Death of November/December 2017 Evidence-based Planning The Real Value of Toll Roads Canada’s P3 Landscape Billions on the line Getting Off the Political Roller Coaster

Contents

novEMBER/decemBER 2017

GOVERNANCE FINANCE 8 Getting off the 28 Assessing Tolling Projects Roller Coaster As demand increases for tolled Fourteen years after transportation projects, a number becoming Ontario’s first of factors need to be considered to minister of infrastructure, evaluate their financial viability. David Caplan reflects on By Priscilla Adjei lessons learned that would 30 Modernizing Infrastructure be valuable across Canada. The Canada Infrastructure Bank 10 Improving and Smart Cities Challenge present Project Delivery new opportunities for financing What bringing 100 municipal infrastructure assets. Alternative Finance and By Alison Babbitt Procurement projects to market has taught SMART CITIES Infrastructure Ontario. 32 Smart Opportunities 14 By Ehren Cory The upcoming Smart Cities ENERGY Challenge presents an opportunity for cities to execute a strategy 14 An Education for a digital transformation. in Energy By Alex Miller Taking an up close look at the development of Canada’s EDUCATION largest post-secondary net zero energy building. 34 The Need for By Andrew Macklin New Education What does the education sector need 16 The New Frontier to consider to provide the proper How the Canada Green training for the next generation Building Council’s Zero of infrastructure developers. Carbon Building Standard By Ashley De Souza 24 could help mitigate building emissions. TOP100 PROJECTS By Mark Hutchinson 36 F ive burning questions MANAGEMENT that will be answered with the 2018 Top100 Projects report. 18 P3s are Thriving! By Andrew Macklin Exploring the successful use of private-public DEPARTMENTS partnerships across the country. 4 Editor’s Note By Mark Romoff Andrew Macklin on why the 20 Entering the Post- country needs to watch how events unfold in Churchill, Manitoba. Consultation Era How the voice of the people 5 Front is having a greater impact Jonathan Hack discusses the 16 34 on the development of need to plan infrastructure new infrastructure. with expertise, not politics. By Jacques Bénard 22 Panorama 24 Benchmarking Where the Trolls Live Energy Management 38 People & Events The use of big data for Appointments, announcements, energy benchmarking can company news, and event reports. help reduce consumption and create new efficiencies. 42 Closing Shot By Shooka Karimpour Matti Siemiatycki asks if evidence- and Thomas Dandres. based planning is dead in Canada.

All back issues of ReNew Canada are available 42 for download at library.actualmedia.ca renewcanada.net November/December 2017 ReNew Canada 3 Editor’s Note

WHAT ABOUT

CHURCHILL? November/December 2017 Volume 15 Number 6

By Andrew Macklin EDITOR Andrew Macklin

ou may have missed the Manitoba Premier Brian Pallister extended PUBLISHER Todd Latham ugly situation that has been an offer to the federal government: Director of Elena Langlois Y unfolding in the small town of cover the cost of fixing the railroad and Business Development Churchill, Manitoba. re-opening the port, and the province CONTRIBUTORS Priscilla Adjei, Alison Babbitt, Jacques Bénard, In May, rail service to the town was would pour $500 million over the next David Caplan, Ehren Cory, suspended indefinitely due to severe decade into resources for Churchill. Thomas Dandres, Ashley De Souza, Mark Hutchinson, flooding and washout conditions. This whole ugly scenario begs several Shooka Karimpour, Combined with the closure of the questions: How did a large stretch Alex Miller, Mark Romoff, port in 2016, this important hub for of railroad, one that provides vital Matti Siemiatycki

environmental study and eco-tourism links to otherwise-stranded remote ART DIRECTOR Donna Endacott has become cut off from the rest of communities fall at the mercy of an and DESIGNER

the province. American company? And now, faced ASSOCIATE EDITOR Katherine Balpataky You would think that it would just be with financial adversity over the cost CONTENT AND a matter of making immediate repairs of repairs, why should government Todd Westcott MARKETING MANAGER to the rail line to get service back be forced to foot the bill to bail out ADVERTISING Elena Langlois running and remove the community their investment? [email protected] from isolation. But that’s not the case. Regardless of whether or not you Todd Latham The rail line is owned by an American can find legal or personal justification [email protected] company, Denver-based OmniTrax for the company’s actions, the fallout ADVISORS Nick Reid, James Sbrolla Inc., who announced that they were not from this ordeal could set dangerous prepared to spend the money necessary precedents for this country. Because, to repair the line, with chief commercial if a government does foot the bill officer Peter Touesnard stating that “We for the repair, Omnitrax walks away cannot justify spending the resources to with a (potentially) profitable asset repair the line […]” during a July 18th that cost nothing to fix, reaping all of ReNew Canada is published six times a year by Actual Media Inc. media conference. the financial rewards of the repair. The media conference was held to What’s to stop any other company from 147 Spadina Avenue, Unit 208, Toronto, ON M5V 2L7 Phone: 416-444-5842 provide an update on the extent of the expecting the same? Why spend the Subscription/customer services: 416-444-5842, ext 211 damage to the line. In a media release money on repairs when you can force dated June 9th, the company stated someone else to? that the track bed had been washed Immediate action is needed. No ReNew Canada subscriptions are away in 19 spots, five bridges were government should pay for this repair, available for $39.95/year or $64.95/two years and include the annual Top100 Projects report. visually damaged, and an additional but no government should have allowed ©2017 Actual Media Inc. All rights reserved. 30 bridges and 600 culverts needed the sale in the first place. If there was no The contents of this publication may not be further assessment for structural legal way to block the sale, well, perhaps reproduced by any means in whole or in part, without prior written consent from the publisher. integrity. Then at the July 18th event, it’s time to consider some new laws to Printed in Canada AECOM Canada rail expert Ron ensure this doesn’t happen again. The "ReNew Canada" and "ReThink. ReBuild. ReNew" Mitchell presented the findings of the fate of an entire community is at stake are Trademarks of Actual Media Inc. full assessment of the rail line, with because of this. a cost range of $20 million to $60 Who will step in and save Churchill? million (later pegged at $43 million) to complete the repairs. That was a price too steep for OmniTrax to accept. Instead, it wanted the government to Andrew Macklin is the editor cover the cost. of ReNew Canada magazine. Undeliverable mail return to: 147 Spadina Avenue, Unit 208 After several weeks of no movement, [email protected] Toronto, ON M5V 2L7 Canadian Publications Mail Product Sales Agreement 40854046 ISSN 1715-6734 Join the conversation. Search “ReNew Canada” on LinkedIn. Proud members of For daily news and discussion, visit @ReNewCanada /ReNewCanada

4 ReNew Canada November/December 2017 renewcanada.net renewcanada.net November/December 2017 ReNew Canada 5

ABOUT THE COVER Front

Capital spending on infrastructure Send your letters to the editor to [email protected] needs to be consistent, not based on election cycles. Find out more on what needs to change on page 8. Why Engineers Must Help sHape B.C. BUDGET UPDATE Public Policy The Government of B.C., under the By Jonathan Hack leadership of premier John Horgan, has issued its first budget update stating n Canada’s House of Commons, members with engineering financial priorities for the months ahead. backgrounds hold only four per cent of the 338 seats. In Ontario, I the situation is even worse. At Queen’s Park, home of the Legislative The Budget Update outlined Assembly of Ontario, fewer than two per cent of the members are professional current public sector infrastructure engineers, and not a single engineer is in the current governing party. investment commitments: Why should this be a concern? Because the issues facing Ontario, Canada, and the world are increasingly complex and technical in nature. Engineers $2.6 billion for post-secondary have a scientific understanding of the world in which we live, meaning institutions to build capacity and help they appreciate how people and systems interact over the total lifespan of meet the province’s future workforce projects. Engineers have an ability to simplify intricate problems and are needs in key sectors, including science, skilled developers of evidence-based decisions and scenario analyses. trades, and technology; The gap exists at the policy formulation stage, particularly when it comes to $3.1 billion to expand and upgrade critical, technically-sophisticated ministerial portfolios such as infrastructure, innovation, and the environment and climate change. Because non-technical health facilities. These investments politicians and their staff are first to devise and review new government support new major construction projects initiatives, a significant amount of planning and consideration is given and upgrading of health facilities, medical to policy ideas before engineers in the Ontario Public Service have the and diagnostic equipment, and information opportunity to review these proposals and offer recommendations. management/technology systems; and Just as lawyers have been historically predisposed to entering politics, $1.4 billion to support investments in engineers have largely been dissuaded—but these trends are changing. The engineer of old was routinely told that their central role was to serve maintaining, upgrading, or expanding and protect the public. But by failing to shape policy, engineers aren’t fully ministry infrastructure, such as fulfilling their duty. courthouses, correctional centres, provincial Without any doubt, engineers need to serve—but they also must lead. office buildings and information systems. Engineering programs at McMaster University and the University of The update also included a list of projects Ontario Institute of Technology now offer combined engineering and within the public sector infrastructure public policy degrees to teach critical leadership and communications skills. All of Ontario’s engineering schools are working to equip graduates space, valued at $50 million or more. with the tools to not only analyze problems and develop solutions, but This includes projects in the education, also explain solutions to a non-technical audience, work collaboratively health care, energy, transit, and with professionals from different backgrounds, and communicate to the transportation sectors. public how society will be positively impacted. Also included an announcement that the As a result, Ontario’s engineering students and graduates are now province’s carbon tax would see an increase becoming increasingly engaged in politics. By positioning the modern engineer on advisory boards, provincial governments stand to reap of $5 per tonne as of April 1, 2018. immediate benefits from their technical and strategic understanding of processes, how things work together, total costing, and a number of other Next Issue: JANUARY/FEBRUARY considerations that influence the creation of good public policy. Engineers are bound by a code of ethics regarding duty of care and protection of Q&A with the public interest. These are the qualities that the public wishes their politicians would better embody, and engineers stand as ready participants. Top100 Minister Sohi Outlook For the future of our province, it is critical that government and the Overview 2018 One-on-one public recognize how important engineers are for the prosperity and Analysis of with minister of What will growth of our communities and the quality of life Ontarians enjoy. the Top100 infrastructure make news Organizations like the Ontario Society of Professional Engineers exist Projects report and communities in 2018 to ensure that engineers are not being undervalued or disregarded in the Amarjeet Sohi public sphere. In order for governments to avidly invest in engineers, they must recognize our capabilities as innovators, wealth creators, and leaders. Advertising Deadline: November 16, 2017

To reach our influential readers in print Jonathan Hack is the president and chair of the and online, contact [email protected] Ontario Society of Professional Engineers.

4 ReNew Canada November/December 2017 renewcanada.net renewcanada.net November/December 2017 ReNew Canada 5 Front

Alberta Renewable Electricity Program Reaches RFP Stage

Alberta moves one step closer to its “Round one of the program has attracted projects are required to be operational by target of 30 per cent renewable energy strong national and international interest the end of 2019. by 2030 as round one of the Renewable in developing renewable generation in In total, the Renewable Electricity Program Electricity Program enters the request for Alberta,” said Mike Law, senior vice will support the development of 5,000 proposals stage. president and chief operating officer of megawatts of renewable electricity capacity The Alberta Electric System Operator AESO. “Each stage of the competition by 2030. The program is expected to attract (AESO) has invited national and has surpassed expectations, positioning at least $10.5 billion of investment into the international companies to participate in the province well to meet the 30 per cent Alberta economy and create more than 7,200 the final stage of the competition. A total renewables target by 2030.” jobs for Albertans. of 29 projects qualified to advance to the Successful bidders will provide a target More information about the Renewable request for proposals stage, representing of 400 megawatts of renewable electricity Electricity Program is available from approximately 10 times the number of at the lowest cost to consumers, or enough the Alberta Electric System Operator megawatts targeted for the first round. to power up to 170,000 homes. The at aeso.ca/rep.

Ontario Seeking Design Concepts for Hydrogen- Powered GO Trains Ontario is electrifying the GO rail network with Bi-level EMU experience and capacity Canada Approves to transform how people move around to integrate a hydrogen fuel cell system into the Greater Toronto and Hamilton Area their Bi-Level EMU products.” Ambassador Bridge (GTHA), and is seeking design concepts for A number of rail vehicle manufacturers Hydrogen-powered trains as an alternative will be commissioned to prepare designs and Enhancement to conventional overhead wires. to demonstrate the impact that incorporating Through the GO Regional Express Rail hydrogen fuel cells into bi-level trains would Project (RER) program, Ontario will deliver faster have on the performance of the GO rail and more frequent electrified rail service on network. This work is an important part of The Government of Canada has core segments of the GO rail network and UP studying the feasibility of hydrail. announced that it has approved the Express. As part of planning the electrification, The province has issued a Request for Canadian Transit Company’s application Ontario is undertaking a feasibility study Proposals (RFP) for concept design work to for the proposed Ambassador Bridge on the use of hydrogen fuel cells. Recent show how a hydrogen fuel cell system could Enhancement Project spanning the advances in the use of hydrogen fuel cells to be integrated into a Bi-level Electric Multiple Detroit River between Windsor and power electric trains in other jurisdictions Unit (EMU) train. Detroit to replace the existing bridge. makes it important that Ontario consider this An EMU train is an electric-powered In addition to approving the Canadian clean electric technology as an alternative to train consisting of multiple self-propelled Transit Company’s application, the conventional overhead wires. The Hydrogen carriages linked together. An EMU does not Government is moving forward Rail (Hydrail) Feasibility Study will inform a require a separate locomotive, as electric expeditiously with the Gordie Howe decision on how Ontario will proceed with the motors are incorporated in each carriage. International Bridge project. electrification of GO rail services. Examples of EMUs currently in service The project will see the construction of “This announcement is a critical step include the Heathrow Flyer in the UK, the a six-lane bridge to replace the 87-year- to helping us understand the possibilities AGV in France and the TTC’s Toronto old current Ambassador Bridge, as well as of using hydrail on our network,” said Rocket subway trains. an expansion of the Ambassador Bridge’s Robert Siddall, acting president and CEO The Hydrail Feasibility Study is anticipated associated Canada Border Services of Metrolinx. “This procurement process to be complete by the end of 2017, with a Agency facility. will allow Metrolinx to identify partners decision on electrification technology to follow. “The construction of the replacement

6 ReNew Canada November/December 2017 renewcanada.net Front

(Continued from page 6) Ambassador Bridge together with the spaces, and protecting the environment and Online at Gordie Howe International Bridge project considering Indigenous interests. renewcanada.net will ensure that Canadians continue to The Windsor-Detroit gateway is benefit from the efficient movement of comprised of the Ambassador Bridge, the people and goods at this crossing while Windsor-Detroit Tunnel, the Detroit- providing infrastructure improvements for Windsor Truck Ferry, and the Detroit River the local community,” said Marc Garneau, Rail Tunnel. It is the busiest commercial minister of transport. land border crossing between Canada the Under Canada’s International Bridges United States, handling more than 25 per and Tunnels Act, the project is subject to cent of the overall Canada-U.S. trade per conditions that will ensure the efficiency, year, and approximately 30 per cent of the safety, and security of the crossing and trade carried by truck. mitigate the impacts of the project on the In 2015, 2.5 million trucks carrying over VIDEO: Springbank Off-stream local community. The conditions include the $120 billion in two-way trade crossed the dismantling of the existing bridge when the Ambassador Bridge. It is also the second Reservoir project. bit.ly/OffStream replacement bridge is open, improving local busiest passenger vehicle crossing, with 4.2 infrastructure, creating new public green million vehicle crossings in 2015.

