Portfolio Coordination

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32. Gordie Howe International Bridge: Project Status
33. Samuel De Champlain Bridge Corridor Project Status and Integration of the Réseau express métropolitain
34. Waterfront Toronto
35. Bonaventure Expressway Redevelopment
36. Public-Private Partnerships
37. P3 Canada Fund
38. High Frequency Rail

Gordie Howe International Bridge: Project Status

Issue / question

What is the status of the Gordie Howe International Bridge project?

Suggested response

• The construction of the bridge is progressing well, with the towers reaching their full height, and over half of the bridge deck now complete, marking 2023 as a year of significant progress.
• Delays are a common aspect of large, complex infrastructure projects, particularly considering the exceptional challenges posed by the pandemic, which included navigating hundreds of emergency orders across various jurisdictions in both Canada and the United States.
• In response to the unprecedented COVID-19 disruptions, the contract was amended to address schedule and cost impacts. The adjustments will ensure that the project is delivered to Canadians in a safe, responsible, and timely manner.
• The project is scheduled for completion in September 2025. Once completed, we will see a new, state of the art international crossing supporting long term jobs and binational trade that will fuel economic growth for years to come.

Background

• The Gordie Howe International Bridge project will provide modern facilities and a direct highway-to-highway connection between Highway 401 in Windsor, Ontario and Interstate 75 in Detroit, Michigan, facilitating the flow of people and goods at the busiest Canada - U.S. border crossing. The Bridge will be jointly owned by Canada and Michigan and delivered by Windsor-Detroit Bridge Authority (WDBA), a non-agent Crown corporation, through a public-private partnership (P3) with Bridging North America (BNA). Canada is funding the full amount with costs to be recouped from toll revenue.
• Work continued throughout the pandemic on all project components. The Bridge towers are complete and stand at 220 metres/722 feet. Construction of the Ports of Entry buildings on both sides of the border are well advanced and work is also progressing on the Interstate 75 interchange (I-75) in Michigan. More than half of the bridge deck and stay cables are complete, marking 2023 as a year of significant progress.
• Originally, the $5.7 billion (CDN) project was scheduled for completion in November 2024, the project experienced disruptions because of the COVID-19 pandemic. The disruptions were even more prevalent for this international project as hundreds of emergency orders were enacted in multiple jurisdictions spanning Canada, Ontario, Windsor, the United States, Michigan and Detroit requiring significant efforts to ensure compliance with these orders and the direction of various public health authorities.
• Although billed as a fixed price, date certain contract, there are many processes under the P3 agreement where the price and dates can be changed based on the terms and risk sharing arrangement defined under the contract. In recognition of the COVID-19 impacts and supported by robust analysis by industry-leading technical, financial, and legal experts, the contract was amended to address cost and schedule impacts and ensure this critical infrastructure project is delivered to Canadians in a safe, responsible, and timely manner.
• The new contract value is estimated at $6.4 billion with a new fixed date for substantial completion of September 3, 2025. This new date is secured with significant liquidated damage to ensure the new date is met.
• The project is significantly benefiting local communities through its comprehensive Community Benefits Plan, which includes employment, training, and educational opportunities, as well as aesthetic and functional improvements to local communities in the Windsor-Detroit area. Since 2018, the project has employed more than 10,000 local workers and supported over 265 local businesses.

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Samuel De Champlain Bridge Corridor Project Status and Integration of the Réseau express métropolitain

Issue / question

What is the status of the Samuel De Champlain Bridge Corridor Project and the integration of the Réseau express métropolitain?

Suggested response

• The Samuel De Champlain Bridge has been operational since June 2019, serving residents of Montréal and the South Shore.
• The Réseau express métropolitain light rail corridor, which includes a segment crossing the Samuel De Champlain Bridge, officially began its revenue service in July 2023. This new service seamlessly connects the South Shore to downtown Montréal, marking a significant milestone in the enhancement of the city's public transportation network.
• Efforts are actively underway to complete the remaining elements of the project that experienced delays due to the pandemic. We are committed to finalizing all components to fully realize the project's benefits for the community.

