Design/Build/Operate/Finance Agreement

104 Pages·2010·0.49 MB·English

EXECUTIONVERSION
ContractNo.7875/09
AGREEMENT TO DESIGN, BUILD, FINANCE
AND OPERATE
SOUTHEAST STONEY TRAIL, CALGARY
HER MAJESTY THE QUEEN IN RIGHT OF ALBERTA
and
CHINOOKROADSPARTNERSHIP
March30,2010
DBFOAgreement-Mar22-10CL
EXECUTIONVERSION
ContractNo.7875/09
TABLE OF CONTENTS
1. INTERPRETATION...................................................................................................2
1.1 DefinedTerms....................................................................................................2
1.2 SectionReferences..............................................................................................8
1.3 Schedules............................................................................................................8
1.4 OrderofPrecedence............................................................................................9
1.5 EntireAgreement................................................................................................9
1.6 Currency..............................................................................................................9
1.7 LiquidatedDamages...........................................................................................9
1.8 NoAgency,JointVenture,Partnership, Leaseor Loan .....................................9
1.9 Contractor’s Knowledge...................................................................................10
1.10 RestatedSchedules............................................................................................10
1.11 AlbertaTransportationandAlbertaInfrastructure...........................................10
2. DESIGN,BUILD, FINANCE,OPERATEANDMAINTAIN...............................10
2.1 Project Financing..............................................................................................10
2.2 Design andBuild...............................................................................................11
2.3 Operationand Maintenance..............................................................................11
2.4 Handback..........................................................................................................11
2.5 AssumptionofRisk...........................................................................................11
3. FINANCING.............................................................................................................11
3.1 Project Financing..............................................................................................11
3.2 Direct LenderAgreement.................................................................................11
3.3 ConditionPrecedent..........................................................................................12
3.4 Financingand InitialPerformanceLetterofCredit..........................................12
3.5 Releaseof Financingand InitialPerformanceLetterofCredit........................12
3.6 Presentationof Financingand InitialPerformance LetterofCredit.................13
3.7 RepaymentofProceeds.....................................................................................14
4. THE LANDS............................................................................................................14
4.1 Access andUse.................................................................................................14
4.2 StatusofLands..................................................................................................15
4.3 CommencementandDuration..........................................................................15
4.4 NoAccess Fee...................................................................................................15
4.5 AdditionalTUC Lands......................................................................................15
4.6 Accesstoand UseofTUC Lands.....................................................................16
4.7 AdditionalLandsOutsidetheTUC..................................................................16
4.8 Utility,RailwayandDrainageAgreements......................................................17
4.9 ConditionoftheLands......................................................................................18
4.10 PermittedUse....................................................................................................20
4.11 NoEncumbrancesOn Lands............................................................................20
4.12 Liens..................................................................................................................21
4.13 OwnershipofImprovements.............................................................................21
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4.14 UninterruptedAccess andUse..........................................................................21
4.15 PaymentofTaxeson Lands..............................................................................22
4.16 Access andUseRightstoCease.......................................................................22
4.17 HoldHarmless..................................................................................................22
5.1 Contractor’sObligations...................................................................................23
5.2 ProjectRequirements........................................................................................23
5.3 Contractor’sResponsibilitytoCarryOutProjectRequirements......................24
5.4 RequestforClarification...................................................................................24
5.5 Contractor’sDesigns,PlansandSchedule........................................................24
5.6 ContractorSolelyResponsibleforProject........................................................25
5.7 ContractorSolelyResponsibleforCosts..........................................................25
5.8 Construction WithintheLands.........................................................................26
5.9 DetailedDesigns...............................................................................................26
5.10 Stop WorkOrder...............................................................................................26
5.11 ConstructionDelays..........................................................................................26
5.12 Independent SafetyAuditor..............................................................................27
5.13 AnticipatedTrafficAvailability........................................................................28
5.14 CertificationofTrafficAvailability..................................................................28
5.15 ProvinceMayPreventRoadOpening...............................................................28
5.16 ConstructionCompletion..................................................................................29
5.17 ConstructionCompletionHoldback.................................................................30
5.18 ServiceRoads....................................................................................................30
