Infrastructure Ontario update highlights 25 projects in procurement worth $30B

Infrastructure Ontario released its June 2024 Market Update, which includes 25 projects in pre-procurement and active procurement, totalling more than $30 billion in estimated design and construction costs.

The update also includes 17 government-announced projects in the initial stages of planning, for which the scope, timing and delivery model are still being determined.

“Since our last update in December, three projects in our pipeline have advanced to construction and another three have been removed, as we have now signed agreements with development partners in the first step in our more collaborative Progressive P3 approach,” stated IO president and CEO Michael Lindsay.

One new project added to IO’s pipeline is the Volkswagen Battery Cell Plant – OPP Detachment, which will support the significant boost in economic and social activity being created in the area around St. Thomas’ incoming VW electric vehicle battery manufacturing plant.

“The past four years have been challenging, but I’m pleased to share that since 2020, IO has brought 37 projects to market, begun construction on 27 projects and achieved substantial completion of 32 projects,” said Lindsay. “In that time, we have completed twelve hospitals, seven justice facilities, four public works and nine transit and transportation projects. The total value of contracts currently in construction is approximately $46 billion. This total does not include the seven Progressive P3 projects for which we have now identified the development partners.

Lindsay also indicated that IO is expanding its our toolkit with further use of a collaborative
contracting delivery model for its healthcare and social infrastructure program, a Progressive Design Build model with target price regime for construction. In May 2024, IO and William Osler Health System issued a request for qualifications for the Peel Memorial Hospital Phase 2 Redevelopment project using the Progressive Design-Build (Target Price) model.

“This model will build on our success in delivering Progressive Design Build, Alliance and
Progressive P3 projects for the transit, transportation and healthcare sectors and will support our core objective of delivering projects that demonstrate value,” stated Lindsay.

IO also highlighted some key accomplishments over the past four years in the healthcare sector:

• Achieving substantial completion on West Park Health Centre’s six-storey addition to its
  patient care in November 2023.
• Achieving financial close on Trillium Health Partner’s Queensway redevelopment project,
  which broke ground in early April.
• Achieving financial close on the fourth and final part of CAMH’s broader redevelopment
  program in February 2024.
• Achieving substantial completion on Mount Sinai Hospital’s Phase 3A Redevelopment
  Project in June 2024.
• Completing construction on several other healthcare projects, including Hawkesbury & District General Hospital, Orleans Health Hub, London Laboratory Hub and Cortellucci Vaughan Hospital (formerly Mackenzie Vaughan Hospital).

“Looking ahead, as we deliver increasingly complex healthcare projects, we will consider the use of collaborative contracting approaches that emphasizes alignment of goals and commercial objectives and prioritizes cooperation, transparency and flexibility. At its core, these models emphasize open communication and joint problem-solving throughout the contract lifecycle. By fostering a spirit of partnership, these models create an environment conducive to innovation, risksharing and continuous improvement,” said Lindsay.

Featured image: West Park Health Centre’s six-storey addition to its patient care in was completed in November 2023. (Infrastructure Ontario)