North American Roads Will Remain Significantly Underfunded Despite Some Moderate Growth in Spending, According to KPMG Report

    Strategic Investment in Roads and Transportation Urgently Needed to
    Maintain Competitiveness

    TORONTO, May 6 /CNW/ - North America roads are expected to remain
significantly underfunded over the next five years, with Canadian Road
expenditure, predicted to grow by an average of 1 per cent per year between
2009 and 2013, taking the total expenditure in 2013 to USD$14.9 billion,
according to a new report "Trend Monitor: North American Roads, Outlook
2009-20013," by KPMG.
    The report offers a 5 year view of market potential for investment in
road infrastructure, estimating the size and growth prospects of road
investment in Canada, United States, and Mexico, including breakdowns by
state, province and territory. The report also provides a qualitative
assessment of the infrastructure investment climate in North America.
    "North American roads, particularly those in Canada, are faced with two
major challenges - scarcity and congestion," said Stephen Beatty, partner and
head of Global infrastructure for KPMG in North America. "We have used up most
of our excess capacity, and now we're faced with either rationing the capacity
we have or building new capacity."
    The report also finds that four of Canada's provinces - Alberta, British
Columbia, Ontario and Quebec - are expected to continue to represent nearly 90
percent of the country's road investment. Leading institutional investors,
such as pension funds, continue to be drawn to Canada's large secondary market
for infrastructure assets, due in part, to the relatively steady and
predictable cash flows they generate.

    Please see link for graph.

    "Canadian institutional investors have historically been among the most
sophisticated with regard to infrastructure ventures," said Beatty. "Clearly,
they recognize that there are significant benefits to be had by making these
investments, both in terms of quality of life as well as maintaining our
competitive advantage.
    Significant interest persists in alternative funding and development
models such as P3/Public Private Partnerships (PPP). Several Canadian road and
transit-related projects have been developed as PPPs, with more envisioned for
the future.
    "As Canada struggles to find ways to fund major, strategic infrastructure
projects in the midst of a massive global financial crisis, it's important
that we approach the challenge holistically," added Beatty. "It's not about a
new bridge here or a toll road there, but how to spend money wisely so the
benefits can be enjoyed by subsequent generations to come. These
infrastructure investments present both an opportunity and a responsibility
that should not be ignored."
    KPMG's Trend Monitor: North American Roads looks to offer a medium-term
(2009-2013) view of market potential. Analysis is based on data sources and
little (explicit) assumptions, and also leverages the local knowledge of
professionals in KPMG's North American member firms. The full report can be
accessed at

    About KPMG's Global Infrastructure Practice

    KPMG's Global Infrastructure practice has extensive local and global
experience advising government organizations, contractors, operators, and
investors in planning, structuring and management of new infrastructure
investments; procurement and financing support; improvement and monitoring of
construction and operations; restructuring of distressed projects; investment
due diligence assistance; and infrastructure related audit, tax, accounting
and compliance issues.

    About KPMG International

    KPMG is a global network of professional firms providing Audit, Tax and
Advisory services. We operate in 144 countries and have 137,000 people working
in member firms around the world. The independent member firms of the KPMG
network are affiliated with KPMG International, a Swiss cooperative. Each KPMG
firm is a legally distinct and separate entity and describes itself as such.

    About KPMG in Canada

    KPMG LLP, a Canadian limited liability partnership established under the
laws of Ontario, is the Canadian member firm affiliated with KPMG
International, a global network of professional firms providing Audit, Tax,
and Advisory services. Member firms operate in 144 countries and have more
than 137,000 professionals working around the world.

For further information:

For further information: Media Contacts: Julie Bannerjea, Media
Relations, KPMG, (416) 777-3243,; Shilpa Kotecha, Media
Relations, KPMG, (416) 777-8918,

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