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Advancing Canada’s Infrastructure Why Partnerships Are Key to Meeting Canada’s Infrastructure Challenges
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Lisa Mitchell President & CEO, Canadian Council for Public-Private Partnerships
his year has proven to be both challenging and exciting for Canada’s infrastructure sector. Governments have committed billions in historic investments to build highways, schools, hospitals, and bridges, while the after-effects of the pandemic and global political turmoil have thrown wrenches into successfully getting projects to the finish line on time and within budget. This fall, the Canadian Council for Public-Private Partnerships (CCPPP) will mark the 30th anniversary of its annual conference. We sat down with Lisa Mitchell, President and CEO of CCPPP, to discuss how the infrastructure sector is changing in Canada and how the public-private partnerships (P3) model continues to evolve to meet those challenges.
Canada has a long history of P3s, but the market seems to be changing with new models, such as Alliance and Progressive P3s. Why is this happening now, and what does this mean for the future? In the 1990s, governments across Canada turned toward P3s in response to challenges in delivering large and complex projects and partnering with the private sector to foster greater collaboration, innovation, and the best value for taxpayers. We’ve had a great deal of success — 300 projects and counting — but we’ve also had some projects experience substantial challenges. With every generation of P3s, the industry in Canada has adapted to improve how projects are delivered. What we’re witnessing now with these newer models is a
direct result of the challenges we’ve seen in the market in recent years. The fundamentals of the P3 model remain sound, but we may need to adjust our approach in certain circumstances. There remains tremendous merit in a whole-oflife-cycle approach where risk is transferred to the party best able to manage it and in leveraging private capital. The industry needs to return to the table to deepen our collective understanding of what works and what hasn’t and find solutions to advance more P3s — where they make sense. We need to put the partnerships back in P3s.
The industry needs to come back to the table to deepen our collective understanding of what works and what hasn’t and find solutions to advance more P3s. How we approach infrastructure is also changing significantly in Canada. Indigenous communities are leading net-zero energy projects, broadband is an urgent priority in all regions, and new federal regulations are driving a boom in water/wastewater projects. How can P3s play a role? It’s an exciting and incredibly challenging time for those who plan, design, build, finance, and service infrastructure across the country — and the opportunities are great.
But resources are often limited, whether that’s public funding, labour, construction materials, or all three right now. Together, the private and public sectors can find solutions such as how a project is bundled, how financing is used, or to reduce greenhouse gas emissions and maintenance costs by thinking long-term about how an asset will operate. For example, we have a proven track record of successful municipal water, wastewater, and energy-from-waste projects across Canada. And we’re beginning to think through how P3 principles can be applied in new areas such as broadband. Indigenous communities continue to face significant infrastructure gaps when it comes to health care, transportation, and clean water. However, we’ve seen much progress in this area through true partnerships, collaboration, and innovative thinking. The rise of Indigenous net-zero projects is another example of where this is happening.
Any closing thoughts? The infrastructure sector is facing considerable headwinds at the moment, but there’s also hope. The industry is working hard to find solutions to labour shortages, supply chain issues, inflation, and pricing uncertainties to keep budgets and schedules on track. But, to maintain healthy competition in the sector and to ensure projects can happen when governments want, the need has perhaps never been greater for public and private collaboration. A P3 approach, where value for money can be demonstrated for taxpayers, provides a proven framework for those discussions to lead to successful projects.
P3 2022 , is taking place in person on November 21 and 22 in downtown Toronto. For more information visit p3-2022.ca. This article was made possible with support from the
Canadian Council for Public-Private Partnerships.
Publisher: Michael Taylor Director of Business Development: Julia Colavecchia Country Manager: Nina Theodorlis Content & Production Manager: Raymond Fan Designer: Kylie Armishaw Lead Editor: Karthik Talwar All images are from Getty Images unless otherwise credited. This section was created by Mediaplanet and did not involve The National Post or its editorial departments. Send all inquiries to ca.editorial@mediaplanet.com.
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PHOTOS COURTESY OF POMERLEAU
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Pomerleau’s ESG Commitment Transforms Its Value Chain for a Net-Zero World Canadian leader in the construction industry, Pomerleau, is responding to the critical need for the industry to shift its practices to more innovative and sustainable alternatives. Grace McGrenere
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The plan Pomerleau’s strategy to combat climate change is based on scientific facts. It provides a path to reduce the company’s emissions and transform its value chain to contribute to a net-zero world.
