Unlocking our economic potential

The right infrastructure makes it easier for businesses to set up shop, compete and succeed in Ontario.

We will choose the right investments to signal that Ontario is open for business and jobs. This will help us incentivize investment, create employment, increase productivity in our economy, and allow people to compete in the new digital economy.

The current landscape

1. Digital infrastructure is not keeping pace with demand

Broadband and cellular connections are integral to fueling modern economies and enhancing our quality of life. People expect and deserve reliable and affordable access to the Internet. It is an essential service and without it, they are unable to participate in the growing digital economy and digital society.

About 12% of people in Ontario lack access to internet services that meet Canadian speed standards.^{footnote 12[12]}

Our rural, Northern and Indigenous communities have few or no options for fast and reliable internet service. These options (if there are any) typically come at higher costs and with lower speeds. All our communities should have access to basic high-speed internet so they can engage in online learning opportunities, have access to health care and other government services, conduct business from anywhere, and interact with loved ones over social media.

2. A lack of access to natural gas is making our communities less competitive

Natural gas is the most common heating source in Ontario, and it is more affordable than other energy sources. About 3.5 million homes and 130,000 businesses in Ontario use natural gas — yet many small, rural, Northern, and Indigenous communities lack access to it.

Not having access to affordable heating risks dividing our province into haves and have-nots. It also impacts small businesses in these communities — businesses whose bottom lines are more sensitive to high energy costs. We want these businesses across Ontario to do well. They are a valuable resource to their communities — they create good jobs and needed services that allow people to live and thrive in their communities.

3. Ontario can do more to partner with the private sector in infrastructure delivery

Major projects can take years to plan and build. These projects generally have a high dollar value because of their scale and complexity in terms of the financing and delivery structure. Partnering with the private sector to deliver major projects would help Ontario to reduce its risks and leverage the private sector’s expertise.

Ontario has developed an unparalleled approach to delivering large projects using the public-private partnership (P3) model through Infrastructure Ontario (IO), a world-class agency with a proven track record for delivering large, complex projects. Ontario’s P3 projects are built based on three principles: build better, faster and at the best value.

Creating opportunities for the private sector to participate in the development of needed public infrastructure can be a win-win.

Evidence from around the world suggests that public-private partnerships lead to more effective delivery. Ontario can do more to expand its use of the experience and expertise that developed our P3 model, and we believe the model can be applied successfully to different types of projects across different sectors.

4. Ontario’s approach needs to reflect regional differences and support local capacity

There is significant regional variation in economic performance within Ontario.

Small, rural, Northern, and Indigenous communities can be isolated from high-growth areas, and transportation and digital networks. These communities often have limited services and infrastructure to maintain existing economic levels or attract new business investment.

A one-size-fits-all approach to infrastructure planning and delivery does not address the diverse needs of the province.

To remain competitive, it is essential that all regions of Ontario benefit from reliable and effective infrastructure, including stormwater and wastewater systems, flood mitigation systems, clean water, transportation routes, and digital networks.

5. Too many processes, approvals and decision-makers are involved in the delivery of infrastructure projects

Complex and challenging approvals can create barriers to the timely delivery of infrastructure projects. In some cases, comprehensive environmental assessments have taken five years to complete.^{footnote 13[13]}

By applying best practices observed in other jurisdictions, we know that approval times can be reduced through smart permitting processes. For example, New South Wales in Australia adopted a simplified permitting system, which reduced approval times by 11%.^{footnote 14[14]}

Infrastructure projects across Ontario are subject to numerous sets of complex project design criteria. Applicants must undergo lengthy and often duplicative design processes. This results in added time and unnecessary costs.

We need to find ways to cut red tape to make it easier to invest in Ontario. This will not only ensure taxpayer dollars are spent responsibly, but will result in new, better jobs for the people of this province.

6. Ontario needs to be smart and consistent about project design criteria and processes

The development of project designs can be a lengthy and expensive process for both the Province and its private sector partners. Sometimes it can take months or years of work and millions of dollars to develop the design for a critical infrastructure asset, such as a hospital or a school.

We must look at ways to reduce this burden while still developing high-quality project designs.

