Development and Execution of a Risk Transfer Strategy for the Eglinton Crosstown LRT

"The Eglinton-Crosstown Light Rail Transit line is a 19-kilometre corridor with a 10-kilometre underground portion currently being constructed by Metrolinx in Toronto through a densely populated urban environment. Tunneling works are being completed through two separate design-bid-build contracts that include consideration for a phased handover to a follow on contractor who will take ownership of the tunnels, including warranties, and will complete the stations and remainder of the system through a PPP delivery model including maintenance of the system for 30 years. Warranty provisions, settlement apportionment, tunnel leakage, potential delays and conflicts between contractors are just some of the risks the team managing tunnel contract integration had to consider when developing the PPP contract. This paper will present an overview of how these risks were assessed and allocated through the contracts and the strategies adopted to minimize risks to Metrolinx while ensuring successful procurement was maintained. INTRODUCTION The Big Move is a 25 year, $50 billion ($-CAD) plan for coordinated and integrated transportation in the Greater Toronto and Hamilton Area (GTHA) in Ontario, Canada. This plan has been initiated by Metrolinx, a division of the provincial government of Ontario, and its vision, goals and objectives are rooted in creating a high quality of life; a thriving, sustainable and protected environment; and a strong, prosperous and competitive economy for the GTHA. The Big Move will triple the length of rapid transit service in the GTHA to 1,725km, significantly increase the percentage of the GTHA population living within two kilometers of rapid transit, reduce commute times to an average of 77 minutes per person per day and decrease greenhouse gas emissions from passenger transportation per person by 29%. Work is currently underway on several projects and more than $16 billion ($-CAD) of the planned investment has already been committed. A key project that forms part of this commitment is the Eglinton Crosstown Light Rail Transit (LRT) Project which is being delivered in the City of Toronto under Metrolinx’s Rapid Transit (RT) Program. This complex and sizeable undertaking has been broken into a number of separate contracts comprising: LRT Vehicles contract; Eglinton West Tunnels Project; Eglinton East Tunnels Project; and a Public-Private-Partnership (PPP) contract to complete the underground stations, at-grade stops, all rail infrastructure and systems and to maintain the entire system for 30 years. The PPP contract, which includes an initial capital portion of approx. $5.1 billion ($-CAD), has recently been awarded to Crosslinx Transit Solutions, a Special Purpose Vehicle (SPV) consortium comprised of SNC Lavalin, Aecon, Dragados and EllisDon."