The socio-economic costs of underground infrastructure damages: results of a CIRANO study presented at the Info Excavation 2026 Conference

On March 19 and 20, 2026, at the Saint-Hyacinthe Convention Centre, Ingrid Peignier, Project Director at CIRANO, presented updated results from the study on the assessment of the socio-economic costs of underground infrastructure damages, as part of the annual Info Excavation Conference.

When infrastructure damage occurs, attention is often limited to the visible portion of the iceberg: the direct repair costs. However, a significant share of the impacts remains unseen. Indirect costs—such as disruptions to essential services, economic impacts, traffic congestion, emergency interventions, or evacuations—are rarely measured, even though they are largely borne by the community.

To address this issue, CIRANO developed an assessment tool designed to estimate these costs using damage data reported by infrastructure owners. By making these impacts measurable, the tool helps better inform decision-making and supports prevention strategies.

Applied to Quebec data for 2025 (660 recorded incidents), the tool estimates annual indirect costs at nearly $40 million. These estimates remain conservative given the limitations inherent in the available data.

In parallel, a presentation by Jean-Philippe Meloche : “Why do we neglect our public infrastructure?”

CIRANO Fellow Jean-Philippe Meloche (Université de Montréal) also spoke at the conference. His presentation highlighted the economic and political mechanisms that help explain underinvestment in public infrastructure.

Unlike private infrastructure, public infrastructure generally does not rely on pricing mechanisms, and its revenues are not directly affected by service interruptions. This creates a disconnect between observed deterioration and investment decisions.

Read the executive summary: xxx
View Ingrid Peignier’s presentation: xxx