The government of Saskatchewan, Canada, has shortlisted three contractors to build the Regina bypass project, which is expected to cost approximately $1.2bn.

Among the five teams that bid for the project, the SaskBuilds and Ministry of Highways and Infrastructure selected Queen City Infrastructure Group, Wascana Development Partners and SaskLink Global Transportation Partners for request for proposal stage.

The government will use public-private partnership (P3) model for bidding process and will select the winning team by late 2015.

"The Regina Bypass Project will reduce congestion, improve traffic safety and have profound impacts on the economy of the Regina area and Saskatchewan as a whole."

The use of P3 model is expected to improve cost-effectiveness, ensure on-schedule completion, provide budget certainty and encourage private sector involvement in design and construction.

The bypass will start at Highway 11 north-west of Regina and move towards the Trans-Canada Highway. From there, it will make a circle around the city roughly 5km south of Highway 1 on the east side of Regina.

The entire bypass road will have three overpasses at the Pilot Butte access road, Highway 48 near White City and Highway 46 near Balgonie.

Highways and infrastructure minister Nancy Heppner said: "The Regina Bypass Project will reduce congestion, improve traffic safety and have profound impacts on the economy of the Regina area and Saskatchewan as a whole."

Out of the total project value, the federal government is providing $200m in funding towards the project.

SaskBuilds minster Gordon Wyant said: "Having three very experienced and qualified teams will drive the level of competition we want to get the best price and quality for taxpayers."

Construction work on the bypass road is scheduled to begin in mid-2015 and is expected to complete by late 2018.