Jun 6, 2025
The Empire Club of Canada Presents
Protecting Ontario by Building Faster Infrastructure: Ontario’s Market Update
Chairperson: Kelly Jackson, Vice President, Destination Development, Destination Toronto; Past President, Board of Directors, Empire Club of Canada
Moderator
Kelly Jackson, Vice-President, Destination Development, Destination Toronto, Past President, Board of Directors, Empire Club of Canada
Distinguished Guest Speakers
The Honourable Kinga Surma, Minister of Infrastructure, Ontario
Angela Clayton, Infrastructure Ontario Interim CEO & President
Head Table Guests
Lisa Mitchell, President & CEO, Canadian Council for Public-Private Partnerships
Coral Kennett, Head of Sales for Provincial Governments, Education & Non-Profit, AWS Canada
Welcome Address by Kelly Jackson, Vice President, Destination Development, Destination Toronto; Past President, Board of Directors, Empire Club of Canada
Good afternoon, everyone, and welcome. I’m Kelly Jackson, Vice President, Destination Development at Destination Toronto, and your host for today’s event, “Protecting Ontario by Building Faster.” This is our final event of the 2024-2025 season.
To formally begin, I want to acknowledge that we are gathering on the Traditional and Treaty Lands of the Mississaugas of the Credit, and the homelands of the Anishinaabe, the Haudenosaunee, and the Wendat Peoples. I always see the opportunity to deliver a land acknowledgement as one where I can reflect on our human connection, and shared responsibility to care for this beautiful land that we call home. And I always try to do so from a place of understanding the privilege that my ancestors and I have had in this country, since they first arrived here almost 200 years ago. June is National Indigenous History Month. And it’s a time designated for all Canadians to celebrate the contributions and achievements of First Nations, Inuit, and Métis Peoples. During this time, when we’ve all been collectively reflecting on Canadian identity, and our strengths, thinking about sovereignty, thinking about our future, committing to broadening our knowledge and experience of Indigenous businesses, arts, culture, ways of being, knowing, and doing, it’s a very important way for us to show our respect for each other, acknowledge our histories, and stand strong together.
Today’s event would not be possible without the generous support of our sponsors. The Empire Club is a non-profit organization, and our sponsors generously support the club. They make these events possible, and complimentary for our online viewers to attend. So, please join me, in thanking our lead event sponsors, Bruce Power, and AWS. Thank you, to our VIP Reception Sponsors, AECON, Berg Construction, Ellis Don, Insurance Bureau of Canada, Leadcore Group, LiUNA, McKinsey & Company, and Orba. And to our Supporting Sponsor, the Residential and Civil Construction Alliance of Ontario. Today, we also express our deep appreciation for the ongoing support of Lead Season sponsors, Bruce Power, and Hydro One, and our VIP Reception Season Sponsors, Waste Connections of Canada, and Ellis Don. And finally, thank you to our Media Partner, the Toronto Star, and our AV Partner, Bespoke Audio Visual.
If you have a question for our speakers today, I encourage you to scan the QR code that you can find in your program, if you’re in the room. And if you’re online, you can do that through the Q&A function. And for those of you who are tuning in online, if you require any technical assistance, please use the chat feature, and one of our team will respond to you.
Today’s event returns to a conversation that has taken root on this stage over many years: the role of infrastructure in shaping the future of Canada’s most populous province, and the urgency of building faster, smarter, and with purpose. As today’s host, I’m looking forward to continuing that conversation. I’ve had the opportunity to host the Market Update for the past four years, here at the Empire Club. And it’s fascinating to see each year where progress is being made, and what questions are top-of-mind for the audience.
Just last week, Canada’s parliament opened with a Speech from the Throne delivered by King Charles III. In that address, His Majesty called on leaders across the country to see this as a moment of incredible opportunity, an opportunity for renewal, an opportunity to think big, and to act bigger. Well, Ontario is doing exactly that. The province is investing more than $200 billion in roads, schools, hospitals, transit, and long-term care. And today’s Market Update will shed light on how those plans are accelerating, and how partnerships between government and industry are helping get shovels into the ground faster.
We’re delighted to welcome the Honourable Kinga Surma, the Minister of Infrastructure, and Angela Clayton, Interim President and CEO of Infrastructure Ontario. Together, they’ll walk us through what’s next, and what it’s going to take to deliver in a time of economic pressure, uncertainty, and population growth. This conversation, each year, seems to sit somewhere between what we want to get done, and what we’re able to get done. And in that space, it’s the collaboration and innovation between the private sector and government that drive results.
Progress depends on shared risk, and shared reward. I see this in action, in my role at Destination Toronto. We engage with a wide range of public and private partners, to ensure Toronto remains a premier global destination, and the benefits of tourism are felt throughout the city. And as we lead efforts right now to develop the city’s first-ever Destination Master Plan, it’s evident more than ever that our infrastructure, our transportation networks, all of these things are key to travellers’ experience, and to growing the economic impact of the visitor economy.
I’m delighted to welcome our first speaker, Lisa Mitchell, one of the infrastructure sector’s leading voices on partnership, accountability, and delivery. As President and CEO of the Canadian Council for Public-Private Partnerships, Lisa is here today, on behalf of Bruce Power. Lisa has spent her career advancing the kind of trusted, outcome-focused collaboration, that the projects highlighted in today’s Market Update depend on. And Bruce Power, as both an energy and civic leader, continues to show how infrastructure investment powers not only the lights in our houses, and the data centres supporting our work, but long-term economic and community impact. Lisa, we’re so glad you’re here today. Please join me, in welcoming Lisa to the stage.
