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SNC-Lavalin/Cintra Awarded 407 East Highway Project in Ontario


May 23, 2012
By From Canada Newswire

May 23, 2012, Montreal, Que. – SNC-Lavalin announced that 407 East Development Group General Partnership ("the
Partnership"), a new 50/50 joint venture between SNC-Lavalin and Cintra
Infraestructuras' respective subsidiaries, has been awarded a contract
by the Province of Ontario to design, build, finance, and maintain
Phase 1 of the new Highway 407 East. The project will be delivered
using Ontario's alternative financing and procurement (AFP) delivery
model. The contract is worth approximately $1 billion (net present
value).

May 23, 2012, Montreal, Que. – SNC-Lavalin announced that 407 East Development Group General Partnership ("the
Partnership"), a new 50/50 joint venture between SNC-Lavalin and Cintra
Infraestructuras' respective subsidiaries, has been awarded a contract
by the Province of Ontario to design, build, finance, and maintain
Phase 1 of the new Highway 407 East. The project will be delivered
using Ontario's alternative financing and procurement (AFP) delivery
model. The contract is worth approximately $1 billion (net present
value).


"We are pleased to have been awarded this very important highway project
in Ontario," said Gilles Laramée, Executive Vice-President and Chief
Financial Officer, SNC-Lavalin Group Inc. "Once completed the highway
will allow for a better and more efficient transportation and flow of
goods between Toronto and eastern Ontario."


The 407 East Development Group General Partnership has entered into a
fixed-price contract with the Province of Ontario for the project.
Phase 1 of the new highway will extend 22 kilometres east from Brock
Road in Pickering to Harmony Road in Oshawa.  It also includes a
10-kilometre north-south highway, east of Lake Ridge Road, connecting
Highway 407 East to Highway 401.

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"With this award, SNC-Lavalin's capabilities will be put to work on a
large and complex construction project," said Charles Chebl, Executive
Vice-President, SNC-Lavalin Group Inc. "We are committed to the Ontario
market, and look forward to working with our design-build partner
Ferrovial to deliver sustainable transportation infrastructure to the
province."


The design and build portion of the contract is expected to take
approximately 3 1/2 years. Once completed, the Partnership will
maintain and rehabilitate the road for 30 years. The Partnership has
entered into a fixed price contract with a 50/50 consortium made up of
SNC-Lavalin Operations and Maintenance and Cintra for the maintenance
and rehabilitation of the road over the concession period.


"We have significant experience providing operations and maintenance
services for roads across Canada," said Charlie Rate, Executive
Vice-President, SNC-Lavalin Group Inc.," and we look forward to
combining our expertise with that of our partners to provide added
value over the 30-year contract." 


SNC-Lavalin has been present in Ontario since the 1960s, and now has
approximately 5,000 employees in the province working out of 13
offices.