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Archived - Immediate Action to Build Infrastructure

Canada's Economic Action Plan allocates close to $12 billion in new infrastructure funding over two years to create jobs across Canada and to ensure Canada emerges from the economic downturn with a more modern and greener infrastructure. The investments focus on four kinds of infrastructure projects:

• Provincial, territorial and municipal infrastructure.
• First Nations infrastructure.
• Knowledge infrastructure.
• Federal infrastructure.

Implementing these measures will generally involve completing a project selection or contracting process, issuing project or contract awards, negotiating and entering into agreements with project proponents, securing the necessary permits and approvals, and flowing funding during project construction.

Table 4.5
Immediate Action to Build Infrastructure

	2008–09	2009–10	2010–11	Total
	(millions of dollars)
Investments in Provincial, Territorial and Municipal Infrastructure		3,220	3,195	6,414
Investments in First Nations Infrastructure		260	255	515
Investments in Knowledge Infrastructure		1,786	1,351	3,137
Investments in Federal Infrastructure Projects		462	254	716
Total—Immediate Action to Build Infrastructure		5,727	5,055	10,782
Total stimulus value		6,224	5,605	11,829
With provincial contributions		10,756	9,970	20,726
Note: Totals may not add due to rounding.

Highlights

• Repair work and upgrades for federally owned infrastructure are slated to begin in buildings across Canada in April.
• An initial Request for Proposals for the $4-billion Infrastructure Stimulus Fund will be issued early this spring.
• Funding will be available once the Budget Implementation Act, 2009 receives Royal Assent to support shovel-ready projects of provinces, territories and municipalities who have signed agreements with the federal government to accelerate payments under the Provincial/Territorial Base Funding Initiative and the Bonus for Community Projects.
• Major projects such as the Telus World of Science in Calgary, Alberta, improvements to GO Transit in Ontario, and the Evergreen transit line in Vancouver, British Columbia, are being expedited under the Building Canada plan to begin construction over the next two constructions seasons.
• Since the Budget, close to $1.5 billion in joint funding for 480 projects in smaller communities has been approved and announced under Building Canada in British Columbia, Alberta, Saskatchewan, New Brunswick and Ontario.
• First Nations ready-to-go infrastructure projects have been identified and will commence construction.
• Proposals for priority post-secondary infrastructure projects are due from institutions and provincial and territorial governments in March 2009. Decisions on successful projects are expected to be announced in April and May 2009.
• Detailed design plans for the first year of the 10-year repair program on the Champlain Bridge in Montréal are complete and the tendering process for initial contracts is underway. A similar competitive bidding process will be undertaken this spring for the Blue Water Bridge in Sarnia, Ontario, and the Peace Bridge in Fort Erie, Ontario.

The following outlines the Economic Action Plan infrastructure stimulus measures and highlights progress to date on these initiatives to ensure construction takes place over the next two seasons.

Provincial, Territorial and Municipal Infrastructure

Federal infrastructure programs provide funding to provinces, territories and municipalities to help them undertake needed investments in Canada's public infrastructure. Canada's Economic Action Plan makes available up to $6.4 billion in new and accelerated funding for provinces, territories and municipalities in 2009–10 and 2010–11 at this critical time, and it is intended that this funding will be matched by provinces, territories and municipalities.

Infrastructure Stimulus Fund: Project selection to identify projects in each province and territory is being launched for funding under the $4 billion available for provincial, territorial, municipal and community infrastructure under the Infrastructure Stimulus Fund. Discussions with the provinces and territories are being held to identify initial projects to be approved and announced this spring.

Accelerated Payments Under the Provincial/Territorial Base Funding Initiative: All provinces and territories have been offered to take advantage of the $1 billion in accelerated payments under the Provincial/Territorial Base Funding Initiative. Provinces and territories can elect to use all of the remaining $175 million for projects to be built in the next two years, rather than receiving $25 million a year until 2014. Since the Budget, Canada has flowed $115 million to provinces and territories under this initiative.

Bonus for Community Projects: An additional $320 million in federal funding has been accelerated beyond what was planned for approval for small community projects in seven provinces. Provinces are being encouraged to approve all of the existing funding for small communities as soon as possible in order to be able to gain access to the $500-million top-up announced in the Economic Action Plan for community projects.

