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Archived - Building Infrastructure to Create Jobs

Highlights

Building Infrastructure

• Since the release of Canada’s Economic Action Plan, the Government has committed more than $7.6 billion in federal funding towards over 4,700 provincial, territorial and municipal infrastructure projects worth over $21 billion.
• This includes commitments of over $3.2 billion through the $4-billion Infrastructure Stimulus Fund. To date, more than 2,900 projects across Canada have been announced under the Fund.
• $2.5 billion in federal funding has been committed from the Major Infrastructure Component of the Building Canada Fund to 78 priority projects, worth over $8.5 billion.
• $138 million in recreational infrastructure funding has been committed to projects across the country in 2009–10.
• VIA Rail is beginning construction of segments of a third main line track and other upgrades between Toronto and Montréal, which will improve reliability, reduce trip times and increase the frequency of VIA Rail services.
• Work on a comprehensive 10-year repair program for the Champlain Bridge in Montréal has begun. The project will create an estimated 2,600 jobs over 10 years.
• Investments in commercial small craft harbours will involve over 250 projects in over 200 different locations in Canada.
• The twinning of the Trans-Canada Highway in Banff National Park has begun.

Stimulating Housing Construction

• The tax relief available through the temporary Home Renovation Tax Credit of up to $1,350 is providing an immediate incentive for homeowners to invest in their homes and is supporting jobs in the housing industry.
• Tax relief of up to $750 through the First-Time Home Buyers’ Tax Credit and higher Home Buyers’ Plan withdrawal limits will encourage home ownership and further support the housing industry.
• Agreements have been reached with all of the provinces and territories to deliver $650 million in federal investment in 2009–10, which will be matched by the provinces and territories, for construction, renovation and retrofits of social housing across Canada. 153 projects have already begun.
• $1 billion in low-cost loans is available for municipalities in 2009–10 to undertake housing-related infrastructure projects. 38 loans have already been approved.
• Through the federally administered renovation and retrofit initiative, investments in close to 650 projects, representing some 20,000 units, are expected in 2009–10.
• Projects have begun to build and renovate on-reserve social housing in 121 First Nation communities. In addition, federal investments are creating jobs and supporting communities in the North, with 31 projects already started.

Introduction

Investing in infrastructure helps create and preserve jobs. For every dollar invested, the economy receives a boost of $1.60, generating new economic activity that puts people to work. The Federation of Canadian Municipalities estimates that each $1 billion invested in new infrastructure creates more than 11,000 jobs. For this reason, Canada’s Economic Action Plan provides up to $16 billion over two years to modernize a broad range of infrastructure including our roads, bridges, public transit, parks and water treatment facilities, and to support home ownership, help stimulate the housing sector and improve housing across Canada. These investments will create jobs across Canada and will contribute to higher productivity and a better quality of life for Canadians as we emerge from the economic downturn.

Table 2.6
Building Infrastructure to Create Jobs

	2008–09	2009–10	2010–11	Total
	(millions of dollars)
Building Infrastructure
Investments in provincial, territorial and municipal infrastructure		2,980	2,961	5,941
Investments in First Nations infrastructure		260	255	515
Investments in federal infrastructure projects		475	254	729
Subtotal—Building infrastructure		3,715	3,470	7,185
Stimulating Housing Construction
Support for home ownership and the housing industry	530	2,840	345	3,715
Investments in social housing for Canadians		1,025	1,050	2,075
Subtotal—Stimulating Housing Construction	530	3,865	1,395	5,790
Total—Building Infrastructure to Create Jobs	530	7,580	4,865	12,975
Total stimulus value		9,589	6,412	16,001
With provincial contributions		13,421	10,290	23,711
Notes: Totals may not add due to rounding. The stimulus value reflects projected cash expenditures. The budgetary impact may be somewhat smaller because some of these expenditures relate to construction and renovation costs of federal assets (for which only depreciation is recorded on a budgetary basis) and loans to third parties (where there is a budgetary impact only in the event that there is a risk of loss).

Building Infrastructure

Investments in Provincial, Territorial and Municipal Infrastructure

The Government of Canada has joined forces with provincial, territorial and municipal governments across the country. Together, governments are driving a national effort to stimulate the economy by investing in Canada’s public infrastructure. This is a key component of Canada’s Economic Action Plan.