5.19 CoordinationwithCompletionofExistingInfrastructure................................31
6. OPERATIONAND MAINTENANCE....................................................................31
6.1 CommencementofO&M.................................................................................31
6.2 O&MRequirements..........................................................................................32
6.3 CompliancewithApplicableLaws...................................................................32
6.4 RoadClosureFees............................................................................................32
6.5 ContractorSolelyResponsibleforO&MCosts................................................32
6.6 ConditionofExistingInfrastructure.................................................................33
7. MODIFICATIONSANDCHANGEORDERS.......................................................35
7.1 ModificationofProject Requirements..............................................................35
7.2 ModificationofO&MRequirements................................................................36
7.3 Other WorkbyProvince...................................................................................37
7.4 ExpansionbyProvince.....................................................................................37
7.5 DeterminationofCosts.....................................................................................39
8. HANDBACKUPONEXPIRY.................................................................................39
8.1 HandbackRequirements...................................................................................39
8.2 HandbackInspections.......................................................................................39
8.3 Procedure FollowingInspections......................................................................40
8.4 Holdbacks.........................................................................................................40
8.5 Substitutionof LetterofCredit.........................................................................40
8.6 Disagreements...................................................................................................41
9. PAYMENT...............................................................................................................41
9.1 PaymentofProvincial Funding........................................................................41
9.2 PaymentMechanism.........................................................................................41
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9.3 PaymentProcedure...........................................................................................42
9.4 AdjustmentofthePaymentSchedule...............................................................43
9.5 EarlyCompletion..............................................................................................43
9.6 LateCompletion................................................................................................43
9.7 NoGST.............................................................................................................44
9.8 Set-off...............................................................................................................44
9.9 InterestonOverdue Payments..........................................................................45
9.10 WinterRelief.....................................................................................................45
10. INDEXINGANDPAYMENTADJUSTMENTS...............................................46
10.1 IndexingofO&MPayment..............................................................................46
10.2 PaymentAdjustments.......................................................................................46
10.3 NotificationofPayment Adjustments...............................................................46
10.4 Replacementof Subcontractor..........................................................................46
11. INSURANCE,DAMAGEANDDESTRUCTION..............................................47
11.1 InsuranceRequirements....................................................................................47
11.2 OtherRequirements..........................................................................................47
11.3 WaiverofRecourse...........................................................................................48
11.4 Evidenceof Insurance.......................................................................................48
11.5 ProvinceMayInsure.........................................................................................48
11.6 ReviewandBenchmarkingof Insurance..........................................................49
11.7 RepairofDamage-ConstructionPeriod..........................................................49
11.8 RepairofDamage- OperatingPeriod..............................................................50
11.9 Uninsurability...................................................................................................52
12. FORCEMAJEURE..............................................................................................53
12.1 Force MajeureDuringConstructionPeriod......................................................53
12.2 Force MajeureDuringOperatingPeriod..........................................................54
12.3 Procedureon ForceMajeureEvent...................................................................55
13. RELIEFEVENTS.................................................................................................56
13.1 Definitions.........................................................................................................56
13.2 ReliefEventDefined.........................................................................................57
13.3 ReliefEventDuringConstructionPeriod.........................................................59
13.4 ReliefEventDuringOperatingPeriod..............................................................61
13.5 ProcedureonReliefEvent................................................................................62
14. CONTRACTOR’SREPRESENTATIONSANDOBLIGATIONS....................63
14.1 Contractor’sRepresentations............................................................................63
14.2 ReportingRequirements...................................................................................64
14.3 Records.............................................................................................................65
14.4 Access,InspectionandTesting.........................................................................65
14.5 Safety................................................................................................................66
14.6 Contractor’sOtherObligations.........................................................................66
15. PROVINCE’SREPRESENTATIONSANDOBLIGATIONS...........................66
15.1 Province’sRepresentations...............................................................................66
15.2 Province’sGeneralObligation..........................................................................67
