Highway 407 East Phase 1

operational

Opportunity In order to generate economic growth for businesses and communities in Durham Region and to increase the efficient flow of goods and people in the Greater Toronto Area, the provincial government decided to build a tolled, eastern extension on Highway 407. The project is being built in two phases using Ontario’s Alternative Financing and Procurement (AFP) model. The RFP for Phase 1 was issued in May 2012. Innovations The Project Agreement transfers significant risk to the private sector including responsibility for cost increases due to design errors and omissions, project management and sub-contractor co-ordination, increases in construction material prices, and project completion delays. The public sector has a built in 30-year guarantee for physical features of the highway as a result of performance-based payments over the life of the Project Agreement. Results Highway 407 East Phase 1 resulted in new lanes totaling approximately 148-lane kilometres (65 kilometres in length) with ten interchanges and 16 road crossings including: A new 10-kilometre, 4-lane north-south highway connecting Highway 407 East to Highway 401 (the West Durham Link); Six lanes from Brock Road to West Durham Link; and Four lanes from the West Durham Link to Harmony Road. Highway 407 East relieves congestion in the region and supports the efficient movement of goods and people throughout the eastern Greater Toronto Area and beyond. The project has provided an alternative emergency/detour route for Durham Region. Highway 407 East is a publicly owned toll road, operated by the province with established customer service standards and set toll rates. The province retains all revenues generated by Highway 407 East.

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