Background

• The Samuel De Champlain Bridge Corridor includes the 3.4 km Samuel De Champlain Bridge crossing the St. Lawrence, 500 m Île-des-Sœurs Bridge, reconstruction and widening of the federal portion of Highway 15 over 3 km, and realignment of over 1 km of Highway 10.
• The project is being delivered as part of a public-private partnership (P3) between the Government of Canada and Signature on the Saint Lawrence Group. The P3 includes the design, construction, financing, operation, maintenance, and rehabilitation of the Project over a 34 year period (2015-2049) at a cost of $4.212 billion.
• The Project Agreement is managed through an integrated project team with Infrastructure Canada (INFC) as the project lead, Public Services and Procurement Canada as the contracting lead, and Justice Canada providing legal support.
• The Samuel De Champlain Bridge includes six lanes for vehicle traffic, a multi-purpose path supporting active transportation, and a central corridor dedicated exclusively to public transit. The segment of the Réseau express métropolitain (REM) between the South Shore to downtown Montréal that crosses the Samuel De Champlain Bridge began revenue service on July 31, 2023.
• Following the decision by the Government of Quebec to build the REM in the Bridge’s dedicated transit corridor, the Government of Canada asked its Private Partner to enable the temporary operation of buses on the Bridge shoulders during the construction of the REM. As such, the Bridge lane marking configuration was temporarily modified, i.e., the outside shoulders were widened.
• INFC and Autorité régionale de transport métropolitain (ARTM) negotiated and formalized the appropriate agreements to allow buses to run on the Bridge shoulders as temporary reserved bus lanes with the understanding that the permanent lane reconfiguration of the bridge, i.e., three lanes and two shoulders, would be implemented following the commissioning of the REM as soon as weather permits. In coordination with REM, the reconfiguration is expected in the spring of 2025.
• In early 2023, INFC received two coroner’s reports following suicides from the multi-use path on the bridge in previous years. The reports recommended improvements to the dissuasive barrier that runs the length of the multi-use path. An additional report was received in November 2023, following a May 2023 suicide from the roadway portion of the bridge that recommends installing barriers along the roadway decks. Existing measures in place include, dissuasive barriers, the presence of patrol officers and real-time camera surveillance in function 24 hours a day, seven days a week, follow established best practices for bridge safety. A working group has been established to identify and evaluate potential additional measures that could be considered to prevent suicides.
• Some citizens along the highway portion of the Samuel De Champlain Bridge Corridor in Verdun have complained that noise generated by the highway exceeds the limit that the Private Partner is contractually required to respect. To address these concerns, the Private Partner replaced the previous noise abatement barriers with new, thicker, and more acoustically absorbent barriers. The height of these barriers was increased in some areas. A commitment was made to elected officials and citizens to carry out a follow-up noise measurement campaign in 2024 to determine the effectiveness of the new noise abatement barriers and to share the results.
• The project to deconstruct the original Champlain Bridge is managed by the Jacques Cartier and Champlain Bridges Incorporated (JCCBI). The overall estimated cost of the deconstruction project including the deconstruction work, environmental protection measures, material reuse programs, research and development, and the end-of-project shoreline redevelopment component is approximately $400 million. This amount includes $225.7 million for the design-deconstruct contract signed by JCCBI and Nouvel Horizon St-Laurent G.P. Deconstruction work began in August 2020 and was completed in January 2024 on time and on budget. Project completion, including the restoration of lands left vacant, is anticipated in 2025.

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Waterfront Toronto

Issue / question

Since 2000, the federal government has been partnering with the Government of Ontario and City of Toronto to revitalize Toronto’s waterfront.

