It is going to cost $5-7-billion to build the Gordie Howe International Bridge, and it will open to traffic by the end of 2024.
That announcement was made Friday morning by the Windsor-Detroit Bridge Authority as part of its fixed-price contract with Bridging North America.
The cost includes the design-build phase and the operation, maintenance and rehabilitation phase of the bridge and its ports of entry on both sides of the border for 30 years.
The Bridge Authority says the project is anticipated to create 2,500 direct, on-site jobs, including direct hires, sub-contractors and seconded individuals.
Officials say the announcement signifies that all contractual steps have been completed and construction can begin.
"This is tremendous value considering the 125-year life span of the infrastructure, and economic opportunity this crossing will provide to Canada and the United States," says WDBA chair Dwight Duncan.
"We made a commitment to deliver the Gordie Howe International Bridge project and today is the start of a new chapter for Windsor and Detroit, as well as Canada and the U.S.," adds Duncan. "This vital corridor will enhance trade opportunities with tremendous growth possibilities on both sides of the river."
Bridging North America will receive progress payments during construction and a substantial completion payment at the end of construction. It will also receive monthly payments over the 30-year operating period.
WDBA officials say the performance-based contract is structured to ensure that the contractor has the appropriate incentives to meet or exceed the long-term objectives of safety, reliability and capacity WDBA has set for the project.
Bridging North America has presented a 74-month construction schedule to complete the four components of the project with the bridge expected to be in service by the end of 2024.
"The Gordie Howe International Bridge will be a stunning addition to Windsor and Detroit's shared skyline," says Bryce Phillips, CEO of the WDBA.
Bridging North America has been meeting with local companies, organizations and unions to discuss opportunities for partnerships. Representatives have also met with educational institutions to develop the next generation of skilled trade workers.
In addition to the contract value announced Friday, the government of Canada has invested $559 million from 2006 until March 31, 2018 to get the project to this milestone where the project can begin.
"2018 has been a year of significant milestones for the Gordie Howe International Bridge," says Minister of Infrastructure and Communities Francois-Philippe Champagne. "While each one so far for this project has been progressively important, today's announcement is pivotal to the construction start of the bridge."
The bridge authority says the cost would have been more than $6.2 billion if the Canadian government had decided not to partner with a private-sector consortium and to foot the entire bill itself.
The Canadian government expects to pay for the bridge by collecting tolls. It agreed years ago to take on the cost of the project in order to bypass Congress, which had refused to sign off on American funding.
Advance construction activities have already begun on the Michigan side. It includes design work to advance foundation construction of the main bridge, test piles and the start of siphon work at I-75 and geotechnical exploration.
Bridging North America's plan for the bridge calls for a six-lane, 2.5-kilometre cable-stayed design, which is touted as the longest cable-stayed bridge in North America.
The American-based owner of the Ambassador Bridge, Manuel "Matty" Moroun, has fought construction of the new bridge, even launching court challenges to have it stopped.
Almost one-quarter of all goods traded between Canada and the United States passes through the Detroit-Windsor corridor.