CHUM wins the Gold Prize for Project Financing

The Canadian Council for Public-Private Partnerships (CCPPP) has rewarded Centre Hospitalier de l’Université de Montréal (CHUM), the concessionaire company Collectif Santé Montreal (CSM) and Infrastructure Quebec (IQ) with the 2012 Gold Prize for project financing of the New CHUM.This prize acknowledges the new financial structure achieved by the Collectif Santé Montreal consortium to design, construct, finance and maintain the new CHUM hospital in Montreal. The CCPPP presented this award during its annual conference held in Toronto between 26-27 November 2012.

The concessionaire company consists of OHL (25 %), the British mutual fund Innisfree (30%), the British construction company Laing O’Rourke (25 %), and the French services company Dalkia (remaining 20%). The nominal value of the contract is 9,206 Million CAD; its net present value- based on 2008 CAD- is 3,345 Million, and 10 June 2011 is the financing closing date and contractual commencement date.

The project was financed through the issue of A-series senior bonds, amounting to 1,370,828,000 CAD, at a 6.721 % rate, with a grace period ending in September 2049 and an equity issue of 11.7 % of the debt value, proportionally divided according to the members’ shares. The bond sale operation was subscribed by Royal Bank of Canada (RBC) and bondholder interests are represented by their trustee, Bank of New York Mellon. It is the largest financing of this kind to be executed in Canada for a PPP project.

The future hospital, offering the latest design, will hold more than 770 individual rooms, 26 hospitalization units and 39 operating theaters. The first construction stage covers 85 % of the budget and will end in 2016, with an operating hospital. The second stage- representing the other 15 %- will end in 2019 with the construction of an administrative building, auditorium and library.

OHL is an international reference in hospital construction. The Group’shospital construction activity began in 1930 and, since then, it has executed more than 150 newly built hospitals over a total constructed surface area of more than six million square meters.