Canadian Infrastructure Report 2012: Highlights

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1 Canadian Infrastructure Report 2012: Highlights The inaugural Canadian Infrastructure Report Card was released September 11, 2012 by the Canadian Society for Civil Engineering (CSCE), the Canadian Public Works Association (CPWA), the Canadian Construction Association (CCA) and the Federation of Canadian Municipalities (FCM). The Canadian Infrastructure Report Card is the first of its kind in Canada. It is the first time that a group of national stakeholders have worked closely together to measure the state and performance of municipal infrastructure from one end of the country to the other.

2 WHY IS INFRASTRUCTURE INVESTMENT IMPORTANT? WHAT DOES THE REPORT CARD SAY? Investment in Infrastructure is Canada s Economic Health Care Program The Canadian Infrastructure Report Card 2012 is the first assessment of its kind in Canada and features the most comprehensive analysis to date on Canada s municipal infrastructure. It offers an objective assessment of the state of infrastructure, and the state of infrastructure management in 123 municipalities across the country. The primary objective of the report card project is to develop a benchmark and process to assess the condition of Canada s infrastructure and to inform the public, decision-makers and other stakeholders about infrastructure issues and trends. It is well established that sustained investment in public infrastructure brings results enhanced economic productivity, increased competitiveness, and therefore, better rates of economic growth. Infrastructure is a key building block to our quality of life by generating revenue governments need to fund Canada s globally-envied health care, education, and social safety net. Congestion on Canada s transportation system railways, U.S. border crossings, airports, marine facilities and roadways has devastating consequences on our nation s trade-dependent economy and our jobs. These assets must not only be well maintained, but they must meet the current and future needs of the economy for Canada to remain internationally competitive. Unfortunately, according to Statistics Canada, most of the core public infrastructure upon which Canadians depend was built in the 1950s and is rapidly approaching the end of its useful service life. Much of it will need to be rehabilitated or replaced within the next years. During this period, Canada s population has not only increased from 16 million to approximately 34 million, it has also become more urbanized, increasing from 70% urban to over 80% today. Canada s infrastructure is not only old, but in many cases, current daily demands on this infrastructure far exceed its intended design capacity. How Canada renews and invests in its aging infrastructure over the next 10 years will determine our nation s economic, fiscal, and social health. Delaying today will place an impossible financial burden on present and future generations, and will without question lower our standard of living. Taking Stock of Canada s Public Infrastructure Ranking System The Canadian Infrastructure Report Card 2012 consolidates data collected through a voluntary survey of Canadian municipalities designed to assess the condition of municipal infrastructure in and provides an assessment of the condition of four primary asset categories of municipal infrastructure: municipal roads, wastewater networks, drinking-water systems and stormwater networks.

3 A Penny Now, or a Dollar Later Overall report card ratings for the four asset categories show a significant amount of municipal infrastructure (30%) rank between fair and very poor. The replacement cost of these assets alone totals $171.8 billion nationally. A five-point rating scale was used to grade each of the four primary asset categories: Rating Definition of Rating Used in the Report Card (Physical condition only) 5 Very good Fit for the future: The infrastructure in the system or network is generally in very good condition, typically new or recently rehabilitated. A few elements show general signs of deterioration that require attention. 4 Good 3 Fair Adequate for now: The infrastructure in the system or network is in good condition; some elements show general signs of deterioration that require attention. A few elements exhibit significant deficiencies. Requires attention: The infrastructure in the system or network is in fair condition; it shows general signs of deterioration and requires attention. Some elements exhibit significant deficiencies. 2 Poor At risk: The infrastructure in the system or network is in poor condition and mostly below standard, with many elements approaching the end of their service life. A large portion of the system exhibits significant deterioration. 1 Very poor Unfit for sustained service: The infrastructure in the system or network is in unacceptable condition with widespread signs of advanced deterioration. Many components in the system exhibit signs of imminent failure, which is affecting service. The report card points to the cost of delaying infrastructure repairs, rehabilitation or renewal. It suggests that under current practices (investment, operations, maintenance), most infrastructure, even if in good-to-verygood condition now, will require everincreasing investment as it ages. The report card emphasizes the importance of having an asset-management system in place, to establish practices that will increase the longevity of the assets and optimize investments in maintenance and rehabilitation.

4 HOW ARE MUNICIPALITIES DOING? Municipal roads require urgent attention Report Card Grade: Fair The infrastructure in the system or network is in fair condition; it shows general signs of deterioration and requires attention. Some elements exhibit significant deficiencies. Wastewater infrastructure is adequate for now Report Card Grade: Good The infrastructure in the system or network is in good condition; some elements show general signs of deterioration that require attention. A few elements exhibit significant deficiencies. Drinking-water infrastructure has room to improve Report Card Grade: Good The infrastructure in the system or network is in good condition; some elements show general signs of deterioration that require attention. A few elements exhibit significant deficiencies. Fit for the Future: Stormwater Management Systems Report Card Grade: Very good The infrastructure in the system or network is generally in very good condition, typically new or recently rehabilitated. A few elements show general signs of deterioration that require attention.

