Chapter 3.3: The New Building Canada Plan

Highlights

  • Over $53 billion in investments, including over $47 billion in new funding in support of local and economic infrastructure projects over 10 years under a new Building Canada plan starting in 2014-15, including:
    • $32.2 billion over 10 years under a Community Improvement Fund to build roads, public transit, recreational facilities and other community infrastructure across Canada.
    • $14 billion for a new Building Canada Fund to support major economic projects of national, regional and local significance.
    • $1.25 billion for the renewal of the P3 Canada Fund to continue supporting innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through public-private partnerships.
    • $6 billion to provinces, territories and municipalities under current infrastructure programs in 2014-15 and beyond.
  • Significant investments in First Nations infrastructure such as roads, bridges, energy systems as well as other First Nations infrastructure priorities, including:
    • $155 million over 10 years from the new Building Canada Fund, in addition to allocations from the Gas Tax Fund.
    • Approximately $7 billion over the next 10 years under existing programming to build, operate and maintain infrastructure on reserve.
  • Over $10 billion in investments in federal public infrastructure assets, including:
    • $124.9 million to build a bridge-causeway between Nuns Island and the Island of Montreal, as part of the New Bridge for the St. Lawrence that will replace the Champlain Bridge.
    • $25 million over three years to advance the Windsor-Detroit International Crossing project.
    • $54.7 million in 2013-14 to support VIA Rails operations and $58.2 million over five years to maintain passenger rail services for remote communities that have limited access to the national transportation network.
    • Up to $5 million in 2013-14 to support the rehabilitation of the Port Weller Dry Docks.
    • Further funding for the rehabilitation of the Parliamentary Precinct.
    • $248 million over five years to strengthen Canadas meteorological services, which includes new investments in federal infrastructure.
    • $19 million in 2013-14 for improvements to highways and associated bridges that pass through Canadas national parks.
    • Investments in other federal infrastructure assets, including bridges, small craft harbours, ports, military bases and departmental accommodations across the country.

The New Building Canada Plan

Investments in Canadas public infrastructure create jobs, economic growth and provide a high quality of life for families in every city and community across the country. Canadas prosperity is supported by a vast and complex network of highways and roads, water and wastewater infrastructure, transit systems and recreational and cultural facilities. This network reaches into every community and touches every Canadian.

Provincial, territorial and municipal governments own and maintain roughly 95 per cent of Canadas public infrastructure. At the same time, the Government of Canada is the custodian of an infrastructure portfolio with strategic importance, including a wide range of transportation-related assets such as airports, ports and bridges.

In recognition of the importance of modern and efficient public infrastructure for the countrys economic prosperity and quality of life, the Government has made significant investments since 2006 to build roads, bridges, ports, subways, commuter rail and other public infrastructure. The Government has done so through a new approach to federal funding for provincial, territorial, and municipal infrastructure, starting with the 2007 Building Canada plan and subsequent investments. Through this approach, the Government provided comprehensive, flexible and predictable support to help provinces, territories and municipalities plan and to modernize their infrastructure assets.

Since 2006, governments across Canada have worked together to build modern and efficient public infrastructure in every community. Through the 2007 Building Canada plan, infrastructure stimulus measures and other infrastructure initiatives, the federal government has supported over 43,000 projects in Canada that have created jobs and economic growth and contributed to a higher quality of life for Canadian families.

Under the $33-billion Building Canada plan launched in 2007, the largest federal investment in infrastructure in Canadian history, the federal government has supported over 12,000 provincial, territorial and municipal infrastructure projects across Canada such as subways, commuter rail, highways and bridges.

Close to an additional 30,000 projects have been completed with support from the federal government under the infrastructure component of the stimulus phase of the Economic Action Plan launched in Budget 2009. Close collaboration between the federal government and provincial, territorial and municipal partners allowed stimulus infrastructure funding to be delivered quickly and efficiently.

Economic Action Plan 2012 announced an additional $150 million in infrastructure funding under the Community Infrastructure Improvement Fund to support the rehabilitation and improvement of existing community facilities. To date, 1,400 projects have been funded and further projects will be announced over the coming months.