Opening Remarks by Lisa Mitchell, President & CEO, Canadian Council for Public-Private Partnerships
Good afternoon, everyone. The Canadian Council for Public-Private Partnerships represents the broad infrastructure industry across Canada, bringing together those involved in, and advocating for, the use of partnership models to deliver infrastructure nationwide. It’s a real pleasure to be here today, on behalf of Bruce Power, and alongside the Honourable Kinga Surma and Angela Clayton, to help present Infrastructure Ontario’s latest Market Update.
Bruce Power is a long-standing member of the Council, and one of Canada’s most unique public-private partnerships. Bruce Power is a true success story, and one of many across this province. It’s proof of what’s possible, when the private sector and government work together. By leveraging private investment in major energy infrastructure, Ontario can show that we don’t have to rely solely on public funds to deliver critical projects. That means governments can do more, and go further with taxpayers’ dollars.
Building essential infrastructure has always been vital. But in today’s climate of global uncertainty, with growing economic pressure, including the impacts of tariffs, it’s never been more urgent. This is how we position Ontario and Canada as an energy superpower, a critical minerals leader, a more resilient, diversified global trading partner, and more importantly, it’s how we raise our standard of living, improve quality of life in our communities, and create economic opportunities for generations to come.
That’s why today’s Market Update matters so much. It provides transparency and predictability to the sector. A clearer project pipeline gives companies the confidence to plan, to build their teams, and to invest in Ontario’s future. As the largest infrastructure market in Canada, Ontario sets the pace for the rest of the country. Not just in what is built, but how it is built. From embracing new procurement models to deliver a growing pipeline of mega-projects, and using innovative tools like Digital Twins, Infrastructure Ontario continues to lead. And in times like these, that kind of leadership and clarity is more important than ever. We look forward to hearing from Minister Surma on the government’s vision, and we thank her for her continued commitment to sharing these updates with the sector. Thank you.
Kelly Jackson
Thank you. It’s now my pleasure to introduce our first keynote speaker. The Honourable Kinga Surma is Ontario’s Minister of Infrastructure, and Member of Provincial Parliament for Etobicoke Centre. Since stepping into this role in 2021, she has helped shape how Ontario plans, delivers, and thinks about infrastructure. Minister Surma has led major initiatives that reach across the province, including expanding broadband in rural and Indigenous communities, moving ahead with priority transit projects like the Eglinton Crosstown, and overseeing the rebuilding of Ontario Place. The Premier reappointed her to this portfolio this past March, and she continues to lead, during a time when infrastructure decisions carry real urgency. As we heard earlier, this is a moment that calls for speed, coordination, and a strong sense of what’s possible, when government and industry work together. Please join me, in welcoming the Honourable Kinga Surma.
The Honourable Kinga Surma, Minister of Infrastructure, Ontario
Gosh, that introduction made me a little nervous—although, I should be used to these things with Kelly, now that we’ve done them so many times. But thank you so much, Kelly, for that very, very kind introduction, and thank you to the Empire Club, for hosting us today. I’m delighted to be joined by Angela Clayton, Infrastructure Ontario’s President and CEO. I’m so grateful to Angela, for leading Infrastructure Ontario. I’d also like to acknowledge Kelly Jackson, VP of Destination Development at Destination Toronto, who has once again agreed to be our moderator for the Q&A portion of this event.
I remember fondly how we gathered at the Empire Club in 2023, to announce the release of Infrastructure Ontario’s Market Update. Things have changed significantly, since then. Ontario is facing unprecedented challenges, and economic uncertainty. Our recent budget, a plan to protect Ontario, lays the foundation, and provides the province with flexibility to protect Ontario businesses, workers, and jobs, in the face of US tariffs, and continued economic uncertainty. We continue to proceed with our most ambitious capital plan in Ontario’s history, $200 billion over 10 years. Rising construction costs are not deterring government from making progress on the projects that matter to the people. And I would like to thank our builders, for working alongside us.
Which brings me to the reason we are here today. This morning, Infrastructure Ontario released its latest Market Update. The update lists 28 major infrastructure projects in pre-procurement, and active procurement, with an estimated value of more than $30 billion. Another 19 publicly-announced projects are now in the initial stages of planning. And since the last Market Update in 2024, three projects have advanced to construction: the Prince Edward County Memorial Hospital Redevelopment Project, a new hospital for Winnebago Area Health Authority in Moosonee, as well as the station’s rail and systems contract for the Scarborough Subway extension. We’ve also reached substantial completion on projects, including a new patient-care tower at Michael Garron Hospital in Toronto, the Cambridge Memorial Hospital, and the Grandview Children’s Treatment Centre in Ajax. And I’m pleased to share that our major site preparation work at the future Ontario Place is successfully nearing completion, to make way for the next phase.
Importantly, this Market Update includes a snapshot of projects within the Capital Repair Program, that will see projects in every region, ensuring we’re getting work done in all parts of this great province. By highlighting these projects situated on government-owned land, we are illustrating the full scope of activity underway across IO’s portfolio. This inclusion is being done to provide the market with greater visibility into the work that is upcoming, and underway right now. In doing so, we aim to encourage broader engagement, support local communities, and advance a critical strategy for tariff-proofing Ontario’s economy.