Suggested response

• The Government of Canada has contributed nearly $1 billion to support the revitalization of Toronto’s waterfront. Federal support is helping to build new waterfront neighborhoods that will have a wide variety of housing types targeting all income levels, and new public spaces that are people focused and family friendly.
• Federal investment in the Port Lands Flood Protection Project, one of the largest civil works projects underway in North America, is creating flood protected lands and green space for the community and unlocking more land for future development, including much needed housing.
• The Governments of Canada, Ontario and Toronto are working together with Waterfront Toronto to develop the infrastructure that communities need now and in the future.

Background

• In 1999, the City of Toronto, Province of Ontario and Government of Canada jointly committed $1.5 billion ($500 million each) in seed funding for the Toronto Waterfront Revitalization Initiative, a long-term coordinated plan to renew and revitalize publicly owned lands along Toronto’s central waterfront in support of a planned Olympic bid.
• Waterfront Toronto was created in 2001 to lead and implement the Toronto Waterfront Revitalization Initiative, whose geographical boundaries amount to the transformation of 800 hectares of underutilized brownfield lands along Toronto’s central waterfront. Waterfront Toronto receives government funding on a per-project basis.
• The organization was jointly established and continues to be jointly governed by the three orders of government, who have directed two large, shared investments to Waterfront Toronto in support of its mandate, including the aforementioned seed funding and $1.34 billion ($416.6 million in federal funding) for the ongoing Port Lands Flood Protection Project (PLFP) and Enabling Infrastructure. This project will flood-protect 880 acres of waterfront land and unlock 240 hectares for long-term development, including the land on the newly created Villiers Island. Federal investments made through the PLFP have enabled the creation of developable lands on Villiers Island, including potentially 4,800 to 6,000 in new housing units.
• Separate from federal funding, Waterfront Toronto is undertaking the Quayside Development Opportunity, a project that aims to develop a 12‑acre site into an inclusive, next-generation sustainable neighbourhood. In December 2022, Waterfront Toronto’s Board approved an agreement with the development partner, Quayside Impact Limited Partnership.
• Waterfront Toronto’s initial 25-year mandate is set to expire in May 2028. Government partners are discussing what a mandate extension would entail and what a renewed tri-governmental partnership could look like.

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Bonaventure Expressway Redevelopment

Issue / question

What is the status of the redevelopment of the Bonaventure Expressway?

Suggested response

• The waterfront portion of the Bonaventure Expressway has reached the end of its useful life and must be reconstructed to ensure continued safe and efficient flow of traffic.
• Budget 2023 invested $273.3 million for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard.
• The Jacques Cartier and Champlain Bridges Incorporated and Infrastructure Canada continue to collaborate with the City of Montréal and local stakeholders to work out the final design and details of the project and ensure its timely completion.

If asked about the features of the Bonaventure Expressway reconfiguration project:

• The redevelopment includes a linear park and a multi-use path along the St. Lawrence River that will provide citizens with previously unavailable waterfront access.

Background

• The federal section of the Bonaventure Expressway is operated and maintained by The Jacques Cartier and Champlain Bridges Incorporated (JCCBI), a Crown corporation in the Housing, Infrastructure and Communities portfolio.
• The total length of the federal section of the Bonaventure Expressway and associated infrastructure is 4.57 km. It consists of distinct sections comprised of a waterfront expressway, an elevated expressway and the Clément bridge that connects the infrastructure to the Samuel De Champlain Bridge Corridor.
• Inaugurated in 1967, the waterfront portion of the Bonaventure Expressway has reached the end of its useful life and must be reconstructed to ensure continued safe and efficient flow of traffic.
• Over the last few years, JCCBI has been working closely with the City of Montréal to ensure alignment on the vision for the project and develop a plan to convert the waterfront portion of the Bonaventure Expressway into an urban boulevard. Features of the plan include the implementation of a linear park and a multi-use path along the St. Lawrence River to provide residents with access to the shoreline that was previously unavailable.
• As instructed through Budget 2021, JCCBI initiated discussions with the City of Montréal to explore the merits of divestiture for the federal portion of the Expressway after its redevelopment by JCCBI.
• Budget 2023 provided funding of $47.8 million over nine years, starting in 2023-24, and $225.5 million in remaining amortization to JCCBI for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard.
• On December 19, 2023, the Minister of Transport, accompanied by JCCBI’s CEO and the Mayor of Montréal formally announced the reconfiguration of the Bonaventure Expressway into a boulevard starting in 2025.
• The federal section of the Bonaventure Expressway is situated on highly contaminated lands. Its reconfiguration will provide access to sites that were not accessible due to the presence of infrastructure, which could allow JCCBI to treat contaminants at the source using the Federal Contaminated Sites Action Plan funding that has been set aside to undertake these activities.
• INFC and JCCBI will continue to work with the City of Montréal throughout the implementation of the initiative to ensure ongoing alignment on the vision for the reconfiguration of the Expressway, and to explore the merits of divestiture in future years.