We know that the design of a building directly impacts how well a building functions and how well it supports the needs of its operators and the needs of the public.

For example, if we know that a regional hospital has specific design needs around accessibility, building layout, and parking so that it can operate optimally, these core design needs must be factored into the early planning stages of a project.

By identifying the core design needs of infrastructure projects upfront, we can avoid ongoing and reiterative design processes that delay project delivery, and impact when and how Ontarians access these services.

7. Ontario needs to be able to harness great infrastructure ideas — even ones that solve problems we haven’t contemplated yet

Delivering projects through the P3 approach is one way to work with the private sector on identified projects; however, sometimes the private sector has solutions to problems that the government hasn’t identified yet. As such, we may be missing out on good ideas from the private sector because we lack a formal process to receive those ideas. It is critical that we look at ways to engage with the private sector to foster innovative solutions to deliver quality projects, improve service delivery and increase opportunities for business to support government priorities.

Our commitment

1. Support the expansion of broadband and cellular infrastructure.

The Province is committed to helping small, rural, Northern, and Indigenous communities get the digital infrastructure they need.

That’s why we released Ontario’s Broadband and Cellular Action Plan, which includes a commitment of $315 million over five years to help expand access to these services. This new Action Plan will leverage private sector and other government investments, prioritizing access in unserved and underserved communities. It will also support economic development and public safety.

By helping the private sector expand broadband and cellular access, we can improve access to education, health care, and online government services. We can enable modern infrastructure where smart cities, electric vehicles, and automated technologies power us into the future.

Ontario’s vision is province-wide access to reliable and secure broadband services that meet Canada’s service standard of 50 megabits per second (Mbps) download and 10 Mbps upload, for fixed connections and the latest mobile technology.

To help ensure timely delivery, we will look to support shovel-ready projects, remove regulatory barriers, and make the most out of existing infrastructure programs and assets. Ontario’s Broadband and Cellular Action Plan includes a $150-million provincial broadband and cellular infrastructure program we will launch in 2020-21. Through this program, we will work with all levels of government and industry partners to match funding and create the right investment climate for private sector-led expansion of broadband and cellular infrastructure across the province.

2. Support the expansion of access to natural gas

The Ontario government’s Natural Gas Expansion Support Program will help natural gas distributors manage the cost of extending natural gas service to unserved communities across Ontario, with a focus on rural, Northern and First Nations communities. Enabling private investment in natural gas will help reduce the cost of doing business. The program will directly benefit the people of Ontario by saving the average residential household between $800 and $2,500 per year in energy costs.

Currently, the first phase of the program has already been launched.

3. Expand public-private partnerships (P3s)

We will build on the success of Ontario’s P3 model and identify new opportunities to further leverage private sector expertise, experience, and accountability. For example, project bundling is a method of combining multiple smaller projects into one larger project that is suitable to deliver using our P3 model. Rather than procuring and delivering such small projects separately, bundling can help build economies of scale and attract private sector interest in the P3. This approach can be particularly useful to municipalities and ministries delivering a series of small projects with similar designs.

Ontario used the bundling approach to successfully deliver 18 facilities for the Ontario Provincial Police across the province, including police detachments, forensic identification units, and regional headquarters.

Through project bundling we are also investing more than $182 million to replace aging police facilities with nine new Ontario Provincial Police detachments so that communities can continue to receive modern, cost-efficient and high-quality police services. Moving forward we will explore opportunities to use the bundling approach to deliver different types of projects (such as roads and bridges) faster and for better value for taxpayers.

We will also continue to enhance the P3 model so Ontario will continue to be a global leader in the infrastructure industry, and to make sure we deliver projects on time and at good value for the people of Ontario.

4. Unlock economic opportunities for small, rural, Northern, and Indigenous communities

Ontario’s small, rural, Northern, and Indigenous communities have unique regional differences compared to more urban parts of the province.

These differences must be recognized, celebrated and supported to create strong economic growth conditions and prosperity for these parts of the province.

The Ministry of Infrastructure consistently champions the unlocking of economic opportunities for small, rural, Northern, and Indigenous communities through resilient infrastructure planning and critical infrastructure investment that responds to regional needs.

