Good afternoon. Thank you for inviting me here today to speak to you about the Auditor General's report on replacing Montreal's Champlain Bridge.
I am joined by Marc Fortin, assistant deputy minister, program operations, and Natalie Bossé, director general, major bridges projects.
I'd like to thank the Auditor General and his staff for the work they have done in examining this important project. We recognize the opportunity this audit provides and how we can learn and improve our practices so we can continue to deliver high-quality infrastructure that provides value for Canadians.
The department accepts the Auditor General's recommendations, and I am pleased to confirm that steps have already taken place to address the findings. Further actions will also be incorporated in future projects and asset management strategies.
The new Champlain Bridge corridor project is one of the largest infrastructure projects currently under way in North America. The history and the events of the current Champlain Bridge are well known and have been articulated in the Auditor General's report.
After several studies were undertaken to understand the state of the bridge and the options of rehabilitation or replacement, a decision was made in 2011 to replace the Champlain Bridge while ensuring work would be undertaken so it could safely remain open until the new bridge was operational.
Given the complexity of this project, in 2012 private sector experts were engaged to support a multi-departmental team of professionals who developed a business case to determine the best delivery method for the replacement of the bridge. Based on their analysis, the government announced the decision to move with a P3 procurement model in December 2013, after which a competitive process using the latest methodology for P3s was undertaken in March 2014, concluding with a selection of a preferred proponent in April 2015, with Signature on the Saint Lawrence.
Critical to the procurement and management of this project was the comprehensive governance and oversight structure put in place, ranging from top-level senior ministerial and DM committees to technical working groups supported by private sector expert advisers with global experience in P3 infrastructure models.
Transparency and proactive communications, as well as working in partnership with the City of Montreal, the City of Brossard and the Government of Quebec, were also critical elements to the management of this project. As key milestones or issues were encountered, media and technical briefings were held to ensure all stakeholders had an opportunity to raise questions and be informed.
At our last media briefing in April, we provided details on the only cost increase to date on the project: the negotiated settlement of $235 million. The settlement agreement allowed for the recovery of construction delays due to various strikes outside SSL's control and settled all existing claims related to transportation permit issues that our independent arbitrator committee opined on. The agreement also paid for additional measures by SSL to meet the delivery date of the new Champlain Bridge as December 21, 2018. Lastly, it ended the lawsuit filed by SSL in Superior Court.
We are now in the late stages of construction. As you see from the picture that was distributed to the committee, we are at almost 80% completion. Infrastructure Canada will continue to work closely with our private sector partner, SSL, which has committed to delivering the bridge in December 2018 as planned.
Throughout construction of the new bridge and until it is operational, JCCBI has maintained and will continue to maintain the existing bridge safely open. They have demonstrated due diligence in ensuring its structural integrity as well as the safety and efficiency of the corridor while this project has been under way.
In conclusion, every effort has been made to ensure that the project has been rigorously and transparently managed.
We wish to thank the Auditor General again for his report, providing us with opportunities to learn from this project and improve on what we do.
It is an honour as a public servant to have the opportunity to participate in such an important project that will contribute to the Montreal area for the next 125 years.
Thank you.