This paper was presented at the `Innovative Methods to Fund Highway Maintenance and Construction Programs' panel discussion. The Northumberland Strait Crossing Project represents the first major infrastructure project undertaken under the Public-Private Partnering format, which includes a full financial plan and 35 year concession period. The goal of the Developer, Strait Crossing Development Inc., was to achieve a non-recourse financing solution and to obtain an equitable balance of contractual risk with the Government of Canaa. In structuring its financing model for this project, the Developer investigated traditional debt and equity options, limited and general partnerships and ultimately, a unique form of real rate bond was developed for this project. The issues of security, risk transfer and other key contractual provisions are analyzed, including an overview of the ultimate resolution of each issue. The various project agreements were negotiated and finalized over a ten month period which resulted in financial closing of the project on October 7, 1993. The observations of Strait Crossing Inc. as the Sponsor of the Developer and a participant in other Public-Private Partnering projects together with some of the valuable "Lessons Learned" during this process are highlighted in this paper. (A)
Samenvatting