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Media Release
Report to Regional Council Shows Delaying Infrastructure Investment Invreases Life Cycle CostsMARCH 1, 2001
WELLAND – BDO Dunwoody and Associates Ltd., Management Consultants today presented to Niagara Regional Council a report that highlighted the immediate need for investment of $47.2 million in road infrastructure and $67.7 million in sewer and water infrastructure. The report, titled “The Case for Increased Infrastructure Investment In the Region of Niagara” was commissioned by the Heavy Construction Association of Regional Niagara (HCARN) to investigate the status of infrastructure in the Region of Niagara.
HCARN includes 24 Niagara based heavy construction firms providing road construction and reconstruction and sewer and water main construction services. The majority of HCARN work is completed in the Region of Niagara. BDO was hired to assist HCARN investigate the Region’s infrastructure needs and develop a communications strategy for increasing public awareness.
BDO drew information from a number of Canadian associations, the municipalities in the Region of Niagara and academic papers that investigated the benefits of infrastructure investment. Municipalities representing 84% of the Region’s population responded to an infrastructure survey.
“The study was useful in establishing the magnitude of the needed investment,” said George Barkwell, senior vice president, BDO Dunwoody. “Most importantly it highlighted the fact that delaying regular maintenance substantially increases infrastructure life cycle costs. Avoiding current costs is false economy.”
While many have highlighted the weaknesses in infrastructure, the issue has become one of funding. “Whether it’s Federal, Provincial or Municipal, at the end of the day taxpayers will have to foot the bill for the needed investment in our communities”, said Rick Phibbs, president of HCARN. “Our goal is to raise public awareness of the immediate importance of this issue and change it from an ‘out of sight out of mind’ issue into a ‘front page’ issue.”
The report illustrates how delaying road renewal can increase costs from $80,000 per lane kilometer to $250,000 per lane kilometer once roads are more than 15 years old. Survey respondents reported 590 kilometers of roads between 12 and 15 years old, indicating that within 3 years the cost to keep these roads maintained will jump from $47.2 million to $147.5 million.
Similar life cycle cost models do not exist for sewer and water mains. The report does identify National Research Council maintenance and replacement guidelines of 3% and 2% of replacement value respectively, that indicate there has been a total budget shortfall of $67.7 million in the survey respondents’ sewer/water budgets covering the period 1997 – 2000.
For further information please contact George Barkwell at 1-888-236-2383 x335
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