This framework applies to all public infrastructure investment and procurement undertaken by the Government of Ontario and its broader public-sector partners where there is a material Provincial financial interest.
This framework document should be read in conjunction with other guidelines on infrastructure initiative investment, delivery and procurement published by PIR, the Ministry of Finance and Management Board Secretariat.
This framework aims to assist public-sector managers in dealing with infrastructure initiatives. At the same time, it will provide external stakeholders with clarity regarding the government's approach to meeting its public infrastructure investment needs.
It is recognized that there are some areas of infrastructure and ancillary service delivery where the private sector has advantages over the public sector, and vice versa. This is particularly pertinent with respect to risk management and the associated costs of risk transfer. As an example, the private sector can more aptly manage commercial risk whereas the public sector is best positioned to manage regulatory risk.
The Government of Ontario, through PIR, seeks to leverage and optimize the strengths and skills of each sector.
The framework aims to bring governments, municipalities, public-sector transfer partners and the private sector together to achieve:
• greater infrastructure investment;
• greater use of full cost recovery in certain sectors (e.g., water and wastewater)
• non-traditional revenue/funding sources to support infrastructure investment;
• financing approaches that are consistent with the amortization of capital costs;
• innovative opportunities for private-sector involvement; and
• procurement and management practices that ensure "value for money."
The government and broader public sector will establish infrastructure investment priorities, as well as evaluate and assess applicable models and approaches to infrastructure financing and procurement. The government and broader public sector will collaborate with the private sector on the implementation of infrastructure investments.
It is the government's goal to develop a centre of expertise within the public sector that can be applied to support, manage and lead a range of public infrastructure investment approaches.