Besides the changes in population and the economic realities of trade, an entire industry has cropped up that creates the need for heavy investment in infrastructure. National and global sporting events have grown as "must have" projects for countries wishing to showcase their strengths to the world at large.
The 2010 Vancouver Olympics was a perfect example. According to a City Council report, of the $961 million total operational budget, Vancouver spent $729 million on infrastructure and operations. A total of $73.8 million went to competition venues, including $12.8 million to convert the curling venue into a community centre with a pool.
An estimated $120.9 million was spent on non-competition venues, like an Olympic streetcar demonstration line, road repairs and the renovation of theatres.
The biggest chunk was for civic infrastructure at the Olympic village site. The city spent an estimated $299.8 million there, including on a waterfront park, a community centre, a heritage facility and 252 units of social housing that are supposed to be part of the project.
Similarly, the Pan/Parapan American Games slated to occur in Toronto in 2015 has hastened infrastructure development on that city's downtown waterfront. The 80-acre site will be able to house more than 8,500 athletes and team officials. The site, known as the West don Lands, is a brownfield site undergoing remediation of contaminated land damaged by decades of industrial contamination.
Other facilities in the works include LEED Gold-certified condominium units as well as a food protection landform to protect against potential foods from the nearby Don River. City, provincial and federal efforts are all involved in making this project happen. Scotia Capital's Giffen notes the importance of such projects: "The advantages of events like the Pan/Parapan American Games is they create hard deadlines and an impetus for projects that have long been talked about."
"That might be the true legacy of having national sporting events in Canada," adds Hodgson, "that we see it as an opportunity to build public support for investments in assets that will remain long after the two weeks of the sporting event have finished."
Much work still needs to be done if Canada is to continue on its economic path that, until now, has helped it survive the Great Recession relatively unscathed. The changing face of Canada's economic landscape, population and trading partners will all play significant roles in how infrastructure growth continues and evolves. Progress is being made with the help of the private sector. And with the catching-up phase underway, and the shovels already in the ground, Canada's infrastructure path appears to be travelling in the right direction.▪
* All dollar amounts throughout the report refer to Canadian dollars unless otherwise stated