Durham Region Courthouse - Ontario, Canada
In 2008, The Province of Ontario procured the design, construction, financing, and long-term operation of a new 440,000 ft², 33-room courthouse. The courthouse, now in operation, is an efficient, effective and centralized court facility that offers significantly enhanced service to the public compared to the system of courthouses previously in operation. Fixed monthly payments are made to the project company over 30 years to pay operating costs, debt service, lifecycle costs, and reasonable return to equity investors.
The project company financed the project with an innovative bond structure that included a facility that gave the government an opportunity to purchase fittings & equipment at a fixed cost from the project company or to purchase from a lower cost provider should one be identified during the construction period.
While with DEPFA Bank, Victoria Taylor was asked to assess the financial structure late in the construction program to determine if elements of the financing could be replaced at more favorable rates. Victoria scrutinized the project contracts and risk allocation, the construction program, operating costs, lifecycle costs, and reserve funding sufficiency. We also performed an intensive review of the financial model, scrutinizing the assumptions within the model and performing stress tests to identify risk areas for the debt providers.
- Type: PPP
- Year Completed: 2010
- contract duration: 2009
- Transaction Size: $240 million
- Team Member: Victoria Taylor
- Role: credit assessment