Chapter 1: Setting the foundation

Infrastructure is the foundation on which societies are built. The world today invests about $2.5 trillion a year in core infrastructure, such as power, water, transportation and telecommunications systems. That sounds like a huge number, but the needs are growing after underinvestment in the 1970s to early 2000s, and governments need to catch up. In fact, a recent report by the McKinsey Global Institute found that global infrastructure spending should be $3.3 trillion annually on average, just to meet the demands of population growth.

To make matters worse, the McKinsey Global Institute report finds that infrastructure investment has declined as a share of GDP in 11 of the G20 economies since the 2008 global financial crisis. However, Canada is one of the countries that has increased investment in infrastructure, and that is certainly to our benefit.^{footnote 1[1]}

Ontario’s commitment to investing in infrastructure

Wherever you live in Ontario, you interact with public infrastructure every day. You depend on a reliable and interconnected public infrastructure system, whether you’re turning on a tap, dropping your children off at school or child care, taking public transit to work, living in a long-term-care facility, going to a hospital out-patient clinic, hiking a trail or driving over a bridge. Provincial infrastructure includes roads, bridges, public transit, schools, hospitals and other real-estate assets, such as correctional facilities and courthouses, as well as social and cultural buildings.

To make sure that Ontarians can always depend on the province’s public infrastructure, starting in 2014–15, the Province committed to invest about $190 billion over 13 years on expanding and renewing Ontario’s infrastructure to improve the lives of Ontarians. It’s the largest investment in infrastructure that the Government of Ontario has ever made. Planned investments are expected to support 125,000 jobs, on average, each year.

This significant investment in infrastructure is building Ontario up for today and tomorrow. It’s about global economic competitiveness, jobs, opportunity and growth. It’s about ensuring that all Ontario communities, whether they be in rural, Northern or urban areas, have access to critical infrastructure. It’s about ensuring that economic growth is inclusive to allow all Ontarians to enjoy a high quality of life. It’s also about being resilient and adaptable to the changes of the future.

Ontario’s path to better infrastructure planning

For more than a decade, Ontario has been investing significantly to renew and expand Ontario’s infrastructure, with the goal of improving access to, and quality of, public services. In 2005, the government released ReNew Ontario, an infrastructure plan to invest $30 billion over five years, while enhancing long-term planning. ReNew Ontario was completed in 2008–09, a year ahead of schedule.

Building Together

Ontario has been working hard for years to expand and renew the province’s infrastructure. It was one of the first jurisdictions in North America to release a long-term infrastructure plan and acknowledge the importance of investing in infrastructure. Ontario released the Province’s first 10-year plan, Building Together, in 2011 to introduce the government’s long-term vision for infrastructure. Building Together improved the way the government approaches infrastructure planning and policy-making. It provided much-needed clarity, sustainability and predictability in the government’s processes. It set out a strategic vision to guide its investments in ways that supported economic growth, were fiscally responsible and responded to changing needs. With a strong commitment to align with such initiatives as the Growth Plan for the Greater Golden Horseshoe and other growth plans, Building Together also focused on transportation and public transit, education and innovation, health care, stronger communities and care for the environment.

The Infrastructure for Jobs and Prosperity Act

In 2015, the Government of Ontario took the next step to set out important infrastructure planning principles in legislation. Through the Infrastructure for Jobs and Prosperity Act, 2015 (the IJPA) the Province is taking a long-term approach to investing in improvements to Ontario’s infrastructure assets.

The IJPA sets the foundation for good infrastructure planning and highlights the need to look toward the future. The IJPA also makes clear that decisions about public infrastructure investments should:

• be long-term and aligned with demographic and economic trends, as well as fiscal plans
• promote economic competitiveness, productivity, job creation and training
• be evidence-based and transparent
• ensure the provision of core public services

The IJPA also requires the government to publish a long-term infrastructure plan by May 2019. It should describe Ontario’s existing infrastructure portfolio, outline anticipated needs of the portfolio and propose strategies to meet these needs. We know it can take a lot of time for a hospital or transit line to go from conception to completion – that’s why Ontario needs to make sure decisions are based on facts and evidence and enable services at the right time in the right place.

2017 Infrastructure Update

In January 2017, the Province released an Infrastructure Update. This update gave Ontarians information on the Province’s infrastructure plan and the infrastructure planning process to meet the needs of all Ontarians and local communities. Ontario also launched an interactive online tracking tool, BuildON. This tool allows Ontarians to see infrastructure projects that are under way in their community.