The Market Update will also include upcoming opportunities in the Transit-Oriented Communities Program, that will help deliver tens of thousands of new homes and mixed-use communities, throughout the GTHA. This is in addition to the great progress we’ve made on TOC’s to date, including we’ll be updating and releasing our plans for the upcoming TOC sites at Exhibition, Eastern, Queen Spadina, through open market offerings. We are working with a partner to bring life at TOC at Gerard Carlaw North. We’re finalizing our submission with the town of Oakville, for the ongoing Oakville TOC. The King & Bathurst TOC market offering is complete, and we’re working with a selected proponent. And finally, continuing work to deliver TOCs at East Harbour, Bridge, and high-tech stations.
Moving projects forward, and keeping our workers on the job, will help us weather this economic uncertainty. But it’s not just about how much we build. We need to build faster and smarter. Recently, our government proposed a suite of new measures, to speed the construction of new homes, and transit, and other important infrastructure. Our Protect Ontario by Building Faster and Smarter Act, also known as Bill 17, will enact a series of measures to speed up development processes, and reduce delays and costs. This includes steps to significantly speed up getting shovels in the ground to build major transit projects, streamline and improve the planning and delivery for transit-oriented communities, supporting more jobs and housing options around transit, and reduce costs and speed up project approvals with consistent building construction standards across Ontario municipalities, to build more homes.
Bill 17, our government is also making sure it’s easier and faster to build out more transit-oriented community opportunities, by putting one ministry, Ministry of Infrastructure, in charge of issuing zoning orders to TOC projects, otherwise known as MZOs. MZOs will allow us to deliver more TOC across Ontario along the GO, subway, and transit lines, adding 340,000 new homes, and 75,000 new jobs, near subway lines.
Once projects are awarded, we want our builders to have confidence in the process. Last year, I held one-on-one meetings with 20 general contractors, to explore ways to improve participation in the infrastructure market, and speed up the delivery of projects. I’m pleased to share that we’re working on resolving many of the concerns raised, such as the transfer of municipal permitting and stakeholder risk to the province, improved systems for quicker decisions, and claims resolution.
Angela and IO are leading the work on the decisions process and claims resolution, however, government will be making changes this fall, to address the concerns that were raised—and of course, we will check in with all of you, to get your feedback. And of course, we’re also evolving to keep pace with the rapidly-shifting economy, especially given the current uncertainty just south of the border. We’re driving this change, with a strong focus on a variety of delivery models, desegregation of larger projects to improve competition, greater transparency into the pipeline of projects, both large and small, and more engagement and collaboration with the market. Close cooperation with builders, as well as flexible approach on planning and construction, are critical, as we face a challenging economic landscape, where conflicts over trade have become the norm.
To be more competitive globally, we’re also developing Digital Twins, to deliver projects faster and smarter. Since the signing of our MOU with the UK, we’ve completed a proof-of-concept on the Eglinton Crosstown West project, that has shown some promising findings. For example, the concept developed for the ECWE was able to achieve a 90% automation integration of the latest designs for review and analysis. And we’re developing a plan on how to implement Digital Twins with our building partners, asset owners, and municipalities. This will help—this has the potential to keep costs down, manage risks, and mitigate potential schedule delays, and I look forward to continuing working on all of this, with all of you.
Although, once again, Ontario is faced with challenges, we will get through them. Today, infrastructure has become even more important, not only because of the highways, and hospitals, and transit lines, where building will serve people, but because they keep our workers working. And this government will continue to get out of the way, continue to reduce lengthy and costly processes, so that you can do what you do best, and that is build. Thank you. And now, I would like to welcome Angela to the podium.
Angela Clayton, Infrastructure Ontario Interim CEO & President
I was just reminded that I’m much shorter than the Minister. Thank you for that. Thank you, Minister. And thank you everybody, for being here this afternoon. It’s great to see so many familiar faces in the audience. The release of our Market Update is always an exciting day, and today is no exception. There is so much work that goes into the preparation of the pipeline, so before I get into my remarks, I actually just want to start with a few thank yous. I want to start by thanking Kelly, and the Empire Club, for hosting us here today. I want to offer my sincere appreciation to the teams at the Ministry of Infrastructure and IO, who do all the hard work, to produce the document that was released earlier today. And finally, on behalf of our Board of Directors, I’d like to thank Minister Surma. She has been an absolute champion for this infrastructure agenda. We couldn’t do it without her, and she keeps us very, very busy. So, thank you, Minister—in a good way.
I’ve had the privilege of being the interim CEO at IO for the past six months. During this time, I’ve had the opportunity to meet with our partners, the government, and the market, to talk about challenges, and talk about potential solutions. The Market Update is a critical tool we use to provide transparency, to support our partners, in planning your pursuits. In this update, you will see seven new projects, along with several updates to models and timing. As the Minister mentioned, you’ll also see details on our Capital Repair Program, consisting of 298 projects, as well as our TOC pipeline, with nine transactions that will be coming to market in the next 24 months. This update also demonstrates our continued progress, with four projects reaching substantial completion in the past year, and several more advancing through the procurement process.
We recognize the ongoing uncertainty in the current environment, but also, the critical role that infrastructure investment will continue to play in building our communities, and building the economy. In my remarks today, I want to reinforce three important themes. The first is the implications of US trade policy on our pipeline, the second is the importance of continued market engagement, and the third is our evolving strategy to deliver complex projects.