The plan focuses on three goals: • Reduce carbon emissions generated by its own operations (Scope 1 and 2) by 40 per cent by 2030 • Enable its partners and clients to transition to a low-carbon economy • Advance the change by investing in the conservation and creation of natural carbon sinks In 2022, Pomerleau will invest in natural carbon sinks to raise awareness about the need to protect them and to increase their capacity to absorb carbon from the atmosphere. The company plans to continue finding new sustainable solutions to invest in, with communities at the heart of its decisions.
The fund is designed to establish lasting partnerships for complex infrastructure and renewable energy projects. The fund’s investment policy accounts for ESG-related criteria from the development phase to the management of its portfolio assets. Since the creation of Pomerleau Capital, Pomerleau has invested in a wind farm, an offshore wind blade manufacturing plant, a mixed-use real estate complex seeking LEED platinum certification, and a high-performing energy-saving data centre, some of which have been completed in partnership with Borea Construction, a subsidiary of Pomerleau that manages and constructs renewable energy projects.
Pomerleau’s commitment Investing in the future Taking its investments one step further, Pomerleau created Pomerleau Capital, a subsidiary specializing in the investment and financing of large-scale complex private infrastructure. Pomerleau Capital manages an asset portfolio of approximately $750 million focused on projects that contribute to developing healthy and sustainable communities.
“Leading a successful transformation requires an ongoing commitment, which is part of our corporate values to improve our society’s future. Our commitment to ESG is an opportunity for us to create value and make our entire supply chain more sustainable,” said Philippe Adam, President of Pomerleau Capital and Executive Vice-President and CFO of Pomerleau
To learn more, visit pomerleau.ca/ en/perspective. This article was sponsored by Pomerleau.
PHOTO CREDIT: NAVAN CHAWLA, ENTUITIVE
A Borea Construction realization.
his year, the company released its first environmental, social, and governance (ESG) performance report along with its new ESG platform, Perspective, outlining Pomerleau’s 2021 performance, ambitions, and long-term objectives. The concrete targets communicated in Pomerleau’s ESG report align with many of the United Nation’s Sustainable Development Goals, including Goal 13, which asks governments and companies to “take urgent action to combat climate change and its impacts.” Buildings represented the third largest emitter of greenhouse gases in Canada in 2019 (12 per cent), after the transportation and oil and gas sectors, according to the Government of Canada. This glaring statistic is one of the reasons why senior leadership at Pomerleau discussed climate-related risks, opportunities, and initiatives on 13 occasions in 2021 alone.
How One Company Is Breaking the Mold on Infrastructure Development With hundreds of billions of dollars invested in infrastructure across Canada, our cities are changing at an unprecedented pace. The success of these projects requires a different approach, focused on creativity and collaboration. Ken Donohue
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Michael Meschino Principal, Entuitive
his shift in thinking is being driven by Entuitive, who have purposefully integrated design and construction engineering in a way that very few consultants are capable of. “Traditionally, there’s been a line between design and construction, but our approach is to blend those two together, so there’s no distinction,” says Michael Meschino, Principal, Head of Transportation at Entuitive. “This is still unique in the industry, and we’re seeing projects managed more efficiently because of it, which is good for the client and the users.”
Sustainable and integrated approach
Mohammad Mirmoezi Associate, Entuitive
The beauty is that by having the design and construction engineers work together at the beginning of a project, innovative solutions can be realized, and efficiencies unlocked that otherwise wouldn’t have been possible. This in-house construction know-how and collaborative culture give Entuitive an advantage because it reduces risk and potential project delays. Meschino illustrates the benefits of the Entuitive approach through one of its current projects, a highly esthetic pedestrian bridge in Edmonton that is just in preliminary design. “It requires a challenging design, but by
having our construction engineers work with the designers early on, we can understand the erection stresses and forces on the structure before we start building, thereby improving its constructability,” he says. “If that collaboration doesn’t happen at the design stage, you run the risk of a solution that might not work or make it more difficult to build.”