$360 Million Committed to Yukon Resource Gateway Project

REPORT: Planning could save Ontario billions on infrastructure. bit.ly/OntSave Credit: IERHA

NEWS: Selkirk Regional Health Prime Minister Justin Trudeau and to complete the project agreements. First Centre opens. bit.ly/SelHealth

Yukon Premier Sandy Silver have announced Nation agreement is essential to the Credit: Rick Radell over $360 million in combined federal and continuation of the project and we look territorial funding to improve road access in forward to working in partnership with two mineral-rich areas: the Dawson Range them on this milestone development.” in central Yukon and the Nahanni Range In the Dawson Range, four separate Road in southeastern Yukon. public road systems will be upgraded. In total, the Yukon Resource Gateway Improvements to the Nahanni Range Road Project will help upgrade over 650 kilometres will include upgrades from its junction with of road and build or replace numerous bridges, the Campbell Highway to the border between culverts, and stream crossings. Better road Yukon and the Northwest Territories. access will help Canadians and local businesses In support of the Yukon Resource take greater advantage of the economic Gateway, the Government of Canada potential of Yukon’s natural resources, and set has committed to contributing up to the stage for the long-term development of the $247,381,000 to this project. Following the territory’s growing mining sector. development of project agreements with VIDEO: Eglinton LRT tunnel— “The Resource Gateway is one of the most affected First Nations and environmental one year later. bit.ly/EglinLRT significant projects ever undertaken in this and socio-economic review, the territory and will have an incredibly positive Government of Yukon will contribute up impact on the Yukon economy,” Silver to $112,802,000. Visit said. “I’m pleased to see the Government The Government of Canada funding top100projects.ca of Canada’s commitment to the Resource is being made available through the for updated Gateway project. With this commitment, we New Building Canada Fund—National 2017 list! will continue working with First Nations Infrastructure Component. renewcanada.net November/December 2017 ReNew Canada 7 Governance Getting off the Roller Coaster

Lessons from Ontario in building a better market for infrastructure. By David Caplan

lection year is the traditional time little sense, but it was a reality of government. with oversight of others and not operate in when the air smells of fresh paint This was not the only challenge. Ontario a silo. Given that all ministries have capital E and asphalt, newspapers headlines faced several challenges in delivering spending, and their actions are all linked in announce funding for school repairs infrastructure. Challenges that are not some way, they need to be coordinated. As and new hospitals, and if you listen very uncommon elsewhere: the ever-present originally envisaged the Ministry of Public carefully you can hear the sound of ribbons budget pressures; a track record of spiralling Infrastructure Renewal was designed to steer being cut. In British Columbia, they even project costs and delays; and a lack of rather than row the boat, as a ministry it does have a term for it, Black Top Politics, with coherent planning. To top it all off building not need to be full of people, it just needs to key ridings getting fresh asphalt to show the infrastructure just was not popular for provide direction and coordination working government working for them. Around the world this roller coaster approach to funding infrastructure is just one thing that has held Delivering infrastructure takes time, the infrastructure sector back. Decisions made by governments shape the market for but Ontario has seen a pretty spectacular infrastructure and if we are to get better value in the long-term governments need to transformation over the last 10-15 years. change their ways. I was fortunate to be appointed the first minister of infrastructure in Ontario back in politicians—committing to something that with ministries with capital budgets, and 2003, one of the first in the world in fact. In the next guys get credit for and dealing with make sure actions are being taken. the negative headlines if things go wrong. that role I saw a familiar pattern. After every 2 Selling a vision: Faced with another election each ministry would be allocated This pattern is not unique but it is one that raid of the capital budget, our ministry was money for the next four years to deliver all needed to be broken. To do that in Ontario faced with presenting a box of cobwebs the promises splashed across the election we looked at the whole system to see how as our contribution at budget time when campaign. Once things had settled down, much we could change. Here are some of the it came to new project announcements capital spending was the first pot of money lessons picked up during that time that could or spending commitments. We had to be to get raided if operational budgets had gaps be used elsewhere: creative and collated all the capital spending to fill. Then in the run up to elections capital 1 Driving change: The infrastructure across ministries and instead announced a budgets opened up again. For a ministry and ministry needs to be the one driving action. $30 billion commitment over five years. The sector with long timelines this approach made To do so it needs to be a central agency public response to this commitment was

8 ReNew Canada November/December 2017 renewcanada.net Governance

transformation over the last 10-15 years. A lot of the progress has been as a result of the changes above, but there are still areas where the government can play a positive role: • Common standards: There are 444 municipalities in Ontario and different building codes and standards for virtually all of them. The province could also do with standardizing things like contracts. To raise quality and reduce costs across the board requires greater uniformity and a major consolidation of those codes, standards and the paperwork that goes with them. This is difficult to do as many municipalities are fiercely protective of local standards, but it is an issue that ultimately needs to be addressed. • Unlocking the pension funds: Ontario’s public pension plans lead the world in infrastructure investment but have been hesitant to invest at home. Two things are primarily cited by funds as reasons for not investing in new build infrastructure—the equity stakes are not big enough, and the risk in the construction phase in particular There is still progress to be made in infrastructure delivery in Ontario, such as introducing common is too high. It will be interesting to see standards for all municipalities. how the Canada Infrastructure Bank tries to solve this challenge and attract other private finance. A major challenge will be very well received and stable infrastructure 5 Having the tools: To break the cycle of identifying assets with revenue streams. investment became the smart political move. project cost overruns needed a fresh approach, In many respects, it changed the landscape. which is where Alternative Financing and • Consensus-based decisions: It is hard to be Any government serious about investing in Procurement (AFP) came in (the province’s fully objective in developing infrastructure infrastructure needs to present a vision that public-private partnership model). Sharing risk priorities—how do you compare a new inspires the public. between the public and private sector helped hospital in Ottawa to a transit line in Hamilton? But given the frequency of 3 Promising stable investment: In to break that cycle as contractors were now responsible for delays and had to deliver on elections and the timespan of projects, 2005 we introduced Renew Ontario, which more should be done to ensure large scale provided a coordinated view of where the what had been quoted. There are numerous problems with a low-cost bid approach that sees priority projects have a sound business province should focus its infrastructure and community case based on expert efforts around population and economic less focus on quality, and profits often being made through change orders as work is carried opinion, and there is some degree of growth. Stable, long term infrastructure plans political consensus on that major project provide certainty for industry and residential out. Having AFPs as a tool helped inject some reality into bidding and provided confidence that list. This could avoid costly cancellations investment. Having the confidence that every change in government. multiple projects are in the pipeline to bid on the price being paid was fixed. Another effective encouraged companies to invest in equipment tool was the Ontario Strategic Infrastructure The coming year is election year in Ontario. and skills for the long term, it also attracted Financing Authority, which provided loans to In June 2018 the province goes to the polls, new market entrants. This stability and municipalities and the broader public sector. then in October it is the municipalities’ turn. When it comes to infrastructure, the aftermath predictability is absolutely critical. 6 Having access to the talent: Finally, of elections can spell danger and sometimes 4 having a body like Infrastructure Ontario Providing focus: Ontario is three times opportunity. Thankfully there seems to be the size of Germany, and without some was critical. As an agency Infrastructure Ontario became a centre of excellence in consensus across party lines on the need restrictions on where to build, there will and the value of investing in infrastructure. inevitably be sprawl. This sprawl makes government for delivering infrastructure on time and on budget. It was also important Governments bear a great responsibility it very costly for governments to deliver for the efficiency and productivity of the services and infrastructure. While Renew that it could access a mix of skills, including bringing in external talent as needed infrastructure sector, we have come a long Ontario provided the investment plan, Places way, but we can still do more. to Grow provided a framework for future to develop, negotiate, and oversee AFP growth and land use. This helped protect contracts it required—the types of skills found in the private sector. farmland, and promote more intensive David Caplan is the development around population centres. vice-chair of Global It also shaped decisions on where to locate Where we are today Public Affairs. transit and other public infrastructure, like Delivering infrastructure takes time, but sewer mains, schools, and hospitals. Ontario has seen a pretty spectacular renewcanada.net November/December 2017 ReNew Canada 9 Credit: ReNew Canada ’s ’s O renewcanada.net elies on people, tructure It is critical that the public sector select select It is critical that the public sector to is principle that of part important An s highly competent private sector partners partners sector private competent highly seek out the best who can be counted on. We By requiring the world. around partners from of any component as a key local knowledge opportunities for create partnership, we participate to home to closer companies can only maintain our We in our program. ourselves, hold to continue we if reputation standards. highest the to partners, our and IO’s up hold to aiming are we so, doing By delivery, project of standard gold the as work and quality. both for cost-effectiveness is a leading process procurement our ensure for openness, of best practices example and competitiveness. fairness, transparency, component of our efforts to A key the bar is focused on the continuously raise sector partners. performance of our private was Program Performance Our Vendor It launched at the beginning of this year. procurement our of part important an is The framework. management contract and for approach establishes a standard program performance that past of vendors’ evaluation bid on as part of a vendors’ can be considered clear out sets program The work. IO future It encourages benchmarks. and expectations It is and accountability. responsibility vendor of our business culture promoting to central that benefits continuous improvement—and and IO. both vendors the public and private sectors. fra success ultimately r As important as processes are, I are, As important as processes our partners and our own, across bothour partners and our own, across In Building Kingston’s Providence Providence Building Kingston’s taking hospital involved Care of Infrastructure advantage assets. Ontario-managed lic b u For us, the number and diversity of projectsof diversity and number us, the For P Choosing the right partners and people on the robust for us to deliver In order have we pipeline of social and civil projects we with bringing to market, been tasked small,industry—big and the best in the need local and international—to team up with many these on deliver successfully and us important public projects. year, the province has tasked us with a us with a has tasked the province year, Ambitious on all fronts. significant workload Regional such as Metrolinx’s projects transit continue to progress. program Rail Express investment infrastructure province’s The in investments also includes significant new hospitals and justice facilities. the need to evolve in the pipeline reinforces delivery modern project and continue refining and is complex delivery project Large methods. should projects public authorities delivering and record track their constantly be reviewing and innovation new adjusting to incorporate lessons— learned many have We experience. planning can upfront proper how things like, changes during construction; expensive avoid budgeting data and improved empirical how informed decisions; can help us make processes to to link payments ways new and developing and the achievement completion of projects that incentivize milestones in ways of key performance but minimize financing costs are of our approach. examples

ring e iv arlier this summer, Infrastructure Infrastructure arlier this summer, a significant Ontario (IO) reached brought milestone when we

Governance e are incredibly proud for having reached reached for having proud incredibly e are

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The Davenport Diamond project represents represents Diamond project The Davenport AFP project. Ontario’s 100th Infrastructure such a milestone in less than 12 years since such a milestone in less than 12 years to market. went our first AFP project a capital value projects—with Those 100 a billion—represent $45 than more totaling of modernization and renewal province-wide hospitals, courthouses, and significant new highways including projects transportation in Today, lines. transit rail light and than more the province, communities across substantial reached have 60 of these projects For in service. now completion and are high-quality decades, consistently delivering schedule on and budget on infrastructure has been a significant impediment to in Here investment. sustained infrastructure $190-billion 13-year, Ontario, the province’s is commitment to public infrastructure of record in part a testament to our track on budget 95 per cent of projects than more on time to their and nearly three-quarters original completion date. our 100th Alternative Financing and Financing and Alternative our 100th to market. (AFP) project Procurement Canada 2017 November/December 10 ReNew Looking ahead, we have taken the the taken have we Looking ahead, our on build we how consider to opportunity projects. 100 our next deliver success as we this Update Market IO’s in see will As you Beyond 100 projects What we’ve learned from the Alternative Financing and Procurement model. Financing and Procurement the Alternative What we’ve learned from By Ehren Cory Ehren By

E Del Credit: Infrastructure Ontario Credit: Infrastructure Ontario

Governance

As important as processes are, IO’s success As our early AFP projects have entered reached recently came thanks to our lending ultimately relies on people, our partners into service, we have increasingly stepped program. As of late last year, we had approved and our own, across both the public and into a role in the operations phase—helping more than $8 billion in loans to about 380 private sectors. The depth of expertise and project owners to manage the maintenance clients. These loans help municipalities build breadth of skills at IO is what makes us of their assets, leveraging the performance- hockey rinks, water treatment facilities, truly unique. Our project delivery team based commercial elements of the AFP affordable housing units, and hundreds of includes engineers, accountants, architects, contract to ensure long-lasting, high-quality other projects that make a real difference to project management, lawyers, and many infrastructure. More broadly, on behalf the residents of a community. more professionals necessary to procure and of the province, our real estate division Add all of these responsibilities together oversee the many projects we have underway oversees Ontario’s portfolio of government and a much more significant opportunity at any time. Add in the land-use planning, buildings and land, which is one of the arises. By combining all of this work realty, property and facilities management, largest and most diverse in the country— more strategically, we are able to leverage procurement, transaction finance, heritage, expertly managing everything from modern real estate in a way that benefits Ontario actuarial, and other skills that fuel the courthouses to award-winning energy- communities much more significantly than success of our lines of business, and you get efficient government buildings to vacant one AFP project or smaller building upgrade a sense of the talent pool within our walls properties that we can sell for revenues to on its own. working on behalf of the people of Ontario. support government priorities. This year, By partnering with best-in-class partners in IO will spend over $600 million on building Making an impact in communities the private sector, we are able to leverage operation and maintenance. We will spend The West Don Lands, east of Toronto’s the expertise of their people to execute and an additional $300 million on capital downtown, offers a perfect example of what deliver on our priorities and programs. repairs and leasehold improvements to the all parts of IO can do to help transform a government’s overall real estate portfolio. neighbourhood. For so many decades, this More than infrastructure These are smart and necessary investments parcel of land was a derelict brownfield. IO Since our first project was put out to market in in real estate assets that serve communities led the work that ultimately unlocked the 2005, IO has taken on a broader mandate and across Ontario. We are constantly looking economic potential of 80 acres of land. additional responsibilities. We have become for new and innovative ways to rejuvenate That work included removing more than not only builders of public infrastructure, but and reduce our portfolio for the benefit of 800,000 tonnes of soil from the site. A new stewards of publicly owned real estate and the public sector—and the public purse. flood-protection berm made development infrastructure more generally. Another considerable milestone we possible on an additional 80 acres of land. It

