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Value for Money

Infrastructure Ontario plays a key role in procuring and delivering infrastructure projects on behalf of the Province. We deliver thousands of projects of various sizes, using different delivery models, including a made-in-Ontario form of public-private partnership (P3)*.

For P3 projects, the Province uses a tool called a value for money (VFM) assessment to compare the total project costs for different delivery models (e.g., P3 vs. traditional delivery methods) and ensure that proceeding with the P3 model remains the best value proposition for the Province. Value for money assessments are commonly used in this way around the world.

Value for money assessments rely on inputs and assumptions that are generated from a number of sources including: our experience in project delivery; external cost consultants and industry experts; and stakeholder input.

Updating our VFM

In 2014, we began to review and update our VFM methodology, taking into account our experience in delivering P3projects, and input from industry experts and key stakeholders. This VFM update recognized the impact of private-sector innovation and differences in approach to life cycle management of an asset. The update also reflected our project experience and the evolution of the current P3 market.

Assessing Value for Money: An Updated Guide to Infrastructure Ontario’s Methodology offers a general outline of how we approach our VFM assessment. As such, it is intended both for readers who have experience in business case assessments and infrastructure project delivery, as well as non-technical readers who want to learn more about public-private partnerships. 

*Prior to November 2018, IO’s public-private partnership projects were referred to as Alternative Financing and Procurement (AFP) projects. For the purposes of comparing historical and contemporary documents or third-party reports, the terms AFP and P3 may be used interchangeably. 

Key Documents