Canadian Infrastructure Developments In 2025: Build More, Faster

We are proud to launch Dentons' Infrastructure and Major Projects Perspectives newsletter with a review of the key policy developments in 2025 that impacted infrastructure development in Canada.

2025 saw Canada's federal and provincial governments place infrastructure policy at the forefront of their priorities, marking a nationwide strategic shift toward infrastructure-led economic development, with a focus on speed and scale for new infrastructure projects. Notably, the federal government introduced multi-year infrastructure investments (2025 budget (Canada Strong)), new legislation (the One Canadian Economy Act) and a government agency (the Major Projects Office) to oversee its implementation. Several provinces, including the most populous, have followed suit, adopting budgets that focus notably on transportation, energy development and housing, and enacting legislation to expedite major infrastructure projects.

Federal initiatives

The federal government framed its 2025 infrastructure policy initiatives as a nation‑building endeavour, committing CA$115 billion to infrastructure and other major project investments over five years. These investments will target projects that strengthen interprovincial and international supply chains, as well as community infrastructure, airport facilities, housing projects and development in Canada's Arctic regions.

To streamline regulatory approvals for major infrastructure projects, the Building Canada Act was enacted as part of the One Canadian Economy Act (Bill C-5). This legislation established the Major Projects Office (MPO), a federal agency with powers to designate certain projects as being of "national interest" and to consolidate their approval processes through a single "Conditions Document," substituting the permits and other approvals that would otherwise be required. To help finance these projects, the federal government announced its intention to increase funding for the Canada Infrastructure Bank and broaden its mandate to encourage investment in MPO-designated projects.

Among the projects that have already been designated as being of "national interest" are the LNG Canada Phase 2 Project (Kitimat, BC), the Darlington New Nuclear Project (Clarington, ON), the Contrecoeur Container Terminal Project (Contrecoeur, QC), the Iqaluit Nukkiksautiit Hydro Project (Iqaluit, NT), the McIlvenna Bay Foran Copper Mine Project (East-Central SK) and the Alto High-Speed Rail Project connecting Toronto, Ottawa, Montreal and Québec City. Dentons is proud to have played an important part in a number of these projects, including the Alto High-Speed Rail Project and the Contrecoeur Terminal Container Project.

Of particular interest for developers seeking the federal contracts that will accompany the recent increase in infrastructure investment, the Buy Canadian Policy officially came into effect on December 16, 2025. The Buy Canadian Policy is comprised of two supporting policies designed to give priority to Canadian businesses in the government's bid-evaluation methodologies:

1. the Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurement. This policy applies to federal contracts worth CA$25 million or more, and favours Canadian suppliers and the inclusion of Canadian goods, services and value-added content in the government's bid-evaluation; and
2. the Policy on Prioritizing Canadian Materials in Federal Procurement. This policy also applies to federal contracts worth CA$25 million or more, in particular where the requirement for materials is at least CA$250,000 and a Canadian source of supply is available. For such projects, as part of the bid-evaluation criteria, materials will need to be made in Canada (not just sold by Canadian companies), and suppliers must confirm their use of Canadian materials before and during the contract.

Provincial initiatives

Several provincial governments have mirrored the federal government's approach to infrastructure and major project development in 2025, initiating policy shifts aimed at bolstering both the speed and scale of major projects.

Ontario's Budget 2025 put infrastructure at the forefront of its priorities, allocating CA$200 billion over a decade for a number of infrastructure investments. The updated capital plan directs investment across a wide range of sectors, including highways, public transit, health, education and digital infrastructure. Moreover, the Budget significantly advances development in Ontario's Ring of Fire by investing in all-season roads and energy transmission infrastructure through partnerships with Indigenous communities. This marks an important step in tapping the region's critical minerals that are essential to the province's EV and clean tech supply chains.

Further, Ontario enacted important pieces of legislation designed to expedite the regulatory process for large infrastructure projects. These include the Protect Ontario by Building Faster and Smarter Act, a bill that expands ministerial and agency powers to accelerate the delivery of provincial infrastructure and housing projects, and the Protect Ontario by Unleashing our Economy Act, which consolidates the approvals steps required for mining projects into a single process and allows the province to designate "special economic zones"- areas or projects of particular economic significance - in which "trusted proponents" will benefit from reduced regulatory hurdles.

Québec's Budget 2025–2026 updated the Plan québécois des infrastructures 2025-2035, a decade-long CA$164 billion investment in infrastructure related to roads, public transit, health, education, housing and transportation, among other sectors. To support the increased investment in public infrastructure projects, Québec has implemented the Stratégie Québécoise en infrastructures publiques, a framework designed to improve project delivery efficiency. This strategy is focused on cost control and enhancing coordination across ministries and agencies to avoid delays; it also emphasizes the role of the private sector by improving procurement strategies and updating projecting evaluation tools.

Furthermore, in December 2025, the provincial government tabled a new bill aimed at lowering regulatory hurdles for designated large-scale projects, similar to the federal Build Canada Act. The Act to accelerate the granting of authorizations required for the completion of priority projects and of national scope would allow the province to designate certain projects as "priorities and of national importance" for a period of five years, and introduce a single authorization mechanism that would override the permissions that are normally required for these projects.

British Columbia has also introduced similar legislation, the Infrastructure Projects Act, granting extraordinary powers to cabinet to expedite the permitting and approval process for certain projects falling in one of two categories. The first includes key public infrastructure projects such as schools and hospitals, whilst the second includes projects that are deemed "provincially significant." When making this determination, the government may consider whether the project addresses a number of different priorities, including critical minerals, energy security, environmental restoration and housing. There is still much to anticipate with this bill, as the regulations required for its implementation have yet to come into force.

Outlook for 2026

The policy shifts of 2025 are expected to translate into tangible progress in 2026. We anticipate, at the federal level, a greater number of projects will be designated by the Major Projects Office for accelerated development, while provinces will continue to streamline their own approval processes. Industry participants seeking to benefit from the lower regulatory hurdles and windfall of government investment in infrastructure will need to be proactive in positioning themselves within the new policy frameworks. Should you have any questions about infrastructure legislation, major project opportunities or other issues related to public infrastructure or public-private partnerships, please do not hesitate to contact any member of Dentons' Infrastructure and Public-Private Partnerships group.¹

Footnote

1 The authors of this insight are Ilan Dunsky, Jana Mansour, Lampros Stougiannos and Anoosh Loertscher. Ilan, a partner based in Montréal, and Jana, a partner based in Vancouver, are co-chairs of Dentons Canada's Infrastructure and Public-Private Partnership practice group. Lampros, a partner in the same group, is based in Ottawa, and Anoosh is an associate in the same group based in Montréal. The authors would like to thank Edward Southward, articling student in Montréal, for his contributions to this insight

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