detroit river international crossing (dric ) new international trade crossing (nitc)
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Detroit River International Crossing (DRIC)New International Trade Crossing (NITC)
Transportation Border Working GroupApril 24, 2013
DRIC / NITC - Project Location
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• Positive momentum gained in 2012– Signing of Canada-Michigan Crossing Agreement– Creation of Windsor-Detroit Bridge Authority (Canada)– Defeat of Proposal 6 in Michigan– Bridge to Strengthen Trade Act (Canada)– Buy America Waiver issued by Federal Highway Administration
• Public and political desire to move quickly towards project implementation– $25 million in Budget 2013 (Canada) to start moving DRIC project into the implementation
phase
• Sample of key 2013 activities– Further advance property acquisition in Canada and Michigan– Complete design specifications, reference designs, geotechnical engineering – Complete utility relocation design in Windsor (with actual relocation in 2014)– Move species at risk plants in Windsor– Confirm U.S. federal government funding for U.S. Port of Entry
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DRIC / NITC – General Project Status
“an investment in the future of the North American economy”—Prime Minister Harper
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Procured as part of Canada’s P3 package?
YesIncluded in Canada’s P3 package
• GSA would work with Canada to determine specifications and funding mechanism (upfront capital or annual lease payments)• Economies of scale• Integrated construction completion schedule
• Canada would require cross default agreement to ensure the delivery of the U.S. POE on a timeline consistent with Canada’s P3 package to avoid payment of penalties by Canada to Canada’s P3 concessionaire
• Funding commitment for construction and operating (including staffing) of the U.S. POE is required from U.S. Government before Canada can proceed with RFQ and RFP for the entire project
• 2 options for procurement of the U.S. Port of Entry:
Options for Procurement of U.S. Port of Entry
NoIndependently procured by GSA
Timeline• Next two years: complete preliminary design and due diligence; acquire property;
relocate utilities
• If necessary approvals and appropriations obtained: launch procurement process in mid-late 2014 with P3 financial close in late 2015
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Activity 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pre-Procurement Planning & Due Diligence
Property Acquisition and Site Preparation
Utility Relocation
Request for Qualifications
Request for Proposals
Financial Close
Final Design & Construction
Crossing Agreement: Governance Structure
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State of Michigan(Governor)
Michigan Strategic FundMichigan DOT
International Authority
Government of Canada
Windsor-Detroit Bridge Authority
Concessionaire
• Presidential permit– Michigan applied for permit in June 2012– Issued by U.S. State Department on April 12, 2013– Consistent with the Canada-Michigan Crossing Agreement
• Operationalizing the Canada-Michigan Crossing Agreement– Several memorandums of understanding (MOUs) may be required (e.g. work to be carried out by
Michigan Parties and method of payment; Land acquisition and utility relocation; Consultation with stakeholders in Michigan; Matching funds)
• Create International Authority – Appoint members– Develop by-laws– Name arbitrators
• Land acquisition in Michigan • Policy issues to be examined
– Implementation of mitigation/enhancement commitments included with the January 2009 FHWA Record of Decision; Agreements with first responders (fire, police, ambulance services); Intelligent transportations systems (ITS) and interoperability with Michigan and Ontario.
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Canada-Michigan collaboration
• High priority for Michigan Governor Snyder and Prime Minister Harper
• Positive momentum gained in 2012
• Several remaining challenges– Litigation and misinformation– Implementation of the project will be complex (need to comply with Crossing Agreement) and
lengthy (Procurement for P3 will take about 2 years; Construction will take 4 to 5 years)– Project requires U.S. federal government funding for U.S. Port of Entry
• Public and political desire to move quickly towards implementation– Presidential permit now in place
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Conclusion
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