Construction on the 18 OPP facilities is now under way. Shield Infrastructure will receive a 'substantial completion' payment upon completion of each site; Shield Infrastructure will receive also a 'substantial completion' payment once all the facilities are complete in 2012. This combined amount of substantial completion payments translates to less than 50 percent of the capital cost of the project. The province will pay Shield Infrastructure an average of $14.9 million each year over the 30 year project term to maintain the facilities and to repay the remaining capital cost of the project. The annual payments are performance-based and Shield Infrastructure will be subject to penalties should it fail to meet maintenance obligations over the life of the 30-year contract.
"By bundling together these 18 facilities we were able to come up with a template approach to serve the entire province," Georgiou said.
Developers interested in similar opportunities shouldn't be surprised if the project itself ends up being a template for future opportunities.■