In doing so, we will consider the unique challenges and opportunities in small, rural, Northern, and Indigenous communities, including distance, costs, geography, climate and the length of construction seasons.

To do this, Ontario will:

• provide guiding tools and expert advice to help support municipalities with asset management planning. Municipalities own a significant share of public infrastructure and we want to help them make targeted investments that maximize the value of their infrastructure
• work with municipalities to promote multi-use facilities and co-located infrastructure where appropriate, to save money and make services more convenient and accessible
• provide guidance on approaches to achieve greater financial sustainability in the delivery of municipal water and wastewater services. This will include encouraging the use of alternative models for service delivery (such as municipal services corporations) that promote greater regional collaboration and delivery across neighbouring communities, and promoting innovation to achieve economies of scale in service delivery, which will assist in making these services sustainable and affordable into the future

Northern Ontario’s economy is supported by its vast natural resources that fuel mining and forestry activities. This is in addition to other industries such as steel, manufacturing, transportation, tourism, and traditional hunting, fishing and trapping. The Province is committed to supporting economic development and job creation in the North by investing in the right kinds of infrastructure.

The Ring of Fire is a large, geologically rich area with mining development potential in Ontario’s Far North. Located about 535 kilometres northeast of Thunder Bay, it holds significant deposits of minerals including chromite, nickel, copper, zinc, and gold. The Ring of Fire represents a significant opportunity to develop the resources of Northern Ontario and create jobs in the region.

To unlock the full economic potential of the project, new all-season road infrastructure is needed. Ontario is working with its Northern communities, including the surrounding Indigenous communities, the federal government, and the private sector to build the needed transportation infrastructure.

5. Reduce red tape

Ontario is working to cut red tape so that infrastructure projects can happen faster and more effectively. It is important that projects are built properly and based on thorough planning and analysis. However, when projects are burdened by too many decision-makers and redundant approval processes, the result is delays in the delivery of needed infrastructure.

By cutting red tape, we will be able to get shovels in the ground sooner. This will stimulate economic growth, competition, and job creation — opening Ontario for business.

To do this, we are taking actions to:

• bring housing to market sooner by making it easier and faster to obtain residential approvals through Ontario’s Housing Supply Action Plan
• speed up implementation of the Province’s Growth Plans to support transit, housing and economic development
• identify Provincially Significant Employment Zones that reduce red tape for job-creating projects
• update the Heritage Act to speed up approvals while ensuring appropriate protection of heritage sites
• streamline the environmental assessment and species-at-risk approvals process while maintaining Ontario as a recognized global leader for conservation and environmental stewardship
• reduce restrictions on important economic development projects in the Far North, encourage job creation in Northern communities, and ensure a collaborative approach to development through the review of the Far North Act, 2010
• review the capital and licensing process for long-term care home operators to reduce administrative burdens

6. Standardizing infrastructure project design criteria and processes

The Province will look at standardizing infrastructure project design criteria and processes for similar classes of facilities or buildings in the same sector, while allowing for design flexibility. This will facilitate faster project delivery and bring down the cost of critical infrastructure projects.

By using design standards that are tailored to key sectors, the Province can establish key design principles that will lay the groundwork for successful projects, including:

• cost-effective design that supports capital ministry guidelines, standards, and programs
• sustainable design that ensures effective and efficient service delivery
• adaptable and flexible design that responds to changing service needs
• safe and accessible design

7. Develop a framework for accepting and evaluating unsolicited proposals

We consulted extensively with infrastructure market participants and heard clearly that they have ideas for infrastructure projects that have public benefit. We have developed and launched an unsolicited proposals program to take in and evaluate these ideas and act upon the ones that will make life better for the people of Ontario. The unsolicited proposals program consists of a web portal for people and businesses to submit proposals and a framework for conducting fair and consistent evaluations of proposals.

Research shows that unsolicited proposals programs are used around the globe to generate innovative proposals that benefit the public and provide demonstrable value-for-money while being aligned with government priorities.

An unsolicited proposals program is a simple, direct and efficient way to gather proposals that don’t fit under existing government procurements. Further, it is a strong signal to the infrastructure market that Ontario is open for business and jobs.