5 ROADS The report card indicates municipal roads require urgent attention. An overall grade of fair means the infrastructure shows general signs of deterioration and requires attention, with some elements exhibiting significant deficiencies. More than half the roads surveyed fall below a rating of good. Approximately 32% are in fair condition, with 20.6% in poor to very poor condition, meaning a total of 52.6% of roads require attention. The report finds that one in four Canadian roads is operating above capacity, highlighting a real challenge to moving goods and people within our communities in the short and medium term. The estimated replacement cost of the roads in fair to very poor condition is $91.1 billion nationally. Transportation and highway infrastructure are essential components of a strong Canadian economy. Regional productivity depends heavily on the effectiveness of transportation systems. Inadequate or poor quality roads and highways place an enormous economic and social cost on Canadian taxpayers. Traffic congestion and delays increases the cost of transporting goods and materials and reduces our ability to compete in world markets. WASTEWATER SYSTEMS A mixed picture emerges for wastewater infrastructure with 40.3% of wastewater plants, pumping stations and storage tanks in fair to very poor condition, and 30.1% of pipes in fair to very poor condition. The replacement cost for the wastewater infrastructure in fair to very poor condition is $39 billion. With wastewater infrastructure now subject to new and more stringent federal regulations, even good or very good wastewater infrastructure may require upgrading or replacement. Wastewater, physical condition: plants, pumping stations and storage tanks GOOD 43.7% FAIR 34.5% Road network, physical condition GOOD 25.7% FAIR 32.0% VERY GOOD 16.0% VERY POOR 0.1% POOR 5.7% Wastewater, physical condition system (pipes) VERY GOOD 21.8% POOR 16.9% GOOD 36.1% VERY POOR 3.7% Percentage of reported road network in each condition category VERY GOOD 33.7% VERY POOR 1.2% POOR 6.5% FAIR 22.4%

6 DRINKING-WATER INFRASTRUCTURE Despite its overall good rating, drinking-water infrastructure presents some cause for concern. Approximately 15.4% of the systems were ranked fair to very poor for the condition of their pipes. The figures were not much better for plants, reservoirs and pumping stations, where 14.4% ranked fair to very poor. Only 12.6% of plants, reservoirs and pumping stations ranked very good, as did just 4.2% of the pipes. Considering the potential impact of drinking-water systems on human health, these deficiencies have significant importance. The replacement cost for the drinking-water infrastructure in fair to very poor condition is $25.9 billion, or $2,082 per Canadian household. Drinking water, physical condition: plants, reservoirs and pumping stations STORMWATER MANAGEMENT SYSTEMS Canada s stormwater management systems are the best of the infrastructure classes covered in the report card. These were generally rated very good. However, 12.5% of stormwater installations surveyed fall below good condition, with that figure rising to 23.4% for stormwater pipes. The replacement cost for the stormwater infrastructure in fair to very poor condition is $15.8 billion, or $1,270 per Canadian household. Stormwater, physical condition: pumping stations and stormwater management facilities VERY GOOD, 56.8% GOOD 30.7% GOOD 73.1% VERY POOR 0.6% POOR 5.0% FAIR 6.9% VERY GOOD 12.6% VERY POOR 0.3% FAIR 9.8% POOR 4.3% Stormwater, physical condition: collection systems (pipes) VERY GOOD 40.5% GOOD 36.2% Drinking water, physical condition: transmission and distribution pipes GOOD 80.5% FAIR 17.7% VERY POOR 0.8% POOR 4.9% VERY GOOD 4.2% VERY POOR 0.6% POOR 0.3% FAIR 14.4%

7 ASSET MANAGEMENT IN CANADA This first report card on Canada s municipal infrastructure reveals the challenges of creating an accurate picture of the state of our infrastructure and assessing its condition. The report card also demonstrates the need for national efforts to assess the condition of our infrastructure, determine investment needs based on that assessment, and to invest in infrastructure in the most efficient and cost-effective way possible. Infrastructure is the foundation of our society and our economy. The hidden costs of deteriorating, outdated and under-performing infrastructure to human welfare, property, and economic activity are too great to be ignored. Whether acknowledged or not, these costs will continue to grow as infrastructure ages and deteriorates. This report card on infrastructure is a first step towards acquiring the data needed to manage Canada s vitally important assets.

8 MODERNIZING CANADA S INFRASTRUCTURE Efficient, modern core infrastructure enables Canada to be more competitive, create jobs and strengthen our economy. Without adequate infrastructure, business costs will increase and productivity will decrease making the business environment in Canada less globally competitive. A modern, well-maintained, efficient national system of core infrastructure is critical to the safety and economic future of all Canadians. Canadians do not want to drink water from water mains that are rated as fair any more than they want to drive on roadways in subpar condition. Simply put, there is no room for fair, poor or very poor when it comes to our infrastructure. The modernization of Canada s core municipal infrastructure is a national challenge. Strong global demand for Canadian products and natural resources will continue to put a strain on our existing infrastructure. Either we strengthen our economy by accelerating the modernization of our existing infrastructure, or we squander what gains we ve made and fall further behind. For More Information For other highlights and a copy of the full report, please visit

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