The Government’s contribution to this effort is significant. In January, the Action Plan allocated $6.4 billion in new funding over two years to provincial, territorial and municipal infrastructure. While some of this new funding is being provided through top-ups to or advances on existing Building Canada funds, much of it is being used to launch new funds such as the Infrastructure Stimulus Fund, the Green Infrastructure Fund and Recreational Infrastructure Canada. An additional $2 billion has been provided for repair and construction of facilities at universities and colleges across Canada.

As well, the Government has identified priority projects and fast-tracked billions of dollars in existing funding under the seven-year (2007–2014) Building Canada plan.

The Government is now rolling out this unprecedented investment in infrastructure in record time. Since the release of Canada’s Economic Action Plan, the Government has committed more than $7.6 billion towards more than 4,700 provincial, territorial and municipal infrastructure projects. When combined with contributions from other orders of government and other funding partners, this results in a total commitment of over $21 billion for projects in communities across the country.

Work has already begun or been completed on close to 1,800 projects. These projects have a total value of approximately $6 billion, and are creating jobs in every province and territory.

Budget 2009 Priority Identified Projects

Canada’s Economic Action Plan announced support for a number of specific priority projects that would be expedited over the next two years. Since the release of the Action Plan, important progress has been made on these projects. For example:

• The Summerside Wind Energy Project in Prince Edward Island, the Fundy Trail Parkway in New Brunswick, Telus World of Science in Calgary, Alberta, and the Yellowknife bypass in the Northwest Territories have all started construction.
• The Government has also green-lighted federal funding for important transit improvements, such as the revitalization of Union Station in Toronto and the construction of the Evergreen rapid transit line in Metro Vancouver.

Accelerating Existing Provincial, Territorial and Municipal Infrastructure Initiatives Under Building Canada

Through its infrastructure initiatives, the Government of Canada provides funding to provinces, territories and municipalities to help finance their infrastructure projects. These other orders of government are ultimately responsible for building these projects. The federal role in project management in this respect is largely restricted to making contributions to the capital construction of the projects.

To support jobs now, the Government has accelerated and topped up existing Building Canada initiatives. Since the release of Canada’s Economic Action Plan in January, we have:

• Streamlined federal approval processes for infrastructure projects so that provinces, territories and municipalities can start construction sooner.
• Announced funding for 78 priority projects that are worth over $8.5 billion. These strategic projects will receive $2.5 billion in federal funding from the Major Infrastructure Component of the Building Canada Fund.
• Committed $1.1 billion in federal funding towards close to 1,100 projects in communities with populations of less than 100,000. This funding is coming from the Communities Component of the Building Canada Fund. Originally a seven-year program, this fund has been accelerated and is now fully committed in 8 of 10 provinces. Including contributions from provinces and municipalities, this federal spending will leverage a total investment of more than $3.4 billion. Over 600 of these projects have begun.
• Transferred $484 million to provinces and territories through the Provincial/Territorial Base Funding Initiative. In addition, most jurisdictions have indicated an interest in accepting the federal government’s offer to accelerate some or all of their seven-year funding under the Economic Action Plan. Four jurisdictions have chosen not to accelerate Provincial/Territorial Base Funding at this time. Accordingly, the Government is adjusting its estimates of funds to be made available to jurisdictions for this initiative and reducing corresponding stimulus values in 2009–10 and 2010–11.

In the coming months, the Government will continue to build on this successful partnership by continuing to work with provinces, territories and municipalities to get more projects started.

New Provincial, Territorial and Municipal Infrastructure Initiatives

Canada’s Economic Action Plan also introduced a number of new funding initiatives to further bolster provincial, territorial and municipal infrastructure and to provide immediate economic stimulus.

Infrastructure Stimulus Fund: The largest new initiative is the $4-billion Infrastructure Stimulus Fund, which specifically targets infrastructure projects that are construction-ready and would not have otherwise been built in the next two years without funding from the federal government. The Fund is a national partnership, leveraging investments from federal, provincial, territorial, municipal and other partners to stimulate economic activity and create jobs in the short term, while also improving Canada’s infrastructure for the long term.