Let me start with the implications of US trade policy. At IO, we’ve been exploring strategies to minimize the impacts of tariffs on our projects, wherever we can—and that’s been based on feedback that we’ve received from the market, over the last several months. We’ve consistently heard that the market is concerned about three things: first, the burden of the uncertainty driving potential supply chain issues, second, increased costs for steel, aluminum, and other materials, and how best to manage these increases, and third, the importance of the continuation of public sector projects, to sustain the market, as private sector work slows down.
You will have seen, throughout the introduction of recent legislation, that this government is committed to minimizing the impacts of tariffs, while investing in opportunities to build our domestic capacity across the construction industry. You will also see these commitments reflected in our procurement documents, as future projects come to market. You also have our commitment that IO will continue to engage and collaborate, to develop strategies and solutions, to tackle not just the immediate issues of the day, but also, maintaining a longer-term view.
And that brings me to my second point, and that’s IO’s commitment to expand our engagement with the market, and increase the amount of transparency of anticipated work. We’re rolling out a market engagement strategy with our key stakeholders, across not just our general contractors, but the developers, design firms, subcontractors, and industry associations. This strategy will foster open, two-way discussion, on key priorities, and the project updates, with the goal to understand the interests, barriers, and challenges, affecting bidder participation on our projects.
As I mentioned, you’ll note our Market Update has additional information not shared in our previous pipelines. Alongside our Major Projects Pipeline, we’ve included our Capital Repair Pipeline of smaller projects, to be completed within Ontario’s real estate portfolio. This pipeline is a projection of the approximate number, value, and scope of these projects, along with the regions designated for work. Our aim is to create new opportunities, for a broader range of partners to participate in our capital program. Another new addition to our Market Update, as the Minister mentioned, is the inclusion of the province’s Transit-Oriented Communities Program. We look forward to showcasing many more TOC updates in future Market Updates.
Finally, I’d like to address our evolving strategy for tackling our most complex projects. Increasingly, we are hearing that project size and complexity, and not delivery model, is the biggest barrier to market competition. In response, we’re investigating approaches to disaggregate some of the large and more complicated projects into smaller, more manageable components. This is a strategy we’ve already used to great effect, across our transit portfolio. And while this strategy is not incorporated into the pipeline released today, we will be working with our project partners, and soliciting input from the market, to inform our structuring approaches. We expect that this strategy will not only strengthen the competitive landscape, but drive better project outcomes, overall.
Before I close, I want to take a moment, and look back. This year marks the 20-year anniversary for the creation of Infrastructure Ontario—and I know many of you in the room have been around for that entire journey. Over that time, we have collectively brought to market 161 projects, initiated construction on 123 of those projects, achieved substantial completion on 97. And since 2005, the total value of contracts awarded to build infrastructure in this province has been in excess of $95 billion.[Applause] So, thank you. Thank you, for all that you and your organizations have done, to help us build our province. I am confident that we will continue to achieve meaningful outcomes for the people of Ontario, and I look forward to our discussion. Thank you very much.
Kelly Jackson
Thank you, Angela. And thank you, Minister Surma, for your remarks, and for offering a clear and compelling picture of what lies ahead, in Ontario’s infrastructure strategy. I’d like to invite the Minister to join us on stage, so we can dive a little bit more into the details of the Market Update, and the work that’s underway.
Well, we often start off this event by saying, “Happy Pipeline Day.”
Angela Clayton
Happy Pipeline Day.
The Hon. Kinga Surma
Well, I just found out it was the anniversary today. So, happy anniversary, Angela, and to everyone in the room.
Kelly Jackson
It’s true, you know, when we think about 20 years of projects, it’s pretty incredible. And actually, earlier, before the, the lunch started, we were talking about the fact that, you know, I was involved with a project at Seneca Polytechnic, which, you know, felt like, you know—when somebody brought that up to me, I’m like, “Oh, man, that was quite a long time ago.” But, you know, it’s like there have been so many different sectors that have been touched by Infrastructure Ontario’s work—and so many people, ultimately.
Before we get started, I just wanted to remind the audience here in the room that, if you have a question, please feel free to submit that by scanning the QR code, and submitting that, and those will be coming up to me. And, if you’re online, same thing. Please use the chat functions we do. I know this event, there’s always a lot of questions, and we’re eager to receive them from you.
The Hon. Kinga Surma
Question or compliment.
Kelly Jackson
Yeah, we always accept compliments. So, to start off, I think one thing that really struck me, from hearing from both of you, is that there’s obviously a lot of exciting and new information today, in the Market Update; new projects, new models. Wondering if you can talk a little bit about, is this demonstrating sort of a fundamental shift in your approach? Or is this, really, a reality of having to respond to very uncertain, changing times? It’d be great, I think, for people to get a little bit, a sense of sort of what’s driving that.
The Hon. Kinga Surma
Can I respond by saying yes and no, at the same time, without my comms people getting upset? But I would say no, in the sense that our government has always had great ambition to build infrastructure—that was always part of every mandate that we’ve had from the people. Whether it was a transit infrastructure deficit, or a hospital deficit, it came up in every election. And so, throughout the seven years, seven-and-a-half years, we’ve kept moving and kept IO busy. But I would also say that now, given the circumstances, there’s even more public support to accomplish more, and the economic circumstances are really driving government to, much like COVID, be faster, and more nimble, and flexible, and adapt to circumstances. Because we need to accomplish great things for the people, and we need to show that. So, my answer is a yes and no. But I hope that it made sense, everything that…
Angela Clayton
Yeah.
The Hon. Kinga Surma
…that I said.