Traditionally, there’s been a line between design and construction, but our approach is to blend those two, so there is no distinction. Bucking the traditional approach By understanding how the contractor will complete their work, Entuitive can build that into the base design. Whether it’s eliminating the need for — and cost of — temporary shoring or being able to accommodate a tower crane, projects save time and money. Entuitive’s strength is that it employs advanced technology coupled with a culture that challenges the status quo and is not
limited by how it’s always been done. For example, the Toronto Port Lands project, in which Entuitive is leading the design of four signature bridges, uses a creative procurement model to save time and money. By bucking the traditional approach, significant efficiencies were gained. “We remove the gap between consultants and contractors and can tailor solutions on multiple levels to help the project move more efficiently,” says Mohammad Mirmoezi, an Associate at Entuitive and one of the firm’s Construction Engineering specialists. “For example, the Centre Block project in Ottawa is the most complex heritage restoration in Canadian history, and we’re using Grasshopper 3D technology to get the most accurate modelling. This, along with advanced construction analysis and continuous collaboration with the contractor and the client, will make for a better project.” Entuitive’s creative approach and commitment to innovative solutions profoundly impact our infrastructure development and are poised to spread. “With our proven track record, we want to become prime consultants on more projects so that we can enhance our influence and better help our clients,” says Meschino.
Arrival of the Cherry Street North Bridge – Port Lands Flood Protection & Enabling Infrastructure Project (PLFPEIP)
Get in touch with Entuitive regarding your upcoming projects at entuitive.com. This article was sponsored by Entuitive.
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Solving Problems and Delivering Creative Solutions for over 55 Years PHOTO COURTESY OF MAPLE REINDERS
Canadian company Maple Reinders is an award-winning and trusted complex solution provider in Canadian infrastructure realization (including design, construction, financing, operations and maintenance). Tania Amardeil
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hen it comes to solving problems and delivering creative solutions in industrial, commercial, and institutional buildings and environmental construction, Canadian cities and municipalities want to partner with the best. Reliable companies with a long history of success and innovation — like Canadian general contractor Maple Reinders — are the ones that are best trusted with designing, building, and operating our country’s major infrastructure projects.
Award-winning construction services Jeremy Olthuis Chief Operating Officer, Maple Reinders
Reuben Scholtens Vice-President, Major Projects, Maple Reinders
“At Maple Reinders, we build Canadian infrastructure,” says Jeremy Olthuis, Chief Operating Officer at Maple Reinders. “From social infrastructure — police stations, correctional facilities, libraries, community centres, and schools — to the civil environmental side, we’re best known for the work we do at water plants, wastewater plants, and solid waste treatment facilities, along with composting/ aerobic and anaerobic digestion, as well as green energy generation.” Maple Reinders operates from coast to coast and has been in business for over 55 years since 1967. The company is solutions-oriented and prides itself on tackling challenging projects, whether the challenge involves constructability, budget, or personnel. The scale of its projects is over $200 million, and it boasts unparalleled, sector-specific experience with public-private partnerships (PPPs) in the environmental infrastructure
arena and a growing footprint in social infrastructure PPPs. Also of note is Maple Reinders’ unique focus on flexibility in project delivery thanks to its integrated project delivery (IPD) approach. “IPD is a relatively new project delivery model that seeks to form a partnership between owners and contractors,” says Reuben Scholtens, Vice-President of Major Projects at Maple Reinders. “Instead of having a design-bid-build process, the owner hires an IPD contractor like us who will partner with them as they validate pricing and plan out projects. It’s an open-book, collaborative way to deliver a project. There are several emerging contract-delivery models we are advancing as an industry, all of which seek to enhance collaboration with stakeholders.”
Complex projects, smart solutions As a complex service provider in the Canadian infrastructure sector, Maple Reinders’ projects are typically large-scale, multi-year endeavours. One of its current projects is a wastewater treatment facility upgrade for the City of Barrie, which is an eight-year project largely focused on helping the city reduce its ammonia discharge into the environment. The project represents Canada’s largest wastewater infrastructure IPD project to date. Another current undertaking is a new $100 million aerobic digestion, organics management facility in Halifax, N.S., which is projected to have a life cycle value of $457 million and which Maple Reinders will operate
for the next 25 to 35 years. “This project is the first PPP project that Maple Reinders has done without an external partner and the first of its kind to be completed by a single entity from start to finish,” says Scholtens. “The project is a first for us and certainly the most comprehensive in Canada given its adherence to not only Canadian but also European standards,” adds Olthuis. “We’re not only financing it but designing it, building it, commissioning it, and operating it.”
