SNC-Lavalin named preferred bidder for B.C. transit line

MONTREAL -- SNC-Lavalin received renewed signs of confidence in its operations Thursday after being selected as the preferred bidder for a $1.4-billion B.C. transit project and winning a potash feasibility project in New Mexico.

A consortium headed by the Montreal-based engineering and construction giant has been tabbed by the B.C. government to design and build the Evergreen Line Rapid Transit project.

The project, which will integrate into the existing SkyTrain system, will link the cities of Burnaby, Port Moody and Coquitlam with an 11-kilometre light rapid transit line.

SNC-Lavalin's partners include several businesses, including Graham Building Services, MMM Group Ltd., International Bridge Technologies Inc. and Jacobs Associates Canada Corp.

The B.C. government is contributing $583-million and will also oversee construction of the project. The federal government will provide up to $417-million. TransLink will contribute $400-million and operate the line when it is complete.

Construction of the line, which is to begin in late fall, is expected to create 8,000 direct and indirect jobs.

SNC-Lavalin has experience building B.C.'s transit network after heading up construction of the Canada Line rapid transit system that links downtown Vancouver with Vancouver International Airport in Richmond.

The SNC partnership bid against two other joint ventures: A. EL Partners which includes Bombardier Transportation and Genivar; and Kiewit/Flatiron Evergreen Line.

Earlier Thursday, IC Potash Corp. awarded SNC-Lavalin a contract to develop key sections of a feasibility study for its Ochoa Sulphate of Potash project in New Mexico. No value was provided for the work that is under way and is expected to be completed next August.

SNC's new CEO Robert Card started on the job this week amid reports that about $22.5-million of the $56-million in questionable payments to undisclosed foreign agents was used to win the Montreal super hospital project. Former CEO Pierre Duhaime stepped down in March amid the controversy over the payments, which breached the company's code of ethics.

SNC (SNC)

Close: $38.25, up 56¢