As the Gordie Howe International Bridge prepares to open, a fact check reminder that Canada shouldered the full upfront cost of the historic project. After years of legal battles and political resistance on the U.S. side of the border, former Michigan governor, Rick Synder, found a loophole in the fine print of the Michigan Constitution, 1963. “It actually calls out Canada … as an eligible party to do interlocal agreements,” said Synder. “I could sign the agreement … What I couldn’t do was provide the funding.” Synder said the legislature would not approve funding for Michigan’s portion of the bridge. The Canadian government stepped in and offered to finance the bridge with conditions. In June 2012, Canada and Michigan signed the Canada-Michigan Crossing Agreement, which allowed the project to move ahead. The agreement states the bridge will be publicly owned by Canada and Michigan and tolls collected from bridge users will be used to reimburse Canada for the funds it advanced. “As an old real estate guy, this is about one of the best real estates deals you could do,” said Synder. Experts predict it may take 100 years before Michigan’s portion of the bridge is paid back. That might be even longer now that there is a new agreement between the two countries. It states Canada will share 50 per cent of net bridge and crossing-related revenues with the U.S. for the first fifteen years. The deal does not mention interest costs or debt payments related to the bridge, meaning Canada will repay its debt but only after splitting net revenue with the U.S. The Canadian Government then created the Windsor-Detroit Bridge Authority (WDBA), a Crown corporation responsible for delivering and operating the project. The funding structure is a public-private partnership (P3). The private-sector partner, Bridging North America (BNA) is responsible for the design, build, finance, operation and maintenance of the Canadian and U.S. Ports of Entry. Marta Leardi-Anderson was the executive VP of Procurement and Policy for four years and explains the P3 model allows for a fixed price contract. The contract was signed for $5.7 billion Canadian for the construction and 30-year maintenance of the bridge. According to WDBA, utilizing a P3 model saved taxpayers $562.8 million. That is 10.7 per cent compared to delivery of the project using traditional procurement methods. But that cost increased by $700 million due partly to the pandemic. “During the pandemic, there were many restrictions that impacted construction and infrastructure work,” explained Leardi-Anderson. “Post pandemic, there was a huge supply chain crisis where goods were not available, getting goods were greatly delayed. The price of things skyrocketed.” Snyder says he is forever grateful to Canada for financing construction costs. “That was an incredible, goodwill gesture, to create this wonderful asset … providing value to both Ontario and Michigan, Canada and the U.S. for how many decades, likely over 100 years,” he added.