12 ReNew Canada November/December 2017 renewcanada.net Governance also protects a flood plain that includes much we aimed to satisfy not only provincial along Toronto’s Queen’s Quay and OPG’s of the existing downtown core. requirements, but those of the surrounding downtown Toronto headquarters. In both As always, our success in transforming community as well. That broader thinking, cases, the properties were sold for higher the Don Lands came as a result of working and community mindset, helped identify the than their projected value—yielding over collaboratively across the public and private opportunity for the new Providence facility to $750 million. The net revenue from those sectors. We worked across multiple levels of be developed on the site. deals support critical new and modernized government and with partners like Waterfront We have also partnered with various public infrastructure. Toronto to develop and realize a clear vision. Kingston non-profits by providing low- IO uses a number of tools to deliver on We engaged the expertise and capabilities interest loans to support their own smaller, its responsibilities. We take a pragmatic of the private sector to deliver that vision. but crucial, capital projects in the areas approach toward a pragmatic goal— This award-winning community is now of community health and social services leverage our expertise to modernize public creating considerable jobs, adding property and affordable housing and have financed infrastructure and enable the government tax revenues for the city and province, and numerous projects with Queen’s University. programs that serve the people of Ontario. drawing even more investment to the area. The City of Kingston is one of IO’s larger loan Ultimately, however, the ingredients of Our work in Kingston demonstrates clients with over $300 million in approved our success are simple: talented people, how we can use our significant real estate loans for a wide variety of projects including good partners, and strong programs. With holdings toward that goal of increasing its Kingston’s new police headquarters. those three Ps, we are confident that our benefit to the community. The sum of all that work adds up to next 100 projects will continue providing Construction on Kingston’s Providence a far more meaningful and significant the infrastructure that serves the people of Care Hospital was completed late last contribution to Kingston than each initiative Ontario in so many ways and adds up to year. This new, modern facility provides a viewed on its own. more than the sum of its parts. spectrum of care, particularly for the area’s There are many other examples like this— aging residents. It was constructed using in London, Toronto, Kitchener-Waterloo, IO’s made-in-Ontario P3 model, just like Cambridge, Guelph, Ottawa, and more. Kingston General Hospital in 2011. Assets that are surplus to the Ehren Cory is the chief The property on which Providence was government’s needs become an opportunity executive officer of Infrastructure Ontario. built is part of a much larger, 122-acre site that to support other government infrastructure IO manages on behalf of the province. When priorities. Most recently, we managed we developed a master plan for that property, the sale of both the LCBO headquarters

renewcanada.net November/December 2017 ReNew Canada 13 Energy Credit: B+H + mcCallumSathe

The modern lecture theatres feature prominent use of wood and natural light in the design. AN EDUCATION IN ENERGY Working to learn and build net zero energy at Mohawk College.

By Andrew Macklin

t’s an ambitious timeline,” said Tony Cupido, building and facility manager for Mohawk College in “I Hamilton, Ont. “There are other net zero builds out there but not on this scale and not on this timeline.” Indeed, the college is faced with a significant change in the development of Canada’s largest institutional net zero energy project, just over 90,000 square feet in size. From September 30th of 2016, when shovels officially hit the ground at the site, the project has just 23 months before welcoming thousands of students to the new facility. The Joyce Centre for Partnership & Innovation was a result of a successful application from the spring of 2016 to the Strategic Infrastructure Fund, the federal government program targeted at stimulating growth and renewal of infrastructure at post- secondary institutions. The net zero energy target, according to Cupido, was a “strategic initiative to set our application and project apart from others.” The site itself in nestled within a small plot of land on the north side of the Mohawk College Fennell Campus, formerly a green space and outdoor walking path for students to navigate from the main parking lot to the I-Wing, home to the McKeil School of Business.

Getting started The design work for the new centre was awarded to a team of B+H Architects and mcCallum Sather Architects. To get started, the team put some rigour into figuring out what the building would need to look like from an energy standpoint. Within the first week, an energy budget of approximately $520 per square foot was established, and the client (Mohawk College) was told that they needed to stick to that target in order Credit: ReNew Canada to achieve net zero energy. Progress on the “It’s the first time in 30 years in the industry where the energy construction of budget was established, essentially, in the first week,” explained the Mohawk College net Joanne McCallum, co-founder and director of mcCallum Sather. zero energy The target, based on extensive research done by the team, laid building circa the foundation for the way of thinking early on in the project. summer 2017. On the Mohawk College side, the aggressive target was met with “no resistance,” according to Cupido, who was surprised by just how well everyone embraced the target. He explained that previous attempts to achieve the energy targets needed for LEED Silver and LEED Gold buildings at the school were met with significant resistance.

Building energy resources Due to the size of the rooftop footprint of the building’s exterior, it was understood that just covering the centre’s roof with solar

14 ReNew Canada November/December 2017 renewcanada.net Energy panels would not provide the energy “Right now we are starting capacity needed. There was adjacent the process of helping with some property available for geothermal wells, so philosophical and cultural changes, 24 wells were dug at a depth of 180 metres creating paradigm shifts for students, A Building to provide additional energy resources. staff, occupants, and others,” Cupido However, those two resources still said. That means changing years of Like No Other did not meet the demand of the new habits involving energy use, such as the Building an asset that does not function like centre, which will see upwards of 1,000 removal of unnecessary plugloads like anything else around it, but still compliments or more students using the building at space heaters and fridges, turning lights everything in the immediate area, it was a peak times, so the college had to look for and computers off when they are not in difficult challenge for the design team. other opportunities within its current use, and setting room temperatures both “[The centre] has a simple but dynamic footprint. The result was the ability to when occupied and unoccupied. design,” said McCallum. “It doesn’t look the attach solar panels to the rooves of two “It reflects the cultural shift we all same as anything else along the streetscape.” of the wings of the campus. have to go through as we move towards According to Kevin Stelzer, lead architect But there was a hitch. The A-Wing a net zero society,” said McCallum. for B+H, “the engine of the building is had the right surface conditions to be “Which means, we all have to be the sun, and we wanted that to be very able to utilize solar energy, but because accountable for our own energy use.” clearly expressed.” of the weight of the roof already in With an expansive curtain wall on the place, the building would not be able An education in energy leading edge of the façade, the natural light to support the panels. So, the college The people most likely to hold the will pour into the north side of the building, deferred some of its maintenance college accountable will be its own providing natural heat for those inside. budget, and Cupido and his team were students, as the centre will become an For the roof, Stelzer explained that the able to locate a lightweight insulated active teaching tool. Cupido envisions college became excited about the concept concrete solution for the roof. Cupido that students will be able to track of green terraces as part of the outdoor estimated that new solution reduced energy use in the building, whether it be features, even though the space would need the weight of the roof by upwards of 60 through an online program or app-based to be a renewable energy generation point. per cent per square feet, allowing the platform. That will allow the students As a result, large photovoltaic structures college to place as many solar panels as to become invested in the targets set for will be put in place, supported by steel it wanted on the roof of the wing. overall energy use. beams, which will act as canopies for the That tracking could evolve into terraces below, while also protecting the Challenges expected students taking over the energy operation terraces from the weather. With a tight timeline to reach of the centre, be it through a capstone To learn more about the construction of substantial completion, there is an even project or a new course developed to these design elements, visit netzerocollege.ca. greater emphasis on ensuring that the compliment the facility. integrated team is able to work together. The new building is also one of 16 That starts with the design and build participating in the Canada Green team responsible for executing the project Building Council’s (CaGBC) Zero Summary of on time and on budget, no matter what Carbon Pilot Program. The program is adversity occurs. On this project, weather a two-year pilot of the CaGBC’s new Planned Building has been a major challenge, with 34 days Zero Carbon Building Standard. The lost to precipitation as of August 3. In the information received from the pilot Systems planning phase, there was a cushion of project will […] inform the further just 21 days lost due to weather factored development of the standard as well The following list provides a summary of the in. But thanks to the collaborative effort as tools, resources and education to primary aspects of the project that are helping of the entire team, most of that time has accelerate market transformation.” to meet the net zero energy objectives of the already been made up. “Being part of the pilot helps open us Joyce Centre for Partnership & Innovation: “You cannot effectively deliver up to scrutiny, review, and partnership (Source: Canada Green Building Council) something like this without having a where we’re all going to grow in this • High-performance building envelope to team that is really pulling together as an together,” said Cupido. “We’re on maximize heating, cooling and natural light integrated team, really working hard to learning on this project; there’s no • Green roof with extensive planted areas solve problems,” McCallum said. template that says this is exactly the 2 “From an owner’s perspective, some way to do it. But after the pilot, I think • Solar panel array (4,345 m , 500 kW) of that is a leap of faith,” Cupido said, there will be some good case studies • Solar thermal array (50 kW) “Even if you know all of the consultants, that say ‘if you’re really interested in • Geothermal wells (24 x 180 m deep) contractors, subs, et cetera, having them this, this is how you do it. Here are the all work together cooperatively is never issues, here are the challenges from the • Variable refrigerant flow heat pumps system a guarantee. earliest conception and planning stages • Storm water harvesting (342,000 L) There is also the team within the college right through to the operations.’” • Sensor-controlled LED lighting that need to work together cooperatively to achieve the demands of a net zero • High-efficiency plumbing fixtures energy building, which requires a swift • Energy target of <75 ekWh/m2/annum cultural change amongst the college’s s Andrew Macklin is the editor of taff and students. ReNew Canada magazine. renewcanada.net November/December 2017 ReNew Canada 15 Energy Credit: DTAH

The Toronto and Region Conservation Authority new headquarters is one of the 16 projects involved in the Zero Carbon Pilot Program. Credit: CaGBC

The new Vancouver Fire Hall, the only emergency services building among the 16 projects, demonstrates THE NEXT the diverse building types that are part of the Zero Carbon FRONTIER Building Pilot program.

Setting a new standard for Canada’s building sector. By Mark Hutchinson

n December 2016, the Pan Canadian toward mitigating building emissions. As is therefore critical to accurately assessing Framework on Clean Growth and Canada’s first green building program to environmental impacts and guiding I Climate Change cited sustainable make carbon emissions the key indicator for investments. buildings as one of the means to attain building performance, the standard positions The CaGBC Zero Carbon Building reductions in GHG emissions, specifying Canada in an elite group of countries working program reinforces the importance of measures to help drive down the industry’s on similar initiatives, including Australia, energy efficiency, while also driving emissions. This watershed moment for the France, Brazil, and the U.S. careful choices about the types of energy green building industry put a spotlight on Recognizing carbon emissions as a key used and encouraging more renewable building performance as a critical solution to indicator of building performance is an energy generation both on the building site climate change. important and fundamental shift for our and offsite. industry. To date, regulators and those Changing the conversation incenting carbon emission reductions Industry needs to take notice Building on the industry’s progress, the (including CaGBC) have focused on energy CaGBC is not alone in expanding from a Canada green Building Council (CaGBC) has efficiency—however the most important strict focus on energy efficiency. Regulators been working to spearhead the next evolution factor in the carbon footprint of a building are increasingly recognizing the importance of green building, aimed at meeting the is often not its energy performance, but the of addressing building emissions holistically, needs of the emerging low-carbon economy. carbon intensity of the electricity and fossil and carbon is bound to become increasingly Launched on May 29, the CaGBC’s Zero fuels used. Recognizing the differences in important to both new construction and the Carbon Building Standard is a critical step regional electrical grids and fuel choices operation of existing buildings. For example,

16 ReNew Canada November/December 2017 renewcanada.net Energy the City of Vancouver’s updated Green kept minimal, focusing primarily on the One step at a time Buildings Policy for Rezoning includes key outcome: reduced carbon emissions. Carbon emissions are going to be a key metric greenhouse gas intensity requirements, and Cost effectiveness is enhanced by providing of building performance going forward, both Toronto is considering the same. On the the flexibility to drive carbon reductions by for environmental and economic reasons. existing buildings front, the Government whatever means make the most sense for The CaGBC, through the release of the Zero of Ontario recently mandated energy and a given building. This can include energy Carbon Building Standard, is providing water reporting for large buildings, and efficiency measures, fuel-switching, and commercial, institutional, and multi- others are planning to follow suit; it is not generating renewable energy on the building family asset owners and managers with a at all inconceivable that carbon emissions site or off-site. framework, developed through extensive will also be part of reporting and disclosure The themes of simplicity and flexibility industry consultation, which allows them to requirements at some point in the future. also apply to the requirements for the design begin the process of transitioning to the low- Finally, all Canadian provinces will soon be of new construction projects. Recognizing carbon economy of the future. impacted by one form or another of carbon that the design stage provides a unique The standard is not intended to overwhelm pricing, changing how different forms of opportunity to make decisions that will with the possible challenges of immediately energy impact operating costs. yield reliable long-term carbon reductions, achieving a zero carbon balance. Rather, Leaders that are quick to address building a couple of key design elements were it aims to raise awareness of the growing emissions will benefit from recognition incorporated in order to guide industry. importance of carbon emissions, provide a while future-proofing their assets, Specifically, there are requirements for framework for assessing those emissions, positioning themselves for long-term savings thermal energy demand intensity (a measure and inform strategies to reduce them. and securing their place in the growing low- of the building envelope and ventilation To start learning about zero carbon for carbon economy. strategies) and for on-site renewable energy your buildings, visit cagbc.org/zerocarbon. generation. Both of these strategies are Simplicity and flexibility going to be key to meeting carbon emission The ultimate measure of success is the actual reduction targets in the long run. volume of carbon emissions from building Shifting the focus to emissions and Mark Hutchinson is the vice operations year over year. In order to providing flexibility to meet a zero carbon president of green building recognize the inherent limitations of existing balance creates an opportunity to apply programs for the Canada Green Building Council. buildings, the requirements of the CaGBC’s new approaches, technologies and products, Zero Carbon Building Standard have been spurring Canadian innovation along the way.

renewcanada.net November/December 2017 ReNew Canada 17 Management Credit: Bird Construction

The Northwest Territories is “punching well above its weight” when it comes to P3s, with multiple successful projects including the P3s are Stanton Territorial Hospital (under construction). Thriving!

