Canada: Types Of Infrastructure Ontario Projects & How Financing Works

Posted by on Oct 27, 2012 in Blog | 0 comments

Canada: Types Of Infrastructure Ontario Projects & How Financing Works

Now that you know what Infrastructure Ontario is, what types of projects does Infrastructure Ontario fund? Infrastructure Ontario projects tend to fall within two types:

  1. Design Build Finance. In a Design Build Finance project, the contractor not only builds, but the contractor and a related project company obtain financing for the project as well.
  2. Design Build Finance Maintain. In a Design Build Finance Maintain project, the contractor and related project company finance the project and the contractor builds and performs maintenance and repairs for the facility for an extended period of time following completion of construction.



Generally speaking, the construction contractor and project company borrow enough money to complete the project. Funds must be advanced in amounts sufficient to pay construction trades as progress draws. Interest accrues, but is not repaid until substantial completion, at which time Infrastructure Ontario makes a single payment to the lender equal to the money borrowed together with accrued interest. This financing model permits proper draws for construction trades and access to capital while protecting the interests of Infrastructure Ontario such that it does not pay out the lender until substantial completion.


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