Monday Market Minute | Jul 13, 2020
Provincial governments accelerate infrastructure project timelines as part of economic stimulus, creating deployment opportunities for private infrastructure capital.
What Moved
Provincial governments across Canada began accelerating infrastructure spending timelines as part of post-lockdown economic stimulus packages. Ontario fast-tracked several P3 transit and hospital projects, while British Columbia announced expedited permitting for broadband and clean energy infrastructure. Alberta committed additional capital to highway and pipeline projects to support the battered energy sector. The federal government signalled that the next phase of fiscal stimulus would lean heavily into infrastructure. Construction activity, which had paused during lockdowns, was now running at or above pre-pandemic levels in most provinces.
Why It Matters
For private infrastructure investors, the post-COVID infrastructure push represented an expanded opportunity set. Governments were not just maintaining pre-pandemic plans — they were accelerating them as a jobs and economic recovery tool. Infrastructure's defensive characteristics — long-duration contracts, inflation protection, essential service nature — made it particularly attractive in the uncertain post-pandemic environment. The asset class offered portfolio diversification at a time when correlations across traditional holdings were elevated.
Signal to Watch
Track federal infrastructure bank (CIB) project announcements. The CIB had committed to mobilizing private capital into infrastructure — new project commitments would indicate the pace of public-private deployment.