Energy Services Acquisition Program’s Energy Service Modernization

Rank 2020

22

Industry Sector: Buildings

Range $2.95 billion

Specific Sector: Public Spaces

Project Value: $2,950,000,000

Government Funds Involved: P3

Funding Source: P3

Location Select

Estimated End Date of Substantial Completion: 2025

Public Works and Government Services Canada (PWGSC) is repsonsible for heating and cooling services for 80 and 67 buildings respectively within the National Capital Region (NCR). The Energy Services Acquisition Program was established in 2009 to “explore new business models for the provision of energy services in the NCR.”

The modernization project looks for an energy services solution for PWGSC’s five Central Heating and Cooling Plants (CHCP) and their associated distribution networks within the four National Capital region service areas, three of which are in Ottawa and one in Gatineau. The five CHCP’s service 79 total buildings.

In March of 2018, Innovate Energy and Rideau Energy Partners were named as the two proponents that will bid on the project. Once their proposals are submitted, Public Services and Procurement Canada will consider elements that extend beyond cost. For instance, the firms will have the opportunity to demonstrate that their technologies can reduce greenhouse gas emissions beyond targets set by Canada. They will also have to provide innovative design features for the Cliff Heating and Cooling Plant, which is located along the Ottawa River and bordered by parliamentary buildings.

Innovate Energy was announced as the successful proponent in June. The contract includes a $1.1 billion investment for the design and construction of the new system, to be completed by 2025, and an additional $1.6 billion will cover the cost of operation and maintenance of the system through to 2055.

Project Owner: Government of Canada

P3 Team Members/Project Team: Black & McDonald( Black & McDonald Capital Limited); ENGIE Services; PCL(PCL Constructors Canada Inc.,PCL Investments Canada Inc.); WSP(WSP Canada Inc).

Other Key Players: EY; Aon

Legal: Norton Rose Fulbright (advisor to project owner)

Financing Detail: $1.1 billion will be spent on system installation (to be completed by 2025), with $1.5 billion to be spent on maintenance through to 2055.

2019 Rank: 22

2018 Rank: 45