15.3 Contractor’sRelianceon Information..............................................................67
15.4 AssistancewithPermitsandUtilityAgreements..............................................67
16. DEFAULT,REMEDIESANDTERMINATIONEVENTS................................68
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16.1 Contractor’s Indemnity.....................................................................................68
16.2 Province’s Indemnity........................................................................................69
16.3 Calculationofand LimitationonClaims..........................................................69
16.4 ExclusivityofSpecified Remedies...................................................................71
16.5 ExclusivityofTerminationProvisions.............................................................71
16.6 Province’sStep-inRights.................................................................................71
16.7 TerminationEventDefinedTerms...................................................................72
16.8 TerminationEvents...........................................................................................73
17. TERMINATION...................................................................................................75
17.1 Direct LenderAgreement.................................................................................75
17.2 TerminationbyProvince...................................................................................75
17.3 TerminationbyContractor................................................................................75
17.4 TerminationUpon ForceMajeure....................................................................76
17.5 Consequencesof Termination...........................................................................76
17.6 SurvivalofObligations.....................................................................................77
18. TERMINATION PAYMENTS............................................................................77
18.1 TerminationPaymentsDefinedTerms.............................................................77
18.2 ConstructionPeriodTermination......................................................................82
18.3 Termination WhileProvinceHolds Financingand InitialPerformanceLetterof
Credit ...........................................................................................................................82
18.4 OperatingPeriodTermination..........................................................................82
18.5 PaymentBasedon SaleofContractualRights.................................................83
18.6 Paymentof Fair MarketValue..........................................................................84
18.8 Force MajeureTermination-OperatingPeriod.Error!Bookmarknotdefined.
18.9 TerminationforConvenienceorbyContractor................................................86
18.10 Set-offAgainstTerminationPayments.........................................................87
18.11 NegativeAmounts........................................................................................87
18.12 RescueFinancing..........................................................................................87
18.13 Deliveryof Information................................................................................87
19. COMMUNICATIONS.........................................................................................88
19.1 Notices..............................................................................................................88
19.2 AuthoritytoGiveNotices.................................................................................89
19.3 PublicAnnouncements.....................................................................................89
19.4 ConfidentialInformation..................................................................................89
19.5 DisclosureofConfidentialInformation............................................................90
19.6 PublicDisclosureofAgreement.......................................................................90
19.7 Collection,UseandDisclosureofPersonal Information..................................90
19.8 NamingRights..................................................................................................91
20. CONTRACTADMINISTRATION.....................................................................91
20.1 ContractAdministration Representatives.........................................................91
20.2 MutualCooperation..........................................................................................91
20.3 Conductof Indemnified Claims........................................................................92
21. DISPUTERESOLUTION....................................................................................93
21.1 DisputeResolutionProcedure...........................................................................93
21.2 Exception..........................................................................................................93
21.3 TerminationandDisputeResolutionProcedure...............................................94
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21.4 NoCourtProceedings.......................................................................................94
21.5 Payments Where AmountinDispute................................................................94
22. GENERALPROVISIONS...................................................................................94
22.1 AssignmentbyContractor................................................................................94
22.2 SubcontractingbyContractor...........................................................................95
22.3 Changein Ownership........................................................................................95
22.4 AssignmentbyProvince...................................................................................96
22.5 IntellectualProperty..........................................................................................96
22.6 ApplicableLaw andJurisdiction......................................................................97
22.7 Amendmentand Waiver...................................................................................97
22.8 AdditionalAssurances......................................................................................97
22.9 Counterparts......................................................................................................97
22.10 JointandSeveral...........................................................................................98
EXECUTIONVERSION
ContractNo.7875/09
AGREEMENT TO DESIGN, BUILD, FINANCE
AND OPERATE
SOUTHEAST STONEY TRAIL, CALGARY
madethis30thdayof March,2010
BETWEEN:
HER MAJESTY THE QUEEN IN RIGHT OF ALBERTA, as
represented by the Minister of Transportation and
the Minister of Infrastructure
(the “Province”)
AND:
CHINOOKROADSPARTNERSHIP,
a generalpartnershipestablished
underthelawsoftheProvinceofAlberta,byits general
partners SNC-LavalinChinookRoads GPInc. and
AccionaChinookRoads GPInc.
