While Infrastructure Ontario’s latest P3 Market Update document was light on significant project news, it did reveal new thinking about the way the province intends to deliver some of its largest and more complex projects.

The document, which was released on October 14, referenced four projects that would be delivered under a new progressive P3 model.

Speaking at The Empire Club in Toronto following the release of the October Market Update document, IO President and CEO Michael Lindsay and Infrastructure Minister Kinga Surma explained that the model will see the province and the project owner choose a private-sector development partner for the project which will work with IO to define project requirements, design, pricing and risk, before entering into a final project agreement.

“Our traditional public-private partnership models will continue to be the primary mechanism we use for project procurement and delivery,” said Lindsay. “But there are several projects in our pipeline at the moment that call for approaches that are above and beyond the traditional, fixed-price, fixed-schedule approach. Whether because of their size or their complexity, those projects require new ways of working with our development partners to understand and mitigate risks.”

Those projects tipped for the progressive P3 model include The Ottawa Hospital – New Civic Redevelopment project, the Trillium Health Partners Broader Redevelopment – Mississauga Hospital Site, the Scarborough Subway Extension – Stations, Rail and Systems, and the Weeneebayko Area Health Authority – Health Campus in Moosonee.

Lindsay explained that the Ottawa, Mississauga and Scarborough projects would be delivered using the new model because of their complexity. At least two are being delivered in immediate proximity to other P3 transit projects. The Weeneebayko project made the list largely because of its remoteness and the complexity of access to the site.

The province expects to issue an RFP for the development partner on the Weeneebayko, Scarborough subway and Trillium Health Partners projects in the winter of 2022. The development partner RFP for the Ottawa Hospital project will follow in the spring of next year.

Lindsay added that IO will be heavily active in explaining the process for, and value of, the Progressive P3 approach.

“This approach enables price certainty and strong risk allocation by continuing to leverage third-party, private capital in proportion to the risks being assumed by the private sector at the end of the development phase,” Lindsay wrote in his letter introducing the October update document. “True to IO’s core objectives for delivering projects, the progressive strategy also continues to drive innovation and collaboration.”

In all, IO’s third market update for the year offers details on 38 projects. Of those, 23 are in pre-procurement stages, while a further 15 in active procurement. The total value of all the projects on the list exceeds $60 billion.

Key updates from the summer Market Update see three projects move to active procurement: the Kingston General Hospital Redevelopment, the Trillium Health Partners Broader Redevelopment – Queensway Health Centre, and the Scarborough Subway – Stations, Rail and Systems. The Unity Health – St. Joseph’s Health Centre Redevelopment is new to the pre-procurement list.

The list also includes 13 additional government-announced projects in early stages of planning. Among these are three transit and transportation projects, including the Hamilton LRT project, the Children’s Treatment Centre of Chatham-Kent, and seven projects in the health-care sector.

“Our government remains committed to sharing the P3 Market Update on a quarterly basis, demonstrating our commitment to protecting people’s health and creating new jobs by investing in key infrastructure projects,” said Surma. “These infrastructure investments in health care, highways, new public transit options and other community projects help improve our quality of life and contribute to economic growth in communities across the province.”

The Ontario government plans to make $145.4 billion in infrastructure investments over the next 10 years.

Featured image: The Scarborough Subway Extension – Stations, Rail and Systems project is one of those tipped for delivery under the new Progressive P3 model. (Infrastructure Ontario)