Innovate Energy closes 35-year deal with federal government t heat, cool buildings

On May 29, 2019, ESAP Project Co Limited Partnership (Innovate Energy), a consortium consisting of ENGIE Services Canada, PCL Constructors Canada, PCL Investments Canada and Black & McDonald, closed a 35-year public-private partnership contract with Her Majesty the Queen in Right of Canada, represented by the Minister of Public Works and Government Services (the Authority) to modernize, maintain and operate the district energy system that heats 80 buildings and cools 67 buildings, including the Parliament Buildings, in Canada’s capital region. This mandate is part of the Government of Canada’s Energy Services Acquisition Program and it will contribute to the government’s goal of reducing its energy consumption and greenhouse gas emissions from its own operations by 40% by 2030.

From 2019 to 2025, Innovate Energy will design and build, as well as convert the existing high-temperature steam system to, a more energy-efficient low-temperature hot water system while continuing to provide heating and cooling by operating the existing facilities. Once the construction period is completed, Innovate Energy will operate and maintain the new system through 2055.

Norton Rose Fulbright Canada LLP provided counsel to the Authority, with a team consisting of John Naccarato, Andrew Pritchard, Martin Masse, Michael Brown, Michael Cockburn, Ethan Sinclair and Jason Worobetz.

Davies Ward Phillips & Vineberg LLP was lead transaction counsel for Innovate Energy, with a team consisting of William Buchner, Angela Susac and Katrina Brazzell. 

Reynolds Mirth Richards & Farmer LLP was counsel to PCL, with a team consisting of Donald Lucky, Mark Hildebrand, Tamara Korassa and Jeffrey Daniels.

McCarthy Tétrault LLP was counsel to ENGIE, with a team consisting of Anca Neacsu, Mathieu Dubord, Eloïse Gagné and Camille Marceau.

Fasken Martineau DuMoulin LLP provided counsel to the lenders and hedge providers, with a team consisting of Ella Plotkin, Sean Morely, Marc Lefler, Zackary Burashko and Gianrico DePasquale.


Lawyer(s)

Andrew Pritchard Martin G. Masse D. Michael Brown William Buchner Donald C.I. Lucky Anca Neacsu Mathieu Dubord Ella Plotkin