Infrastructure

Overview

The Lavery Infrastructure team consists of a group of professionals who cover all legal angles of infrastructure projects, with unparallelled reach and depth across Quebec.

The Lavery Infrastructure team stands out, taking a collaborative approach anchored in efficient risk management, which provides clients with tangible results. We provide clients with practical solutions adapted to their needs, which include adherence to deadlines, budgets, and functional, technical and practical requirements for each project.

Our team is comprised of seasoned professionals working in all relevant aspects of infrastructure projects. Our professionals are renowned for their expertise in areas such as project management, equity or debt financing, construction law and surety-bonds, municipal law, real estate law, tax matters, environmental law or government affairs.

The Lavery Infrastructure team is supported by specialty service teams composed of lawyers with expertise in transportation law, health care, access to information, governance and ethics, natural resources (mining law, energy, LNG, electricity, etc.) as well as Aboriginal law.

Our lawyers are featured in various benchmarking publications and guides such as Lexpert, Best Lawyers and Chambers, as leaders in their respective fields.

Services

In recent projects, we advised our clients, in collaboration with their partners and all stakeholders, in a range of matters, including:

  • Approaches to project contracting
  • Governance
  • Regulation and compliance
  • Risk management
  • Legal and tax structures
  • Calls for tender
  • Real estate, environment and insurance
  • Municipal and Aboriginal issues
  • Financing and surety-bonds
  • Operations management
  • Dispute settlement

Main mandates

Lavery Infrastructure contributes actively to the development and application of the public-private partnership model used in over 100 existing projects, under procurement or currently in construction in Canada, and was recognized in the prestigious 2016 Lexpert/Report on Business Special Edition – Infrastructure.

Projects Implementation

  • Partnerships related to the construction of airports, hydroelectric power plants and sport centers
  • Calls for tenders and E.P.C.M contracts for the construction of a 450 km pipeline linking Jonquières to Sept-Îles: Gaz Métro

Investments/Financing

  • Structuring, creation and financing of infrastructure and energy private equity funds, notably those established and managed by Axium Infrastructure Inc. (formerly Fiera Axium Infrastructure Inc.)
  • Energy Saguenay (liquefied natural gas)
  • Various acquisitions of wind farms and equity stakes in wind power projects and biomass fuel projects
  • Setting up of bonding instruments for PPP projects

Construction

  • Expansion of the Alouette Aluminum Smelter
  • Expansion of Gaz Métro's LSR plant: negotiation of the Engineering, Procurement and Construction contract with the contractors
  • Revision of an Engineering, Procurement and Construction contract for the construction of a liquefied natural gas reservoir
  • Construction of airports, hydroelectric power plants and sport arenas and stadiums

Transportation

  • Acquisition of infrastructures for the implementation of a rapid transit system in Gatineau
  • Acquisition and sale of railway lines and other railway infrastructure

Health Infrastructure

  • CHUM and CRCHUM: call for proposals, drafting and negotiation of partnership agreements

Mining Infrastructure

  • Extension of route 167 as part of Stornoway's Renard Diamond Project
  • Negotiation related to commercial and industrial rail connections
  1. Transportation infrastructure: A pillar of economic recovery