The Government has worked with its partners to identify shovel-ready projects and get funds flowing. To date, over $3.2 billion out of the total $4 billion in federal funding available under the Infrastructure Stimulus Fund has been committed. The remaining federal funding will be available for projects until March 31, 2011. Across Canada, more than 2,900 projects with a total value of $7.4 billion (taking into account contributions from provinces, territories, municipalities and other partners) have been announced. Examples, based on reports provided by provinces and territories to date, include:

• British Columbia:
  • The upgrade of Highway 77 near Deasum Creek, which will receive $2.7 million in federal funding. This $5.4-million project will allow the highway to better withstand heavy industrial traffic.
  • The replacement of the existing two-lane "blue bridge" that crosses the Capilano River on Marine Drive in the westbound direction with a modern, three-lane bridge. This $36-million project in North/West Vancouver is receiving $18 million in federal funding. The new bridge will reduce congestion between the Lions Gate Bridge and Taylor Way, and support transit priority initiatives on Marine Drive.
  • The four-laning of a one-kilometre section of Highway 97 (Cariboo Connector) south of 100 Mile House. The federal government is contributing $1.25 million towards this $2.5-million project.
• Alberta:
  • $0.95 million for a face-lift and expansion of the Galloway Station Museum in the Town of Edson, a $2.9-million project.
  • Nearly $1 million to rehabilitate and upgrade the lagoon, lift station and force main in the Town of Mayerthorpe in order to address health concerns of local residents. This project will cost $2.9 million.
• Saskatchewan:
  • The repaving of Highway 40 between Wilbert and the Alberta border. This $13-million project will receive $6.5 million in federal funding.
  • Upgrades to sewage treatment infrastructure in Vanscoy that will increase the number of households and businesses with connections to sanitary sewer systems. This $1.5-million project will receive $0.5 million in federal funding.
• Manitoba:
  • The reconstruction of the Trans-Canada Highway east of Winnipeg, which is going ahead thanks to $30 million in federal funding. The total project costs are $60 million.
  • The construction of a new building for the United Way in downtown Winnipeg, a $10-million project. The federal contribution to this project totals $3.3 million.
• Ontario:
  • A four-kilometre extension of the Southwest Transitway in Ottawa, which will significantly improve transit service reliability and efficiency. This $52.6-million project is receiving $17.5 million in federal funding.
  • The resurfacing of Dixie Road in Mississauga at a total cost of $6.7 million. The federal government is contributing $2.2 million towards this project.
  • The $11.5-million rehabilitation of Paris Street in Sudbury, a major north-south route in the city. This project is receiving $3.8 million in federal funding.
• Quebec:
  • $350 million for the repair and replacement of water and wastewater pipes. Projects have already been announced in a number of communities, including Chambly, Mont-Saint-Hilaire, Notre-Dame-des-Prairies and Beloeil.
  • $4.5 million to rehabilitate and expand Pier 30 at the Port of Sept-Îles. This $9-million project will result in an increase of business activity, a longer wharf life span, and a higher docking capacity for Wabush Mines and future marine operators.
  • $6 million for the construction of a 700-seat performing arts centre and a museum gallery in Saint-Georges.
• New Brunswick:
  • Upgrades to the New Brunswick Southern Railway totalling $36.1 million. This project will receive $9 million in federal funding and allow the railway to accommodate heavier rail cars.
  • Investments of $5.7 million in water infrastructure in Saint John to ensure a safe and reliable water supply. The federal contribution is $1.9 million.
  • $61.2 million in improvements to the facilities at the Port of Belledune. This will increase the amount of port traffic and provide economic benefits to northern New Brunswick. The federal government is contributing $26.4 million toward this project.
• Nova Scotia:
  • The repaving of Route 245 near Antigonish. This $2.2-million project is receiving $1.1 million in federal funding.
  • The repaving of Truro Heights Road in Truro at a cost of $1 million. The federal contribution toward this project is $0.5 million.
• Prince Edward Island:
  • Phase 1 of the Charlottetown Perimeter Highway, which is moving forward thanks to $3.8 million in federal funding. The $7.5-million project will increase the capacity of the highway by increasing the number of lanes, creating additional turning lanes and realigning on/off ramps as required.
  • $3 million in storm sewer upgrades in Summerside. This project is receiving $1 million from the Government of Canada.
• Newfoundland and Labrador:
  • The construction of the Petty Harbour Long Pond water treatment plant in St. John’s, which will augment the supply of drinking water. This $37‑million project is receiving $12.3 million in federal funding.
  • Improvements to the Bay Bulls Big Pond water treatment plant in St. John’s that will enhance the quality of drinking water. Total project costs are $35 million including $11.7 million in federal funding.
  • The reconstruction of sections of eight streets in Labrador City, which is receiving a total of $1.2 million in federal funding.
• The territories:
  • $200,000 in upgrades to Freegold Road in the Yukon, which will benefit placer miners and the general public. This project will receive $100,000 in federal funding.
  • $525,000 in renovations to a water treatment plant in the Village of Fort Simpson in the Northwest Territories. The federal government is contributing $262,500 toward this project.
  • $2.25 million in repairs to the Arctic Winter Games Arena in Iqaluit. $0.75 million in federal funding is flowing to this project.