Successes are being realized from coast-to-coast. By Mark Romoff

anada’s infrastructure sector is bracing projects located across the country and The economic impact is generational and the for a boom. Federal, provincial, and across key industry sectors. Those that are numbers speak for themselves. C territorial governments have recently operational or under construction are valued The Canadian Centre for Economic committed to historic investments with a long- at nearly $123 billion. Analysis (CANCEA) has independently term view to address the national infrastructure Ontario continues to drive the national P3 estimated that P3s have saved Canadians as deficit and to build new and needed assets. market, while the recent change of government much as $27 billion over the last 25 years. But amid the early announcements and in B.C. makes it a bit harder to predict short- These projects are being built 13 per cent commitments, the public-private partnership term P3 growth in the province. We saw a P3 faster than those brought to market in the (P3) industry was quietly concerned. There chill in Alberta after Premier Rachel Notley traditional way, which has added a further were worries that perhaps the federal formed the provincial government in the $11 billion in value to the Canadian economy. government might shy away from the use of spring of 2015, so it will be a while before Most important, P3s are creating 115,000 public-private partnerships to deliver large, we get a sense of how P3s might be used jobs and generating five billion dollars of complex infrastructure with the removal of on provincial projects in the coming years. additional wages on average every year. the P3 screen that was placed on projects (It should be emphasized, Edmonton and So, it shouldn’t come as a surprise, given those over $100 million. Calgary continue to pursue municipal P3s.) numbers, that we’re seeing evidence of new Amarjeet Sohi, Canada’s minister of There has always been an ebb and flow and emerging P3 markets across Canada. This infrastructure and communities, quickly of jurisdictions that have embraced or been new wave of entrants represents provinces, set the record straight by stating, “P3s will standoffish when it comes to P3s. And while territories, and municipalities that have studied continue to play a critical role in projects that may continue, it’s becoming increasingly the successes in other jurisdictions and taken across the country.” Particularly as the difficult for governments to ignore the note of their best practices. federal government moves forward with the success of the P3 model in Canada. There is also heightened interest among Canada Infrastructure Bank, P3s may be The bumper sticker slogan is “P3s are First Nations communities that reached out more important than ever to deliver on the On Time & On Budget.” They make good to CCPPP, and some of our council members, ambitious federal program. financial sense for governments to use anxious to learn how the P3 model might The removal of the screen was intended them as long as it’s for the right reason and best be applied to their infrastructure needs. to respect the choices and decisions of local the right project. But the benefits extend While they have much to learn from the communities. If public-private partnerships truly beyond on-time and on-budget delivery. P3s experiences in bigger markets like Ontario, deliver value for money, complete projects on-time are ultimately designed to provide the best British Columbia, Alberta, and Québec, these and on budget, and build projects to last over the possible value for taxpayers, to make the best newcomers would do well to take note of the lifecycle of an asset, then provinces, territories, use of public resources and to ensure a high work being done in Saskatchewan. municipalities, and Indigenous communities will standard of asset management. Saskatchewan can’t really be described as pursue the model. And it is happening. The benefits are long term, well beyond an emerging market. We’re better to call it an The Canadian market now has 266 P3 the political mandate of any one government. erupting market considering its size and the

18 ReNew Canada November/December 2017 renewcanada.net Management Credit: Bird Construction

Saskatchewan is recognizedd as an erupting market for P3s, with several successful projects both underway and built, including the recently- completed joint- use schools project.

Transit projects across Canada have proved widely successful for using the P3 model, including the Confederation Line LRT in Ottawa.

number of projects it has undertaken. The have to be flown in the rest of the year and still valuable and useful assets to the provincial province has pursued an ambitious and highly that means higher prices. education department. Today, the government successful P3 agenda over the past five years. The ice road has become increasingly less is doing its due diligence to determine whether Since the fall of 2012, the province has reliable in recent years as lake levels change and the P3 approach would be the best way to established its own procurement agency, the district experiences wide swings in winter redevelop the QEII Health Sciences Centre SaskBuilds, and between the agency and temperatures and snowfall accumulation. in Halifax, including the replacement of the municipalities, they have procured nine Newfoundland and Labrador has also deteriorating Victoria and Centennial buildings. projects. Six of them are already operational. adopted the P3 model to address its healthcare There is also serious consideration being Three are under construction, including the infrastructure. Under the leadership of given to using the P3 model to twin about 300 $1.88 billion Regina Bypass—Saskatchewan’s Premier Dwight Ball, the province determined kilometers of highways in Nova Scotia. It could largest transportation project. The bypass is that public-private partnerships needed to be be a project valued at more than $2 billion. expected to be completed approximately six part of its infrastructure tool kit. Add in the increased P3 activity currently years sooner than could have been achieved Over the past few months, the province under way in municipalities across the through traditional procurement. launched a procurement process to design, country and it becomes clear—Minister Sohi As much as Saskatchewan is a proven P3 build, finance and maintain a new 120 bed was right. P3s are playing a critical role in producer, Northwest Territories (NWT) is long term care facility in Corner Brook. the delivery of infrastructure in Canada. a confirmed P3 champion punching well Plans are also underway to use the P3 model Mass transit P3 projects are under above its weight. The NWT government has to replace Corner Brook’s Western Memorial construction in cities like Ottawa, Edmonton, undertaken one of the most forward thinking Regional Hospital. and Waterloo. Ottawa has two more in and innovative P3 initiatives in Canada. The P3s aren’t new in Manitoba. The City of procurement, while Edmonton and Waterloo Mackenzie Valley Fibre Link project installed Winnipeg is home to five projects. But the are each considering a second phase P3 project. nearly 1,300 kilometers of fibre between provincial government has never been engaged Success is breeding success in Canadian P3s. McGill Lake near Fort Simpson and the Arctic in the use of the model—at least until now. Of course, all of this activity and impressive Ocean at Tuktoyaktuk to provide high speed In May of this year, Premier Brian Pallister results have distinguished Canada as a internet to remote northern communities. announced his government’s intention to global leader in the P3 space. Our model is NWT is also building the Stanton Hospital explore P3s as an option to build four new considered best in class and, to that end, as a P3 and is on the forefront of delivering schools with a total value of more than the world comes to Canada to learn how to another project that will spur economic $100 million. They will accommodate 2,500 execute public-private partnerships. development, while addressing the effects of students with the ability to take as many as climate change. The Tlicho All-Season Road 3,300. In making his announcement, Premier is currently in the procurement phase and Pallister cited the innovation and ingenuity Mark Romoff is the president will be a vital link to Yellowknife. used to build 18 P3 schools in Saskatchewan. and CEO of the Canadian As it stands now, the region is serviced by Nova Scotia is one of the pioneering provinces, Council for Public-Private Partnerships. an ice road, which is only accessible for three engaging in a public-private partnership to months a year. It means supplies and food build schools in the 1990s—schools that are

renewcanada.net November/December 2017 ReNew Canada 19 Management

Community and stakeholder relations play a vital role in the successful development of today’s community infrastructure assets.

Entering the Post- Consultation Era The changing landscape of community engagement in infrastructure.

By Jacques Bénard

istorically, community relations due to resistance movements. Hundreds The notion of “social acceptability” and stakeholder engagement more have faced similar challenges. is gradually finding its way into the H in infrastructure and urban The legitimacy of regulatory approval government’s lexicon and is increasingly development projects were considered an processes for projects like these has often invoked in project evaluations. That means ancillary function. It was about satisfying been called into question. Criticisms stem proponents need to demonstrate wide regulatory requirements and social from apparent bias and procedural flaws to public support for their projects to even be expectations. Many proponents went lack of public input in decision-making. considered worthy of being granted with through the motions, often reluctantly, In a recent nationwide survey conducted approvals and permits. More than ever, hosting promotional open houses and by Hill+Knowlton Strategies, 56 per they’re expected to make all reasonable presenting at public hearings projects, cent of Canadians said they would efforts to respond to legitimate stakeholder which could only accommodate symbolic participate more in infrastructure project concerns before governments determine adjustments. That’s changing. consultations in their communities if whether or not to approve their projects. This approach is no longer enough to get they felt their participation would impact Some will argue that the notion of social projects approved. Simply going through the the project. Forty-nine per cent said they acceptability is too vague to be applicable and motions can lead to projects being delayed would do so if they believed decision- would not stand the test of the rule of law; and derailed by citizens, interest groups, and makers listened to the results. that, as a decision-making criterion, it gives too local politicians. The bottom line? Citizens and interest much importance to individuals and interest In a recent editorial feature, the National groups expect more from the participatory groups. But the Superior Court of Québec Post identified 35 large-scale infrastructure process than an opportunity to voice their seems to think differently and a recent ruling projects—collectively worth about $129 opinions. And they want to play a bigger part legitimizes this emerging concept. billion—that have been blocked or cancelled in decisions when projects affect them. Following the Québec minister of

20 ReNew Canada November/December 2017 renewcanada.net Management environment’s refusal to authorize a Typically, infrastructure and urban offer opposing views—rather than solely mining exploration project, the Court development projects involve many championing advocates. rejected a claim by Ressources Strateco Inc. stakeholders, with diverse and sometimes Obviously, it’s rare for everyone to based primarily on the absence of social conflicting interests. It’s no secret that agree on all aspects of a project; but in our acceptability. Strateco argued that social identifying and addressing stakeholder experience, assisted negotiations often provides acceptability was not a valid consideration concerns and issues is important. But opportunities to find common interests. This, for which to grant—or not grant—a permit. giving proper attention to social and of course, helps define conditions that work for The Court concluded that social acceptability political risks early in the planning stage is the majority and allow a project to become more must be considered for projects subject to imperative. Anticipate roadblocks, decide broadly accepted. The result is that conflicts regulatory approval processes even though on appropriate responses and prevent don’t spiral out of control and it’s easier to the legislation does not refer to it, as it would negative outcomes—that’s how to avoid resolve differences as the project unfolds. be inappropriate to arrive at an outcome that major disruptions down the road. With the emerging notion of social would allow a project that is clearly rejected Gone are the days when economic acceptability gaining ground in government by the local community. benefits and job creation, however circles, there’s no doubt that we’re entering For proponents, this means there’s a need significant, are enough to rally support. a post-consultation era. to recognize that the political climate and Health, quality of life, and protecting the Citizens and interest groups not only regulatory landscape are both evolving. environment are all things communities realize their influence, but expect to take part Completing the required impact studies and want to consider. So proponents must in decisions that affect them. That clearly following a mandatory approval process build in as much flexibility as possible to means there’s a need for more strategic doesn’t translate into an automatic green accommodate a variety of interests. community and stakeholder engagement. light for a given project. No matter how Strategies, too, need to be defined and To manage risks. To avoid pitfalls. And to inclined government is to approve a project, implemented during a project’s life cycle. successfully deliver projects. and regardless of the number of influential This requires close collaboration between advocates who back it, it’s no longer enough project teams and engagement specialists. to overcome community resistance if and A successful community and stakeholder Jacques Bénard is the when it occurs. relations program will usually blend a senior vice president of And when it comes to potential variety of targeted in-person and digital infrastructure + urban development for Hill + community resistance, mitigation through participatory tools. It will reach out to all Knowlton Strategies. early and meaningful engagement is key. key stakeholders—including those who

XCG’s Grant Walsom at a client site in Ontario. Helping our clients solve environmental issues since 1990. Remediation Risk Assessment Site Assessment Solid Waste Haz-Mat Management

EXPERT PEOPLE. BETTER DECISIONS. xcg.com renewcanada.net November/December 2017 ReNew Canada 21 22 ReNew Canada November/December 2017 renewcanada.net Panorama

Where the Trolls Live Underneath the Vimy Memorial Bridge in Ottawa, Ont. —Staff Credit: Greg Stevenson

renewcanada.net November/December 2017 ReNew Canada 23 Management Credit: Group EneSense Benchmarking Energy Management

How big data can reduce energy consumption. By Shooka Karimpour and Thomas Dandres

ccording to a 2015 International a product, or a service can be measured. static assessment and benchmarking tools Energy Agency (IEA) report, the It’s a tool that is widely used amongst to gauge their performance indicators, such A energy sector contributes to the organizations and industries to compare as capacity, system loss, energy distribution bulk of greenhouse gas emissions worldwide and measure the success and progress of an and accessibility among many other factors. (about two thirds). Despite ongoing effort to organization with other similar institutions, At the demand side, customers with sizeable develop and expand the scope of alternative or with its own performance in the past. consumption portfolios in electricity energy sources, currently most of our energy In the energy sector, there has been an and other sources of energy can measure needs are being met by fossil fuels. Electricity in some provinces such as Ontario, British Columbia, and Quebec run on nuclear power Beyond reducing cost and facilitating electric and hydro-electricity with fewer emission than conventional sources, but overall about grid operations, benchmarking has the 80 per cent of Canada’s GHG emission comes from the energy sector. potential to improve energy efficiency and The changes in energy infrastructure and migration to alternative energy sources are bring about some environmental benefits. slowly creeping as hard-path approaches. To combat and mitigate the risks associated with energy use in the short-term, Canada exponential development in big data collection their energy use and performance using must advance this use of energy management and real-time tracking abilities, both within benchmarking tools and software. Using tools and a soft-path approach to inform an energy utility and by consumers. Greater different energy benchmarking tools (e.g., future reductions. data availability has enabled improved Energy Star) buildings and industries can Benchmarking is the process of benchmarking of both supply and demands determine if they are using more or less than establishing a standard against which energy performance. On the supply side, their peer facilities with similar occupancies, the performance of a business function, utilities are constantly using dynamic and climates, and sizes. By benchmarking energy

