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Backgrounder: Infrastructure Ontario

Archived Backgrounder

Backgrounder: Infrastructure Ontario

A New Decade for Infrastructure Ontario

Ministry of Infrastructure

Infrastructure Ontario (Ontario Infrastructure and Lands Corporation) has a mandate to deliver infrastructure projects, infrastructure lending and provide realty services on the government's behalf.

Established in 2005, Infrastructure Ontario (IO) is an arm's length Crown Corporation dedicated to the renewal of the province's hospitals, courthouses, roads, bridges, water systems and other public assets. Using an Alternative Financing and Procurement (AFP) model that ensures appropriate public control and ownership, IO uses private financing to strategically rebuild vital infrastructure on time and on budget. In 2011, IO merged with the Ontario Realty Corporation to become the Ontario Infrastructure and Lands Corporation.

IO also provides long-term financing support to help public sector and not-for-profit organizations renew their infrastructure.

Expanded Role

Building Together will expand Infrastructure Ontario's role. Going forward IO will:

  • Increase the use of the AFP model across a range of sectors, including transit, municipal water systems and others where appropriate
  • Procure both AFP and traditional infrastructure projects where appropriate
  • Bundle similar, smaller projects either by traditional procurement or through the AFP model; the Province will work with stakeholders to determine when this approach would be most effective
  • Provide procurement advice and assistance to organizations and municipalities receiving provincial infrastructure project grants of more than $100 million
  • Procure information technology projects and support the Growth Plan for Northern Ontario.

What this means for Ontario

The AFP model has been used to bring to market more than 50 projects valued at close to $21 billion in capital construction. Almost all of the 17 projects completed to date were delivered within budget and will generate more than $400 million worth of value for money savings than if they were procured in the traditional manner where the province retains all the risks involved in designing, building and maintaining the asset.

IO's loan program has allowed municipalities, universities and other eligible public sector and non-profit organizations to access financing for hundreds of infrastructure projects where they would be otherwise unable to do so through traditional channels. To date, IO has approved and executed over $4.5 billion in loans, helping clients improve the quality of life in communities across Ontario.

The government will consider expanding the loan program further to include more not-for-profit organizations that provide infrastructure with important public benefits. By involving IO in a much broader range of infrastructure activity, Ontario will save taxpayer dollars and preserve the province's status as one of the most dynamic infrastructure procurement markets in the world.

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