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Canada's Economic Action Plan
Infrastructure
June 2009
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Many Canadian communities, businesses and workers have been seriously affected by the economic slowdown. That is why our Government brought forward Canada's Economic Action Plan. It is a clear blueprint to stimulate the economy, protect Canadian jobs and support those hit hardest. It is delivering $62 billion in stimulus, among the largest of the Group of Seven (G7) economies.
The Government is delivering on Canada's Economic Action Plan today, when it is needed the most. It will provide a boost to output and employment. It is an investment in our future.
The Plan:
- Reduces taxes permanently.
- Helps the unemployed through enhanced Employment Insurance and training programs.
- Avoids layoffs by enhancing the Employment Insurance work-sharing program.
- Creates jobs through a massive injection of infrastructure spending.
- Helps create the economy of tomorrow by improving infrastructure
at colleges and universities and supporting research and technology. - Supports industries and communities most affected by the global downturn.
- Improves access to and the affordability of financing for Canadian households and businesses.
Building Infrastructure to Create Jobs
Through the Action Plan, the Government is protecting and creating jobs by building infrastructure. Building new infrastructure and improving what we have is widely recognized as an effective way to stimulate the economy. It also fills an important need in nearly every city, town or village.
Investments in Provincial, Territorial and Municipal Infrastructure Projects
Most of Canada's public infrastructure is managed by provinces, territories and municipalities, including highways and bridges, local roads, public transit and water systems. To help rebuild the nation's infrastructure and stimulate the economy at this critical time, the Government is speeding up spending from the historic $33-billion Building Canada plan announced in Budget 2007 and launching new funding initiatives to kick-start more projects and create jobs across the country over the next two years.
The Federation of Canadian Municipalities estimates that each $1 billion invested in new infrastructure creates more than 11,000 jobs.
Accelerating Building Canada Plan Projects: The $8.8-billion Building Canada Fund is a key element of the Building Canada plan, which supports large and small infrastructure projects across Canada. The Government is taking swift action in partnership with provinces, territories and municipalities to expedite priority projects under the Fund. Projects include highway upgrades, rapid transit expansion and cultural facilities.
Commitments made under the Major Infrastructure Component of the Building Canada Fund include:
- $11.7 million in federal dollars for the Desjardins water treatment facility in Lévis, Quebec.
- $45.2 million in federal funding to support 15 highway projects and local roads across the province of Newfoundland and Labrador.
- $350 million for British Columbia to construct the Evergreen Line—a new 11-kilometre rapid transit line from Burnaby to Coquitlam.
- $40 million in federal funding for Telus World of Science in Calgary to generate further economic spinoffs from tourism.
- $550 million for GO Transit and the Sheppard Rapid Transit Line in Ontario to contribute to better public transit and a cleaner environment.
Accelerating Approval Processes: The Government of Canada has taken action to reduce duplication and streamline federal processes to address potential environmental and other impacts of projects, and is fast-tracking federal review and approval processes to get important projects started sooner. Since January 2009, over 50 major projects have been announced with close to $2 billion in federal funding.
Actions that have been taken to accelerate the approval process include:
- Legislative changes have been made to the Navigable Waters Protection Act to focus on projects and waterways that have legitimate navigational purposes.
- Regulations under the Canadian Environmental Assessment Act have been amended to streamline the approval of infrastructure projects under a broad range of funding initiatives without compromising environmental protection.
- A Proponent's Guide to Fisheries Act Reviews for Federally Funded Infrastructure Projects has been developed.
- A streamlined approach has been developed for Aboriginal consultations to ensure the federal Crown fulfills its legal obligations with respect to Aboriginal rights when implementing infrastructure projects.
New Economic Action Plan Initiatives
Accelerated Payments Under the Provincial/Territorial Base Funding Initiative: The Provincial/Territorial Base Funding Initiative provides $25 million per year in predictable funding to each province and territory to meet their infrastructure needs. Since January 2009, over $430 million has been transferred to provinces and territories for infrastructure projects. Under Canada's Economic Action Plan, all provinces and territories can seek to accelerate this funding to receive the payments scheduled for the 2011–12, 2012–13 and 2013–14 fiscal years by March 31, 2011. As a result of this acceleration, up to $1 billion in additional federal funding is available over the next two years to kick-start more infrastructure projects across the 13 jurisdictions. Several provinces and territories have taken steps to accelerate all or part of their funds by 2010–11, including British Columbia, Alberta, Saskatchewan, Manitoba and Quebec.
Infrastructure Stimulus Fund: Canada's Economic Action Plan established a new two-year $4-billion Infrastructure Stimulus Fund to support construction-ready projects, including those related to municipal infrastructure that can be built over the next two years. To date, $2.6 billion of the fund has been committed and over 1,500 projects have been approved.
Programs approved under the Infrastructure Stimulus Fund include:
- Over 200 projects in British Columbia totalling more than $300 million, of which $137 million is federal funding.
- $28 million in federal funding for 26 highway, parks and cultural projects in Nova Scotia, and a further $14 million for the City of Halifax and Cape Breton.
- $936 million in federal funding for projects in Quebec, including $350 million to repair water and sewer mains.
- Over 1,000 municipal projects in Ontario will receive more than $900 million in federal funding.
- $3.5 million in federal funding for 11 infrastructure projects in the Yukon.
- Over $51 million in federal funding for 22 provincial and community projects in Newfoundland and Labrador.