24 ReNew Canada November/December 2017 renewcanada.net Management

use, it is possible to set targets for promoting benefit from detailed energy benchmarking are also associated with energy consumption best practices and achieving better energy and energy management. Energy and could be mitigated by using energy efficiency in buildings and industrial facilities. benchmarking can not only lead to savings management tools. on energy costs, but it can potentially lead to Benefits of benchmarking lower facility and equipment maintenance. Hurdles in energy benchmarking Benchmarking drives action: You can’t Benchmarking works best when it’s done Data availability and benchmarking manage what you don’t measure! Energy consistently over time. The normalization level: Energy benchmarking involves the benchmarking can provide the roadmap and benchmarking process have to be development of quantitative and qualitative to energy savings. It can inform energy reviewed periodically, and recommendations indicators through the collection and efficiency goals, provide motivation for for corrections when necessary are made analysis of energy-related data. Monthly action, and help create the business case for to ensure a superior energy performance. energy use data can be easily determined energy improvements or retrofits. Energy If performed in real-time or near real-time from the billing information. Furthermore, benchmarking can be a powerful driver for using energy benchmarking and monitoring detailed facility information such as investing in energy efficiency measures. tools, the facility manager can proactively equipment, and operational schedule must Although it is not the only solution to address identify changes in energy consumption due be gathered. Detailed interval-based energy the challenge of energy management, energy to degradation in equipment performance use data (e.g., in five-minute or 15-minute benchmarking is an important starting point and/or failures. intervals) that some electrical utilities and a way of measuring ongoing improvement. Superior environmental performance: provide to their clients, enables access to Lower life cycle energy costs: Operating Beyond reducing cost and facilitating near real-time consumption. This data costs and expenses are a significant electric grid operations, benchmarking has aggregated by property, however, it would concern to building and some of the the potential to improve energy efficiency not provide detailed analysis on where and industrial and non-industrial processes. and bring about some environmental how the facility is consuming energy, beyond According to the U.S. Energy Information benefits. Energy use correlates to greenhouse the whole-facility approach. In such cases, Administration, among the most energy- gases and climate change; and there are sub-metering is used to analyze how energy intensive manufacturing are food, beverage, other important environmental problems is used on a much deeper level than can be tobacco products, paper, iron, and steel associated with energy use, such as acid determined from whole-facility meters alone. manufacturing, petroleum refineries, and rain and air pollution that have adverse Management engagement in action: coal product manufacturing, which can effects on ecosystems and human health, Energy benchmarking won’t make a

renewcanada.net November/December 2017 ReNew Canada 25 Management

would lead to very different emissions since, By using the data collected from power in Alberta, electricity is generated mainly meters, benchmarks can be created that from coal and natural gas while it is mostly can help to understand where efficiencies in energy use can be found. from hydropower in Quebec. Thus for the same power consumption, the greenhouse gas emissions would be at least one hundred times higher in Alberta. Moreover, these technologies usually change over time. For instance, Ontario’s nighttime power demand is so low that electricity is generated from nuclear and hydro power plants that emit fewer greenhouse gases per kilowatt-hour. During the day when power demand increases, natural gas power plants kick in to provide most of the additional electricity needed. This result in an increase of greenhouse gas emissions per kilowatt-hour consumed. Such trends are not generally captured by energy benchmarking tools, because the current techniques used to account for environmental impact assessment are based on average values of power generation. Calculating environmental benefits requires very detailed information on the regional energy system. Very few utilities provide such information. A greater transparency of electric grid operation is required to improve the assessment of environmental benefits obtained by energy benchmarking.

Why do we care about energy benchmarking? Studying the life cycle of energy sources illumintaes the interconnection between energy consumption, depletion of fossil resources (coal, oil and natural gas), difference unless the results are properly overall success of an energy management and emitting pollutants. The era of big translated into actionable insights that program depends on the involvement and data can enhance environmental and people in management can understand and commitment of all level employees, from economic performance across the energy appreciate. The benchmarking tools, once top management (to put the program to supply-chain. This is especially true for used and translated correctly, can be used to action) to on-site personnel (for widespread electricity as the operation of electric grids evaluate the performance of common plant implementation of the program). are increasingly being documented. They elements such as motors and compressors. could also contribute to the improvement For such equipment, benchmarking Environmental performance of existing benchmarking tools and the would help to compare the efficiency and and energy benchmarking development of new energy efficiency performance of the elements with its own While reducing energy consumption enables programs aiming to support not only a smart performance over time, and with their cost savings, the associated environmental production but also a smart consumption of expected catalogue performance. It can benefits truly depend on the technologies energy by including spatial and temporal be used to evaluate systems for waste or used to generate energy. It is easy to identify information in feedback loops. This leads to misuse. The energy waste might be simply these technologies when the energy is improved performance of all players within associated with longer hours of operation or produced at the consumption point, such as an electrical grid. an improper setting on the equipment. with conventional cars and trucks that burn Rigorous consideration of benchmarking gasoline. In which case, energy benchmarking outputs and indices can help in designing a may be directly linked to the environmental shut-down procedure. This is to ensure that performance of the product or service. parallel multiple elements are not running It’s more complicated when we consider simultaneously when the performance products and services consuming electricity. of fewer elements would yield a similar Indeed, electricity might be generated from output. In building management, it would different sources of energy that dramatically Shooka Karimpour is the co-founder and help to eliminate the leaks by improved differ regarding their cost and environmental chief technology officer of Group EneSense insulation, or encourage the use energy impacts. For instance, running a data center Inc. Thomas Dandres is the research officer efficient lighting and HVAC systems. The powered by the grid in Alberta or Quebec at CIRAIG/Synchromedia.

26 ReNew Canada November/December 2017 renewcanada.net Brownie Awards 2017 Recognizing Excellence in the Remediation and Redevelopment of Brownfield Sites Across Canada

Since 2000, the Brownie Awards have Wednesday, recognized the builders, innovators, and visionaries who are dedicated to the Nov. 22, 2017 rehabilitation of brownfield sites that Reception: 5 p.m. were once contaminated, under-utilized Dinner: 6 p.m. and undeveloped into productive Delta Toronto Hotel residential and commercial projects 75 Lower Simcoe St., Toronto, ON that contribute to the growth of healthy cities and communities across Canada.

The Brownie Awards are presented in seven categories:

REPROGRAM RENEW Legislation, Policy Redevelopment & Program Initiatives at the community scale REMEDIATE Sustainable REACH OUT Remediation Communications, & Technological Marketing Innovation & Public Engagement REINVEST Financing, Risk BROWNFIELDER Management & OF THE YEAR Partnerships Recognizing an outstanding REBUILD individual in Redevelopment at the industry the local site scale

For Event and Award Elena Langlois For single tickets, visit Category sponsorships P: 416-444-5842 ext. 151 and corporate tables: E: [email protected] brownieawards.ca presented By dinner Sponsor Award Category Sponsors Finance Credit: ReNew Canada

Open road tolling systems, such as the one used on Ontario’s Highway 407, have to factor in adverse weather conditions and technology failures in overall revenue projections.

Assessing Toll Roads

Understanding the real value of pay-to-play road projects. By Priscilla Adjei

n recent years, DBRS has witnessed overview of the methodology and inputs used periods and origination and destination increasing interest from both public and to calibrate the travel demand model. patterns between residential areas and private sector parties in the procurement economic centres or major industrial parks. I Economic and demographic and development of volume-based public- DBRS also analyzes the assumptions private partnership (P3) projects, notably for fundamentals regarding the proportional use of the assets such as toll roads and managed lanes. Traffic levels are driven significantly by asset by vehicles exempt from paying tolls Private sector firms have shown interest in both economic factors such as population growth, (exempt vehicles), which often include greenfield and brownfield projects, including local economic activity often represented by high-occupancy vehicles carrying three recapitalizing some assets that previously gross domestic product, employment rates, or more passengers, public transit buses, encountered challenges. High-quality greenfield and household income statistics. Studies that and emergency vehicles. DBRS notes that assets are unlikely to be rated above the BBB retroactively examined erroneous traffic and investment-grade projects typically exhibit range, given the greater degree of uncertainty revenue forecasts found that over-projections exempt vehicle traffic of less than three per concerning the establishment of initial baseline tended to occur as a result of an over-reliance cent of overall traffic figures. traffic and revenue levels as compared with on sustained economic growth assumptions projects where the revenue source is a pre- rather than assessments that unbiasedly Value of time determined availability payment from a credit- consider the variability in future economic The proportion of motorists expected to use worthy government counterparty. performance and its impact on traffic. tolled highways is a function of the computed DBRS takes into account the following time savings and the cost to use the lanes (cost- topics in its assessment of toll roads and Traffic profile per-minute saved) versus the value placed on managed lanes projects. Our company compares the proportion of time savings by the motorist (value of time commuter-based versus leisure-based traffic or VOT) estimated from the results of stated Traffic and toll revenue study and multi-axle vehicle traffic to light-weight preference surveys collected from travelers in DBRS attributes significant importance to the cars as part of its analytical process. Traffic the study area. Motorists with greater VOTs traffic and toll revenue (T&R) study provided driven by commercial and business activities than the cost per minute saved are more likely by an independent, reputable and specialized is expected to be less volatile compared with to choose available toll and managed lanes. firm with a solid track record in toll road leisure-based traffic. Characteristics that Value of time is influenced by the number demand forecasting. DBRS typically expects to are supportive of a commuter-based traffic of free alternatives, the congestion levels receive an investment-grade level T&R study, profile are viewed favourably, such as the of alternative routes, the competitiveness providing an annual traffic and revenue forecast tendency of traffic peaks to occur during of tolls as compared with alternative tolled covering the term of the concession, with an typical morning and evening rush hour routes, and gas prices. DBRS notes that VOT

28 ReNew Canada November/December 2017 renewcanada.net Finance

estimates have been a major contributing attendants and/or open-road tolling facilitated operating data, or for brownfield projects source of predictive failure in T&R forecasts. by electronic systems. Open-road tolling that are being rated with an existing systems can generate revenue leakages from history of sufficient operating data, revenue New or alternative routes deliberate abuse by some drivers who have break-even requirements will be limited The construction of a new highway or no intention of paying tolls or from misread to possible downside scenarios in the material improvements made to the existing licence plates caused by technology failures event of a recession. During the 2008 and road network within the service area of a toll or adverse weather conditions. The existence 2009 financial crisis, DBRS observed that road asset could dampen traffic materially. of toll enforcement legislation that eventually some solid operating assets experienced cumulative declines of up to 20 per cent. Flexible financing Traffic driven by commercial and business arrangements and reserves Projects may benefit from favourable activities is expected to be less volatile financial arrangements that provide an enhanced ability to avoid a default caused compared with leisure-based traffic. by traffic and revenue underperformance. Transportation Infrastructure Finance Innovation Act (TIFIA) loans, for example, Some concession agreements acknowledge leads to legal action and non-renewal of provide flexible financing terms for volume- the adverse impact that additional roads and licences is considered to be highly supportive based projects, including an extended lanes may have on existing concessionaires. in the assessment of a project’s credit profile. capitalized interest period over the initial Provisions that compensate the project company Key financial metrics, few years of the operations period and/ for lost revenues as a result of new competing terms, and stress testing or the potential right to defer a portion of routes and expansions are viewed by DBRS as debt servicing if toll revenues prove to be adding stability to the credit profile of the asset. Debt Service Coverage Ratios (DSCRs) insufficient, which assists in protecting Other concession agreements may only provide A thorough examination of the demand the viability of the project while traffic is limited or no compensation. In such cases, the profile of the asset is made by the company ramping up in the early periods. company forms its views with the opinion of the and corroborated with the results of the Additional reserves, beyond the standard technical advisor regarding the extent or lack of external T&R forecast, upon which we debt service reserve account and lifecycle available space for expansions and concerning would usually develop its own stress cases for reserves, that may be used to supplement the long-term state capital improvement plans traffic volumes. The company expects that a revenues by an amount sufficient to make to determine the potential risk of new capacity brownfield tolled asset with good operating debt service payments should traffic and additions. The availability of free alternative history, benefitting from significant barriers revenues not materialize as planned also routes also requires consideration, particularly to entry within a jurisdiction experiencing enhance the feasibility of greenfield projects. where these are not congested. above-average economic growth, to generally Available relief measures such as principal have a minimum projected DSCR over the life and interest payment deferral options Rate setting autonomy of the concession of at least 1.40 times to enter and additional qualifying reserves are Considerable emphasis is put on the powers the investment-grade category, calculated on also considered in DBRS’s calculations of granted to enforce collections and increase the basis of financial projections accepted by revenue break-evens. user fees. DBRS views transactions where DBRS. Greenfield projects for which there the project company is given a great degree is no historical data are expected to have Operating and maintenance of autonomy to set toll rates as the most materially higher DSCRs as metrics are often and lifecycle break-evens credit-positive. This ability to set tolls often weakest in the initial years of operation, as Although DBRS views the operating and makes the project less sensitive to recessions, volumes ramp up. maintenance (O&M) and lifecycle tasks as revenue lost on declining traffic can be Revenue break-evens associated with road projects to be fairly partially made up by increasing toll rates to In addition to coverage ratios, the company predictable and of low technical complexity, a captive user base with a high dependence will also calculate a revenue break-even, tolled highway projects are expected to meet on the facility for commercial and business which will be a leading driver of project higher operating and lifecycle break-even tests travel, although the degree of flexibility ratings. The performance of toll road above those required for an availability-based will ultimately be constrained by the price projects within North America, and globally, road project rated in the BBB range to account elasticity of demand of the user base. The has had an irregular track record, with many for the revenue risk. However, because company would at least expect that the projects becoming distressed assets. Projects volume-based transactions have higher DSCR concession agreement would allow for annual have typically failed when actual traffic and requirements, they will, therefore, tend to toll increases that are indexed by relevant and revenue results were around 50 per cent of exhibit O&M and lifecycle resiliencies that local inflation benchmarks and that are also initial projected levels. As a result, DBRS are sufficiently high for the rating category. supportive of inflation rates of key labour expects greenfield projects to be able to and material inputs required to adequately withstand a substantial revenue break-even maintain and improve the project. test, possibly within the range of 30 per cent Priscilla Adjei is the vice to 60 per cent to be eligible to be rated within president of infrastructure Toll collection and enforcement the investment-grade category. finance for DBRS. Toll collection methods can comprise the use Once traffic levels become established for of cash and credit card toll booths operated by a new project supported by a few years of renewcanada.net November/December 2017 ReNew Canada 29 Finance

MODERNIZING INFRASTRUCTURE

New funding mechanisms provide opportunities to build sustainable infrastructure in our communities.

