Infrastructure Ontario pipeline reflects unprecedented civil deal flow

14 November 2016 - 12:00 am UTC

CAD 11.8bn in new projects anticipated

The pipeline for P3 projects to be delivered by Infrastructure Ontario (IO) reflects an unprecedented number of civil deals.  “The pipeline represents the shift that we have been talking about over the last year or two,” Divisional President, Project Delivery Ehren Cory told InfraAmericas. “It really is the next evolution.”  

Cory said that the Regional Express Rail (RER) is the “big volume” program.  The project involves the expansion of the GO Transit network from a commuter system to provide all day service across the greater Toronto area.  

RER is to be delivered under the dual guidance of IO and Metrolinx and is divided into two categories: the in-corridor projects that consist of new track, grade separations, tunnels, overpasses, signaling and electrification; and the off-corridor projects such as new stations, enhancement to existing stations, customer space and platform extensions.

Some of the off-corridor work intended to enable the Go Transit Stouffville Corridor Station Improvements has already commenced.

Cory said that the service improvements, which range in value from CAD 100-500m (USD 73.8- 369m)will continue to roll out on an approximate monthly schedule starting in 2017. These early works, valued at CAD 3bn, will be procured as DBF or DB projects over the next 12 months, and there will be no long-term [operating] components, he added. 

“They are shorter and snappier, and we want to get them into the upcoming construction windows,” Cory added. 

Regional Express Rail major projects

Projects Model Issue RFQ Issue RFP Location Cost (CAD)
Stouffville Stations Project + Grade Separation DBF July 2016 September 2016 Greater Toronto Area 200m-499m
HWY 401 / 409 Rail Tunnel DBF September 2016 Winter 2017 Greater Toronto Area 200m-499m
Cooksville Station DBF September 2016 Winter 2017 Greater Toronto Area 100m-149m
Kipling Bus Terminal DBF  Fall 2016 Spring 2017 Greater Toronto Area 50m-99m
Union Station upgrades DBF Fall 2016 Spring 2017 Greater Toronto Area 500m-1bn
Barrie Corridor Grading and Bridge Expansions BF Winter 2017 Spring 2017 Greater Toronto Area 200m-499m
Lakeshore East Grading Package East Corridor Expansion + Two Rail Bridges BF Winter 2017 Spring 2017 Greater Toronto Area 100m-149m
Rutherford Grade Separation and Station Works DBF Winter 2017 Summer 2017 Greater Toronto Area 200m-499m
Lakeshore East Grading Package Central Corridor Expansion + Grade Separations BF Spiring 2017 Summer 2017 Greater Toronto Area 200m-499m
Lakeshore West Corridor (Burloak Grade Separation and station upgrades) DBF Summer 2017 Fall 2017 Greater Toronto Area 200m-499m
Davenport Diamond Grade Separation DBF Summer 2017 Winter 2018 Greater Toronto Area 200m-499m
Lakeshore East Grading Package West Corridor Expansion BF Fall 2017 Spring 2018 Greater Toronto Area 150m-199m
Lake Shore East – Eastern Stations BF Winter 2018 Spring 2018 Greater Toronto Area 150m-199m
Milton Station DBF TBD TBD Greater Toronto Area 100m-149m
Package 2: Station Works TBD TBD TBD Greater Toronto Area TBD
Package 3: In-Corridor (Electrification) TBD TBD TBD Greater Toronto Area TBD

 

The electrification of the network is referred to as package three. The work follows Metrolinx President and CEO Bruce McCuaig’s statement during CCPPP 2015 that identified the electrification of 163 miles of rail as a DBFM opportunity. 

Electrification
Cory said that the agencies will procure a wave of new stations called “package 2 projects” once the enabling works have been completed. He noted that the delivery model is still undecided but that there could be some scope for a maintenance component.

There is no time frame associated with the electrification project, but Cory indicated Metrolinx and IO are trying to understand how best to procure the project. 
“There are benefits to having an integrated approach as you get consistency as an owner,” Cory said. “However on the other hand, the scale can be a problem and we are continuing to explore that question.” 