Making progress on the IJPA requirements

The plan outlined in this document and the Technical Appendix is an important interim step and makes progress toward meeting the IJPA requirements. In particular, this plan makes substantial progress toward meeting the first requirement of the IJPA: to develop an asset inventory recording the age, condition and value of Ontario’s infrastructure assets. This is a significant achievement, given the size and scope of Ontario’s infrastructure portfolio. Ontario is a leader in this field. The government is also making progress toward assessing Ontario’s needs and developing a strategy to meet them as it works toward fully meeting the requirements of the IJPA by the legislated deadline of May 2019.

As the Province develops a strategy to meet Ontario’s needs, it will use the guiding principles laid out in this document and the IJPA to make investment decisions that are based on evidence, and deliver infrastructure in the most effective way. The government will ensure these investments are co-ordinated and use them to support transformation and improve access to and quality of services.

The government’s investment in Ontario’s infrastructure

The Province’s plan to invest about $190 billion over 13 years, starting in 2014–15, demonstrates the government’s commitment to investing in infrastructure to ensure Ontario remains competitive and that growth is inclusive and benefits Ontarians and communities across the province.

Principles and objectives for Ontario’s infrastructure

Infrastructure assets last a long time. They also take time to build. It often takes a decade for a project to go from planning, through approvals and construction, to completion. As such, the Province needs to be able to adapt in anticipation of future changes to demographics, technology and climate. With the right preparation, Ontario will prosper from these changes by harnessing new opportunities, such as future technological innovations, green infrastructure or strategic partnerships.

Grow inclusively

The government’s vision is of an inclusive Ontario, in which each person has an opportunity to achieve their potential and contribute to the province’s prosperity. An inclusive society provides social and economic benefits to Ontarians in all communities. Inclusive growth should guide everything the government does.

Among other things, an inclusive society requires accessible infrastructure. Roughly 3.8-million people — from every income bracket, age group, racial or ethnic background and geographic region — live with disabilities. The prevalence of disability rises with age, and about one-third of seniors report that they have disabilities.

The government has accomplished a lot — one of the first in the world to move to a modern regulatory regime that mandates accessibility reporting and requires staff to be trained on accessibility, first in Canada with legislation that sets out a clear goal and timeframe for accessibility by 2025 — but we know there is always more we can do.

Embedding accessibility into infrastructure planning and design gives people with disabilities more opportunities to live and work independently. Understanding the types of barriers that exist can help prevent and remove barriers from the outset, and support the inclusion of people of all abilities. For example, the use of inclusive design principles at the design stage of new infrastructure projects would help address accessibility concerns related to the built environment and design of public spaces for Ontarians with disabilities.

Prepare for demographic change

Ontario’s population is aging. People are also living longer. The number of seniors is projected to almost double, from 2.3 million in 2016, or 16.4 per cent of the population, to 4.6 million by 2041, or 25.0 per cent.

Aging has implications for the types of services Ontarians will need, the infrastructure required to deliver those services and available funding. For example, as the members of the Baby Boom generation retire in record numbers, they are taking knowledge and skills with them. This presents unprecedented opportunities for people with education, skills and training to find satisfying and rewarding work. Ontario’s aging population will also strain the province’s health care system — as people age, they may need longer hospital stays and care that is more intensive. Currently, there are approximately 45 hospitals in planning or construction across Ontario.

The population is also changing in other ways, including regional distribution. The Greater Toronto Area (GTA) is the fourth-largest region in North America. It is projected to be the fastest-growing region of the province, with its population increasing by almost 2.9 million, or 42.3 per cent, to reach 9.6 million by 2041.^{footnote 2[2]} The GTA’s share of provincial population is projected to rise from 48.3 per cent in 2016 to 52.7 per cent in 2041.[2] At the same time, rural Ontario is seeing different trends. While some smaller rural communities are experiencing population decline, others are experiencing population growth. Both trends put differing pressures on Ontario’s public infrastructure assets.

Finally, social needs are shifting as Ontario becomes more diverse. While that may not immediately affect the infrastructure demands on the province, it does affect broader policy goals around inclusion and fairness, which infrastructure helps support.