Green Infrastructure Fund: A first round of projects for the five-year $1-billion Green Infrastructure Fund to support projects that improve the environment will be announced this summer.

Funding authority for 2009–10 for the Infrastructure Stimulus Fund, the acceleration of payments under the Provincial/Territorial Base Funding Initiative, the Bonus for Community Projects, and the Green Infrastructure Fund are included in the Budget Implementation Act, 2009. Once the Act receives Royal Assent and agreements are in place with partners, Infrastructure Canada will be able to flow funds to initiate work on approved construction projects.

Recreational Infrastructure Canada: Calls for proposals under Recreational Infrastructure Canada will begin in spring 2009 to allow projects to be selected in time for the 2009 construction season. Under this initiative, $500 million will be provided over two years to support the construction and upgrading of community recreational facilities across Canada.

Priority Projects: Federal, provincial and territorial governments have worked together to identify a number of major projects that could be expedited under the Building Canada plan to begin construction over the next two construction seasons. This includes the Telus World of Science in Calgary, Alberta, improvements to GO Transit in Ontario, and the Evergreen transit line in Vancouver, British Colombia. Other projects are under negotiation with provinces and territories. These projects can be approved quickly under new streamlined approval processes and construction can commence as soon as they are announced.

Accelerating Approval Processes: A series of regulations under the Canadian Environmental Assessment Act were introduced and came into force in March 2009 to further streamline approvals, minimize duplication, and limit the number of separate federal environmental assessments for infrastructure projects funded under the Building Canada plan. This is expected to greatly reduce the number of projects that will be subject to a separate federal environmental assessment in the upcoming construction season. Amendments to the Navigable Waters Protection Act have been introduced as part of the Budget Implementation Act, 2009 to also streamline regulatory approval processes under that Act.

National Recreation Trails: Discussions are progressing with the National Trails Coalition on a cost-shared initiative to create, upgrade and sustain snowmobile and all-terrain-vehicle trails throughout the country. Canada's Economic Action Plan provides $25 million in 2009–10 for the initiative, which will be matched by the Coalition and its partners.

First Nations Infrastructure

Canada's Economic Action Plan provided $515 million over two years for ready-to-go First Nations community infrastructure projects, to be focused on three priority areas: schools ($200 million), water and wastewater projects ($165 million) and critical community services infrastructure, such as health and police facilities ($150 million). For school construction/renovation and water and wastewater projects, authorities have been secured and specific ready-to-go projects that will be funded identified. A number of school construction projects have been announced and others are expected in the next couple of weeks. Authorities have also been secured for certain critical community services infrastructure, some specific projects have been identified and consultations with provinces are underway.

Funding for Knowledge and Information Infrastructure

The Economic Action Plan dedicates more than $3.1 billion over two years for investments in knowledge infrastructure that will help to build Canada's capacity for innovation in the longer term while providing short-term economic stimulus across the country.

Improving Infrastructure at Universities and Colleges: Discussions have been held with provinces, territories and institutions to ensure a quick launching of the $2 billion included in the Economic Action Plan for repairs, maintenance and construction at post-secondary institutions. The Minister of Industry and Minister of State (Science and Technology) have asked post-secondary institutions and provincial governments to identify their priority projects by the end of March 2009. The Budget Implementation Act, 2009 includes an initial appropriation of $1 billion to facilitate the timely flow of funding for repairs and maintenance. Decisions on successful projects are expected to be announced in April and May 2009, with disbursement of the initial funding provided through the Budget Implementation Act, 2009 occurring shortly thereafter.

Canada Foundation for Innovation: The Foundation will announce decisions in June 2009 on an additional $150 million provided for in the Economic Action Plan to increase the funding for the 2009 Leading Edge and New Initiatives Funds Competition. The Economic Action Plan also provides an additional $600 million to the Foundation, pending the development of a strategic plan to guide its activities and future competitions. The terms of the future competitions will be released by December 2010. This element is not part of the short-term stimulus package.

Institute for Quantum Computing: A funding agreement will be in place by March 31, 2009 for $50 million provided in the Economic Action Plan to support the construction and establishment of the Institute for Quantum Computing, based at the University of Waterloo. Funding will be disbursed starting in 2009–10, as needed by the Institute, over a five-year period.

