No. H018/05
For release February 7, 2005

BRUN-WAY GROUP TO COMPLETE 
TWINNING OF TRANS-CANADA HIGHWAY

FLORENCEVILLE (N.B) — The twinning of the Trans-Canada Highway in New Brunswick will be completed by the fall of 2007 thanks to the signing of project agreements with the Brun-Way Group.

The announcement was made today by Premier Bernard Lord, along with Tobique-Mactaquac Member of Parliament Andy Savoy, on behalf of Transport Minister Jean-C. Lapierre, Transportation Minister Paul Robichaud, Brun-Way Group representatives, Atcon Construction Incorporated president Robert W. Tozer and SNC-Lavalin Group Incorporated president and CEO Jacques Lamarre.

"This is an exciting day for New Brunswick as it marks the final phase to complete the twinning of the Trans-Canada Highway in the province in a more efficient and timely manner," said Mr. Lord. "This project builds on Greater Opportunity: New Brunswick's Prosperity Plan to fulfill the government's objective of making New Brunswick an investment magnet for Canada and a gateway for trade in North America."

"The Government of Canada is pleased to contribute to this very important project that will complete the twinning of the Trans-Canada Highway in New Brunswick," said Mr. Savoy. "Today's announcement marks an important milestone. Not only will this project bring important economic benefits, it will improve road safety for residents across the province."

Under the agreements, Brun-Way Group will be responsible for the design, construction and financing of 98 kilometres of highway between Grand Falls and Woodstock, and the selected upgrade of 128 kilometres of the existing four-lane highway at a total cost of $543 million. 

Brun-Way will also be responsible for the operation, maintenance and rehabilitation of 275 kilometres of highway between the Quebec border and Longs Creek, as well as Route 95, between Woodstock and the United States border, until 2033. Once the construction is complete, the province will pay an annual fixed price of $18.8 million for operation, maintenance and rehabilitation.

The Brun-Way Group is assuming the risks of delivering the highway by November 1, 2007 and for the fixed price offered. They are also bearing risks associated with the operation, maintenance and rehabilitation of the highway.

The project is expected to create 4,000 person-years of direct employment in the construction industry and an additional 4,000 person-years in spin-off jobs. The Brun-Way Group is committed to achieving close to 75 per cent New Brunswick content for the design and construction phase of the project.

"SNC-Lavalin has been working in New Brunswick for over 30 years and we are very pleased with the new opportunity to put our expertise in highway design and construction to work for the Department of Transportation," said Mr. Lamarre. "This project will not only have a positive impact on the local economy, it will also provide for safer travelling in the region, and we are proud to be associated with it."

"The Brun-Way Group brings together solid local companies partnered with a global leader in a business model designed to maximize economic benefits to build a better New Brunswick," said Mr. Tozer. "New Brunswick's engineering and road building industries have a proven track record with the skills and abilities required to build a world class highway in an environmentally responsible manner."

Construction will begin this spring and will be completed by November 1, 2007. Payment for the highway construction will be made to Brun-Way Group once the highway is open. The completion of the four-lane Trans-Canada Highway in 2007 is a priority within the Building Strategic Infrastructure building block of New Brunswick's Prosperity Plan.

"We're very pleased with Brun-Way's proposal, as it represents the best value for the taxpayers of New Brunswick," said Mr. Robichaud. "Once completed, the four-lane Trans-Canada Highway will enhance the safety of the travelling public in the province, facilitate our continued participation in international trade and encourage and nurture inter-provincial trade within Canada."

This project is being jointly funded by the Governments of New Brunswick and Canada through the Canada-New Brunswick Agreement for the Completion of the Twinning of the Trans-Canada Highway in New Brunswick. The Government of Canada is contributing $200 million toward the project from the $2-billion Canada Strategic Infrastructure Fund.

Through this fund, the Government of Canada is working with provincial, territorial and municipal governments, as well as with municipal administrators and the private sector, to meet strategic infrastructure needs throughout the country. These investments are directed to large-scale national and regional strategic infrastructure projects that improve further sustainable economic growth and the quality of life for Canadians.

Funding for this project was provided for in the February 2003 federal budget.

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