Huge construction projects pipeline outlined for Ontario

Ontario “is the place to be” with hundreds of billions worth of projects in the pipeline in the next decade, delegates heard in successive presentations during the recent Ontario Construction Secretariat conference held in Toronto.

First OCS director of research Katherine Jacobs provided a project preview compiled by BuildForce Canada tracking 155 large projects across the province valued at over $200 billion.

Infrastructure Ontario (IO) CEO Michael Lindsay, meanwhile, addressed a group of trades trainees from the Hammerheads program on hand for the March 7 session, suggesting it’s a good time to be employed in the construction sector.

“We have $42 billion worth of projects presently under construction and we have probably another couple of dozen or so still in the final stages of planning before we begin procurement,” said Lindsay.

With the completion of the Davenport Diamond Guideway project early in March, Lindsay said, IO has reached substantial completion on 31 major projects across all asset classes since 2020. That compares with 49 or 50 projects completed in IO’s previous history.

In addition, 33 major projects have entered procurement.

“I don’t think there is a jurisdiction anywhere, from a public tendering perspective, that is doing more right now,” said Lindsay. “Here in the province of Ontario, I think this is the place to be.”

Challenges for IO

Several times the CEO referred to growing challenges for IO as costs remain high, interest rates affect borrowing and the supply chain continues to have problems. Projects are getting more complex, he said, with hospitals requiring vastly more technology than before.

Responding to a question from the audience, Lindsay admitted that one project, the $1.5-billion Macdonald Block Reconstruction Project involving the renovation of four large office towers on Bay Street in Toronto, was proving especially problematic.

The block is the administrative hub of the Ontario government. Each building in the complex is being taken back to its original building core, remediated and rebuilt. The P3 team on the project is Fengate PCL Progress Partners.

Construction began in 2019 but at this point, the staging of reoccupation remains uncertain.

“You open up a heritage facility, you’ve made certain assumptions about what the condition you’re going to find ultimately is. The reality in connection to that project is we found two things unexpected,” said Lindsay, outlining problems with an outdated elevator system and the presence of “noxious substances” in the building.

Transit projects lead

Jacobs said the private sector will be spending heavily on energy and industrial projects and the public sector will be contributing significant amounts to huge new transit, power and health care projects over the next 10 years.

Transit is the top sector with $64.1 billion in projects over the next decade, followed by power generation and transmission at $32.5 billion; health care, $29.8 billion; industrial, $28.6 billion; other institutional buildings, $13.6 billion; mining, $12.7 billion; roads and bridges, $9.8 billion; water and wastewater, $4.9 billion; and warehouses and distribution centres, $2.6 billion.

Assessed region by region:

• Central Ontario — Both ICI and engineering are trending up. Major projects of note in the pipeline include Niagara Falls Hospital, Hamilton Health Sciences (Juravinski), ArcelorMittal Dofasco Hamilton Steel Works (two projects), Alliston Assembly Plant Upgrade/Retooling, Hamilton Light Rail Transit and Garden City Skyway Twinning.
• Eastern Ontario — ICI is trending up while engineering is moderating. Projects of note include Centre Block, Parliament Hill (Phase 1 and 2), Ottawa LRT Stage 2 Extension, Ottawa Civic Hospital, Innovate Energy Modernization of District Energy System, the Umicore Electric Vehicle Battery Materials Plant and Defence Construction Canada Eastern Ontario Campus.
• Greater Toronto — BuildForce says project activity will continue to strain labour markets until 2027/28. ICI and engineering spending are both trending up. Select major projects include OPG Darlington Refurbishment, OnCorr GO RER Electrification, Subway Extensions (Yonge and Scarborough Lines), Eglinton Crosstown West Extension, Ontario Line Southern and Northern Sections, Mississauga Health Trillium and Ford Oakville Retooling Electric Vehicle Complex.
• Northern Ontario — Major projects include the Waasigan Transmission Line, Thunder Bay Correctional Complex, Agnico-Eagle Atikokan Hammond Reef Gold Mine and Processing Plant, Red Lake Springpole Gold Mine and Mill, and the Marathon PGM Open Pit Mine.
• Southwestern Ontario — Major projects include Bruce Power Refurbishment, Volkswagen EV Battery Gigafactory, Stellantis-LG Energy EV Battery Manufacturing Facility, Gordie Howe Bridge (completion expected 2024/25), Crown Royal Distillery and London Nitrile Glove Manufacturing Plant.

The upcoming commissioning of the Gordie Howe bridge is welcome to project planners in the southwest, Jacobs said, given the number of megaprojects in the region.

“The more information that’s available to all stakeholders, it’s better for the industry,” she said. “It helps us manage our labour force.”

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