This presentation will walk you through the pitfall including risk when it comes to allocating more funding to infrastructure in Canada 1. Infrastructure Gap 2. Government Funding 3. Risk Management 4. Cash Flow 5. Government Policies 6. Oversight

1. Infrastructure Investment –
Canada -
By: Paul Young, CPA, CGA

2. Agenda
• Infrastructure gap
• How do you make key investments
• What is NPV
• Examples of NPV Calculations on public infrastructure

3. Infrastructure Gap
• It is difference between what is required to replaced infrastructure
and what is being spent on maintenance and capital investments.

4. Issues with Liberal Plan
• No oversight
• No clear indication how projects will be assessed
• Bulk of the money is going to Toronto
• CPPIB could be steered as part of the infrastructure decisions

5. Issues with Infrastructure
• P3 overruns
• Ontario P3s were $8B over budget
• Proper business cases
• Return on investment
• Projects that support GDP (Exports)
• Transit projects (Profitable)
• Open and transparent procurement process
• Internal trade barriers
• Non union –vs- union bidding
• Provincial policies
• Arbitration
• Salaries and pensions support

6. Exports / GDP
• Exports are $530
• Exports could be increased by 25%
• Each $1B of exports creates 5,500 direct jobs
• Average salary is $1,251/week
• How do you expand capacity
• More pipelines
• More investment in rail, ports, highways etc.
• Private, Public, Partnership (P3)

7. Transit -
• Transit
• Long-term investment
• Based on ridership/fees
• Annual maintenance costs
• Huge risk – Construction
Example

8. Problems

9. Examples