A pre-sale report by S&P Global Ratings offers a ballpark figure for building the new Gordie Howe International Bridge, but the agency charged with overseeing construction cannot confirm the numbers, at least not yet.
Windsor Detroit Bridge Authority spokesman Mark Butler says while the report offers a glimpse of what the final total will be, the financial close with Bridging North America is not expected until the end of the month. He says the costing will be known at that time.
"In the P3 markets, the private partner goes out and looks for financing for the project. As part of that, they go to a credit agency when they're trying to float their bond. That credit agency shows a risk," he says. "These are numbers that which were provided to the credit agency by Bridging North America. They were not provided by us, but these are numbers that they're looking to secure financing for the project."
The Gordie Howe International Bridge will be a cable-stayed bridge. (Photo by Adelle Loiselle)
The report was created for the preferred consortium to build the bridge, both ports of entry, and the hookup to the I-75 in Detroit, and Butler says that is part of the public-private partnership or P3 process.
Documents obtained by the Windsor Star Wednesday say the fixed costs could be CAD $3.46-billion. The federal government would add another CAD $2.74-billion in monthly progress payments through the bridge authority.
However, Butler cautions the final costing may be higher or lower than the pre-sale report suggests.
"There are lots of variables, I mean interest rates, exchange rates that could impact the final figures," he says. "I think it's also very fair to say that they have a very good estimate."
Construction on the border crossing is expected to start this fall, and once it is completed, the authority will receive toll revenues and repay the consortium the $3.4-billion.