(the “Contractor”)
PREAMBLE:
PursuanttoanRFQand RFPprocess,theProvincehas selectedtheContractortodesign,
buildandfinance,andfora30 yeartermcommencingontheearlierof trafficavailability
orOctober1,2013,tooperate, maintain andrehabilitate,thesoutheastlegofStoneyTrail
ringroadintheCityofCalgary. In addition,andduringthesame30 yearterm,the
Contractorhas beenselectedtooperateand maintaintheportionofDeerfootTrailfrom
Southeast StoneyTrailto Highway2Ajunction.
TheProvinceandtheContractorthereforeagreeasfollows:
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1. INTERPRETATION
1.1 DefinedTerms
Inthis Agreement(including,exceptwhereacontrarymeaningisclearlyintended,inthe
Schedules),thefollowingexpressionshavethefollowingmeanings(andwhere
applicabletheirpluralshavecorrespondingmeanings):
“Business Day”means adayotherthanaSaturday, Sundayorstatutoryholidayin
Alberta;
“CapitalPayment”means thecomponentofthemonthlypaymenttobemadebythe
ProvincetotheContractorunder Section9.2thatisdescribedastheCapitalPayment
inSchedule14;
“ChangeOrder”has the meaningindicatedinSchedule1(ChangeOrders);
“ChangeOrderConfirmation”hasthemeaningindicatedinSchedule1(Change
Orders);
“ChangeOrderDirective”has themeaningindicatedinSchedule1 (Change
Orders);
“City”meansTheCityofCalgary;
“CityRoadAllowances”means thelandsidentifiedas CityRoadAllowancesin
Schedule12;
“ConstructionCompletion”means fullcompletionofallaspectsoftheProjectin
accordancewiththeProjectRequirements,as evidencedbyacertificateissuedbythe
ProvinceunderSection5.16;
“ConstructionPeriod”means thetimebetween ExecutionofthisAgreementand
TrafficAvailability(butexcludingthedaywhen TrafficAvailabilityisachieved);
“ConstructionSeason”meanstheperiodfromMay1throughOctober31,inclusive,
inanyyear;
“Contractor’sConstructionSchedule”means theContractor’s schedulefor
constructionoftheProject,setoutinSchedule2,andincludinganyamendments
madefromtimetotimeinaccordancewithSection5.5;
“Contractor’sContactOrganization”means theContactOrganizationnamedin
theresponsetotheRFPthatculminatedintheContractor’s Proposal;
“Contractor’sDesigns”meanstheContractor’sdesigndrawingsanddesignreports
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fortheNewInfrastructure,setoutinSchedule3,andincludinganyamendments
madefromtimetotimeinaccordancewithSection5.5;
“Contractor’sManagementSystemsandPlans”meansalloftheContractor’s
systemsandplanspresentedintheContractor’s ProposalandsetoutinSchedule4,
andincludinganyamendments madefromtimetotimeinaccordancewith Section
5.5;
“Contractor’sProposal”meansthefinal(SR2B andSR3)proposalsubmittedbya
consortiumof whichtheContractoristhespecialpurposevehiclecontemplatedby
theproposal,submittedinresponsetotheRFP,andincludesallamendments made
bytheContractorinaccordance withtheRFP;
“Court” meansacourtoflawofcompetentjurisdiction;
“DirectLenderAgreement”means the agreementcontemplatedbySection3.2and
Schedule6,tobeentered intoamongtheProvince,theContractor,andoneormore
lenders(oranytrusteeorotherrepresentativeofsuchlenders) whoprovide the
SeniorDebt Financing;
“DisputeResolutionProcedure”meanstheproceduresetoutinSchedule7;