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Public-Private Partnerships

Issue / question

How can the private sector help advance Canada’s infrastructure policy objectives? Is the public-private partnership (P3) market in decline?

Suggested response

• Canada is recognized globally as a leader in the development and execution of Public-Private Partnerships or P3 models for the delivery of public infrastructure. This recognition highlights Canada’s innovative approach to infrastructure development.
• The success of P3s demonstrates the significant benefits that the involvement of private investors can bring to public infrastructure projects. This includes innovative planning and design, disciplined budgeting, and timely project delivery. By transferring specific project-related risks where it makes sense, P3s offer an effective way for all governments to manage complex projects.
• With the increasing size and complexity of infrastructure projects, there is a growing movement toward ‘collaborative’ P3 models. These models aim to achieve a more balanced risk-sharing arrangement between public and private partners and can help ensure robust bidder interest.
• While P3s remain a critical component of the Government of Canada's strategy, the selection of the right model depends on the specific needs and capabilities of each jurisdiction and the unique challenges of each project.
• The market has responded by developing new ‘collaborative’ models that can promote enhanced risk-sharing between the public and private sectors and ensure sufficient bidder interest. P3s will also continue to be one option in the Government of Canada’s tool kit, with jurisdictions needing to select models that best suit their needs and capabilities. 

Background

• There are a variety of different Public-Private Partnership (P3) models that exist. Under a full lifecycle P3 model, the private sector is engaged to design, build, finance, operate and maintain an infrastructure project based on well-defined performance criteria over a fixed term. The public sector retains ownership of the asset.
• P3s are not suitable for every project. They are one of many tools in the public sector’s toolbox for delivering and managing major infrastructure projects. P3s work best for large, complex projects that appropriately transfer project risks to the private sector in a manner that delivers positive Value for Money, typically in the form of cost savings.
• The P3 model was an important building block in the formation of the Canada Infrastructure Bank. The Bank is taking elements of the P3 model further by using revenue and user charges to fund the asset, in whole or in part, and transfer more revenue, usage and ownership risks to the private sector. This allows for equity to be shared with the private sector for a risk-adjusted rate of return.
• Due to the pandemic, supply chain constraints and inflation of key material prices, contractors are shying away from the fixed price, date certain bidding models for large complex projects and favouring collaborative or progressive models in which project development is done in a partnership between public and private sector before entering into a fixed or target price contract. Public authorities have also been working with private entities to segment larger, complex projects such as transit developments into smaller contracts.
• Several transit projects that were previously announced as P3s have been relaunched under traditional procurement routes, including the Port Mann/Highway 1 (British Columbia) and Highway 7 - Kitchener to Guelph (Ontario) projects. The George Massey Tunnel project in British Columbia was also initially proposed as a P3 arrangement in 2011 but was reprocured in 2023 as a progressive Design-Build with no private financing.
• It takes time to procure large infrastructure projects and it is unsurprising that some projects’ financing, design, or scope change before work commences. This is particularly true when economic and risk factors are changing significantly. The ‘co‑development’ aspect of collaborative models increases the understanding of project risks and their allocation before contracts are signed, which may lead to better outcomes.
• Though collaborative, ‘alliance’ or progressive models are yet unproven in the market, the many market examples demonstrate their emerging popularity. For example, Ontario is currently undertaking several projects using this model including the Scarborough Subway Extension. Transport Canada is using a similar model to procure a co-development partner for the High Frequency Rail project and the original Union Station Enhancement Project P3 was also replaced by an alliance P3 arrangement. 