    Like many other governments, the Government of Quebec decided to invest in infrastructure to help mitigate the impact of the COVID-19 pandemic and stimulate Quebec’s economy. A significant number of investments will be made in the transportation sector, and the government wants to accelerate the realisation of several previously announced transportation infrastructure projects in the greater Montréal area. This focus on construction as a way of speeding up the recovery from the crisis arises in a context where construction contractors’ and professionals’ interest in public contracts has fallen sharply. According to a recent study conducted by three Raymond Chabot Grant Thornton professionals1, mandated by six major players in the Quebec construction industry, this lack of interest in public contracts can be explained by a number of factors: poorly structured payment terms, unappealing contract clauses, issues related to the tender process, cumbersome contract management, and, as far as construction professionals are concerned, hourly rate ceilings set out in existing government regulations. The Quebec government is acutely aware of this decline in interest for public contracts and tabled an action plan for the construction industry in late March 2021 to address it. Four categories of measures are included in this action plan. First, the government has reiterated its desire to accelerate the realisation of a number of projects already included in the Québec Infrastructure Plan and to implement this plan more effectively. The Act respecting the acceleration of certain infrastructure projects introduced in June 2020 and adopted in December 2020, even before the action plan was tabled was a concrete example of the government’s intent. The other two categories of measures in the action plan aim to implement solutions to reduce the current labour shortages and to increase productivity in the construction industry. The Act respecting the acceleration of certain infrastructure projects covers approximately 180 projects, most of which are in the transportation, education and health and social services sectors. It focuses, in particular, on a number of transportation infrastructure projects in the greater Montréal area, such as the projects that will  link the east, northeast and southwest of Montréal to the city’s downtown area by way of an electric public transit system (including the REM de l’Est and the first phase of the pink metro line), to improve access to the Port of Montréal, to rebuild the Île aux Tourtes Bridge, to build the Longueuil tramway, to extend the REM to Laval and to implement an express bus service in Laval. The Act focuses onfour main areas. First, if expropriation required to carry out a particular project, its procedure has been simplified. Second, in connection with compliance with environmental legislation provisions, the requirement of a certificate of authorization will waived for certain projects; for others, the BAPE project assessment procedure has been simplified. An expedited process to authorize the use of governmental property is provided for projects where such use is necessary. Lastly, city or municipal authorizations have been simplified for projects that require such an authorization. Extraordinary measures were required to deal with the unique situation caused by the COVID-19 pandemic. We applaud the Quebec government’s efforts to address the impacts of this pandemic. The chosen approach, however, is not without risks. Some critics have warned the government about the risks of possible collusion between tenderers, as collusion is thought to be more likely to occur in a context where projects are being accelerated. To mitigate this risk, the Actconfers on the Autorité des marchés publics more oversight functions, and in clear cases of collusion, the power to suspend the performance of contracts. Concerns have also been raised as to the quality of the constructed works, thereby underscoring the importance of maintaining and not ditching adequate public consultations. Finally, the Act addresses the issue of delays in payments by the government that was not only raised in the Raymond Chabot Grant Thornton report, but also during public consultations preceding the adoption of the Act. The Act extends the existing pilot project to facilitate payment to enterprises applicable to all projects covered by the Act. Hopefully, the Act respecting the acceleration of certain infrastructure projects, paired with the other measures announced in the government’s action plan for the construction industry, will make infrastructure a key component of Quebec’s economic recovery, as we finally start to see the end of the COVID-19 pandemic. A short version of this publication was published as an open letter in La Presse. Click here to read it. Plante, Nicolas, Jean-Philippe Brosseau and Marie-Pier Bernard, Consultation visant à évaluer le niveau d'intérêt des entrepreneurs et des professionnels envers les marchés publics [French Only], Montréal, Raymond Chabot Grant Thornton, April 2021, 85 p. (see in particular pages 17 to 34).

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  2. Bill 37: What changes can be expected for Public Contracts?

