KPMG in Canada has shared that, among Canadian CEOs and business owners surveyed, 90 percent believed that all government levels should declare the construction of an energy-agnostic utility corridor a national emergency and speed up projects and review processes.
“We’re seeing unprecedented pressure on our infrastructure and construction industries to deliver projects quickly and urgently,” said Zach Parston – KPMG in Canada’s partner and national leader, infrastructure – in a press release.
“With projects currently underway from transit and transportation to mines for critical minerals, hospitals and water treatment plants to artificial intelligence data centres, Canada is already in a megaproject era that’s about to intensify in a big way,” Parston added.
KPMG’s recent research asked Canadian business leaders about their “infrastructure wish-list.” According to the press release from KPMG LLP, among the CEOs and business owners polled:
- 92 percent said investments to improve Canada’s infrastructure through its transportation networks, ports, and pipelines would help grow or expand their business nationally and internationally
- 90 percent wanted all government levels to declare the building of an energy-agnostic utility corridor a national emergency and swiftly align to expedite projects and streamline review processes
- 90 percent said Canada should invest in a policy and infrastructure agenda, including a national utility corridor and digital infrastructure, to harness its economic potential
- 90 percent believed that the country should unlock public-private partnerships in infrastructure
- 89 percent called Canada’s ports woefully unproductive and in need of significant investments to achieve broader global trade
- 89 percent wanted all government levels to collaborate and create pre-approved industrial zones across the country to cut red tape and hasten approval times to develop refineries, mines, or factories
Survey’s context
KPMG’s press release noted the federal and provincial governments have been finalizing their list of large nation-building infrastructure projects, which seek to enhance the country’s economy and productivity and reduce its dependence on US markets.
“The success of these projects will hinge on how they are structured and financed,” said John Cho, KPMG’s national private capital leader in Canada and head of deal advisory in the Americas, in the press release.
“If they can be structured in such a way to attract institutional investor and private capital ownership, it will allow the federal government to continue to invest in other areas critical for maintaining and improving the lives of Canadians,” Cho added.
KPMG said the causes of cost overruns and delays in projects include scope creep, poor planning, optimism bias, stakeholder consultations, environmental assessments, bureaucratic delays, and federal, provincial, and municipal legislation and regulations.
“While transformative to the economy and society, megaprojects are notorious for running late and overbudget,” said Janet Rieksts Alderman, chair of KPMG in Canada’s Board Leadership Centre and national leader, power, utilities, and renewables, in the press release.
“But, the primary reason megaprojects fail is poorly designed governance,” Alderman added. “A large infrastructure project requires a well-designed governance framework that answers the question ‘who does what, when and how’ at every stage of the project.”
KPMG shared that its research reflected the insights of 250 business leaders from all industry sectors across Canada, polled from May 9–20.