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P3 Canada Fund

Issue / question

What is the status of the P3 Canada Fund?

Suggested response

• The P3 Canada Fund was created to improve public infrastructure delivery and provide better value, timeliness, and accountability through the effective use of public-private partnerships.
• Following dissolution of Public Private Partnerships Canada in 2018, Infrastructure Canada took over management of ongoing projects. These projects span a range of sectors and asset classes including public transit and transportation, national highways, water and wastewater, and energy.
• All the projects are now in operation. Infrastructure Canada remains committed to overseeing the fund in accordance with its terms and conditions and the Financial Agreements in place.

Background

• PPP Canada Inc. was incorporated under the Canada Business Corporations Act on February 12, 2008, and became operational in February 2009. The P3 Canada Fund was created to improve the delivery of public infrastructure and provide better value, timeliness, and accountability by increasing the effective use of public-private partnerships (P3s).
• Upon dissolution of PPP Canada in 2018, out of the 25 P3 Canada Fund projects, the administration of 24 were transferred to Infrastructure Canada (INFC) and one was completed before the transfer. The projects cover various asset classes including public transit and transportation, national highways, water and wastewater, and energy sectors.
• The P3 Canada Fund has invested over $1.3 billion in 25 large or complex infrastructure projects across the country, such as an airport in Nunavut (funding - $77.3 million / project cost $191.9 million), a highway bypass in Regina (funding - $200 million / project cost - $1.219 million) and the recently operationalized Tłı̨chǫ All Season Road in Northwest Territories (funding - $53.3 million / project cost - $217.1 million).
• Construction is complete for all 25 P3 Canada Fund projects, which are now in operation. Edmonton LRT was the final project to reach substantial completion in October 2023.
• These P3s were implemented over 10 years and have combined capital costs of over $6 billion, resulting in savings of approximately $1.9 billion compared to traditional procurement approaches.

