Oil sands to help make Canada one of the fifth largest global
construction markets by 2020
TORONTO, May 5 /CNW/ - From 2010 to 2015, Canadian infrastructure will
grow at over two and a half times the growth rate seen over the
previous five years, a new PwC-sponsored report by Global Construction
Perspectives and Oxford Economics found. By 2020, Canada is expected to
be the fifth largest construction market behind India and Japan—a jump
from its current position in seventh place.
"Over the next decade, we expect infrastructure to be the fastest
growing end market in Canada and housing to be the slowest," says Sal
Bianco, National Engineering and Construction Leader, PwC. "Responsible
for this huge growth are a number of oil sands projects starting in
Alberta, the major hydro projects planned in Ontario and Quebec,
expanding transportation needs in urban centres and the construction
demands the Pan Am Games is placing on the country."
Pan Am Games spur competitive bids
Canada's hosting of the 2015 Pan American Games in Toronto carries a
$2.4 billion price tag as new sports venues and other facilities have
to be constructed. This includes a $1 billion athlete's village,
aquatics centre, indoor gymnasium and running track, and the Canadian
Sport Institute complex.
A new Airport Rail Link (ARL)—a 3km rail line between Union Station and
Toronto Pearson International Airport—will be completed prior to the
Games. Infrastructure Ontario and Metrolinx issued an RFP last month
and a preferred bidder among the four already shortlisted will be
announced in early 2012.
New transportation projects come at a high cost...
Over 80% of Canadians live in urban areas with an expected average
growth rate of about 1% per annum over the next 10 years. "The steady
growth of Canadians living in urban cities is placing more pressure for
more transportation," says Bianco. "This, in turn, is spurring the
increase in transportation infrastructure projects that typically carry
For instance, there are several transport projects that are either
underway or planned in Toronto and Ottawa:
The $4.6 billion Light Rail Transit (LRT) in Toronto is the largest
transit investment in Canada's history. It includes a 20km tunnel in
mid-town Toronto, plus a 12km tunnel to the east.
An extension of the Toronto subway to York Region, costing almost $2.7
billion, is in construction. This will link Toronto with York Region
via an 8.6km extension and six new stations.
The$2.1 billion Ottawa LRT project is its first phase of a larger LRT
network the City of Ottawa plans to build. The first phase includes 13
new stations as well as a 3.2km tunnel in downtown Ottawa.
...But oil, gas and hydro projects carry the largest price tags
Many large hydro power projects are either currently in construction or
planned, including the country's largest—a $6.5 billion hydro complex
in Havre-Saint-Pierre, Quebec, which is expected to be completed by
2020. Other notable projects include:
A $5 billion hydro project in James Bay Territory, Quebec, is under
construction and is a part of Hydro Quebec's plans to increase hydro
output by 15.8TW over the period 2006-14.
A $6.2 billion 2,250MW hydro complex in central Labrador is planned,
funded by Hydro Quebec. It will supply electricity to Newfoundland and
In Alberta, twenty potential new oil sands projects starting over the
next five years will increase non-residential construction in Alberta
by 21% in 2011. Indeed, spending on capital construction and machinery
and equipment in the province is projected to rise by 4.3% this year,
to $73.5 billion.
The story is no different over the longer term. Alberta's Capital Plan
calls for a $17.6 billion spend on infrastructure to support oil sands
development over the next three years, while major industry players
like Suncor will spend in excess of $15 billion within the next 5 years
and Imperial Oil and CNRL with $8 billion and $4 billion in spend
respectively by 2012.
"New builds will continue to attract private investment and Canada has
already established a very successful pipeline of privately financed
infrastructure investments," says Bianco. Public Private Partnerships
Canada (P3), round three funding opens this year and will attract
applications for infrastructure projects across the country."
For more information related to forecasts for Canada and other global
findings, and to access the complete Global Construction 2020 report, please visit http://www.pwc.com/gx/en/engineering-construction/publications/global-construction-2020.jhtml. The report and supporting materials including graphs and tables are
also available from the media contacts.
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