Kelly Jackson
Well, you know, I know, even last year, I recall the comment made at the time that there was almost a disproportionate number of projects that were in healthcare—and I think, if you look at today’s Market Update, you would not say that, right?
Angela Clayton
Yeah. Certainly, the work being spread across multiple asset classes is reflected in the pipeline. I would agree with the minister. I wouldn’t say, it’s not a fundamental shift; more of an evolution, and continuation of this journey that we’ve been on, for the past several years. And really, that’s coming up with different and innovative ways to deal with the ambition of the infrastructure deficit, and the plan that we’re delivering.
I think, Kelly, two things are still true. One is, we are still solving for market participation. And when we’re making decisions about how we’re structuring projects, the models that we’re using, when we’re bringing them to market, we are really trying to do that, to focus and ensure that we’re getting maximum participation. We still think that competition is the best way to drive really tight schedules, and competitive pricing.
But the other is still true about risk, and risk transfer. We still have a preference to transfer as much risk as we can, and making sure that risk balance exists, and that the risks end with the party that’s best-positioned to manage it. And so, there’s a fine balance between dealing with a market that is much less willing to accept risk than it has been in the past, and making sure that we’re putting work out, and still able to get that competition. And so, I hope that that balance is reflected in this pipeline, in terms of the diversity of models that we’re using, the size of projects, the asset classes that they’re spread across. We’re really trying to make sure that we’re catering to the entirety of the market.
Kelly Jackson
And you both, I noted in your remarks, talked about the idea of ongoing productive conversations, and even amplifying the amount of engagement that’s happening. When I was thinking about the conversations we’ve had over the past Market Updates, you know, it’s amazing we were talking in 2021 about, you know, you engaging the sector, to talk about supply chain disruptions in the face of COVID. We were then talking about accelerated build pilots, right? Being able to find new ways of using public lands. You know, we’ve talked about risk management. So. The topics continue to change. But the theme of collaboration, that seems very consistent—and it really jumped out, in both your remarks. I want to talk a little bit about sort of what some of those conversations are that you’ve been having. You talked about meeting with, you know, sort of 20 different general contractors.
The Hon. Kinga Surma
M’hm (affirmative).
Kelly Jackson
You’re obviously talking about, you know, increasing the amount of engagement. So, what are those topics you’re looking at, to really dig into it with people?
The Hon. Kinga Surma
And that’s right. And I think the Premier always encourages us to do this, is, is really have open communication, and be accessible, and be available. Last thing you want is a phone call from the Premier about not consulting with your stakeholders, and your building partners—thankfully, I haven’t had very many of those, in my 10 years, so I hope to keep that going. But, you know, one of my proudest achievements was the fact that the amount of disruptions that happened during COVID were at a minimum. Infrastructure Ontario and government worked really hard, to make sure that we could continue building. And because of that, I often reference, we have West Park, a brand new hospital in West Toronto, that is actually serving patients today—all of the staff have moved in, and the patients have been transferred. And had we stopped, you know, we wouldn’t have that additional capacity, and that additional service. And it was because we spoke to our building partners, we looked at what we could compensate, and how, and how we do it together. And I think now is the time where—we should always, of course, be communicating, but it’s even more so important, so that we can continue to build, and continue to address the challenges, and adapt.
I hope that this Market Update does two things: number one, provides you with the stability that you need, that government is continuing to move forward—that is not changing—but that we will also be adaptive, and flexible, and we will communicate with you, and we will address the hard issues with you, to make sure that we can provide those facilities that the people are, are depending. It’s important, like I said in my speech, we need to provide those services. But we also need to continue to employ the hardworking people of Ontario, during these times. So, I would sa,y communication is even more so important today, I think, than it ever was.
Angela Clayton
And Kelly, I would add that there’s two specific things that we’re going to change, about how we’re engaging with the market. The first is: historically, we’ve tended to engage on specific transactions. So, when we’re thinking about putting a project out to market, we’ll call up the contractors, call up different players, and talk about what they think. So, what we’re talking about is going to change. Yes, we’re still going to do project-specific market sounding, but our market engagement now is going to be more broad, about what are the different issues—we did this with tariffs and trade, specifically—but engaging, on a more regular basis, with, on the different challenges that the market’s encountering.
And the second thing I’ll say is: who we’re talking to is going to change, as well. We historically have been disproportionately focused on contractors, and industry associations. So, we’re broadening our stakeholder engagement, to include developers, to include designers, to include subcontractors, to include consulting engineers. So, all the different firms that work on our projects, to give them an opportunity to engage with us, and partner with the Ministry. Now, it’s also helpful for the industry to have a direct line to the Minister, in case we’re part of the problem—so, we want to make sure that that channel stays open. But we’re really, really going to broaden the lines of communication, and open the lines of communication with the industry, to try to get that feedback. Because like the Minister said, if anything is for sure, for the next couple of years, is we’re going to need to continue to be adaptive, and respond as the market changes.
Kelly Jackson
So, I think that is one of the big questions everybody has, when it’s, you know, there’s a commitment to being adaptive, there’s a commitment to engaging with the industry; there’s also a very significant investment being made, big plans. And yet, there’s so much economic uncertainty, that we’re all navigating. So, you know, from your perspectives, how are you trying to look ahead, and say, you know, how can we deliver such a big set of plans on time, on budget, given there’s so much none of us know about what’s coming?