    On September 18, 2019, the Minister Responsible for Government Administration and Chair of the Conseil du trésor introduced Bill 37, An Act mainly to establish the Centre d’acquisitions gouvernementales et Infrastructures technologiques Québec1 As its name suggests, this bill is intended to implement the restructuring of government procurement announced in the 2019–2020 budget2. If the bill is passed, the Centre de services partagés du Québec (CSPQ), as well as some other procurement organizations, will be replaced by two bodies: the Centre d’acquisitions gouvernementales will be the organization responsible for meeting the government’s general procurement needs, and Infrastructures technologiques Québec will handle its digital procurement. In 2017–2018, information technology contracts accounted for 17% of public body contracts3. Some administrative functions of the CSPQ would also be transferred to the Agence du revenu du Québec and the Conseil du trésor. Bill 37 also makes a number of amendments to the Act respecting contracting by public bodies, CQLR c. C-65.1, and its regulations, two of which are noteworthy. It is planned that, as of April 1, 2020, information relating to contracts involving an expenditure of more than $10,000, whether reached by mutual agreement or following a call for tenders, will have to be published in the electronic tendering system. The current limit is $25,0004. The bill also provides that, as of the date its assent (currently scheduled for the end of 2019), the imposition of a penalty for a final reassessment under the general anti-avoidance rule regarding an abusive tax avoidance transaction5 on the part of a company or related person will be recorded in the Register of Enterprises Ineligible for Public Contracts for five years. Such penalties will also be considered by the Autorité des marchés publics in its decision to authorize a contract with a public body. A 60-day transitional period is provided for in Bill 37, during which a taxpayer may make a late preventive disclosure to the Minister of Revenue6 by filing the form Mandatory or preventive disclosure of tax planning (TP-1079.DI-V). However, this type of disclosure will not be accepted if an audit by the Agence du revenu du Québec or the Canada Revenue Agency is already ongoing with respect to such a transaction. This measure is part of the current fight against aggressive tax planning7.   Quebec (National Assembly), Bill 37, An Act mainly to establish the Centre d’acquisitionsgouvernementales and Infrastructures technologiques Québec, 42nd Legislature, 1st Session. Quebec (Conseil du trésor), 2019–2020 Budget Plan (Quebec, Off. Publ., March 2019), p. H.61. Québec (Conseil du trésor), Statistiques sur les contrats des organismes publics 2017–2018 (Québec, Direction de la reddition de comptes et du soutien à l’encadrement des contrats publics, March 2019), p. 1. Sections 22 and 23 of the Act respecting contracting by public bodies, CQLR c. C-65.1; sections 39 and 39.2 of the Regulation respecting supply contracts of public bodies, CQLR c. C-65.1, r. 2; sections 52 and 52.2 of the Regulation respecting service contracts of public bodies, CQLR c. C-65.1, r. 4; sections 42 and 42.2 of the Regulation respecting construction contracts of public bodies, CQLR c. C-65.1, r. 5; sections 73 and 75 of the Regulation respecting contracting by public bodies in the field of information technologies, CQLR c. C-65.1, r. 5.1. Sections 1079.13.1 and 1079.13.2 of the Taxation Act, CQLR c. I-3. Section 1079.8.7.1 of the Taxation Act, CQLR c. I-3. See, in particular, Quebec (Conseil du trésor), 2019–2020 Budget Plan (Quebec, Off. Publ., March 2019), p. D.81.

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  3. Infrastructure Insider: What essential news and transactions occurred in the infrastructure market?

    To download the Infrastructure Insider To download the Infrastructure Insider 1. Setting up the Autorité des marchés publics — Practical consequences on the call for tenders process in Quebec The Autorité des marchés financiers is now replaced by the AMP for the authorization to contract with a public body. This new body, which is responsible for overseeing all public contracts, also has the power to audit, investigate, order and recommend.   2. The latest news in the infrastructure market Among the highlights from the last few months: The production of more than 2.305 GW of renewable energy, confirmed in new contracts 3 major transportation projects are progressing rapidly in North America The Olympic Stadium Roof Rehabilitation Project is moving forward The PPP model is considered for the implementation of 2 new transportation projects A major bank ceases to finance coal, oil and gas energy projects To download the Infrastructure Insider

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  4. Latest developments in the Canadian infrastructure market

    The Canadian infrastructure market has had a busy few weeks! The industry's latest news, from new funding policies to major transport and energy projects, is identified in this edition of the Infrastructure Insider. 1. The latest developments in the Canadian infrastructure market New developers admitted to SaskPower’s 200 MW wind energy call for tenders Colas acquires Miller McAsphalt Corporation DONG Energy forms a partnership for the British Columbia offshore wind project SNC-Lavalin invests in the Carlyle Global Infrastructure Fund InstarAGF acquires Skyservice Northland Power refinances a portfolio of solar projects in Ontario A hyperloop link contemplated between Montréal and Toronto ... and many more Click here for all the latest developments 2. Hyperloop: Hypercool? Or Hyperflop? A system like this installed between Los Angeles and San Francisco would make it possible to connect the two cities in less than 30 minutes, faster than a plane that travels the same distance in 35 minutes at a speed of 885 km/h. Eventually, this mode of transport could connect multiple countries, even the world, by connecting the biggest cities like a kind of subway, but on a global scale. Read the full article here 3. Renewable energy: an update on market trends For several years now, renewable energy can no longer be considered as developing technology, but rather as a mature industry, competitive with fossil fuels, subject to economic cycles and consolidation movements, which is gradually moving away from the backing of public authorities. Discover the industry’s main trends

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  1. Lavery involved in the construction of the new Île-aux-Tourtes bridge