“How do you package signalling work, electrification and track expansion to ensure continuity of operations in a live corridor?” he added.

Cory added that market sounding will continue over the coming months with different market players as they try and find the right procurement strategy.

Deal uptick
Cory said that enabling works for projects currently in procurement such as Highway 427, Finch LRT, Hurontario LRT and the New Toronto Courthouse will result in an uptick in financial closes. 

“2014 was our busiest year and I think we are going to rival that,” he said.   

Government of Ontario Ministry major projects

Project Model Issue RFQ Issue RFP Location Cost
Highway 427 Expansion DBFM July 2015 March 2016 York Region 500m-1bn
Mount Sinai Hospital – Phase 3A Redevelopment Project BF August 2015 June 2016 Toronto 200m-499m
Groves Memorial Community Hospital DBF September 2015 June 2016 Fergus 100m-149m
New Toronto Courthouse DBFM April 2016 Fall 2016 Toronto 500m-1bn
Michael Garron Hospital – Phase 1 New Patient Care Tower Project (Toronto East General Hospital) DBF June 2016 Winter 2017 Toronto 200m-499m
West Park Healthcare Centre – Replacement Patient Care Building and Renovation of Main Building DBFM September 2016 Winter 2017 Toronto 500m-1bn
Port Credit Mobility Hub TOD March 2015 Spring 2017 Mississauga 20m-49m
OPP Modernization Phase 2 DBF Winter 2017 Summer 2017 Multiple Locations 100m-149m
Highway 401 Widening / HOV TBD TBD TBD Peel / Halton Regions TBD
Queen’s Park Reconstruction Project DBF Spring 2017 Spring 2018 Toronto 500m-1bn
Women and Youth Justice Facilities Redevelopment BF Spring 2018 Fall 2018 Greater Toronto Area and Eastern Ontario 150m-199m
Brockville General Hospital Redevelopment Project BF June 2015 TBD Brockville 150m-199m
Orleans Family Health Hub BF TBD TBD Ottawa 50m-99m
Highway 7 TBD TBD TBD Kitchener to Guelph TBD
Northwest Transmission Line TBD TBD TBD Thunder Bay Area TBD

 

Light Rail Transit projects

 

Project Model Issue RFQ Issue RFP Location Cost
Finch LRT DBFM Summer 2015 Winter 2016 Toronto >1bn
Hurontario LRT DBFOM October 2016 Spring 2017 Mississauga / Brampton >1bn
Hamilton LRT TBD TBD TBD Hamilton TBD

Competition and capacity
IO is also engaged as a procurement advisor to the City of Toronto and Ottawa on large civil projects such as Gardiner Expressway, Scarborough Subway and Ottawa’s LRT Stage 2, Cory said.

“Market capacity is something IO is constantly monitoring across design work, construction work and financing capacity.”  

Cory added that he expects that the enabling works projects and follow-on station projects could see a greater number of bids in civil procurements than in previous years trickle through to the social procurements. 

“We have a great pipeline of work that really helps bidders plan for the future and build up their resources and get the capability they need,” Cory said. “The RER is a huge civil works project with lots of structural work also, so there could be an interesting cross over in the players between the social and civil markets and aspire to lots of good competition.”   

Delays and procurement developments
Cory was resolute about the agencies processes, despite RFP deadline delays associated with Highway 427 and Finch LRT.  

“The process is designed to enable bid consortiums to come to us when seeing complexities in commercial or design elements of a project to request more time, [but] on the other hand, we do refine and finalize elements and scope of projects,” Cory said. “The value of an AFP project works when you get fixed scope.  We don’t want to close projects with uncertainty and pay for that down the road.”   

Cory noted the agency will also introduce a program around vendor performance in order to evaluate and incorporate current experience in live bids.  

“We’ll be rolling it out in 2017 and it’s not meant to be punitive or an overreaction to events but designed to analyze clear and measurable performance.”