Consortium wins $4.32B Ontario Line tunnelling contract

Key Takeaways:

• Metrolinx has finalized a $4.32-billion Target Price Agreement with Pape North Connect to build the Pape Tunnel and Underground Stations package.
• Delivery will be led by Webuild and FCC Canada, supported by engineering partners Arcadis and AECOM.
• The project covers 3 km of twin tunneling under Pape Avenue, two underground stations (Pape and Cosburn), and underpinning for TTC Line 2 subway connection.
• Delivered via a Progressive Design-Build (PDB) framework to establish target pricing, reduce risks, and minimize disruption across Toronto’s east end.

The Whole Story:

Metrolinx and Infrastructure Ontario have signed a $4.32-billion Target Price Agreement with consortium Pape North Connect to deliver the Pape Tunnel and Underground Stations (PTUS) contract for the Ontario Line. The award follows the completion of a collaborative development phase under a Progressive Design-Build (PDB) delivery model, during which Metrolinx and the consortium refined designs, schedules, early works, and capital cost estimates.

The Pape North Connect team includes construction partners Webuild Civil Work Inc. and Fomento de Construcciones y Contratas (FCC) Canada Ltd., along with design and engineering partners Arcadis Professional Services (Canada) Inc. and AECOM Canada Ltd. The contract represents one of the most complex underground engineering packages for the 15.6-kilometre rapid transit line, which will ultimately connect Exhibition Place and Ontario Place to the Ontario Science Centre.

“The target price refers to a jointly determined estimate of the total capital cost required to deliver the contract,” Metrolinx noted in the announcement.

The Progressive Design-Build model aims to mitigate cost overruns, optimize risk allocation, and improve schedule reliability before full-scale construction begins in a densely populated urban corridor.

The underground package includes major civil, tunneling, and transit integration infrastructure beneath Pape Avenue:

• Twin Tunnels: Construction of 3 kilometres of twin tunnels extending between the Gerrard portal and the Minton portal near the Don Valley Bridge.
• New Underground Stations: Construction of two underground subway stations at Pape and Cosburn.
• Transit Integration: Underpinning and direct interface with the existing TTC Line 2 subway at Pape Station to allow seamless passenger transfers.
• Auxiliary Infrastructure: Building two tunnel portals, three emergency exit/service buildings, and a rail switch/crossover section near Sammon Avenue.

First announced by the Government of Ontario in 2019, the Ontario Line is a 15.6-kilometre, 15-station stand-alone rapid transit line designed to transform transit across Toronto. Running from Exhibition Place and Ontario Place in the southwest, through downtown Toronto, and northeast to the Ontario Science Centre at Eglinton Avenue and Don Mills Road, the $27-billion megaproject serves as a critical relief valve for the city’s overburdened transit system.