1

Detroit River International Crossing (DRIC)New International Trade Crossing (NITC)

Transportation Border Working GroupApril 24, 2013

DRIC / NITC - Project Location

2-4-

• 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

3

DRIC / NITC – General Project Status

“an investment in the future of the North American economy”—Prime Minister Harper

4

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

5

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   

6

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.

7

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

8

Conclusion