[Gronk!]

 

[Yeggy]

You would think it would be a public document, but TransEd might be able to argue otherwise.
Presumably this has come before council at some point, but as an in camera item.

It wouldn't be public, aspects may be but not the entire document.

Its the same with the Arena. We knew broad strokes but many of the finer points are sealed.

 

[SarcasticMarmot]

It wouldn't be public, aspects may be but not the entire document.

Its the same with the Arena. We knew broad strokes but many of the finer points are sealed.

Hopefully the City did a better job writing and negotiating this contract than the Arena one.

 

[J_gordo]

You would think it would be a public document, but TransEd might be able to argue otherwise.
Presumably this has come before council at some point, but as an in camera item.

No it would be confidential as it would be damaging to both the city and transed for other parties to know their bidding prices on certain things.
Hopefully a figure will get floated eventually. I see lots of people saying that the city wouldn’t pay out the contract but they are legally required to unless transed got some sort of clawback.

 

[Yeggy]

No it would be confidential as it would be damaging to both the city and transed for other parties to know their bidding prices on certain things.
Hopefully a figure will get floated eventually. I see lots of people saying that the city wouldn’t pay out the contract but they are legally required to unless transed got some sort of clawback.

You are assuming the city instigated this. Transed may be leading this.

 

[J_gordo]

You are assuming the city instigated this. Transed may be leading this.

Perhaps, I’d be curious as to why though. They got through the hardest part of the contract (construction) just to leave during the part where they recoup their investment (operations phase)?

 

[Yeggy]

Perhaps, I’d be curious as to why though. They got through the hardest part of the contract (construction) just to leave during the part where they recoup their investment (operations phase)?

years ago someone who was with Transed, or familiar with the financials, posted on this forum that any possibility of making money was pretty much dead.

Im listening to a news cast rn. The city line is they needed one operator which makes me wonder if Transed didnt want to operate the west line.

 

[EdwardEdm]

No it would be confidential as it would be damaging to both the city and transed for other parties to know their bidding prices on certain things.
Hopefully a figure will get floated eventually. I see lots of people saying that the city wouldn’t pay out the contract but they are legally required to unless transed got some sort of clawback.

I think this is a big thing. The construction was one thing, but the operations have gone well, and that's based upon the bond rating agency DBRS Morningstar's take on it. Yeah, there were some shortfalls this winter with winter maintenance, but I already see TransEd taking corrective action already (more equipment on hand at the Gerry Wright OMF) for next year. I really want to know what the details are and how much this is costing Edmonton.

 

[Star Strider]

Perhaps, I’d be curious as to why though. They got through the hardest part of the contract (construction) just to leave during the part where they recoup their investment (operations phase)?

Its not a great vote of confidence on the full project, that's for sure..

I wonder how much all the collisions on the SE leg have cost them?

West leg, with the DT section must have at least twice as many road crossings. Tripling the collision risk or worse may well have gotten them looking for an exit.

 

[Yeggy]

Lets read between the lines.

The CoE keeps talking about needing a single operator. So…. it would seem that either TransEd didnt want to operate the send leg OR the bid from Trans Ed was a poison pill.

This whole p3 model was pushed by PM Harper. In my mind it never made sense.

 

[_urbanite]

So how much is ending this contract with TransEd going to cost us? That part was conveniently left out of the news articles about this.

 

[TAS]

So how much is ending this contract with TransEd going to cost us? That part was conveniently left out of the news articles about this.

On global news broadcast I believe the city said they will recover the costs of ending this contract in 2 years as a result of the operational savings of taking this over.

 

[Yeggy]

So how much is ending this contract with TransEd going to cost us? That part was conveniently left out of the news articles about this.

The major cost is debt repayment, but that debt is already on our books.

I was surprised to learn we pay transed the operational fee, then they just turn around and pay the city right back for the debt servicing. It seems a bit odd.

 

[The_Cat]

 

[northlands]

I was surprised to learn we pay transed the operational fee, then they just turn around and pay the city right back for the debt servicing. It seems a bit odd.

Interesting, where did you hear that? I wonder if the City provided TransEd a loan at a lowered borrowing cost than their private financing to help TransEd remain solvent through their extended construction phase and effects of COVID. Otherwise that's entirely at odds with how a DBFOM P3 delivery model functions, where the idea is the P3 consortium self-finances whatever wasn't paid upfront/upon operational phase.

Overall, if the cost recovery window is <2 years, TransEd must have been fully ready to pull the pin. My napkin math shows they're paid basically peanuts for O&M per month. $600m/30 years works out to only $54k/day. Really not sure how you could staff, operate and maintain the SE line for that currently, and certainly not in another 10, 15 years. Net present value was probably in bright red.