P3 Canada Fund Portfolio Novated to INFC

Project	Maximum P3 Canada Fund Contribution	Total Project Cost	Substantial Completion Date
In Operation
1. Chief Peguis Trail Extension (Winnipeg, MB)	$25 million	$100 million	01 Dec 2011
2. Wastewater Treatment Facility (Lac La Biche, AB)	$3.80 million	$17.5 million	30 May 2013
3. Kokish River Hydroelectric Project (Namgis First Nation, BC)	$7.2 million	$196 million	01 Apr 2014
4. Evan-Thomas Water and Wastewater Treatment Facility (Kananaskis Country, AB)	$9.95 million	$39.8 million	08 Sep 2014
5. Biosolids Management Facility (Sudbury, ON)	$11 million	$44 million	08 May 2015
6. North Saskatchewan River Bridge (Edmonton, AB)	$36.8 million	$148.1 million	01 Oct 2016
7. Lincoln Station (Coquitlam, BC)	$7 million	$29.1 million	31 Oct 2016
8. Wastewater Treatment Facility (Regina, SK)	$58.5 million	$237.2 million	31 Dec 2016
9. Civic Operations Centre (Saskatoon, SK)	$42.9 million	$142.9 million	31 Dec 2016
10. Transit Maintenance Facility (Barrie, ON)	$5.8 million	$23.5 million	28 Feb 2017
11. Downtown Eastside Housing Renewal (Vancouver, BC)	$29.7 million	$121.5 million	30 Dec 2017
12. International Airport Improvement (Iqaluit, NU)	$77.3 million	$191.9 million	30 Dec 2017
13. GO Transit East Rail Maintenance Facility (Whitby, ON)	$94.8 million	$455.2 million	14 Mar 2018
14. Organic Biofuel Facility (Surrey, ON)	$16.9 million	$50 million	26 May 2018
15. North Commuter Parkway and Traffic Bridge Replacement (Saskatoon, SK)	$57.68 million	$230.7 million	31 Oct 2018
16. Stoney CNG Bus Storage and Transit Facility (Calgary, AB)	$46.9 million	$173.7 million	31 Jan 2019
17. Southwest Rapid Transitway and Pembina Highway Underpass (Winnipeg, MB)	$91.7 million	$346.8 million	31 Oct 2019
18. Bypass Project (Regina, SK)	$200 million	$1,219 million	31 Oct 2019
19. Biosolids Management Project (Hamilton, ON)	$22.9 million	$92.4 million	30 Apr 2020
20. Residuals Treatment Facility (Victoria, BC)	$41 million	$217.1 million	31 May 2020
21. Saint John Safe Clean Drinking Water (Saint John, NB)	$52.30 million	$192.4 million	Jun 2019
22. Tłı̨chǫ All Season Road (Whatì, NWT)	$53.3 million	$217.1 million	30 Nov 2021
23. Light Rail Transit (Edmonton, AB)	$250 million	$1,522 million	16 Oct 2023
Total	$1.3 billion	$6.2 billion	-

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High Frequency Rail

Issue / question

Infrastructure Canada’s and Canada Infrastructure Bank’s role in the Québec City to Toronto High Frequency Rail Project.

Suggested response

• Infrastructure Canada is supporting the procurement process for the High Frequency Rail project led by the Minister of Transport, the Honourable Pablo Rodriguez.
• To support the Government of Canada’s National Housing Strategy, Infrastructure Canada is working with its partners to ensure that the project is a powerful catalyst for housing development.
• The Canada Infrastructure Bank is also supporting the project. They are exploring alternative financing and partnership models with private investors that can reduce project-related costs, better manage project-related risks, and promote innovation.

Background

• High Frequency Rail (HFR) is a transformative rail and infrastructure project that will connect transit hubs, support climate commitments, and leverage private capital to invest in public infrastructure.
• The HFR project will create dedicated tracks in the Toronto-Québec City corridor to provide Canadians with faster, frequent, and reliable intercity train service. This will also lead to improved service for the whole corridor.
• Infrastructure Canada is supporting the procurement process led by the Minister of Transport, the Honourable Pablo Rodriguez. Several departments and agencies are supporting this effort, including VIA-HFR, the newly created subsidiary of VIA Rail, and the Canada Infrastructure Bank.
• The Government of Canada will ensure that HFR connects with local transportation networks and fosters an integrated inter-city transportation system that is sustainable for the long-term and serves as a catalyst for housing development and economic growth.
• The Canada Infrastructure Bank is also supporting the project and exploring alternative financing models to partner with private investors and help optimize and structure the project in a way that reduces risk and promotes innovation.
• With a once in a generation infrastructure project of this scale and complexity, it is important to get the process right and demonstrate the benefits of involving the private sector early in the planning stage.
• Budget 2022 included $396.8 million over two years in funding to Transport Canada and Infrastructure Canada for planning and design in support of the project.
• On February 17, 2023, the Government of Canada officially launched the procurement process to select a private developer partner to work in collaboration with VIA HFR, to design and develop the HFR project with the release of the Request for Qualifications.
• On July 20, 2023, the Government of Canada announced the three bidding teams that had qualified and would be invited to respond to the Request for Proposals for the HFR project. The three teams are Cadence, Intercity Rail Developers and QCONNEXION Rail Partners.
• The Minister of Transport will be leading on any future announcements regarding the HFR project.

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