IO releases first P3 market update of ‘23
Infrastructure Ontario (IO) has released its first quarterly P3 Market Update document of 2023, with 38 major infrastructure projects listed.
The document offers a handful of incremental changes from its previous iteration released in November. For example:
- the twinning of the Garden City Skyway has moved into active procurement, with a planned contract execution date of next summer,
- the Ottawa Hospital’s New Civic Redevelopment is also now in active procurement, with a development phase agreement expected to be reached next winter, and
- Ontario Place Site Servicing, to upgrade infrastructure such as sewage, water, electrical and gas services, has also moved into active procurement, with a target contract execution date of this summer.
In addition, three projects have advanced to partnership stages: Scarborough Subway Extension – Stations, Rail and Systems, Weeneebayko Area Health Authority – Health Campus, and Niagara Health’s New South Niagara Hospital Project.
The list also includes 16 government-announced projects in the initial stages of planning, for which scope, timing and delivery model are still being determined.
The total value of contracts currently in construction is approximately $45 billion, not including the additional contracted value to ensure the long-term operations and maintenance of assets on projects such as Metrolinx GO Rail Expansion On-Corridor works.
“The challenging work being done by the province’s construction sector has been critically important, and our government appreciates and values how partners are working together to help us build Ontario,” said Infrastructure Minister Kinga Surma. “Our government is continuing to invest in the delivery of major infrastructure projects that are crucial to this province and that are supported by the hard-working people of Ontario. We continue to engage with key stakeholders to identify solutions to overcome challenges and together we will bring these projects to life to help create great jobs and support our economic future.”
In a letter introducing the report, IO explains that it is working with industry partners to ensure its update documents reflect the current environment of escalating construction costs. It is also working with partners to stage projects in such a way that the market can deliver its projects.
“Infrastructure Ontario is pleased to present our first Market Update of 2023,” said Michael Lindsay, CEO, Infrastructure Ontario. “We continue to work with our partners to address challenges in the global marketplace and to build on our momentum to further advance the provincial government’s efforts and historic commitment to modernizing the province’s public assets, including highways, public transit, hospitals, children’s treatment centres, schools and correctional facilities.”
The projects in the update are part of the government’s investment of more than $159 billion in planned infrastructure over the next 10 years.