- $92 million in Saskatchewan, including close to $9 million for road and sewer repairs in Saskatoon
- $109 million in Manitoba, which will help support three community projects costing $20 million including $3.3 million for a $10 million expansion of the United Way in Winnipeg.
- $210 million in Alberta, including $15 million for the new home of Canada's Sports Hall of Fame in Calgary.
Hockey arenas, soccer fields, tennis courts and swimming pools provide Canadians and their families with the benefits of physical activity and community-based experience. This is why the Economic Action Plan provided $500 million over two years to create the Recreational Infrastructure Canada program, announced on May 14, 2009, which will support the construction of new facilities and upgrades to existing ones across the country.
Community infrastructure projects include:
- Reconstruction of Pleasant Street in the Town of Yarmouth totalling
$3.9 million. - The Weymouth Library project in the Municipality of the District of Digby totalling $418,000.
- A landfill closure in the Municipality of the District of Lunenburg totalling $1.6 million.
Additional Funds for Community Projects: The $1.1-billion Communities Component of the Building Canada Fund provides targeted support to small communities that have unique infrastructure needs. In provinces where all the Communities Component allocation from Budget 2007 is committed to projects, Budget 2009 provides up to $500 million over the next two years in bonus funding for projects that could be built before March 31, 2011. Projects that will benefit from this new funding have already been announced in Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Ontario, Manitoba and Alberta.
Green Infrastructure Fund: Canada's Economic Action Plan includes $1 billion over five years for a new Green Infrastructure Fund to support projects that improve the environment. The Yukon's Mayo B hydro and Carmacks-Stewart transmission line was announced as the first project and has been provided with up to $71 million.
National Recreational Trails: Recreational trails add to the quality of life of Canadians and can attract tourists to a region. Budget 2009 provided $25 million to the National Trails Coalition to support up to 400 projects by March 31, 2010, that will create and upgrade trails throughout the country. A contribution agreement with the National Trails Coalition was signed and announced on May 26, 2009, and the coalition has launched a call for proposals. Projects will be starting in the coming weeks.
Public-Private Partnerships: The Government recently announced the appointment of four new members to the Board of PPP Canada, a new Crown corporation that was established to work with the public and private sector to support public-private partnerships (P3s). PPP Canada has engaged every province and territory regarding the process and criteria to support P3 projects, as well as potential project priorities.
First Nations Infrastructure
Canada's Economic Action Plan is supporting investments in First Nations infrastructure by providing $515 million over two years for "ready-to-go" projects in three priority areas: schools, water and critical community services.
Thirteen school projects have been announced in First Nations communities, with ground breaking expected for two new K-12 schools in Birch Narrows First Nation and Peter Ballantyne First Nation in Saskatchewan by the end of June. These two new school projects are expected to create about 470 jobs.
Eighteen water and wastewater projects in First Nations communities have been announced. These projects involve the construction of new sewage lagoons, water supply and treatment plants, a sludge system, a mechanical sewage treatment plant and water distribution systems, with investments of $165 million.
Federal Infrastructure
Canada's Economic Action Plan is also upgrading and modernizing federal infrastructure such as federal bridges, passenger rail services, small craft harbours and border crossings.
Small Craft Harbours: The Economic Action Plan provides $200 million over two years to support the repair and maintenance of Canada's core commercial fishing harbours and an additional $17 million to accelerate the construction of a small craft harbour in Pangnirtung, Nunavut. These investments will help accelerate required repair work and help ensure that the commercial fishing industry has access over the long term to safe and functional harbours. These repairs, maintenance and construction projects are expected to create more than 2,000 direct and indirect jobs.
Small Craft Harbour Projects
- Work is underway at Rivière-au-Tonnerre in Quebec, where a wharf is being reconstructed. The $1.95-million project will improve safety.
- Repair projects totalling $515,000 to the Sointula harbour and the Queen Charlotte City harbour electrical system are currently underway in B.C. Contracts worth another $1.9 million have been awarded for repairs at seven other B.C. harbours.
- Contracts are now in place to construct a 60-metre extension to the current 150-metre breakwater at Ochre Pit Cove harbour, on the north side of Conception Bay on Newfoundland's Avalon Peninsula. This $1.2-million project will improve conditions and safety of the harbour.
Progress on Budget 2009 federal infrastructure investments:
- With the $407 million provided to VIA Rail Canada, it has started to award contracts to renew its fleets of rail cars. In addition, VIA has reached an agreement with the Canadian National Railway to construct a third main line track on the Montréal-Toronto corridor, which will support improvements to passenger services along that corridor.
- Construction has started on federal bridges, including work on the $212-million Champlain Bridge project in Montréal.
- Site preparation and the tendering process are underway for the twinning of the Trans-Canada Highway in Banff National Park, and construction is expected to begin in the fall of 2009.
- Once preliminary engineering work is completed, construction will begin this year at the Blue Water Bridge and the Peace Bridge, two of Canada's busiest border crossings. A total of $14 million in federal funding is being provided to these two projects.
- Significant progress has been made in realizing over 1,200 small and large projects to repair and renovate the federal government's building portfolio across the country. Contracts have been issued for 60 per cent of this year's funding.
- Contracts totalling $27 million have already been awarded for accelerated repair and maintenance of core commercial fishing harbours across Canada and associated dredging. Work is expected to begin this spring across the country in urban and rural communities.
- With regard to federal contaminated sites, projects have been selected and work will begin in the 2009 construction season.
For more information on Canada's Economic Action Plan, visit
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