Choosing certainty in uncertain times Our current economic climate is rife with uncertainty, unstable markets, a looming recession, COVID-19 escalation, and rising costs of living. In such uncertain times, it’s best to go with a trusted and established partner — and Maple Reinders has been a trusted provider of construction services for over 50 years. The team has weathered past economic uncertainty and credits their faith-based, Christian roots and dedicated staff for this resilience. “We’ve structured our business to provide our own equity financing, our own facility operations, and our own self-performance of different disciplines and trades,” says Scholtens. “This makes it less costly and more efficient to work with us.” “Our core values — fairness, integrity, and honesty — have stood firm over time and will continue to serve Maple Reinders, our staff, and our partners in challenging times,” adds Olthuis.
To learn more about partnering with Maple Reinders, visit maple.ca. This article was sponsored by Maple Reinders.
Steady Pipeline of Talent Required to Build a Better Canada Canada’s construction industry has a significant role in supporting the nation’s growth plan and needs to secure a talent pipeline to ensure the country stays on track. Mary Van Buren
I Mary Van Buren President, Canadian Construction Association
nfrastructure connects. It connects you to health care, education, the marketplace, the workplace, and the community. It can also connect you to a well-paid career with a secure future. It’s a boom year for Canada’s construction industry, with major spending announcements being made by governments on infrastructure and innovation. New highway and light rail developments, climate resilience retrofits, and vital maintenance projects are underway as part of the nation’s growth plan. The industry, and most importantly, its people, have a big role to play in ensuring the country stays on track. The industry is struggling to fill 85,000 open jobs in construction because of baby boomer retirements, pandemic aftershocks, and, quite simply, a public misconception about careers in construction. This needs to change.
It’s a matter of perception For decades, kids have been steered away from the trades and encouraged to pursue a “profession.” This bias can also be seen in our immigration system, with more points awarded to applicants with higher education levels. Some trades are not even recognized as a category in the points system. Construction is often seen as a blue-collar job with low pay and limited opportunity. This is simply not the case. The industry is working on changing this perception. Talent Fits Here is a national
public awareness campaign to inspire a new generation of workers to join the industry. Construction provides well-paying and rewarding jobs with diverse options and a path to growth.
There are 85,000 open jobs in construction that the industry is struggling to fill because of baby boomer retirements, pandemic aftershocks, and, quite simply, a public misconception about careers in construction. Today’s construction leaders welcome tech adoption and alternative methods of project management and delivery. They are also looking to employ a labour force that has been historically underrepresented — women, BIPOC, and LGBTQ+ communities. We are also actively seeking out immigrants and temporary foreign workers as a way to alleviate retirements and an ongoing skills shortage that will result in over 300,000 jobs needing to be filled by 2028. These individuals will help drive diversity, inclusion, creativity, and innovation in the sector.
Long-term plan needed As the industry’s national advocate, the
Canadian Construction Association (CCA) has been advocating for a long-term plan for sustainable infrastructure investment. Not only do we have to repair, maintain, and retrofit infrastructure built in the ’60s, but we must also build for the future — keeping climate resilience, innovation, and economic growth in mind. More consultation and early engagement with provinces, municipalities, Indigenous groups, and industry stakeholders also need to happen. Doing so would go a long way in addressing our immediate and future infrastructure needs — and developing the workforce we need to get to where we want to be. Skilled tradespeople cannot be created overnight. The industry has partnered with the federal government on the Canadian Apprentice Service program to provide financial incentives to employers hiring apprentices to work in 39 in-demand Red Seal trades. We need initiatives like this and immigration policy changes to build a pipeline of skilled, unskilled, and professional talent. All these workers are needed in construction, and Canada’s future growth depends on its ability to attract, develop, and retain top talent. Construction will continue to be an essential sector driving Canada’s future economy, creating jobs, and connecting communities and countries. By leveraging the best minds, training and upskilling workers, and integrating new tools and technologies, we can deliver a better future through infrastructure.
Find your fit. Visit talentfitshere.ca to learn more. This article was made possible with support from the Canadian Construction Association.