May 28, 2008

Procurement

Infrastructure Ontario takes AFP model to the road

PATRICIA WILLIAMS

staff writer

In conjunction with the Ministry of Transportation, Infrastructure Ontario (IO) is taking a hard look at opportunities to apply its alternative financing and procurement (AFP) model to road projects.

The two agencies are collaborating on a project to modernize 23 highway service centres across Highways 400 and 401. Four groups have been shortlisted to submit proposals to design, build, finance, maintain and operate the centres.

IO president and chief executive officer David Livingston says the AFP approach, which leverages the strengths of both the private and public sectors, is suited to road projects “if there is sufficient complexity to warrant risk transfer.”

In the transit sector, the Crown corporation is engaged in an advisory role to Metrolinx to identify projects in the government’s ambitious MoveOntario 2020 plan that could be delivered more efficiently using the AFP approach.

“This work is ongoing,” Livingston said in an interview via e-mail. “But we should have some opportunities identified in the next few months.”

While MoveOntario is expected to include $17.5 billion of work, Livingston said it is “impractical” at this point in time to attempt to forecast the value of specific projects that might be delivered by his agency.

AFP projects aside, IO has played a role over the years in delivery of both transportation and water infrastructure through the Ontario Strategic Infrastructure Financing Authority (OSIFA) loan program, the $140 million rural investment infrastructure initiative and the $450 million municipal infrastructure investment initiative.

In fact, more than half a billion dollars in OSIFA loans have been approved and executed for water projects alone, Livingston said.

“That said, at this point in time, we don’t have any AFP projects planned or underway in the water infrastructure sector.”

Infrastructure Ontario was established in 2005 as the execution agency for AFP projects.

Print | Email | Comment