Federal programs provide the opportunity to embrace sustainable cities. By Alison Babbitt

ver 50 per cent of the world’s as others, such as heightened smog or lack of traditional financing methods. Canada’s new population currently lives in cities. access to fresh water. But the fact that there infrastructure bank is an innovative approach O And this number is expected to is less urgency does not mean that we lack to help leverage private capital for public rise to 66 per cent by 2050, thereby placing the political will and social interest to start infrastructure. By offering protection from significant demands on urban infrastructure implementing smart city principles now. losses and reduced risk through taxpayer- around the world. Sustainable city development involves funded guarantees, the aim is that private Urbanization is especially significant here creative, future-oriented city planning and companies may be more willing to invest in North America because 82 per cent of us big questions. How can new technologies be and take risk on highly complex projects. live in cities, according to the United Nations. integrated to improve citizens’ quality of life? Other cities have incorporated value capture The federal government’s recently proposed Can we be more efficient by introducing real- initiatives to offset the costs of smart cities, Canada Infrastructure Bank, along with its time monitoring and data analysis? How do we usually in the form of a tax. Simply put, Smart Cities Challenge announced in this shift our practices to be more environmentally value capture means that the economic uplift year’s budget, demonstrate the government’s sustainable? Can we eliminate waste by generated by new infrastructure will be used commitment to modernizing Canada’s aging focusing on circular economic principles? to fund the infrastructure. For example, if new infrastructure by challenging cities to create How can we eliminate redundancies to save transport infrastructure leads to increased land ambitious plans and providing access to the costs? Visualizing development in terms of values in surrounding areas, the properties funds necessary for their success. communities rather than projects creates space could be taxed to fund the infrastructure. But what does it really mean to be a for innovative investors, suppliers, builders, The private sector will have a large so-called “smart city” or “sustainable city?” operators, and funders to work together to role to play in establishing sustainable Consider how new infrastructure projects bring these ambitious plans to life. infrastructure. It is anticipated that private have been traditionally organized. Each new Sustainable cities concepts are already being sector investment partners will work project is budgeted and developed as separate explored in Canada. For example, Canada with the Canada Infrastructure Bank to and distinct from the next. While this piecemeal Lands Company will be developing Ottawa’s transform the way projects are planned, approach has worked in the past, it may not newest residential community, Wateridge funded, and delivered. By leveraging this be the best strategy if we are concerned about Village, to be a “village within a city.” Toronto expertise, funding will be used strategically growing cities that are competitive, resilient, will also soon have their own sustainable to maximize the opportunities they present. and sustainable in the long-term. In contrast, community, as SideWalk Labs Inc. announced The private sector will also be relied on sustainable city projects are large-scale their plans to develop a digital city testing to encourage greater collaboration and developments that plan entire communities as ground downtown. Although construction investment in housing, trade infrastructure, opposed to just singular undertakings. has not yet started, the site development plans and data availability. Comparatively speaking, Canada faces less indicate that embedded smart sensors, self- The World Bank estimates that, in developed pressure to adopt these new development driving cars, and high-tech zoning will all be countries, a doubling of infrastructure capital models than other countries. Our population features of the community. is capable of increasing GDP by 10 per cent. is certainly less dense than it is in the Building a sustainable city requires Additionally, Juniper Research estimates that world’s mega-cities. Our cities do not face significant investment. Consequently, cities could save upwards of $19 billion by 2021 the same kinds of environmental challenges it may also be time to reconsider our by becoming smart cities. Given these figures, the

30 ReNew Canada November/December 2017 renewcanada.net Finance global infrastructure deficit, and the perceived social benefits, it is easy to see why many governments have made room in their political platforms for infrastructure development. The complexity of sustainable city projects also comes from the fact that they are to be delivered by multiple providers and stakeholders, each responsible for different parts of the value chain. As a result, each stakeholder may adopt a different view of the appropriate risk allocation. Inevitably, there will be conflicts of interest between each contributor as they perform their role in the larger project. Implementing an effective chain management process, apportioning risk appropriately and FER-PAL. formulating a matrix of risk mitigation Helping mechanics, will be essential to minimize FER-PAL has been working in the your community the potential for multi-party disputes. help you. Canada has started to address the issue of background since 1986 helping to risk apportionment with the introduction provide communities like yours with Learn more about us of the infrastructure bank. One of the clean water using technologies that and our projects at objectives of the bank is to reduce risk youtube.com/user/ are sustainable and eco-friendly. for private sector investors by offering ferpalinfrastructure guarantees as well as functioning in an S advisory capacity operating as a centre of tay ah ead o f the expertise and support for privately funded curve with FER-PAL public infrastructure projects. In order for any new approach to be successful, it will be essential for risk e: [email protected] ferpalinfrastructure.com management and risk allocation to be considered, evaluated, and apportioned at all stages of the value chain. Poor risk allocation in the early stages can have severe knock-on effects during the later stages of a project. The cost effects can be disastrous as projects 2018 get larger and more complex, as the risks— 9th Annual June 20-22 and the associated costs—continue to rise. It will be crucial to carefully manage risk Vancouver allocation so as to minimize such effects. Marriott Pinnacle As the Smart Cities Challenge gets set to launch this autumn, now would seem an Knowledge Applying science, policy, and opportune time for innovative companies to Practice research to the blue economy to get involved with building sustainable city infrastructures. With a mandate to work with all levels of government and private sector investment partners, the SAVE THE Canada Infrastructure Bank spurs new DATE! opportunities for savvy investors and businesses at all levels of the supply chain. The sustainable city concept is not simply about increasing technology and preserving green space. At its core, it embraces the idea that the past may no longer be an appropriate guide when it comes to developing the future.

@CdnWaterSummit bit.ly/CdnWaterSummit17 The Canadian Water Summit Alison Babbitt is a lawyer within Norton Rose Fulbright’s global infrastructure, mining, To participate, contact [email protected] and commodities team who specializes in project finance. watersummit.ca renewcanada.net November/December 2017 ReNew Canada 31 Smart Cities Credit: Esri

The City of Kingston’s industrial lands story map allows potential clients to understand the availability of industrial land in the community. Smart Opportunities How new technology can build smart cities across Canada.

By Alex Miller

mart communities are productive, Digital transformation also helps public that the app is saving him 15 kilometres of livable, and sustainable. They have works professionals more easily anticipate driving per day. S a local economy that harnesses the necessary infrastructure repairs in typically Public safety: Effective emergency response talents of the residents, a development challenging areas, thereby extending their demands an integrated response combined approach that protects and even improves its life. These include; with information shared from an accurate natural environment, and a resilient physical • Roads and bridges; asset inventory. When that’s happening, all and social infrastructure that strengthens these services are improved: the community. People expect all levels of • Solid waste facilities; government to work together to help them • Parks and grounds; • Emergency response; build and sustain their cities. Water and wastewater; and • Event security; The Canadian government recognizes this • Crime prevention; and and is running a Smart Cities Challenge, with • Street furniture, poles, and lighting. • millions of dollars in prizes. The money will Barrie, Ont. is a city growing at a rapid • Infrastructure protection. help communities use technology to become rate while their decades-old assets must Alberta’s Shock Trauma Air Rescue smarter. The challenge asks: what is the top be maintained under tight budgets and Service (STARS) used Esri’s ArcGIS priority for improving your city, town, or new environmental and accounting technology to improve operations at its community? How can smart technology and regulations. These complex demands Emergency Link Centre. STARS developed new practices it enables create real impact? require an enormous volume of information a dynamic web mapping application that Priorities differ, and there is no magic collected, stored, analyzed, and reported. allows dispatchers to access up-to-date and answer for every community, but a properly Barrie adopted Cityworks, a GIS-based complete information about an emergency. executed digital transformation is key. It’s also asset and work management solution. This They can direct appropriate resources much urgent. In June, the CRTC ruled that all 911 centralized and streamlined the monitoring, more quickly, which increases patients’ messages (texts, calls, etc.) come to emergency maintenance, repair, and reporting of a chances of survival. responders with an address attached. Local growing infrastructure. Public health: Whether responding to emergency responders must be ready. Planning: If planning incorporates an outbreak or safeguarding against the While geographic information systems geodesign, it ensures a sustainable future that threat of one, the ability to share complex (GIS) help governments to respond to those won’t compromise land, water, or air quality. information through the common visual sorts of demands, it also saves them time and GIS combined with holistic design helps language of a map benefits everyone in money, and increases the quality of services communities to make informed decisions and the community. offered to their communities. However, solve sustainability issues such as: The current opioid crisis is an example of the tools needed to make better decisions how mapping and integrated information involve much more than just technology. • Environmental sustainment; improves the response time of health care It’s a synergy of people, processes, data, • Transportation planning; and providers and helps the public understand both and technology working together to solve Urban forms that put people first. community challenges. This synergy is what • how their governments are responding and makes communities smarter. Prince George, B.C. decided to develop where to find help if they need it. Maps and their own mobile app which fit their apps also help public health and safety agencies What improves when needs using Geocortex Essentials and the to know how effective their responses are. communities become smarter? Cityworks. Now, underground locators and Economic development: Communities Public works: Cities are under serious other field workers no longer travel back to vie for new capital investment, tourism pressure to digitize their assets so they can the office multiple times each day to take income, and the resulting tax revenue. GIS be found easily in one place. Being able to do on new jobs, retrieve information or deliver provides economic development officers that is a profound saving in time and money. status reports. One worker has calculated and potential investors with insight into the

32 ReNew Canada November/December 2017 renewcanada.net Smart Cities lifestyle and demographic characteristics Build a guiding coalition: A coalition for a for employees who support institutionalized of the community, demonstrating the local government might include people from GIS use. Training plans and workforce potential of new development sites and corporate services, planning, engineering, development plans aligned with your change commercial properties. fire, police, and sanitation departments. The strategy help remove barriers for those new Kingston, Ont.’s GIS team partnered coalition will provide the intelligence needed to the technology. with the Real Estate & Environmental to understand how GIS can help their Create short-term wins: Short-term wins Initiatives Department and developed a different departments improve. This type of build momentum and increase buy-in. GIS app, the city-owned industrial lands collaboration can also get other departments These wins must be communicated to the story map, to cut down calls to city staff and businesses engaged, so that you become guiding coalition. Story maps combine text and to showcase to prospective clients, an aggregator of information. and multimedia into a compelling narrative. real estate agents, and developers, the Form a strategic vision and initiatives: It’s an easy way to create a high-impact availability of industrial land that can be Develop a vision and then a strategy. visualization of relevant data and a good immediately developed. The vision is the adoption of geospatial way to demonstrate how to use geospatial The Los Angeles garbage collection technologies and the strategy outlines the technologies. If someone in your team department was accused of underserving specifics—who, what, when, where, and creates a story map, share it and encourage some neighbourhoods, so the city used GIS why—that’s the plan for achieving the vision. others to participate. technology so that Angelenos can easily Try and eliminate GIS jargon from your Most importantly, team effort is required to compare the efficacy of the garbage pickup strategy. This is essential for overcoming spark interest in, and adoption of, geospatial on their street with others. People became the factors that inhibit change and winning technologies. After all, collaboration and more engaged with their neighbourhoods: acceptance from non-GIS teams. participation are at the centre, and ultimately now, they can easily report illegal dumping, Don’t ignore those who resist, as this gives the goal, of all smart communities. schedule a pickup of a bulky item, or even them time to spread their discontent and if they volunteer for a community cleanup. have significant influence, that can be serious. Change is not easy and barriers to Often, resistance is rooted in perception rather innovation are many. Common hurdles are Alex Miller is president and than reality. Securing executive buy-in will organizational culture, complacency, and a founder of Esri Canada. sense of futility, since doing nothing seems help minimize resister impact. easier. Here are some suggestions on how Remove barriers: Plan for training. Engage to tackle them. the human resources team to create training

AssetPlanner ASSET SUSTAINABILITY Software Solutions • Innovative Decision Support

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• Life Cycle / Forecasting Strategic Suite Tactical Suite Energy Management Suite • Condition Validation / Assessment Utilization • Asset Planning • Preventative Maintenance • Energy & Sustainability • Capital and Life Work Order Management / Utility tracking, benchmarking, Risk Measurement / Metrics • Cycle planning / Demand response management, QSUM, Weather • Funding Appropriation Decision making and management trending/normalization STRATEGIC PLANNING benchmarking • Service Request • M3 • Project Planning Day-to-day field management Measurement Management Module • Capital Creation Strategies Funding approvals & ad hoc requisition (integrating energy optimization • Alternative Funding Solutions and Management management and tracking with life cycle management • Funding Leverage / Requests • Business Solutions – Financial • Stakeholder Communication METRICS, TRACKING & BENCHMARKS • Capital & Operation Management • Budget Measurement • Benchmarking • Monitoring of Business Plans • Energy Optimization / Tracking ameresco.com renewcanada.net November/December 2017 ReNew Canada 33 Education

Ryerson’s Institute for Infrastructure Innovation intends to develop courses that meet the needs of Canada’s evolving infrastructure industry.

The need for new education Training needs for the evolving infrastructure procurement landscape. By Ashley De Souza

nfortunately, infrastructure community and recreational infrastructure. investments. However, all the new in Canada is aging and under We all know the economic benefits investments also bring some new challenges U distress, requiring significant investments in infrastructure has both for industry. upkeep. The reasons are various, including provincially and municipally. As the infrastructure landscape has rapidly historical funding deficits, uncoordinated The numbers speak for itself. evolved, many public and private sector systems planning, and climate change and In Ontario, recent research shows that $1 participants still struggle to understand extreme weather events such as tornadoes, billion invested in infrastructure generates and some of the new models being introduced. flash floods, and ice storms. These factors supports $16.3 billion in GDP in the province Some contractors, particularly in the civil have imposed increasing pressures on the over 30 years. Research also shows that sector, struggle to identify how and where structural integrity and performance of these investments support 85,000 jobs in the they can participate in these projects and Canadian infrastructure systems. province, $1.7 billion in provincial tax revenue, have expressed a strong desire to play a As public infrastructure assets age and and $1.6 billion in federal tax revenues. larger role. Some public owners still grapple demand for usage increases, long-term The infrastructure landscape today is very with decisions about when and where to use funding must be in place to extend the life of robust with unprecedented levels of funding some of these new models and others are these existing social and core infrastructure for infrastructure projects from coast to reluctant to adopt new models altogether. assets for as long as possible. coast to coast. Over the past decade we have Knowledge, collaboration, and partnerships We all know, there is a great need for been experiencing what some have coined are essential strategies for both companies expanded road, bridge, and transit capacity as an “infrastructure renaissance” right and government to successfully participate to address increasing urbanization and across Canada. Governments of all levels in and deliver projects in this marketplace. resulting traffic congestion. and all political stripes realize the value and In response to the fast growth of public- We all know, in order to provide a higher importance of investments in infrastructure. private partnerships and investments in public quality of healthcare, we need to have With this renaissance has also seen the infrastructure renewal in Canada, the Ryerson modernized, state-of-the art hospitals and introduction of new innovative procurement Institute for Infrastructure Innovation (RIII) health care facilities to serve our population. and delivery models as governments look was launched as part of the City Building We all know, to create more vibrant, to new ways to finance and procure these strategy of Ryerson University and the Faculty liveable communities, we need to expand our unprecedented levels of infrastructure of Engineering and Architectural Science

34 ReNew Canada November/December 2017 renewcanada.net Education

By providing modern post-secondary education, Canada can continue to be a leader in the development of new renewable, resilient infrastructure assets for our communities.

