DLA Piper Canada acted for lenders in $757.1 million Scarborough Subway Extension Advance Tunnel ‎project

On May 25, 2021, Infrastructure Ontario (IO) and Metrolinx awarded a fixed-price contract of $757.1 million to Strabag Inc. to design, build and finance the tunnel for the Scarborough Subway Extension project. DLA Piper Canada acted for the lenders to the successful consortium in relation to the project.

The Scarborough Subway Extension Advance Tunnel project includes tunnelling works for the 7.8-kilometre subway extension, from Kennedy Station to McCowan ‎Road/Sheppard Avenue, the design and construction of launch and extraction shafts, tunnel, as well as headwalls for emergency exit ‎buildings and stations, the supplying of the tunnel boring machine and installing of segmental precast concrete tunnel liners, as well as other activities necessary to build the tunnel.‎ Onsite mobilization and pre-construction work began this spring, with launch shaft construction beginning in June 2021. Major tunnel boring is expected to begin next year.

The DLA Piper Canada projects and infrastructure team advised the senior lenders to the project, National Bank of Canada and Sumitomo Mitsui Banking Corporation who each acted as Mandated Lead Arranger, Joint Book Runner and Hedge Provider. The DLA Piper team was led by Andrew Burton and included Andrew McFarlane, Eric Belli-Bivar, Natasha Rana and Alex Sibley. The Canadian team was supported by the DLA Piper Vienna office, who provided legal opinions and local Austrian legal advice, with a team that included Jasna Zwitter-Tehovnik.

DLA Piper Canada has been at the forefront of the Canadian Infrastructure market since its inception and has ‎closed many of the ground-breaking and market leading projects in this sector. Our ‎practitioners have shaped the market and are now leading the way in creating an international approach to infrastructure procurement and development of documentation and practices.