The Ontario Provincial Police Modernization P3 Project reached financial close on 14 September 2010. The project involves the construction of 17 new detachments, regional command centres and forensic identification units across Ontario, Canada. The new facilities will feature up-to-date amenities to better support the demands of modern police operations and meet the needs of the community. They will replace the existing OPP facilities, many of which have exceeded their useful life.
Infrastructure Ontario, the procuring authority, will provide substantial completion payments during the construction phase of the project and an annual service payment throughout the 30 year operating period. Senior debt totalling CAD$163m has been provided equally by KfW Bankengruppe, WestLB AG and NordLB. The capital value of the project is CAD$200m and the construction phase is expected to end in November 2012.
SHIELD Infrastructure Group, a consortium comprising of Hochtief PPP Solutions North America and Honeywell, were announced as preferred bidders in July 2010, having submitted their bid to Infrastructure Ontario in March.
Operis conducted a model audit and full tax and accounting review, on behalf of SHIELD and the lenders, at financial close as well as at bid stage.