(FEAS). RIII was established with a vision to participate in larger public-private recruitment will continue to be a necessity to become a world-renowned research and partnerships, some struggle with the ability for both the public and private sectors as training institute that provides innovative to really promote innovation through existing Canada continues to drive forward on and technical and policy solutions to contemporary projects, or simply that others have a desire be a global leader in infrastructure spending infrastructure challenges. to learn more and expand and enhance their and development. Greater collaboration is One of things we recognize is that the technical expertise. In previous capacities, essential to not only recruit more Highly infrastructure landscape is constantly my efforts to help bridge this knowledge gap Qualified Personnel (HQP) into the industry evolving, and that procurement models are has been a challenge as there seems to be a but to identify the appropriate continuing changing, new methods and materials are lack of formalized educational programming and executive education programs needed being implemented, and new technologies to help both public and public sector actors to ensure both public and private sectors are coming to market. Our team has focused better understand these models. have the tools and expertise necessary as our efforts on five key areas: innovative Academia can play an important role by governments continue to tackle Canada’s project delivery, big data & urban helping to bridge this knowledge gap and staggering infrastructure deficit. informatics, urban systems engineering that is exactly what the RIII endeavours Over the next 12-18 months, RIII will and infrastructure asset management, to do. Our goal is to collaborate with broaden its external outreach to identify and innovative construction materials, systems, government partners, individual companies, explore educational and training opportunities and design, and climate change and and industry associations to identify where to meet the needs of both government and resilient infrastructure. these knowledge gaps exist in order to industry. We want to encourage greater There is a demonstrated need to develop specific educational content and employer participation both government and approach infrastructure challenges with formalized training programs. industry, as part of the process. a collaborative effort, one that engages As public-private partnerships and We would love to hear from you if you have industry and academia. Connecting alternative financing and procurement any ideas, suggestions, or have an interest in researchers and students with the models increasingly become the norm in partnering. To learn more about RIII or to public and private sectors can provide today’s infrastructure projects, education get involved, please feel free to contact us at comprehensive solutions to the development and training needs to be targeted to meet the [email protected]. of smart, sustainable, flexible, and resilient specific needs of the job market. infrastructure systems. Customized skills training programs in infrastructure need to be developed to create a Ashley De Souza is the Filling the gaps more fluid connection between what is being executive director of the Over the years, I have heard from contractors trained in the classroom and the needs of Ryerson Institute for Infrastructure Innovation. and companies of all sizes that: some of their government and industry in the marketplace. staff lack the knowledge and experience Human capital development and renewcanada.net November/December 2017 ReNew Canada 35 Top100 Projects Credit: BY Hydro

The future of the Site C Clean Energy project will have a significant impact on the 2018 Top100 Projects report.

For a look into the complete Top100 list, visit top100projects.ca

Five burning questions

Previewing the release of the 2018 Top100 Projects report. By Andrew Macklin

he annual release of the Top100 to press. We know that the B.C. Utilities the Maritime Link Project, and the Alberta projects report is just a few Commission is supposed to provide its Carbon Trunk Line. With 47 returning, will T months away, included with the independent analysis of the project on 2018 set the record for multi-billion-dollar release of our January/February edition of November 1st, but we don’t know if that projects under development in Canada. ReNew Canada. report will provide the final verdict on 5 We have spent months researching well whether to proceed, delay, or cancel the Is this the year we break the over 200 projects for the 2018 edition of $8.775-billion hydroelectric project. $200-billion threshold? the report, digging up the most up-to-date At the time of release, the 2017 report stood 3 information to determine the 100 that How many new projects at just over $187.5 billion. That number was should appear. will be included? adjusted to $186.4 billion a short time later, As we wrap up the research phase and I feel like we should include some sort thanks in large part to a reduction in the cost focus on pulling the resources together of over/under or pool-type contest with of the F.G. Gardiner Expressway Strategic to begin writing, there are five burning this each year, because the answer isn’t Rehabilitation Plan. We have already seen questions that we are excited to answer known until a few days before the report cost increases on a few of the projects in the when the report is published. is published. Here’s what we do know: top 10. Will those increases, along with the at the time that we published the 2017 introduction of new projects, be enough to 1 How much change will report, there were 19 projects scheduled breakthrough the $200-billion mark? The Top100 Projects Key Players and Owners Dinner we see in the top 10? for completion this year. We know a few of For more information about the 2018 brings together infrastructure leaders to celebrate None of the projects that appeared among those are facing delays that will push their Top100 Projects report, and to read the the top 10 of the 2017 report were expected completion into 2018, such as the Waterloo latest news on the projects included in the the biggest projects being built in Canada. to be completed this year. But with ION LRT, but just how many get wrapped annual report, visit top100projects.ca. fluctuating project values, and multiple up by December 31st isn’t yet known. And don’t forget, tickets are now on sale for multi-billion-dollar infrastructure projects 4 the 2018 Top100 Projects Key Players and currently under development, what will How many projects Join us! Tuesday, February 20, 2018 at The Carlu in Toronto. will be in the billions? Owners Dinner, taking place at The Carlu change when the 2018 report is released? in Toronto on Tuesday, February 20th. To Last year, 50 projects broke the $1 billion purchase tickets, or to sponsor the annual 2 Will the Site C project Book your corporate tables now. Contact Elena Langlois threshold for the second straight year, down event, visit top100projects.ca/celebrate. be included? from the record 52 in our 2015 report. Of at 416-444-5842 ext. 151 or [email protected] It’s the type of issue that can keep an editor the 19 scheduled for completion in 2017, up at night, knowing that a major project only three were among the billion-dollar Andrew Macklin is the editor could need to be removed as the report goes projects: The Spadina Subway Extension, of ReNew Canada magazine. Top100projects.ca/celebrate 36 ReNew Canada November/December 2017 renewcanada.net Mark Your Calendar: February 20, 2018

The Top100 Projects Key Players and Owners Dinner brings together infrastructure leaders to celebrate the biggest projects being built in Canada.

Join us! Tuesday, February 20, 2018 at The Carlu in Toronto.

Book your corporate tables now. Contact Elena Langlois at 416-444-5842 ext. 151 or [email protected]

Top100projects.ca/celebrate People & Events

APPOINTed executive—transportation, for WSP for start-ups established in 2016. in Canada on January 1st, 2018. This As president and CEO, Kazi will be appointment follows the announcement responsible for leading the overall strategic The board of directors of that Dave Jull will be retiring from this direction of the company. Metrolinx has appointed role on the same date, after contributing Kazi joined Siemens in 1991 and has Phil Verster as its new more than 40 years of insight, leadership, worked in various areas of the business in president and CEO. and innovation during his tenure with the the Netherlands, Germany, and the United Over the last 12 years, firm. Over the next fourth months, Peissel States. Prior to his appointment as president Phil Verster Verster has overseen will work closely with Jull to ensure a and CEO, he was senior vice president operations and major seamless transition between the roles. responsible for the energy management construction of rail services in England, Peissel has been with WSP for over division in Canada and acted as the regional Scotland, and Ireland. Among his most 16 years and has managed teams in and sales head of the transformers business recent assignments as a managing director Quebec, Ontario, and Western Canada. in North and South America. In this role, of Britain’s Network Rail have been In his new role, he will be responsible Kazi led major energy projects in Alberta, running Scotland’s railway operations, for providing national leadership, client Manitoba, and New Brunswick. the ScotRail Alliance, and initiating work development, and strategic direction for Kazi is a passionate champion of Siemens on the East West Railway, a new rail the transportation business line. He will Canada’s corporate social responsibility line linking Britain’s high tech corridor report directly to Greg Northcott, chief programs, including the annual fundraising between Oxford and Cambridge. operating officer in Canada, and will be campaign for Cystic Fibrosis Canada. At ScotRail, Mr. Verster oversaw the based in Montreal. delivery of $3 billion of new electrification Carillion Canada has of the Scottish railroad. Most recently, at exp Global Inc. has announced changes to its the East West Railway, Mr. Verster led announced that Mark senior leadership team. successful efforts to re-launch the project Dvorak has been named Emma Mercer has been through creative partnerships with the as its new president in appointed chief financial municipalities and local leaders it will addition to his current role Emma Mercer officer effective immediately. serve while simultaneously designing and Mark Dvorak as chief operating officer. Since joining Carillion engineering the project in the most cost Former president and in 2008, Mercer has held effective way. co-chief executive officer, several senior positions, most The Government of Vladimir Stritesky, recently finance director Saskatchewan has retired July 31st, 2017. of the UK construction announced that Scott Dvorak was named Andy Jones business, prior to which she Livingstone has been Vladimir Chief Operating Officer in was chief financial officer Stritesky named chief executive officer April 2016. With over 20 and senior vice president of Scott of the new Saskatchewan years of experience, he has evolved from Carillion Canada. Livingston Health Authority. an exp staff engineer, to a senior project Lee Watson has been appointed chief Since April 2010, Livingstone has led the manager, to vice president transportation transformation officer on secondment Saskatchewan Cancer Agency as president for U.S. Central operations. In addition from EY. Watson has been a partner at and chief executive officer. Previously, he to his solid technical and managerial EY since 2008 during which time he has served as CEO of the Saskatchewan Health skills, he has also nurtured many valued advised on numerous transformations Information Network (now eHealth client relationships. and restructurings for UK companies. His Saskatchewan). Stritesky became president and CEO appointment is effective immediately. Livingstone will take on the formal in 1995. With his guidance, exp has Andy Jones, currently president and role of CEO when The Provincial Health diversified into several major market chief executive of Carillion Canada, has been Authority Act is proclaimed and the sectors and grown from a regional Ontario appointed chief operating officer, taking up Saskatchewan Health Authority is firm to a global organization with over this role effective October 1st. officially established. He will immediately 100 offices across North America. He has In addition, the company has announced begin to play a key role in helping to assumed the role of advisor to the CEO to that chief operating officer Richard Howson, organize and build the new organization. ensure a seamless transition of leadership. managing director of Carillion Construction The 12 current Regional Health Ivan Dvorak will remain chairman of Services Adam Green, and managing director Authority CEOs will continue to lead the board and will act as CEO of exp. of Carillion Services Nigel Taylor left the the day-to-day operations of the RHAs company on September 30th. Group strategy Siemens Canada until the Saskatchewan Health Authority director Shaun Carter will be leaving the has announced the launches. That date is still being company by the end of the year. appointment of Faisal determined, but is anticipated to occur in Kazi as president and Parsons has announced the late fall 2017. CEO of Siemens Canada appointment of Joanne Eric Peissel, currently Faisal Kazi Limited. Kazi replaces McCall, senior vice serving as WSP’s vice former president and CEO president, to the position president of transportation and current chair of Siemens Canada of market leader for the for Western Canada, will Robert Hardt, who departed the company Joanne McCall Greater Toronto Region. She be assuming the role of in June 2017 to take on the role of catalyst will immediately assume Eric Peissel national business line partner at next47, Siemens’ separate unit responsibility for growing business in the

38 ReNew Canada November/December 2017 renewcanada.net People & Events

region, while she continues her current Martin Jobke has resigned duties as Parsons’ Civil/Structural Division accepted the role leader for Canada until a replacement of president of the The City of Toronto announced that, after five is named. In her new role, McCall will Associated Engineering years as chief planner and executive director of oversee regional business development not group of companies, the City Planning division, Jennifer Keesmaat Martin Jobke only in Parsons’ Civil/Structural Division, effective January 1, has decided to leave her position effective but also in Parsons’ Transport, Systems, 2018. As part of the September 29 to pursue other interests. and Industrial divisions. company’s leadership Keesmaat joined the municipality “The government of Canada is making succession, Associated in September 2012 and since then has historic investments in infrastructure,” Engineering’s board of successfully championed and led a wide array said Mike Johnson, president of Parsons directors selected Jobke, of projects including the first comprehensive Group. “By more than doubling existing Kerry Rudd a civil engineer with 33 plan for the downtown in 40 years (TOCore), years of experience, to infrastructure funding, many projects Toronto’s first Council-approved Transit succeed president & CEO Kerry Rudd, that were once only a dream can now Network Plan (Feeling Congested), OMB who will retain the role of CEO after the come to fruition. Our local team is ready reform, Chief Planner Roundtables, the transition. Ravine Strategy, Complete Streets Guidelines, to help, and Joanne will make sure that Since joining the company in 1987, Planners in Public Spaces, and the Planning Parsons’ capabilities, expertise, and legacy Jobke has held roles of increasing Review Panel as well as partnered with other of delivering some of the most important responsibility, most recently vice City divisions and agencies on a number of infrastructure projects in Canada are well president and general manager of significant transit projects including the King known and understood.” Associated Engineering’s B.C. operation. Street Pilot Project, Scarborough Subway McCall is a licensed professional As a civil engineer, Jobke specialized in Extension, SmartTrack, Eglinton Crosstown engineer in Canada and the United States transportation engineering, and led the LRT, Waterfront LRT, and the Relief Line. and has more than 23 years of experience delivery of traditional and alternative Keesmaat’s role with the City was her first in infrastructure planning, design, delivery projects in the resource and foray into public service. Prior to joining the management, and construction, both in municipal sectors. In his role as vice City, she was a principal at design firm Dialog North America and overseas. She has president and general manager, he and had a distinguished career as a planning been with Parsons for 21 years through its expanded the B.C. operation to include consultant and strategic planner. Her career acquisition of the Canadian firm, Delcan. offices in Victoria, Whitehorse, and took her to international projects in the Prior to joining Parsons, she worked for Yellowknife, in addition to its offices in United States, Ireland, and Greece as well as the Ontario Ministry of Transportation. Vancouver and Kelowna. across Canada. Credits: ReNew Canada

Pierre Lapointe of FPInnovations (in Quebec) gives an overview of timber construction in Canada to the audience at Woodrise 2017.