    Following a qualification process, the Ministère des Transports et de la Mobilité durable du Québec (MTMD) issued a call for tenders in 2022 for the construction of the new Île-aux-Tourtes bridge pursuant to the project delivery method known as design-build-finance (DBF). Since this was a DBF, the financing of this project had to be included in the proposals made by the selected candidates. Lavery represented the successful consortium made up of Dragados Canada Inc., Roxboro Excavation Inc. and Construction Demathieu & Bard Inc. Our role required expertise in the following areas: (a)   Governance and corporate law  (b)  Project financing (banking and securities)  (c)   Public procurement (d)  Construction law (e)   Commercial agreements (f)    Taxation  Lavery represented the consortium from the call for proposals to the financial close, including the drafting phase leading up to the awarding of the contract to the consortium. The financing was the most complex part of this transaction. Under the hybrid approach retained for that project, a major credit facility to be granted by a bank syndicate had to be set up, as well the private placement of two tranches of bonds. This involved adjusting the rights and obligations of creditors on both sides within a sophisticated intercreditor agreement. The financing also required parent company guarantees, including from French and Spanish corporations, which required us to find common ground to accommodate the typical requirements of a North American financing and the specific corporate and commercial features applicable in France and Spain. To meet this challenge, we put together a multidisciplinary team, divided up the work in accordance with our professionals’ diverse expertises, and dedicated a team member exclusively to interactions with the MTMD, its lawyers and the issuers of performance bonds typical for this kind of projects. Sound project management practices were essential to the success of this team effort. It is a privilege for Lavery to have participated in this essential project allowing the people of Quebec to obtain a new bridge linking the regions of Montérégie and Montréal. The Lavery team was led by Josianne Beaudry, Nicolas Gagnon, Édith Jacques, David Tournier and André Vautour, and included Véronik Bonneville-Pesant, Katerina Kostopoulos, Jean-François Maurice, Joseph Gualdieri, Siddhartha Borissov-Beausoleil, Alexandre Turcotte, Luc Pariseau, Charles Hugo Gagné, Mickaël Pageau, Jean-Vincent Prévost-Bérubé and Yohann Lévy.

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  2. Infrastructure projects: Lexpert Recognizes Four Partners as Leading Lawyers in Canada

    On August 5, 2021, Lexpert recognized the expertise of four of our partners in its 2021 Lexpert Special Edition: Infrustructure. The partners, Jean-Sébastien Desroches, Nicolas Gagnon, Éric Thibaudeau and André Vautour now rank among Canada’s leaders in the area of infrastructure law. Jean-Sébastien Desroches practices business law and focuses primarily on mergers and acquisitions, infrastructure and project development as well as strategic partnerships. He frequently steers major transactions—complex legal operations, cross-border transactions, reorganizations, and investments—in Canada and at an international level on behalf of Canadian, American, and European clients and international corporations in the manufacturing, transportation, pharmaceutical, financial, and energy sectors. Nicolas Gagnon specializes in construction law and surety law. He counsels public and private sector clients, professional services firms and contractors as well as surety companies at every stage of construction projects. He advises clients with respect to the public bidding and procurement process, and is involved in the drafting of contract documents and the management of the work and any claims resulting therefrom. Éric Thibaudeau is a member of the Labour and Employment Group. He has special expertise in the area of occupational health and safety, regarding issues within the jurisdiction of the Administrative Labour Tribunal (ALT) as well as penal infractions prosecuted by the CNESST that are heard in the Court of Québec’s Criminal and Penal Division. He also acts for employers in grievance arbitrations, labour-relations matters and collective agreement decrees. In addition, he advises construction contractors and project owners on all matters within the jurisdiction of the construction industry regulatory authorities, such as the Commission de la construction du Québec and the Régie du bâtiment du Québec. André Vautour practises in the fields of corporate and commercial law and is particularly interested in corporate governance, strategic alliances, joint ventures, investment funds and mergers and acquisitions of private corporations. He frequently advises various clients on major infrastructure construction projects. He practises in the field of technology law (drafting technology development and transfer agreements, licensing agreements, distribution agreements, outsourcing agreements, and e-commerce agreements).

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  3. Lavery ranked in Canada's Top 10 Infrastructure Firms

    According to the Inframation Deals’ quarterly report (global infrastructure transaction database), Lavery ranked 10th in terms of the value of transactions. This internationally renowned database regularly publishes reports that position the various players involved in infrastructure transactions. This year, Lavery is the only Quebec law firm to be included in this national report. Click here for more information on Inframation Group.

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