Support our growing economy

Infrastructure plays a crucial role in economic growth and global economic competitiveness. The government commissioned a study by the Centre for Spatial Economics (C4SE) to assess the broader economic impacts of Ontario’s infrastructure plan. The study found that, over the long term, real GDP in Ontario rises an average of up to $6 per dollar of public infrastructure spending.

To keep the economy growing, Ontario’s infrastructure needs to support higher levels of productivity to make sure that Ontario businesses remain competitive. Ontario will continue to rely heavily on exports to support economic growth. It’s important that Ontario innovators and producers can access both domestic and global markets in a timely, efficient and cost-effective way. That means less congestion on key transportation routes and more access to broadband technology. That also means affordable energy to power businesses and homes. Ontario will benefit, as well, through having a well-educated and healthy workforce, with the skills to be successful in the jobs of the future. A cohesive, safe and well-functioning society will make Ontario an attractive place to live, invest and do business. Ontario’s public infrastructure is key to supporting these goals.

Address the changing climate

Climate change is real — and so is its impact on Ontario’s public infrastructure. Extreme weather events due to climate change are becoming more intense and more frequent. These events have already cost Ontarians billions of dollars in recent years; the Insurance Bureau of Canada reported that record rainfall in Toronto in July 2013 resulted in $940 million in insurable damages.^{footnote 3[3]} More recently, in the summer of 2017, heavy rain caused flooding on Toronto Island, in Windsor, and along the Ottawa River, causing millions of dollars in damage to public infrastructure and private property. In the North, lack of snow and changing weather patterns caused delays in the opening of winter roads that many communities depend on.

We recognize the growing strain climate change is putting on our infrastructure. We have already acted, eliminating the use of coal for electricity generation, investing strongly in transit, supporting an innovative clean-technology sector, introducing a cap-and-trade program that will further drive down emissions and setting aggressive greenhouse-gas-reduction targets. All cap and trade auction proceeds will be directed to a new Greenhouse Gas Reduction Account to fund green initiatives that reduce or support reduction of greenhouse gas emissions.

Ontario’s Climate Change Action Plan is a five-year plan that will help Ontario fight climate change over the long term, with actions across a wide spectrum. For infrastructure, the Province must invest in designing and building infrastructure assets that mitigate the impacts of climate change. Infrastructure, both new and existing, should be resilient, support the resilience of the surrounding community, and be able to adapt to the impacts that Ontario experiences. The government can work to mitigate climate change in many ways, including the reduction of emissions and the use of lower-carbon building materials.

Embrace the future of technology

Connectivity and disruptive technologies are changing the way Ontarians work, play, interact, move, produce and consume. Broadband connectivity is essential to participation in the 21st-century economy and to accessing basic services. Technology is also becoming a larger and more important part of Ontario’s infrastructure, and it is important for technology to be accessible. A 2016 report from Canada’s Public Policy Forum states that technology as a share of total public infrastructure stock has risen from 5 per cent in 1970 to 20 per cent today.^{footnote 4[4]} For example, hospitals today are much more than just bricks-and-mortar. They require significant technological capabilities to deliver the modern and high-quality care that Ontarians deserve.

Technology is changing how government provides services. The Province needs to make sure that its infrastructure investments are adaptable and prepared for technologies, such as automated vehicles and artificial intelligence. To respond to the challenges of disruptive technologies, in late 2016 the Province created a disruptive technology team, which has a mandate to promote strategic foresight with respect to the disruptive technology landscape.

Technology has the capacity to improve our productivity, improve access to services and connect Ontario. In particular, technology could boost productivity in the construction industry. According to the McKinsey Global Institute, construction is one of the least-digitized sectors in the global economy. If the productivity in the construction sector were to match productivity gains in the broader economy, it could increase the sector’s value added by an estimated $1.6 trillion globally.^{footnote 5[5]} Governments need to work with the private sector to encourage and enable innovation and better productivity in the construction sector. Adopting new technologies is one way.

Technological change also comes with challenges. Large up-front investments are needed to provide a foundation. More frequent upgrades may be required to keep up with the pace of technological advancement. However, once government has made these investments, technology can save money by improving efficiency and stimulating economic growth.

Disruptive technologies are also creating new challenges in terms of cyber security. Maintaining strong cyber security of public infrastructure is crucial to ensuring consumer and business confidence in Ontario’s economy and ensuring that sensitive information remains protected.