Top: The RESCON team, including RESCON chair Bruno Giancola (4th from left), president Richard Lyall (7th from WOODRISE 2017 the left), vice-president Andrew Pariser (9th from left) and past chair Tad Putyra (right) pose at the 2.7-kilometre natural sand dune in Arachon, southwest France. Bottom, L-R: RESCON president Richard Lyall, joins Stephane Dion, Canada’s BORDEAUX, FRANCE Ambassador to Germany, RESCON chair Bruno Giancola, and board member Joe Francavilla for dinner in Bordeaux. A team of builders from the Residential France, Japan, and Canada (through British was received well by the RESCON delegates, Construction Council of Ontario (RESCON) Columbia and Quebec)—three key green especially after learning at Woodrise that attended the inaugural world congress on allies who participated in the symposium— Ontario is an importer of wood from Europe tall wood buildings in Bordeaux, France in are becoming leaders in building mid-rise despite its vast forests. September. It was called Woodrise 2017, a and tall wood buildings. As advocates of timber construction in joint Japan-France-Canada symposium on Representatives from the Ontario Ministry Canada, RESCON president Richard Lyall the imperative of intensifying urban areas of Natural Resources and Forestry updated joined Canadian Ambassador to Germany and fighting climate change by building more those in attendance about the development of Stephane Dion and renowned B.C. architect tall buildings out of wood. an alternative solutions guideline that would Michael Green as three of the initial signatories Wood is a sustainable building material enable the permitting of a wood buildings over of the International Woodrise Alliance. that is unsurpassed in carbon capture and six storeys which will be released this fall. Lyall was also recognized by his peers contributes to the global struggle with Furthermore, the National Building Code of in the RESCON delegation for 25 years climate change. Stemming from the Paris Canada is considering introducing tall, mass- of outstanding service to the GTHA’s Climate Accord obligations, countries such as timber construction by 2020. This good news residential construction industry.

renewcanada.net November/December 2017 ReNew Canada 39 People & Events Credits: ReNew Canada

Jane Bird, Former Olivia senior Nova Scotia MacAngus, business premier vice advisor at Darrell president of Bennett Dexter ran corporate Jones. the province development under the for The NDP banner Plenary from 2009- Group. 2013.

THE INFRASTRUCTURE LAB TORONTO, ONT. The Infrastructure Lab, an initiative from heavily on current and proposed infrastructure what gets developed first. Based on promises Global Public Affairs, brought together a projects across the province and how the status made during the campaign, and the strength panel of experts for a discussion on how the of those projects could change over the life of of the NDP support in the Greater Vancouver newly-elected B.C. government will impact the NDP-Green coalition government. Jane Area, the speculation was that transportation infrastructure development in the province. Bird, senior business advisor at Bennett Jones, and transit projects in that region would be Moderated by Canadian Council for discussed how the removal of tolls from the Port of particular focus. Those projects are likely Public-Private Partnerships president and Mann and Golden Ears bridges will impact the to include replacing the Pattullo Bridge, CEO Mark Romoff, the presentation began development of the $3.5-billion George Massey construction of the Broadway Line, and the with a summary of the current state of affairs Tunnel Replacement project, which is currently development of the Surrey LRT. in B.C., with notes on what infrastructure in procurement. From a contractor side, Olivia MacAngus, promises were made during the campaign, A discussion followed that focused on the vice president of corporate development what actions have been taken thus far, and shift in priorities that could occur under the for the Plenary group, discussed that this who the key players in the government are new leadership. Former Nova Scotia premier government looks poised to continue from vice-president of B.C. for Global Public Darrell Dexter talked about how any infrastructure development, which should Affairs Rebecca Scott. change in leadership will take a fresh look mean plenty of opportunities for contractors Following the overview, the discussion focused at infrastructure priorities, causing a shift in in Western Canada. Credit: CPWA From left to right: Steve Blayney, Jennifer Rose, COMMUNITIES OF PRACTICE EDMONTON, ALTA. and Andrew Stevenson. ReNew Canada publisher Todd needs related to public infrastructure Latham joined 26 other government asset management and was created leaders and association representatives to provide for knowledge transfer from eleven provincial and territorial and information sharing among asset management Communities of their respective communities and Practice (CoP) in Edmonton for a constituents. The groups who national workshop designed to develop participated in Edmonton were: a collaborative framework among the Atlantic Infrastructure Management various organizations. (encompassing Newfoundland The in-person, three-day meeting and Labrador, Nova Scotia, New APWA PUBLIC WORKS EXPO which was facilitated by Guy Felio Brunswick, and Prince Edward Island), ORLANDO, FLA. (a.k.a., Dr. Infrastructure) explored ways CEIRU (Quebec), Asset Management to share information and assist each Ontario and the Ontario Coalition for The Canadian umbrella chapter CPWA always other across Canada while continuing Sustainable Infrastructure (Ontario) hosts a fun ‘Team Canada’ luncheon at PWX and to deliver asset management services to Asset Management Saskatchewan, this year Mike Sullivan, executive director of the our communities. Having regionalized Infrastructure Asset Management Canadian Common Ground Alliance (CCGA), communities of practice recognizes the Alberta, Asset Management BC, and was the speaker. He addressed the importance of differences in the size, physical location, Yukon Asset Management. Manitoba damage prevention and expressed support for the function and legislative realities within and NWT are also represented and will Underground Infrastructure Safety Enhancement Act. each jurisdiction so the discussions be forming similar groups. The Canadian One of the highlights of the luncheon was the focused on ways to collaborate and Network of Asset Managers (CNAM) is announcement of the winners of the CPWA share resources, tools and best practices the national CoP and also participated. National Public Works Week Awards contest. that would not just help advance asset CNAM helped bring the group together These awards recognize municipalities who go management practice locally, but also through an offering of the Municipal the extra kilometre to advocate for and educate provide a national, harmonized voice. Asset Management Program (MAMP), the public about public works in their community. The group will meet again in Quebec delivered by the Federation of Canadian Jennifer Rose, director of environmental services City at the end of October with the intent Municipalities and funded by the for the City of Vaughan, Ont. accepted the Large/ of creating a final structure and mandate Government of Canada. Metro Centre award from Steve Blayney, CPWA for the group. For more details on the program, visit director for Manitoba, and CPWA president Each CoP is structured to meet local fcm.ca/assetmanagementprogram. Andrew Stevenson.

40 ReNew Canada November/December 2017 renewcanada.net People & Events Credits: ReNew Canada

Ontario deputy minister of energy Serge Imbrogno.

Julie Blunden of the California Clean Energy SNC-Lavalin’s Francois Vitez leads the panel discussion on Fund discusses how energy storage will be a new and emerging energy storage opportunities in Canada. market driver of the next decade.

ENERGY STORAGE CANADA TORONTO, ONT. The technology and innovation behind energy environment. As a result, the NRC will be are better than more expensive products storage (ES) is evolving quickly, and both the able to provide detailed information of where available from companies with well-established private and public sector are taking notice. the best opportunities for market penetration names in the business. There are always As discussed at this year’s Energy Storage of ES technologies exist in the province. concerns about ‘fly-by-night’ companies, ones Canada conference in Toronto, there are Following the release of the report, NRC will that won’t exist long enough to service the ES growing opportunities for the technology focus its attention on similar research in both product should an issue arise, and solutions both at home and abroad, as the quality and the Ontario and Atlantic Canada markets. need to be found to assuage those concerns. capacity continue to improve. In a panel discussion focused on the But there clearly are opportunities for The National Research Council of Canada current implementation of ES technologies, the industry. As the technology improves (NRC) is in the process of releasing its the conversation focused on the numerous and the solutions compact, concerns over roadmap for energy storage opportunities challenges that are currently impeding wider the physical footprint of an ES solution are in this country, first turning its focus to adoption. Funding continues to be an issue, removed. This is especially important in evolving energy needs in Alberta. The not just for the development of the technology some of Canada’s major centres, where extra research is identifying the “ […] market itself, but for covering the day-to-day costs in land for energy creation and storage is not potential, roadblocks, and actions required efforts to sell the technology. Research and available for most companies. at the planning and procurement […]” development can run dry, quickly, leaving little The energy storage industry continues stage in order to ensure the adoption of ES room for covering operations costs while trying to expand in size and scale. And with the technologies by 2021. The project scope was to secure clients. There is also the challenge of quality and capacity of the technology done with three pillars: market opportunity, moving beyond the ‘industry pedigree’, trying rapidly improving, the opportunities for technology assessment, and economy and to convince people that startup technologies energy storage in Canada continue to grow. Credits: ReNew Canada A panel discussion looked at funding mechanisms available for municipal infrastructure.

Brad McLellan and Dan Ferguson of WeirFoulds discuss the importance of project documents.

WEIRFOULDS INFRASTRUCTURE FORUM TORONTO, ONT. The third annual infrastructure forum move has already been seen in cities like transit-oriented development to make the hosted by WeirFoulds LLP turned its focus Edmonton, Ottawa, Kingston, and Moncton, community a destination for commuters and to municipal infrastructure, exploring how where large sports and entertainment centres families in the Greater Toronto Area. projects can promote economic development have moved into the downtown, providing As the discussion progressed, and revitalize the core of our cities. nearby residents with the ability to work, presentations from the team at WeirFoulds Ron Bidulka, managing director live, and play within a few kilometre radius. focused on making sure those community for consulting and deals and In the case of Oshawa, as explained by infrastructure projects are structured for PricewaterhouseCoopers LLP, began the director of economic development services success. That includes the importance of discussion by suggesting that the move Kyle Benham, new projects like its properly-developed project documents, to build events centres for arts, cultural, downtown arena and regional courthouse managing risk allocation, and identifying and sports and recreation facilities on the have been key components of an overall the best source for financing the build. By outskirts of town has changed, as cities redevelopment strategy that is changing addressing these key components of the now look to these facilities to help revitalize the community. Once seen primarily as a development process, public infrastructure downtown cores and provide the amenities manufacturing hub, the city has diversified projects can improve the economic needed to create the 18-hour city. This its economic opportunities and introduced development of a city’s core.

renewcanada.net November/December 2017 ReNew Canada 41 Closing Shot

IS EVIDENCE-BASED PLANNING DEAD?

By Matti Siemiatycki

he question arises in response the evidence based planning paradigm appropriate allocation of the political and to a long litany of recent cases for large infrastructure projects. Business expert roles. T where evidence has mingled case assessments, benefit cost studies, Complete transparency of all technical uncomfortably with political expedience and environmental assessments are now evidence produced during the study of mega- in the selection and approval of billion standard practice nationwide. projects should be mandatory prior to the dollar transportation, energy, and social And yet in practice, in recent years we approval of any project. infrastructure projects. have seen all sort of ways that evidence Independent peer reviews can be required At its core, the principle of evidence- based planning can be used and abused. to assess the quality of the evidence for based planning is deceptively simple, Analysts and civil servants are pressured all mega-projects, and provide a public designed to achieve the appropriate balance to fit evidence to meet the politically recommendation of the preferred option. between the political and technical inputs favoured solution. Study findings are cherry Politicians would then need to justify their into decision-making. picked to provide the healthiest picture of a decisions if they deviate from the evidence- The role of politicians is to establish project. Unfavourable evidence is vigorously based recommendation. the project objectives as the voice of the contested and undermined. And when it Finally, as professor Bent Flyvbjerg from citizenry in a democracy, with input from comes time to make decisions, the evidence Oxford University argues, professional the community. is often entirely disregarded. sanctions and even criminal prosecutions Then the independent civil service and Indeed, the current state of affairs has seen should be pursued in cases where willful their hired consultants undertake impartial evidence based decision-making replaced manipulations of evidence take place. assessments of the project merits, to consider by a more insidious form of policy based While harsh, there are major financial and the financial, environmental, and social evidence-making. social consequences of proceeding with mega- benefits and costs of the undertaking. The misuse of evidence in the planning projects that are unlikely to fulfill the public Following study completion, the politicians and selection of infrastructure mega-projects interest based on misrepresented evidence. are meant to weigh the collected body of should be cause for great concern. Without radical solutions, evidence based evidence and consult further, and then Proceeding with ill-conceived mega-projects infrastructure planning will cease to exist. select the options that best meet the project is wasteful of public money. And undermining Canadians will be worse off should this objectives at the lowest cost. evidence based planning diminishes development come to pass. The attraction of evidence-based planning community trust in the producers of technical is that it is intended to support the rational, evidence and challenges public support for transparent, and efficient allocation of scarce the need to invest in infrastructure, which has Matti Siemiatycki is an resources, and guard against politically taken decades to build. associate professor in the motivated boondoggles. Reinvigorating the practice of evidence Department of Geography and Planning at the Over the past decade, the Canadian based planning requires strategies to University of Toronto. planning establishment has embraced support the integrity of the process, and the

42 ReNew Canada November/December 2017 renewcanada.net New Report Available Online at rccao.com

Infrastructure Ontario: A Key Agency to Implement the Long-Term Infrastructure Plan

With billions of dollars at stake and an Ontario economy • Infrastructure Ontario’s Alternative Financing and in need of productivity-enhancing infrastructure, a new Procurement (AFP) model provides good value for study says that improvements could be made to the money and sound “insurance” for the delivery of evaluation process used by governments to select projects. large or complex projects when compared with many The study, written by former Ontario deputy minister traditionally procured projects. Michael Fenn and commissioned by the Residential • Positive AFP-type provisions could be incorporated and Civil Construction Alliance of Ontario, is called into traditional procurement processes to offset “Infrastructure Ontario: A Key Agency to Implement costly and time-consuming mid-project changes that the Long-Term Infrastructure Plan.” often occur. Consider this: more than $200 billion has been pledged • An “innovation dividend” of 10 per cent could be by the federal government and Queen’s Park over 12 achieved through the AFP process, which could save years for Ontario infrastructure – hospitals, bridges, Ontario taxpayers several billion dollars over the roads, transit, sewage and water systems, and more. next decade. If this money is spent wisely, and based on integrated decision-making, Fenn says that Ontario could witness Fenn adds that while Infrastructure Ontario has been another Golden Age such as in the 1950s and 1960s effective at delivering many major projects, governments where major investments transformed our economic need to be more courageous and forward-looking to pave the way to prosperity. and social landscape. “Projects that might have seemed expensive in the Among the study’s findings: 1950s are now viewed as wise investments,” Fenn says. • Better decision-making structures should be put in place “The same holds true today, but we must ensure that to elevate infrastructure planning and project selection. projects are justified based on rigorous study and analysis.” p: 905 -760 -7777 Learn more, download reports and @_RCCAO e: [email protected] access videos at rccao.com