MONTREAL – An international consortium that includes SNC-Lavalin has been selected to build Ottawa’s $2-billion Confederation Line light rail transit project by 2018.
The Rideau Transit Group is being recommended to city council to design, build, finance and maintain the light rail project.
Construction is expected to begin next February and includes the widening of a section of Highway 417 and is expected to create about 20,000 jobs.
The Montreal-based engineering and construction giant’s share of the project has not been disclosed but analysts said the selection should be positive for SNC-Lavalin (TSX:SNC) and partners such as IBI Group (TSX:IBG).
The contract comes about two months after another SNC consortium was chosen by the B.C. government to design and build the $1.4-billion Evergreen Line Rapid Transit project.
That project, which will integrate into the existing SkyTrain system, will link the cities of Burnaby, Port Moody and Coquitlam with an 11-kilometre advanced light rapid transit line.
On the Toronto Stock Exchange, SNC-Lavalin shares fell 53 cents at $36.95 in afternoon trading while IBI shares were up 15 cents at $6.68.
Wednesday, December 5, 2012