“EnvironmentalDamageorDegradation”means thepresenceof contaminationin
water,soilorair,inviolationofapplicableenvironmentallaws (including,without
limitation,environmental lawsenactedafterthetimeatwhichtheHazardous
Substancecausingthecontaminationis firstpresent),causedbyanyHazardous
Substance,andincludes deathorinjurytoplants,animalsorhumanbeings resulting
inwholeorinpartfromsuchcontamination;
“Equity” means anypart oftheProject FinancingotherthantheSeniorDebt
Financing;
“Execution”ofthis Agreementmeans the signinganddeliveryofthis Agreementby
boththeProvinceandtheContractor;
“ExistingInfrastructure”meanstheinfrastructuredescribedinSchedule8,and
subjecttotheforegoinggenerallymeanstheportionofDeerfootTrailfrom
SoutheastStoneyTrailto Highway2Ajunction;
“FinancingandInitial PerformanceLetterofCredit”means theletter ofcreditto
bedeliveredbytheContractortotheProvinceunderSection3.3,andtheamount
thereofmayvaryas applicableifthesecondparagraphofSection3.5isinvoked;
“FOIP”means the FreedomofInformationandProtectionofPrivacyAct (Alberta),
asamendedorreplaced fromtimetotime;
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“ForceMajeureEvent”means anywar,invasion,insurrection,armedconflict,act
offoreignenemy,revolution,terroristact,interferencebymilitaryauthorities,
nuclear explosion,contaminationbyionizingradiation,epidemic,orquarantine
restrictionthatprevents,delaysorinterrupts theperformanceofanyobligationunder
thisAgreement,otherthananyobligationtopayanymoney, andprovided such
eventdoesnotoccurbyreasonof:
(i)thenegligenceofthepartyrelyingonthe ForceMajeureEvent(orthosefor
whomitisinlawresponsible);or
(ii)anyactoromissionofthepartyrelyingontheForceMajeureEvent(orthose
forwhomitisinlawresponsible)thatisinbreachoftheprovisionsofthis
Agreement;
“HandbackRequirements”meanstheContractor’sobligationstohandbackthe
New Infrastructure andtheExistingInfrastructure attheendoftheTermin the
conditionrequiredbySchedule18(TechnicalRequirements),includingany
amendmentsdeemedtobemadebytheoperation ofSection6.6;
“Hazardous Substance”meansanysolid,liquid,gas,odor,heat,sound,vibration,
radiationorothersubstanceoremissionthatisacontaminant,pollutant,dangerous
substance,toxicsubstance,hazardouswaste,hazardous materialorhazardous
substancethatisorbecomesregulatedbyorunderanyapplicableenvironmentallaw
orthatisorbecomes classifiedashazardousortoxicbyorunder anyapplicable
environmentallaw;
“IdentifiedEncumbrances” means:
(a) allencumbrances andintereststhatasofNovember13,2009areregistered
againstanyofthetitles listedinsection4ofSchedule12(Lands);and
(b) allunregisteredutilityrights ofway,easementsandothersimilarintereststhat
are:
(i)specificallyidentified inAppendix AtoSchedule12;
(ii)asofNovember13,2009withinthe“CityRoadAllowances”defined
inSchedule12;or
(iii)knowntotheContractorasofNovember13, 2009,orwouldhave
beendisclosedtotheContractoronthatdatehad theContractormade
inquirythroughAlbertaOne-CallCorporation;
“IndependentSafetyAuditor”meanstheIndependentSafetyAuditor contemplated
bySection5.12whoserecommendationconstitutescertificationofTraffic
AvailabilityunderSection5.14;