Detroit River International Crossing (DRIC ) New International Trade Crossing (NITC)

1. Detroit River International Crossing (DRIC) New International Trade Crossing (NITC) Transportation Border Working Group April 24, 2013

2. DRIC / NITC - Project Location -4-

3. DRIC / NITC – General Project Status • Positive momentum gained in 2012 • Signing of Canada-Michigan Crossing Agreement • Creation of Windsor-Detroit Bridge Authority (Canada) • Defeat of Proposal 6 in Michigan • Bridge to Strengthen Trade Act (Canada) • Buy America Waiver issued by Federal Highway Administration • Public and political desire to move quickly towards project implementation • $25 million in Budget 2013 (Canada) to start moving DRIC project into the implementation phase • Sample of key 2013 activities • Further advance property acquisition in Canada and Michigan • Complete design specifications, reference designs, geotechnical engineering • Complete utility relocation design in Windsor (with actual relocation in 2014) • Move species at risk plants in Windsor • Confirm U.S. federal government funding for U.S. Port of Entry “an investment in the future of the North American economy” —Prime Minister Harper

4. Options for Procurement of U.S. Port of Entry • Funding commitment for construction and operating (including staffing) of the U.S. POE is required from U.S. Government before Canada can proceed with RFQ and RFP for the entire project • 2 options for procurement of the U.S. Port of Entry: Procured as part of Canada’s P3 package? Yes Included in Canada’s P3 package No Independently procured by GSA • GSA would work with Canada to determine specifications and funding mechanism (upfront capital or annual lease payments) • Economies of scale • Integrated construction completion schedule • Canada would require cross default agreement to ensure the delivery of the U.S. POE on a timeline consistent with Canada’s P3 package to avoid payment of penalties by Canada to Canada’s P3 concessionaire

5. Timeline • Next two years: complete preliminary design and due diligence; acquire property; relocate utilities • If necessary approvals and appropriations obtained: launch procurement process in mid-late 2014 with P3 financial close in late 2015

6. State of Michigan(Governor) Government of Canada Michigan Strategic Fund Michigan DOT International Authority Windsor-Detroit Bridge Authority Concessionaire Crossing Agreement: Governance Structure

7. Canada-Michigan collaboration • Presidential permit • Michigan applied for permit in June 2012 • Issued by U.S. State Department on April 12, 2013 • Consistent with the Canada-Michigan Crossing Agreement • Operationalizing the Canada-Michigan Crossing Agreement • Several memorandums of understanding (MOUs) may be required (e.g. work to be carried out by Michigan Parties and method of payment; Land acquisition and utility relocation; Consultation with stakeholders in Michigan; Matching funds) • Create International Authority • Appoint members • Develop by-laws • Name arbitrators • Land acquisition in Michigan • Policy issues to be examined • Implementation of mitigation/enhancement commitments included with the January 2009 FHWA Record of Decision; Agreements with first responders (fire, police, ambulance services); Intelligent transportations systems (ITS) and interoperability with Michigan and Ontario.

8. Conclusion • High priority for Michigan Governor Snyder and Prime Minister Harper • Positive momentum gained in 2012 • Several remaining challenges • Litigation and misinformation • Implementation of the project will be complex (need to comply with Crossing Agreement) and lengthy (Procurement for P3 will take about 2 years; Construction will take 4 to 5 years) • Project requires U.S. federal government funding for U.S. Port of Entry • Public and political desire to move quickly towards implementation • Presidential permit now in place