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.

For more information on the above please contact Ian Shewan at 519.640.6334 or ishewan@lerners.ca. The Infrastructure Blogs are written by Ian Shewan and Matthew Wilson.

Lerners is one of the largest firms in Southwestern Ontario, with offices in London and Toronto. Our 80-plus years of successful representation is a result of our commitment to providing all our clients with the legal services they need in a client-focused environment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Topics:  Construction Contracts, Construction Loans, Infrastructure

Published In: General Business Updates, Construction Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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