[Cover Letter]

November 26, 2007

Infrastructure Ontario
777 Bay Street, 6th Floor
Toronto, Ontario
M5G 2C8

Dear Sirs,

Re: Risk Analysis Services for Design, Build. Finance & Maintain Model

In accordance with the terms of our proposal dated October 19, 2006, we are pleased to submit our analysis and quantification of the major areas of risk associated with Public Sector projects of the type assigned to Infrastructure Ontario ("IO") for delivery under IO's Design, Build, Finance & Maintain (DBFM) delivery model.

The analysis of the risk profile is based on our understanding of the traditional delivery model to be a stipulated price contract, standard construction document CCDC-2, contractual arrangement while our understanding of IO's DBFM is based upon your standard agreements.

We understand that you wish to use the attached risk matrix in developing value-for-money analyses for DBFM projects. The attached matrix should be used as a starting point for the risk analysis on any individual project. The matrix represents, in our professional experience the probability and magnitude that any of the common and material risks will come to pass under a typical traditionally delivered project and under a typical Design, Build, Finance & Maintain project. As such, we would caution you that each project will also require a detailed analysis of its own risk profile to tailor the attached risk matrix to match that profile.

We trust that you will find the attached analysis to be useful.