Supporting Canada's Vision for the North: After a series of consultations with stakeholders, on February 20, 2009 the Minister of Indian Affairs and Northern Development formally issued a call for proposals for the $85-million Arctic Research Infrastructure Fund to maintain or upgrade key existing research facilities in the Arctic. Project proposals were due by March 4, 2009. Successful proponents will be notified in April. It is expected that funding will be provided beginning this summer to coincide with the construction season in the North. The Government is also moving ahead with the $2-million feasibility study for the High Arctic Research Station, as provided for in the Economic Action Plan, and the Minister of Indian Affairs and Northern Development has announced a short list of three potential locations for the Station.

Modernizing Federal Laboratories: The Treasury Board Secretariat has established a process, including timelines and selection criteria, for departments operating qualifying laboratories to make proposals to access $250 million over two years to address deferred maintenance at federal laboratories. Proposals are due this month and funding decisions will be made in early April 2009.

Canada Health Infoway: The Economic Action Plan provides Canada Health Infoway with $500 million to support the goal of having 50 per cent of Canadians with an electronic health record by 2010 and to speed up the implementation of electronic medical records. A funding agreement will be signed between Canada Health Infoway and the Minister of Health and funds will flow once the Budget Implementation Act, 2009 receives Royal Assent. It is anticipated that $150 million to $250 million will be spent in year one with the remaining used in the following year.

Extending Access to Broadband Services in Rural Communities: Preliminary consultations have been held with provinces, territories and the private sector to design a $225-million program over three years beginning in 2009–10 to extend and improve broadband coverage to all currently underserved communities. A call for applications is expected to be issued by summer 2009.

Funding to Upgrade and Modernize Federal Infrastructure

Canada's Economic Action Plan makes significant investments to renew federal infrastructure, providing benefits to Canadians through better passenger rail services, safer bridges and highways, refurbished harbours for small craft and more efficient border crossings.

An Improved Rail System: VIA Rail Canada is completing work specifications to support improvements to passenger rail, particularly in the Montréal-Ottawa-Toronto corridors, and will be in a position to request companies to bid on equipment and infrastructure projects starting in April. Projects include trackwork and the overhaul of many of VIA's passenger cars, some station work and computer system upgrades.

The Keewatin Railway in Manitoba and the Tshiuetin Rail Transportation in Quebec and Labrador are currently completing plans and specifications for new capital projects, and plan to request bids for the capital projects this spring and summer, respectively.

Trans-Canada Highway: Preparatory work to complete the twinning of the Trans-Canada Highway through Banff National Park has already started. Tree clearing for the new lanes and aggregate crushing for the roadbed have commenced. Officials have begun the preparation of Requests for Proposals with respect to contracts with design engineering firms and construction contractors.

Federal Bridges: Detailed design plans for the first year of the 10-year repair program on the Champlain Bridge in Montréal, Quebec, are complete and the tendering process for initial contracts is underway. A similar competitive bidding process will be undertaken this spring for the Blue Water Bridge in Sarnia, Ontario, and Peace Bridge in Fort Erie, Ontario, in early spring. Contracts for repairs on the Portage Bridge located in the National Capital Region will be awarded early this spring. Building on funding previously available, Public Works and Government Services Canada will be able to accelerate progress on a number of bridge assets:

• Alexandra Bridge (National Capital Region)—Contract awarded February 16, 2009. Work is expected to start in March/April 2009 with a completion date of February 2011.
• Burlington Lift Bridge (Burlington, Ontario)—Tender posting anticipated in June 2009 with contract award to follow by August 2009. Construction to begin in January 2010 with scheduled completion by March 2011.
• Chaudière Crossing (National Capital Region)—A report with recommendations by an engineering firm on a repair program for the arches is scheduled to be completed by March 31, 2009.
• LaSalle Causeway (Kingston, Ontario)—Tender and contract award is scheduled for summer 2009.

Small Craft Harbours: The Department of Fisheries and Oceans will soon begin the tendering process for projects to accelerate the repair and maintenance of core commercial fishing harbours and undertake associated dredging. Canada's Economic Action Plan provides up to $200 million for this work over the next two years. Some work projects will start once contracts are signed, beginning this spring.

