Aecon Group Inc (Aecon) is an industry leader in the development and construction of infrastructure in Canada.
Read how Aecon has grown their international presence by landing contracts including the development of the new Mariscal Sucre International Airport in Quito and most recently the redevelopment of the L.F. Wade International Airport in Bermuda with the help of CCC.
Founded in 1877 in Hamilton, Ontario and now headquartered in Calgary, Alberta, Aecon Group Inc. (Aecon) provides services to private and public sector clients across its two core segments of Construction and Concessions. For over 150 years, Aecon and its predecessor companies have helped build some of Canada’s most famous infrastructure including the CN Tower, the Vancouver Sky Train, and the Montreal-Trudeau International Airport.
Aecon’s Construction segment includes all aspects of the construction of both public and private infrastructure in the civil, urban transportation, nuclear, utility, and industrial sectors. They operate primarily in Canada but selectively pursue international initiatives through their Concessions segment.
Aecon’s Concessions segment includes the development, financing, design, building, and operation of construction projects. They do this through public-private partnership contract structures, as well as by integrating the services of all project participants and working closely within Aecon’s core segments.
G2G Wins Ecuador Airport
In 2006, Aecon won a US$415 million government to government (G2G) contract with the City of Quito, through CCC, for the development of a new airport. The project included the design, financing, construction and operation of the facility.
The new airport was constructed under a 51-month fixed-price engineer/ procure/ construct contract signed between the City of Quito and the CCC. CCC, in turn, subcontracted the construction work to a 50/50 joint venture consisting of Aecon and Andrade Gutierrez Constructores, one of the largest construction companies South America. Aecon acted as the Managing Partner of the construction joint venture.
In addition to its approximately US$33 million equity investment, Aecon guaranteed approximately US$30 million of contingent equity. Aecon was expected to use cash profits from construction-related activities towards financing Aecon’s equity investment in the Quito Airport concession.
The airport features include a 4,100m runway, 409,028 ft² passenger terminal building and 365,972 ft² of ancillary buildings, with a world-class control tower, cargo hangar and related aviation facilities.
Scope of work also included an integrated communications network with embedded VoIP, control centres, CCTV surveillance and access control, as well as building automation and ERP systems, electrical and lighting, HVAC, Air Traffic Control (ATC) and sophisticated navigation equipment.
Upon completion, the Quito International Airport won multiple industry awards including being named the “Leading Airport in South America” in 2014 by World Travel Awards with Aecon receiving the International Business Award by the Canadian Construction Association for its role in achieving completion of the airport.
Over the years, the airport has won several other awards including Best Regional Airport in South America by Skytrax World Airport Awards, World Specialty Freight Airport and Leading Cargo Airport in Latin America by Air Cargo Excellence Awards and Best Airport in the World (in the less than 2 million passenger category) by Skytrax World Airport Awards.
This project was a symbol of progress for Ecuador and its successful completion allowed the airport to reach its goal in becoming an engine of economic growth for the country.
G2G wins Bermuda Airport
Following the successful completion of an award-winning airport in Quito, Ecuador, Aecon signed a $274 million contract for the reconstruction of the L.F. Wade International Airport facilitated through CCC’s government to government (G2G) contracting program.
Through the unique combination of a G2G procurement framework and a P3 (public-private partnership) commercial model, Aecon was able to take on the building of the new terminal and the necessary financing for its construction. Skyport, a special purpose company was set up to manage the airport’s operations for the 30-year concession period.
The project broke ground in April 2017 and construction happened over a 40-month period. The new build took place away from the existing terminal to allow the airport to continue regular operations uninterrupted during the construction process.
Aecon focused on maximizing the use of local Bermudian labour and sub-contractors during construction which allowed the project to act as a boost to the local economy and helped provide employment for Bermudians. Once construction was completed, Aecon continued its commitment to local employment as it staffed Skyport team for the 30 year concession period.
A World-class Travel Experience
The new terminal features a 5,700ft² pre-security concession area, 16,940ft² of US departures space, 1,080ft² of arrivals duty-free area, and 20,850ft² of international departures space – all designed to enhance the passenger processing capacity while meeting modern safety standards.
Six immigration e-gates and six screening lanes contribute to efficient processing, while enclosed passenger boarding bridges improves accessibility for mobility-challenged travellers. Seventeen automated kiosks and 31 check-in counters provide additional convenience and a modern travel experience.
The project was successfully completed in 2020 with Aecon having incorporated state-of-the-art technologies into the design to ensure hurricane resistance and to maximize employee and traveller health and safety.
Aecon’s L.F. Wade International Airport was recognised with the IJGlobal Magazine Award for the ‘2017 North America Airport Deal of the Year’.
Financing the L.F. Wade International Airport
Financing for the project was arranged by Aecon, and includes a US$285 million fixed coupon US private placement, amortized over a 25-year term, and approximately US$70 million of shareholder equity contributed in the latter part of construction. Advisors to Aecon on the project included UBS Investment Bank as financial advisor, McCarthy Tétrault as legal advisor and Mott MacDonald as the project’s technical and traffic advisor.
Source: Aecon Group Inc.
Other Aecon Successes
Having contributed to building Canada for over 150 years, Aecon has been steadily expanding into the international market. Their international initiatives focus on Public-Private Partnerships and infrastructure concessions; from development – through project-realization phases – to delivered assets and operations. Over the years, Aecon’s activity internationally has spanned continents. Some of their most notable projects include:
Canada’s Bilateral Relationship with Ecuador
Canada and Ecuador have maintained official bilateral diplomatic relations since 1960. They are governed by shared values, including a commitment to prosperity, democracy, human rights, and an international rules-based system, as well as a vibrant exchange in education.
The countries have a rapidly growing trade and investment relationship, with Canada now being the largest foreign investor in Ecuador, due largely to responsible investments in the mining sector.
Total Trade in 2021
Canadian Exports to Ecuador in 2021
Canadian Imports from Ecuador in 2021
In a recent discussion between Ecuador’s Minister of Production, Foreign Trade, Investments and Fisheries, and the Hon. Minister Ng, Canada’s trade minister highlighted the opportunities and potential for Canadian companies to do business in Ecuador. She emphasized the Canada’s commitment to deepening bilateral commercial ties and contribute to post-pandemic economic recovery for both countries.
Canada’s Bilateral Relationship with Bermuda
Canada and Bermuda have been partners in commerce, education, and tourism for centuries.
Canada in an active collaborator in areas such as climate and economic resilience, emergency response, technical assistance, economic growth, security cooperation, human rights, education, and health.
Canada also has long-standing commercial relationships and important two-way merchandise trade with Bermuda. Canadian companies are active in various sectors including financial services, natural resources and energy, clean technology, tourism, and education.
Total Trade in 2021
Canadian Exports to Bermuda in 2021
Canadian Imports from Bermuda in 2021
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The Canadian Commercial Corporation is a federal crown corporation and is only the Canadian agency that offers commercial advocacy, collaborative project development, and international contracting expertise to help Canadian businesses secure contracts with foreign governments at the national, state, and municipal level.
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Last updated: August 2022