 

Green Infrastructure Fund: Through the Green Infrastructure Fund, the Government is investing $1 billion over the next five years in green priorities such as green energy generation and transmission infrastructure, new and upgraded wastewater treatment systems, and better solid waste management. The Fund is focusing on a few large-scale strategic infrastructure projects. The first project to receive funding, upgrades to the Mayo B hydro generation facility and completion of the Carmacks-Stewart transmission line in the Yukon, has begun.

In addition, the Government recently announced a contribution of up to $130 million towards a second project, the construction of the Northwest Transmission Line in northern British Columbia. 20 per cent of this five-year funding is committed and over $120 million of federal funding for green projects is under final review.

National Recreational Trails: As part of the Economic Action Plan, the Government is providing a total of $25 million to the National Trails Coalition to help build, upgrade and renew recreational trails for a number of non-motorized and motorized uses, including hiking, walking, cycling, equestrian, cross-country skiing, all-terrain vehicles, off-road motorcycles and snowmobiles. The coalition called for applications and, on July 30th, announced that it had selected the more than 500 trail projects that will receive federal funding. All of these projects will be completed by March 2010.

Recreational Infrastructure Canada: Hockey arenas, soccer fields, tennis courts and swimming pools provide Canadians and their families with the benefits of physical activity and community-based experience. Many of these facilities were built in 1967 to mark Canada’s Centennial year and are in need of renewal. Upgrading existing community recreational facilities and constructing new ones will provide much-needed economic stimulus, while providing Canadians in all regions with better facilities in which to play, relax and build community life. This is why the Economic Action Plan provides $500 million over two years to create the Recreational Infrastructure Canada program, supporting the construction of new facilities and upgrades to existing ones across the country.

To date, nearly $138 million of the $250 million in 2009–10 funding for Recreational Infrastructure Canada has been committed to projects across the country.

Public-Private Partnerships (P3s): P3s have demonstrated that they can help governments build better infrastructure projects, on time, on budget and with better value for taxpayers. The Government created PPP Canada (P3C), a new Crown corporation, to help develop the market in Canada for acquiring public infrastructure through P3s, in part through managing a $1.25-billion fund.

P3C has now formally called on provincial and territorial governments to submit eligible P3 projects, including those involving municipal infrastructure, to be considered under the P3 Fund. P3C is also working with Indian and Northern Affairs Canada and certain First Nations to identify P3 infrastructure projects for early funding. This first call for projects formalizes an ongoing dialogue with these governments. Projects will be reviewed expeditiously and funding decisions will be announced in due course. Additional information on this process can be found at www.p3canada.ca.

First Nations Infrastructure

The Economic Action Plan provides $515 million over two years, including $260 million in 2009–10, to support construction and renovation of schools, water and wastewater projects and critical community infrastructure, such as health and police facilities in First Nation communities. These infrastructure projects mean new classrooms for students of all ages and needed education facilities such as upgraded libraries and resource centres, science and computer rooms, auditoriums, soccer fields, tracks, landscaping and play facilities, as well as improved access to safe drinking water and quality health care facilities for First Nation communities. These investments support better social and health outcomes for Aboriginal Canadians while sparking job creation on reserve and in remote and rural communities.

Of the funding for infrastructure in First Nations, 97 per cent has been committed for 2009–10, and projects have begun in the following priority areas:

First Nations Schools: 13 school projects for First Nation communities have been announced. Work has begun on four projects. Two additional projects have gone to tender and 6 are expected to go to tender by early 2010, with a total of 10 projects under construction by March 2010.

Safe Water Systems: 18 water and wastewater projects in First Nation communities have been announced. Work on seven projects has already begun. An additional project has gone to tender and 7 are expected to go to tender by early 2010, with a total of 15 projects under construction by March 2010.

First Nations Health Services Infrastructure: Work on seven projects to build health facilities and nurses’ residences in First Nations has already begun. Numerous renovation projects are also advancing to improve existing First Nations health infrastructure. Nine additional projects have gone to tender and additional projects are expected to go to tender and begin construction by March 2010.

First Nations Policing Infrastructure: Eight projects to remediate critical policing infrastructure in First Nation communities have been negotiated with provinces and First Nations. Discussions with provinces and First Nations continue to identify additional projects.

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