Border Infrastructure: The Economic Action Plan provides $80 million on a cash basis to improve and expand border infrastructure to ensure the shared border with the United States remains secure and efficient. This funding will replace, modernize and expand border crossings at Kingsgate, Pacific Highway and Huntingdon in British Columbia and Prescott in Ontario to ensure adequate commercial examination installations. The funding will also allow the Canada Border Services Agency (CBSA) to upgrade its infrastructure in Northern British Columbia and the Yukon. The CBSA is concluding agreements with Ontario, British Columbia and the Yukon.

Aviation Security: Measures to support the development of aviation security plans and improve the operations of the Canadian Air Transport Security Authority are expected to be implemented in June.

Contaminated Sites: The Government is moving forward to accelerate work to clean up federal contaminated sites, which is expected to produce economic activity valued at up to $245 million over the next two years, including assessments, remediation and program management. Departments have identified the projects to be accelerated, and work will begin in the 2009 construction season.

Federal Buildings: Repair and restoration work for federally owned infrastructure funded in the Economic Action Plan is slated to begin in buildings across Canada in April 2009. Public Works and Government Services Canada will use a private sector service provider to deliver at least $200 million of this investment. Other contracting mechanisms will also be used to employ the private sector to deliver the program.

Enhancing Accessibility: Public Works and Government Services Canada has established a list of improvements to building accessibility, and work is expected to begin in April 2009. The focus of the work will be on high-readiness projects such as exterior routes, visitor parking, drinking fountains and tactile signs and intermediary readiness projects such as interior doors and corridors, building entrances, interior/exterior ramps, stairways and existing washrooms.

Table 4.6
Immediate Action to Build Infrastructure

	2009–10 Stimulus Value (millions of dollars)	Authorities in Place	Next Steps	Funding to Flow/Benefits Available
Investments in Provincial, Territorial and Municipal Infrastructure
Green Infrastructure Fund	200	Upon Royal Assent of BIA	Program announcement in spring. Request for Proposals in summer.	Fall
Bonus for Community Projects	250	Upon Royal Assent of BIA	Sign agreements with provinces and territories.	Fall
Accelerating payments under the Provincial/Territorial Base Funding Initiative	495	Upon Royal Assent of BIA	Sign agreements with provinces and territories.	Spring
Infrastructure Stimulus Fund	2,000	Upon Royal Assent of BIA	Program announcement and Request for Proposals in spring.	July
Recreational Infrastructure Canada	250	April	Solicit and review project proposals.	Summer
National recreation trails	25	May	Discussions with the National Trails Coalition.	Summer
Investments in First Nations Infrastructure
On-reserve infrastructure investments:
School construction	95	Yes	Discussions with communities are underway. A number of projects have been announced and others are expected soon.	April
Water and wastewater projects	83	Yes	Discussions with communities are underway.	April
Critical community services (health and police facilities)	83	No	Agreements with provinces and First Nations to be completed.	June/July
Investments in Knowledge Infrastructure
Improving infrastructure at universities and colleges	1,000	Upon Royal Assent of BIA	Review projects.	June
Canada Foundation for Innovation		May	First-round projects selected.	2010–11
Institute for Quantum Computing	50	April	Sign agreement with the Institute for Quantum Computing.	June
Arctic research infrastructure	36	April	Review proposals.	June
Modernizing federal laboratories	100	April	Select projects.	April
Canada Health Infoway	500	Upon Royal Assent of BIA	Funding agreement to be signed between Canada Health Infoway and the Minister of Health.	April
Extending access to broadband services in rural communities	100	April	Consultations with stakeholders and issuance of Request for Proposals.	Fall
Federal Infrastructure
An improved rail system	141	April	Complete plans and specifications for projects; issue Request for Proposals.	May-October
Trans-Canada Highway	20	Yes	Issue Request for Proposals.	April
Federal bridges	47	April	Issue Request for Proposals.	April
Small craft harbours	89	April	Issue Request for Proposals.	Spring (contracts)
Repair and restoration of federal buildings	158	Yes	Work to begin in April.	April
Enhancing accessibility of federal buildings	20	Yes	List of projects to be finalized; work to begin in April.	April
Manège Militaire in Québec City	2	No	Consultations with stakeholder groups; perform assessments.	Spring/summer
Accelerating action on federal contaminated sites	92	April	Finalize selection of projects.	May
Border facilities	7	No	Consultations currently underway.	February 2010
Aviation security	383	No	Finalize details of spending plans. Most of funding expected to be included in Supplementary Estimates (A).	Summer

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