The Hon. Kinga Surma
Yeah. Well, look. We’re in a construction sector; there are challenges every single day—I’m actually making a small addition to my home, and I’m ripping out my hair, every single morning. But look, I have the best ally. I have the Premier that is so supportive of critical infrastructure, and making sure we address those deficits. I say to people—and this is a little unusual—that the Premier is his best during a crisis. But it is true. He led this province during COVID, he became Canada’s champion, you know, when there were threats across the border, he is working with the new Prime Minister on breaking down interprovincial barriers, which will also help Ontarians and Canadians working, and he is a champion for infrastructure, continuing to make it, to make sure that we build.
But now we’ve seen the tone change, right? Before, we had a federal counterpart that wasn’t really talking about infrastructure so much—I had a bit of a challenge, going up to Ottawa; I always felt like I wasn’t as successful as I should be, in those conversations. And now, infrastructure is the top priority. And I would say the Premier had a lot to do with that. So, a lot of our success in executing projects is the fact that we have a leader that knows how important it is, knows how important it is for economy, knows how important it is for jobs, and how important it will be for Canada’s future.
Angela Clayton
And Kelly, my response to this question is going to sound a lot like the last one, because I think flexibility is key here. And you look back, those of you that were involved with IO 15, 20 years ago, you know, IO had one model, one template, take it or leave it, this is how we do it. And those days are long, long gone, right? The pipeline reflects that. So, I think continuing to have that ability to evolve. And if anything, we’ve learned about this government, yes, the Minister has been this champion, and the Premier is super committed to infrastructure—they also don’t want us to build all of it, all at the same time, as quickly as possible. And so, tempering those expectations, coming up with a pipeline that the market can absorb, and tapping into every player that’s willing to participate in our program. Those are the goals that we’re really….
The Hon. Kinga Surma
It’s funny you say that. Because I have to temper his expectations, and then you temper mine. So, it’s really….
QUESTION & ANSWER
Kelly Jackson
Well, I think there’s expectations, and then there’s also, you know, I think a whole new narrative that’s emerged with the federal government, and many of the provinces around, this idea of nation-building projects, right? And I think challenging all of us to say, how do we be more ambitious, how do we work together? So, on that note, I’ve got a question in from the audience around this idea that, when it comes to building transit, Canada’s one of the most expensive countries to build. So, how could the industry work towards national standards, to drive efficiency, and improve labour? Any thoughts on that?
The Hon. Kinga Surma
Well, that’s an interesting thought. Certainly, I’d be willing to look at it. I’m of the opinion—and I think that it’s very much of the government’s opinion, too—that, you know, we can lead, the province can lead these nation-building projects. We have the expertise, we have the builders, we have the labour force, we’re investing more in skilled trade developments and training. But what we want the federal government to do is do, much what we’re—much like the approach that we’re taking, in the sense of, you know, let’s deregulate the certain aspects that really slow down these so very important projects, that are going to determine our country’s destiny. We want to build pipelines, we want to build ports, we want to build transit. I’m very happy to see the federal government continuing with their Québec, Ontario, I’m hoping very fast transit line that they’re building. So, certainly, if they want to have a conversation, we’re happy to do it. But I think the approach is, let’s get government out of the wa,y so that builders can build, and those experts can lead those projects in the right way.
Angela Clayton
I would agree. I think if there ever was a time where we were going to see standardization across the feds, and the provinces, it’s now. And the catalyst, the potential catalyst, is these nation-building projects. So, we get really excited. Anything that can break down the barriers to move goods, and products, and services across the country, is a good thing for all of us. I think that the main barriers that we see is the alignment of stakeholders across the feds, across the provinces, and that requires standardization and approaches, it requires cutting that red tape, breaking down the duplicate processes and permitting, and other things. Like, that in and of itself, is a significant undertaking.
And then, there’s also the reality of the constraints that exist in our market. Labour constraints are significant. There’s a temporary reprieve right now, as a result of the slowdown of some of the private sector work. But make no mistake, that is temporary. As the market corrects, the problems we have with labour will resume. We also don’t have certain domestic capacity for raw materials, and different goods, that are required to build some of these projects—so, things like structural steel, and certain metals, you know, I’m told elevators and electrical equipment. So, being able to invest in building up our domestic capacity to service those sectors, is also critical.
Kelly Jackson
One of the other, I think, of course, shared priorities, provincially, federally—municipally, as well—housing. This is the first time, in the Market Update, we’ve seen information about Transit-Oriented Communities. I think when we look at Ontario’s very ambitious goal, right? In terms of the number of houses to be built, or new units, TOCs are going to be a key part of that. You want to talk a little bit about how it’s progressed, since you’ve last had the opportunity to do a Market Update?
The Hon. Kinga Surma
Sure. Very, very happy to. And happy to include that information out there. Like, look, we know, everyone knows, here, what the housing market looks like. And much to what I’ve said before, the government just needs to get out of the way, so that we can support the builders that are actually willing to take the risk, and build in today’s tough conditions. I was very happy to work with Minister Flack on Bill 17, to standardize what municipalities can ask for, when looking at development approvals, and permitting. Very much happy to have the MZO powers—I know, as contentious as they are, they do many great things. In fact, they’ve helped us build long-term care homes, in the province.
Look, we are going to be in a very difficult position, if we have very low housing outcomes in the province for, you know, three, four, five, six years. That is going to be horrible. A whole generation of people will lose the ability to have a family, and a home, and we just cannot do that. And so, the bill is meant to be bold, and I will use the MZO authority, and I will help the builders that want to build around transit—that’s where people want to live—and we will make sure, with our water infrastructure investments, to help stimulate as much housing as we can, during these difficult times. [Applause]. Thank you.
