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Bidder on Howe bridge in midst of Chinese takeover

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A company that’s involved in bidding on the Gordie Howe Bridge has come under scrutiny for its ties to a Chinese conglomerate.

Questions are being raised about whether Aecon, one of the three short-listed consortiums vying to build the new crossing between Windsor and Detroit, should remain as a bidder on the Gordie Howe International Bridge project since it is in the midst of a takeover by a Chinese conglomerate.

The Toronto-based company is one of over a dozen firms which have joined forces to form the consortium Bridging North America in an effort to land the bridge contract from the Canadian government.

The majority control of Aecon was sold last fall to a Chinese firm known as China Communications Construction International Holding Ltd. The Canadian government must approve the takeover, but it has been pending for several months while a review is underway.

Aecon CEO John Beck, right, and Brian Swartz, left, at the company’s annual meeting in Edmonton Tuesday, June 15, 2010.

The deal has been criticized and the possibility Aecon will have to remove itself from its multi-national bidding team on the bridge project has been raised. Local MP Brian Masse (NDP — Windsor-West) in February asked in the House of Commons what Aecon’s takeover would mean for the Howe bridge project.

“You are talking about security issues, completion issues, also jobs and types of materials that might be used on the border crossing,” Masse  said on Monday.

The winning consortium will not only build the Howe bridge project, but will also be responsible for operating the crossing for the next 30 years. It’s that factor which has raised concerns that a Chinese-controlled company would be privy to movement of goods and other confidential security information related to a Canada-U.S. border crossing.

A decision on who will build the bridge — which includes the crossing, plazas and feeder roads in Detroit to link with the I-75 freeway in Detroit — is expected to be made within the next few months by the Windsor-Detroit Bridge Authority.

A final contract with financial terms will then be negotiated and slated to be in place this fall with construction to be launched soon afterwards.

The corporate logo of Aecon Group Inc. is shown. Aecon Group Inc. is extending the deadline to complete its deal to be acquired by a Chinese state-owned business as Ottawa continues its review of the agreement.

There are also concerns about how the U.S. government will react to a Chinese-controlled company being part of the construction and operating team for the Howe bridge. Relations have been tense between the two nations and a tariff war launched in recent weeks has exacerbated the situation.

Bridge authority officials would not say much Monday about Aecon or the consortium — which includes companies such as Fluor Canada, ACS Infrastructure and a handful of others that were involved with the Herb Gray Parkway.

“I won’t speak to speculation regarding a possible change in members in any of the short-listed proponents’ teams,” said Mark Butler, spokesman for the bridge authority.

“I can say that all of the proponents are required to comply with all applicable Canadian and U.S. laws and regulations.”

The bridge authority has “robust integrity provisions” which all the global consortiums are expected to follow during bidding, he said.

“As the Gordie Howe International Bridge project is a bi-national project, both Canada and the United States have input as to whether to do business with a potential contractor,” Butler said.

Messages left with a spokeswoman for Aecon in Toronto were not returned on Monday, but the company issued a statement in February to address what it called “misleading information” about the potential change in ownership.

“Following the close of the proposed transaction with CCCC, Aecon will continue to be led by its Canadian management team and will operate according to the company’s long-held values in full compliance with all applicable laws and regulations in Canada,” said the statement by the company’s CEO John Beck.

dbattagello@postmedia.com


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