the Brun-Way Group, Atcon Construction Inc. have been awarded a $543.8 million contract by the government of New Brunswick to complete the four-lane Trans-Canada Highway across the province.
The agreement calls for Brun-Way Group to design, construct, and finance 98 km of highway between Grand Falls and Woodstock, as well as the selected upgrade of 128 km of existing four-lane highway. Payment for the highway construction will be made to the Brun-Way Group once the highway is opened.
The Brun-Way Group will also be responsible for the operation, maintenance and rehabilitation of the entire 275 km stretch of highway between the Quebec border and Longs Creek until 2033. Once construction is completed, the Province will pay an annual price of $18.8 million, indexed on a yearly basis, for operation, maintenance and rehabilitation of this highway.
“We are very pleased with this new opportunity to work with the government of New Brunswick,” said Sami Bébawi, Executive Vice-President, SNC-Lavalin Group Inc. “This contract acknowledges our expertise in highway design, construction, operating, and financing, as well as our ability to manage a project of this significance.”
The Brun-Way Group has arranged a $543.8 million investment grade private placement through its financial adviser, SNC-Lavalin Capital Inc., with Canadian institutions including, Manulife Financial (Administrative Agent) , Sun Life Financial and Caisse de dépôt et placement du Québec.
Cons truction will start in the spring, with completion scheduled by November 1, 2007.
SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and construction companies in the world, a global leader in the ownership and management of infrastructure, and a key player in facilities and operations management. The SNC-Lavalin companies have offices across Canada and in 30 other countries around the world and are currently working in some 100 countries.
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Media ContactAmélie Plante
Director, External Communications
Vice-President, Investor Relations
SNC-Lavalin Group Inc.