Angela Clayton
I would just add, I think, in the last four years, we’ve brought four, we’ve closed four transaction, TOC transactions, contributing about 65,000 houses. You’ll see, in the pipeline, there’s nine to get done, in the next two years, so the volume of those transactions is ramping up. And our Chief Development Officer, Heather Grey-Wolf, is here with us today, and she’s been critical in building that team, to be able to help us deliver that. So, we feel we’re well-poised to be able to bring these transactions to market, close them, and like the Minister said, we just need to get going on some of these projects, to build that housing.
Kelly Jackson
One of the other things I noted in the remarks were the reference to the delivery models, right? And so, we’ve got a question from the audience around the future of the DBFM model—design, build, finance, maintain, for those who aren’t familiar with it—and how that’s going to play a role in delivering infrastructure in Ontario, in the medium to long term.
Angela Clayton
M’hm (affirmative). So, there’s still 10 P3s on the pipeline, so you’ll see the P3 model still features prominently in the plan. I’ll say our preference, and I mentioned this before, is still to maximize that risk transfer, so allocating risk, to the party best able to manage it. And we also know, through experience, that assets built through the P3 model are better maintained, right? There’s investments that are made, that the government just doesn’t make, in some of its own assets, so we know those benefits are there.
I will say, that the primary challenge for us with the P3 model has been two things: one is, lack of competition on contractor sides. So, there was a period of time where contractors weren’t willing to take the risk profile associated with P3s. That’s shifting a little bit; we’re starting to see some contractors signaling that they’re willing to come back, and take that risk. And we’re also just looking at the profile of lenders, the role of lenders—you know, we’ve had several high-profile transit P3s, that have gotten into trouble—and just figuring out the right tools and mechanisms, to solve for some of those liquidity and cash flow issues that we’re seeing on some of the bigger projects, and what the solution is.
So, I would say the P3 model is, certainly, alive and well in Ontario. My preferred model is the DBFM; I think there’s a ton of value to it. But there’s also a role that the industry needs to help us play, in proving the value associated with that model. And I think there’s a time and place for it. There was a time where we had one tool for every problem; now, we have multiple tools. And we’re just going to continue to make sure that we’re doing our best, to select the right model, depending on what the project looks like.
Kelly Jackson
Excellent. Well, I think we’re at time. So, before we wrap up….
The Hon. Kinga Surma
That was fast.
Kelly Jackson
Yeah. It goes quick.
The Hon. Kinga Surma
I thought there would be more questions.
Kelly Jackson
Well, we have more questions. I mean, somebody would like to know about whether the market will be consulted on what changes are needed in the PA templates, before changes are proposed for the market to comment. So. Maybe we can slip that one in.
Angela Clayton
Yeah, sure. So, the short answer is yes. Yes, we can make that commitment. And certainly, the Minister alluded to changes we’re making with the DRP process; there’s going to be other changes that we’re making. It’s not ideal to have those changes hit the market in a live procurement. So, I think certainly, this expanded market engagement that we’re doing, we can, we can test some of the language that we’re thinking about, to get some feedback outside of live procurement. There’s several of our lawyers in the room right now, so I’m looking for a few nods, and a thumbs up. Okay. Yes.
Kelly Jackson
Good. As we wrap up, Minister, last word to you. Anything you want to make sure that we leave people with today, as we wrap up?
The Hon. Kinga Surma
No, just a big thank you. Thank you for sticking by us, and standing by us. And you know, I never take offence if there’s a criticism, because you want to improve a process, or make a change for the better, to improve it for others. So, you know, you can be as vocal with me as you like, in the coming months, especially. But just a big thank you. Thank you, for participating in our projects, for working with Angela and myself, and we’ll continue to do that. Thank you.
Kelly Jackson
Well, thank you again for returning here, to give us this Market Update. And I would like you to join me, in thanking the Minister and Angela. Okay. So, we have just a couple of minutes left in the program, and then, we will actively let people in the room network—of course, I know that’s what everybody wants to get to. Thank you, again, to the Minister and to Angela, for the clarity and conviction that they brought to today’s discussion. This conversation highlights what today’s program has made clear: building faster requires alignment, focus, and the kind of long-term thinking that delivers real results for communities across Ontario.
As we close, I’m pleased to introduce a representative of our Lead Sponsor, Amazon Web Services Canada. Coral Kennett is Head of Sales for Provincial Governments, Education, and Non-Profit at AWS Canada. She has 17 years of experience helping organizations tackle complex challenges, through digital transformation. At the Canadian Cloud Innovation Centre—a collaboration between AWS, and the University of British Columbia—she helps public sector partners apply Amazon’s customer-centered innovation process to issues that matter across our communities. Her work reflects a strong commitment to outcomes, accessibility, and public good. All values that align very closely with the mission of the Empire Club. Please welcome, Coral Kennett.
Note of Appreciation by Coral Kennett, Head of Sales for Provincial Governments, Education & Non-Profit, AWS Canada
Good afternoon, everyone. I’m Coral Kennett, Head of Provincial Government and Education for AWS in Canada. AWS is pleased to sponsor today’s luncheon—and thank you, Kelly, for leading an engaging discussion, and to Minister Surma, and Angela, for sharing how Ontario is executing on a bold vision to transform Ontario’s economy, and deliver critical public infrastructure.
