Province signs $580-million Route 1 highway agreement

The provincial government has signed a $580-million public-private partnership with Dexter Developer General Partnership that will see the Mackay Highway expanded to six lanes, and construction of the final 55 kilometres of four-lane highway on Route 1 from Waweig to St. George and between Pennfield and Lepreau.

Premier Shawn Graham and Transportation Minister Denis Landry made the announcement today during the signing ceremony for the Route 1 Gateway Project. They were joined by business and community leaders from across Southern New Brunswick.

Transfield Dexter Gateway Services Ltd. will be responsible for the operation, maintenance and repair of 235 km of highway between St. Stephen and River Glade, excluding the Saint John Harbour Bridge, until 2040. Once construction is complete, the provincial government will pay an annual fee of $19.8 million, adjusted for inflation, to the company.

"The Saint John-St. Stephen section of Route 1 is a key component of the Atlantic Gateway and essential for the safe and efficient movement of people and goods between Atlantic Canada and New England," said Graham. "As was committed to in our Charter for Change, this government promised to complete Route 1 as a four-lane highway. We have taken a further step by making major enhancements to the traffic flow between Rothesay and Saint John, as well as other improvements along the existing Route 1 highway."

Graham highlighted the construction schedule that will see all work completed by July 2013.

• Dexter Developer General Partnership has already started pre-construction and design activities.
• Construction at culvert installations and many bridge structures will begin in early summer.
• Reconfiguration of the Route 1/Route 7 Interchange will begin this fall.
• Widening of the MacKay Highway will begin in June 2011.

The Route 1 Gateway Project also includes major upgrades at the Digdeguash River, Magaguadavic River, Letang River, Pocologan River, New River and Lepreau River crossings along with the installation of new guardrails on a number of bridges and overpasses along the Route 1 corridor.

The Dexter Developer General Partnership is assuming the risks of delivering the highway by July 31, 2013 for the set price and for operating, maintaining and repairing it for the contracted period.

"The Route 1 Gateway is an important infrastructure project for the province and Atlantic Canada," said Eric Desbiens, senior vice president, Municipal Group of Companies and Dexter. "At Dexter, we build, maintain and operate safe roads that provide for reliable travelling for the motoring public. We are pleased to be part of this exciting project."

The Route 1 Gateway Project is jointly funded by the governments of New Brunswick and Canada. Further information is online.

To view the government news release click here.