Aecon awarded $279 million contract to extend TTC subway

- - Edges out four other bidders on landmark project that includes construction
of an integrated TTC / GO Transit station - -

TORONTO, Nov. 19 /CNW/ - Aecon Group Inc. (TSX:ARE) announced today that a group led by Aecon has been awarded a $279 million contract by the Toronto Transit Commission (TTC) to complete the first leg of the Toronto-York Spadina Subway Extension. 

Under the contract, the Aecon team will extend the TTC's Spadina subway line from the existing Downsview station to the new Sheppard West station and on to the new Finch West station. 

The contract includes construction of the new Sheppard West station, an integrated subway / GO Transit rail station to be located southeast of Sheppard Avenue and Bakersfield Street, at the north end of Downsview Park.  The three-level station, to be constructed by Aecon Buildings, will be approximately 110,000 square feet and is intended to provide access for existing and future facilities and developments in the Keele Industrial Area located to the north of Sheppard Avenue, as well as to Downsview Park.   

Within this contract, a joint venture consisting of McNally Construction, Kiewit Construction, and Aecon Constructors will construct the 2.6 kilometers of twin tunnel subway track from the north end of Downsview Station, through the new Sheppard West station, to the new Finch West station. The twin tunnels will cross underneath Allen Road, several commercial/industrial properties and Sheppard Avenue West.

Work on the project is scheduled to commence in December 2010, with an estimated completion date of April 2014.

"This award is an excellent illustration of the strategy and benefits of bringing Aecon Buildings into the Infrastructure group," said Teri McKibbon, CEO of Aecon's Infrastructure group. "Working together with our partners at McNally and Kiewit, this project will be planned and executed by a strong team including Aecon Buildings and Aecon Constructors personnel. We fully expect this to be the first of many such opportunities across Canada for the Aecon Infrastructure / Aecon Buildings team."

Aecon Group Inc. is Canada's largest publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally. Aecon is pleased to be recognized as one of the Best Employers in Canada as published by Maclean's Magazine.

The information in this press release includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties.  In addition to general global events outside Aecon's control, there are factors which could cause actual results, performance or achievements to vary from those expressed or inferred herein including risks associated with an investment in the common shares of Aecon and the risks related to Aecon's business, including Large Project Risk and Contractual Factors. Risk factors are discussed in greater detail in the section on "Risk Factors" in the Final Short Form Prospectus filed on October 1, 2010 and available at www.sedar.com.  Forward-looking statements include information concerning possible or assumed future results of operations or financial position of Aecon, as well as statements preceded by, followed by, or that include the words "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or similar expressions.  Important factors, in addition to those discussed in this document, could affect the future results of Aecon and could cause those results to differ materially from those expressed in any forward-looking statements.

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