At AWS, we support a lot of the work fuelling economic growth in Ontario, either directly, through our investment as Amazon, or from our customers and partners, who are able to grow and innovate, because of the deep set of tools that enable digital transformation and growth. Amazon’s current footprint in Canada encompasses more than 70 different corporate and logistics sites, and we’ve invested more than $50 billion, since 2010. As you may know, we have millions of customers, globally, including startups, small and medium-sized enterprise, and leading government agencies, who are using AWS to innovate faster, and to become more agile. And at AWS, we are very committed to Canada, and to the province of Ontario. We are planning to invest an estimated $25 billion throughout the country, by 2037, in new and expanded infrastructure regions, or data centres.
Toronto is home to one of our major technology hubs, which employs thousands of people in highly-skilled roles. From software engineers to data scientists, it’s these individuals who are constantly innovating, and contributing to the technology ecosystem, right here in Ontario. And we think it’s important to contribute back to the communities where we operate. And that’s why Ontario was one of the first jurisdictions in Canada where we launched our AWS Restart Program, an initiative that is tailored towards helping train unemployed and underemployed individuals, to get critical Cloud skills, so they can get their first job in the tech sector.
In today’s increasingly digital age, Cloud is the vehicle that powers AI at scale, and helps the public sector transform the ways in which they serve their citizens, and think about infrastructure assets. Just last month, we helped support the launch of Algonquin College’s AI Accelerator Hub in Ottawa, helping them support businesses and researchers looking to scale with AI technology. And just yesterday, we supported the launch of the University of Toronto with their Cloud Research Lab, which is aimed at expediting research in genomics and bioinformatics.
And through AWS, public sector organizations are already revolutionizing their operations, from hosting secure, scalable websites like ontario.ca, that provides 24/7 access to vital information and services, to enabling health departments to better plan hospital capacity, ensuring resources are allocated efficiently. And in our ongoing battle against natural disasters, departments and agencies are leveraging AWS to support wildfire management, using data analytics and machine learning to predict and respond to threats more effectively.
These innovations aren’t just improving government operations, they’re helping to save lives and protect communities. But we know that there’s a lot of work to still be done. Cyber attacks and instances, notably against public sector organizations and critical infrastructure, have seen a dramatic rise in recent years. The impact of these attacks can be devastating and costly, making it increasingly important to be cyber-ready. That is why AWS launched our Provincial and Municipal Cybersecurity Grant Program. This $5 million fund will help government institutions to improve their security posture, and advance their ransomware protection. With extended support, AWS reaffirms our strong dedication to supporting provincial and municipal government at every stage of their journey. It’s an exciting time for AWS to be partnering with the public sector, and we are proud to play a key role, in helping to build productive and innovative services for modern Ontario public sector and economy. Thank you all for coming, and giving me the opportunity to share a little bit about AWS, and how we’re contributing to Ontario’s success. I’ll hand it back to Kelly, to close our program.
Concluding Remarks by Kelly Jackson
Thank you again, to our panellists, sponsors, and of course, to all of you, for joining us. I’d also like to recognize the students and young leaders, who are here today with us in the room. We have students here from Queen’s University, and Humber Polytechnic. Thank you. Yeah. That’s the students. Thank you all, for being part of our community. It’s great to see the next generation involved, because it’s all about connecting on the Canadian dialogue, to make sure that we’re all in part of talking about the things that matter.
As we wrap up for the ’24-’25 season, we want to thank everyone, who helped to make it so remarkable. Our speakers, our partners, and our engaged audience, both in the room, and online. Your support has made this truly an incredible season. We are grateful to have had your support, and your engagement. And on behalf of Jenna Donelson, who is the chair this year—and unfortunately could not be here, at what would have been her last event of the season—I really want to extend my thanks, not just to you from her, but also, I would like on behalf of the board to thank Jenna for all of the work that she put in this year.
We are building momentum for next year [Applause]. Yeah. I’m always about celebrating people’s accomplishments. So yes, we will give that a good round of applause. We are already building momentum for next year, and I’m very proud to announce that we have a new confirmed 2025-’26 Season Sponsor, the National Bank of Canada. If your organization would like to be part of the conversation next season, through event sponsorship, leadership support, or strategic collaboration, we would be happy to speak to you. And there’s never been a better time to get involved. I also want to thank and acknowledge the incredible work of our staff team. May I please have a round of applause for them? [Applause] I think between September and June, they pull off over 35 events—and just two days ago, we’re at the Metro Toronto Convention Centre, hosting the US Ambassador for his first major address. So, it’s been a busy week for them; not just a busy season.
To stay connected with us, please subscribe to our newsletter, by scanning the QR code on your table. We also invite you to look at our exciting new membership program. Members receive early access to events, announcements, exclusive ticket packages, and the best available rates, all through our membership portal. As many of the events this year sold out, there’s an opportunity to secure your seat for next season, with our new Season Table Patron Packages. This limited-time offer is available exclusively until July 15th. Please see any of the hard-working Empire Club staff at the registration desk; they would be happy to provide you with more information.
Finally, as always, and as we wrap, we like to remind people that the Empire Club is a club of record. And that means that all Empire Club events are available to watch and listen to on our website. The recording of today’s event will be available shortly. Thank you so much for being with us, for helping to advance thoughtful, timely conversations, throughout the season. Now, enjoy the networking, and we look forward to welcoming you back in the fall. This meeting is now adjourned.
