Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBOM Partially Public Finance
# of Projects: 1
100% of the Results

Background informationProject Created: September 24, 2017

Project Name: George Massey Tunnel Replacement Project (Vancouver, BC)
Year in Operation:
Sector: Transportation
Subsector: Roads, Bridge, Transit
Status: Project Definition / Programming
Type: New Facility
Description: In September, 2017, weeks before selection of the winner of a DBOM concession competition, the procurement for this project was cancelled. The project was for the replacement of the George Massey Tunnel, originally constructed in 1959. The tunnel is a major part of the Highway 99 Corridor leading from the US Border north of Seattle to Vancouver, approaching the City and its airports from the South. The tunnel also connects to Peace Arch, BC Ferries, the DeltaPort and Boundary Bay Airport. Key elements of the project were to (i) replace the GMTunnel with a 10 lane bridge (4 lanes in each direction for regular traffic, and 2 lanes for dedicated transit and HOV traffic); (ii) replace the Westminster, Steveston and Hwy 17A interchanges; and (3) decommission the tunnel once the new bridge opened. The project cost was estimated at $3.5B Cdn.
Delivery Method as described in the country where it's located: Concession
Is the project still active: No
Comments: DBOM Concession, 4-5 years of Design Build followed by 25 year operation period, with end of term retention requirements.

Project Locations

Address: Route 99
City: Lulu Island
State: British Columbia
Country: Canada

Souces of Project Support (Non-monetary)

Checkbox Checked Access to Land
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): The concession agreement was included as an exhibit to the final RFP, and provided that the contractor would receive O&M payments and availability payments during the operations phase. These payments were to be competitively established during the competition, and were not to be made under substantial completion of the work (the replacement facilities up and in operation, all as defined in the concession contract.)
Checkbox Checked Environmental Clearance: Provided by the government of BC.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: $150M from government at substantial completion. $ progress payments during construction. Availability payments and O&M payments (competitively established) during 25 year operation phase. BC Government to establish, set, and collect tolls for use of the facility.

Checkbox Checked

From Producers as Equity: $750M from the concessionaire.

Project Delivery & Finance Method

Project Delivery:
Design Build Operate Maintain (Partially Public Finance). Public Sponsor contracts for initial design, construction, and for long term operations and maintenance with a single entity. At the end of the term, Public Sponsor regains control of the facility.
Is there an independant checking engineer? Yes
Project Finance Method: All or Partially By Public Sponsor

Procurement Approach

Project Component
Based Selection
Request for
Request for
for Bids
Design Build Operate and Maintain
Project Component
Is Negotiation of the Price Permitted After Selection of the Winner?
Is Negotiation of the Scope of Services Permitted After Selection of the Winner?
Are the fees (tolls) to be charged to users over the term an evaluation factor user in Selection of the Winner?

Term for Key Components & Forms of Contract

Project Component
Combined Term: Initial Design, Construction, O&M Period
This was a very thoughtful and well constructed procurement process. The proposed concession agreement was included in the procurement documents, and prospective concessionaires given the opportunity to comment on the concession documents prior to the time of submitting final proposals. After an RFQ process, the BC government narrowed the number of potential proposers to a short list of three (3) teams. These three teams commented upon the concession agmt. drafts, and the BC government took comments and finalized the concession agreement just before taking final proposals. Evaluation criteria were well established in the procurement documents, with proposers required to make separate Technical and Financial Submittals for evaluation. The Preferred Proponent, (if one had been chosen), was required to post a Security Deposit upon being notified by the BC government. Debriefings were included in the procurement documents for unsuccessful proposers. Stipends are also to be paid to proposers who submitted after being short-listed. Three weeks before the winner of the competition was to be announced, the BC government cancelled the procurement, and announced it is rethinking the project. 

Project Value (If and As Known)

Date of Estimated Project Value: September 1, 2017
Project Value
Hard Cost
Hard & Soft Costs
Pre-Feasibility (Public Sponsor Expense)
> $50 Million US
$2-10 Billion US
$2-10 Billion US


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