Get the best value

The Government of Ontario knows public infrastructure is vital to Ontario’s success as a province. It also knows that it must manage the provincial budget responsibly to ensure that we can continue to enjoy a prosperous future. The government needs to consider how to pay for infrastructure and how to get the best value for each dollar it spends.

The best value is not always reflected in the lowest cost. The government is using infrastructure investments to achieve multiple objectives. They include fiscal responsibility; economic growth and productivity; innovation; social and community benefits; effective maintenance and asset management; and environmental sustainability. Better delivery can include using more innovative and effective procurement methods to achieve multiple objectives through infrastructure investments. It can also mean using community benefits to support training and job opportunities in affected communities.

Manage aging assets

Many of Ontario’s public infrastructure assets were built in the 1950s and 1960s, or even earlier, with the expectation that they would last 50 to 75 years. These assets are aging, and some of them are reaching the end of their useful lives. Some of them need to be renewed to continue supporting services for Ontarians. Some need to be replaced. The government must understand the state of Ontario’s infrastructure, as well as the risks of aging assets. These risks can include service gaps, health and safety concerns, foregone economic growth and productivity because of service gaps, and a loss of social and cultural value, if heritage properties deteriorate.

Once the government knows the age and condition of Ontario’s assets, it is important that it manage the risks of aging infrastructure through appropriate renewal and maintenance — or decommissioning, where appropriate. The cost of renewal and maintenance can be expensive, especially for smaller communities with small tax bases. However, keeping assets in good condition can also save money overall by prolonging the life of Ontario’s current assets and minimizing the need for replacement.

Align infrastructure with land-use planning

What and where building occurs are equally important. Well-planned infrastructure is essential to the viability of Ontario’s communities and critical to economic competitiveness, quality of life and the delivery of public services. Well-thought-out and complete communities that are well-connected by transportation allow people and goods to move most effectively.

The Province needs to plan the location of its investments to support the best services for Ontarians, build complete communities, contribute to economic growth and minimize the impact on the environment. For example, a hospital that is not well connected by transportation is not going to be able to provide a convenient and high level of service for the surrounding community. Similarly, co-ordinated planning for different types of linear infrastructure (like roads, rail lines and electrical transmission) will use less land, have less impact on the environment and cost less than building each type of infrastructure independently. A more-integrated approach to land-use planning and infrastructure investment would ensure that a particular infrastructure asset is financially viable over its life cycle and is available to meet current and future needs.

Ontario also needs to carefully plan the use of Crown land, or government-owned land. The Province manages Provincial Parks and Conservation Reserves, forests, fish, wildlife, Crown lands and waters, aggregates, petroleum and salt resources to provide sustainable environmental, social and economic benefits. Infrastructure planning must consider the use and conservation of these lands and resources.

Innovations and new technologies could also have an impact on Ontario’s land-use planning. Rapid transit and high-speed rail, as well as new technologies, such as automated vehicles, could change the way people travel and where people live. This means Ontario must consider the future of how and where it plans communities.

Co-ordinate among all orders of government

All orders of government seek to improve the lives of their residents by investing in infrastructure, but sometimes their priorities and methods differ. Infrastructure planning must be co-ordinated within the provincial government and aligned with federal, regional, municipal and Indigenous partners. Planning must also be reflective of the needs and priorities of the community. If all orders of government are working toward the same vision, based on outcomes and aligned with local priorities, governments can make the most of their investments. In that vein, Ontario was a leader among the provinces and territories this year in the development of joint principles to guide negotiations with the federal government on the next phase of new federal infrastructure funding (see “Working with partners” for more information).

The government’s vision for Ontario’s infrastructure

The vision: Building infrastructure is about creating better lives for the people of Ontario. We do that by ensuring what we build improves access to modern public services for people in all regions. Our decisions must be evidence-based and our infrastructure should be resilient to the impacts of a changing climate and disruptive technologies, seamlessly interconnected and supportive of economic growth for the whole province.

Ontario is working toward this vision through this Long-Term Infrastructure Plan by improving infrastructure planning and delivery. Ultimately, these efforts will mean better results for Ontarians. Chapters 2 and 3 of this plan outline the actions the government is taking to improve infrastructure planning and delivery. Chapter 4 outlines and assesses Ontario’s existing infrastructure portfolio. Chapter 5 outlines how better planning in major infrastructure sectors supports better access and quality of services to provide a high quality of life for Ontarians.