Replacing Canada's crumbling water, road infrastructure would cost more than $300B: Statistics Canada
Cost estimate has increased by over $100B since 2020
Replacing Canada’s deteriorating road and water infrastructure would require hundreds of billions of dollars, according to a new report from Statistics Canada.
In a 2022 survey of government agencies responsible for public infrastructure, the national statistics agency estimated that $356.7 billion would be needed to replace systems currently rated in "poor" or "very poor" condition. This marks an increase of more than $100 billion since the survey's first iteration in 2020.
The agency classifies infrastructure in "very poor" condition as assets that pose public health or safety risks, requiring immediate replacement of most or all components. Infrastructure rated "poor" requires substantial work but does not present an immediate danger.
Water infrastructure — which includes systems for drinking water, wastewater, and stormwater — has emerged as a critical issue following a series of extreme weather events and widespread flooding.
Recent incidents include severe flooding in North Vancouver over the weekend, caused by record-breaking rainfall that overwhelmed stormwater systems. In August, a water main burst in Montreal, resulting in floods and a boil-water advisory. Calgary declared a local state of emergency in June after a major water feeder pipe failed, prompting calls for residents to reduce water usage. Additionally, intense storms in Toronto flooded streets and raised concerns about whether the city’s infrastructure can handle heavy rain.
The survey found that over 10 percent of Canada’s water systems are rated in "poor" or "very poor" condition, with the estimated replacement cost for these systems at $106.5 billion. However, Statistics Canada highlighted significant infrastructure expansion efforts, with 29,000 kilometers of new water pipes installed between 2020 and 2022 — an annual average of 9,700 km. This pace exceeds the 5,758 km per year added between 2010 and 2019 and the 7,202 km per year from 2000 to 2009.
Road infrastructure in poor or very poor condition would require $250.2 billion to replace, according to the survey. The agency’s definition of road infrastructure encompasses bridges, tunnels, public transit systems, sidewalks, and bike paths.
However, the condition of a significant portion of transportation infrastructure remains uncertain, with 17 percent of public transit assets and 42 percent of "active transportation assets" — such as bike paths and sidewalks — not adequately assessed.
Statistics Canada emphasized that the management of most road infrastructure falls under the responsibility of local and regional governments.
The total cost of replacing all road and water infrastructure across Canada, including assets currently in good condition, would amount to $2.6 trillion, the agency estimated.