Through these investments, the Government will have provided unprecedented support for provincial, territorial and municipal infrastructure projects. This includes:

  • Investments in public transit contributing to reducing traffic congestion and the cost of gridlock, facilitating access for Canadians to jobs, education, health care services and social activities. This includes federal contributions for:
    • The Evergreen Line, a rapid light rail transit project in British Columbia delivered through a public-private partnershipsupported by a federal contribution of up to $350 million under the Building Canada Fund.
    • The Region of Waterloo Rapid Transit Project, a 36-kilometre rapid transit corridor supported by a federal contribution of up to $263 million under the Building Canada Fund.
    • The Toronto-York Spadina Subway Extension, an 8.6-kilometre extension including six new stations supported by a federal contribution of up to $622 million under the Building Canada Fund.
    • The Ottawa Light Rail Transit project, to make public transit faster and more efficient for commuters supported by a federal contribution of up to $600 million under the Building Canada Fund and the Canada Strategic Infrastructure Fund.
  • Investments in roads, highways and bridges making our transportation systems more efficient and contributing to long-term economic growth and productivity by lowering the cost to firms of producing and bringing their goods and services to market. Projects supported include:
    • The replacement of the Nordenskjold Bridge in Carmacks, Yukon by a modern two-lane crossing serving the local community and the mining industry supported by a federal contribution of $1 million under the Infrastructure Stimulus Fund.
    • Construction of an all-season gravel road from Inuvik to Tuktoyaktuk in the Northwest Territories supported by a federal contribution of up to $200 million.
    • The North Saskatchewan River Crossing, a critical component to the completion of the overall Northeast Anthony Henday Drive in Edmonton supported by a federal contribution of up to $36.8 million under the P3 Canada Fund.
    • The Southeast Calgary Stoney Trail Ring Road, a local road project in Calgary delivered through a public-private partnership supported by a federal contribution of up to $100 million under the Building Canada Fund.
    • The Disraeli Bridges project in Winnipeg supported by a federal contribution of $18.3 million under the Gas Tax Fund.
    • The Highway 8 expansion in Kitchener, Ontario to improve efficiency, mobility and safety of the highway supported by a $29.9 million contribution under the Building Canada Fund.
    • The completion of Phase II of Highway 30 connecting Vaudreuil-Dorion to Chateauguay in Quebec, delivered though a public-private partnership supported by a federal contribution of $705 million under the Building Canada Fund.
    • Upgrades to the Charlottetown Perimeter Highway to improve efficiency on the busiest section of the highway on Prince Edward Island supported by a federal contribution of $7.3 million under the Infrastructure Stimulus Fund.
    • The Highway 104 Antigonish Project in Nova Scotia, involving the construction of a new 15-kilometre controlled access, four-lane highway supported by a federal contribution of up to $55 million under the Building Canada Fund.
  • Investments in ports and airports modernizing facilities, to improve their effectiveness and increase capacity, providing additional transportation options to shippers. This includes projects such as:
    • Enhancements to rail and port operations of the Port of Vancouver to accommodate expected growth in rail and road traffic on the North Shore of Burrard Inlet supported by a federal contribution of up to $75 million under the Asia-Pacific Gateway and Corridor Initiative.
    • The construction of a new multi-user deep water dock at the Port of Sept-les to meet global shipping standards supported by a federal contribution of up to $55 million under the Gateways and Border Crossings Fund.
    • The expansion of the terminal at the Port of Halifax supported by a federal contribution of up to $54 million under the Gateways and Border Crossings Fund.
    • The extension of the Deer Lake Regional Airport runway in Newfoundland and Labrador supported by a federal contribution of $3 million under the Infrastructure Stimulus Fund.
    • The Iqaluit Airport Improvement Project that will bring a new terminal as well as upgraded aeronautical facilities (runway, taxiway and apron) to support the development of air services in the North supported by a federal contribution of up to $77.3 million under the P3 Canada Fund.
  • Investments in post-secondary institutions supporting repair, maintenance and construction projects at universities and colleges across Canada through the $2 billion Knowledge Infrastructure Program. An additional $3.2 billion was leveraged from the projects partners for a total investment of $5.2 billion in post-secondary infrastructure. Examples of projects supported include:
    • An overhaul of the chemistry facility at Simon Fraser University in British Columbia to bring the laboratories up to modern standards supported by a federal contribution of $24.4 million.
    • Construction of an addition to the Great Plains College in Saskatchewan to provide new shop space for industry training supported by a federal contribution of $13.5 million.
    • Construction of a new medical school at Queens University in Ontario to help meet the demand for additional doctors supported by a federal contribution of $28.8 million.
    • Construction of new facilities at the Collège Lionel-Groulx in Quebec, dedicated to technical programs in theatre, production and theatre interpretation supported by a federal contribution of $2.4 million.
    • Construction of new classrooms, offices and laboratories at the Crandall University in New Brunswick, allowing the university to double its student enrolment supported by a federal contribution of $6 million.
    • Retrofit of the Life Sciences Centre at Dalhousie University in Nova Scotia, including new electrical transformers, solar panels to heat water and new energy-efficient windows supported by a federal contribution of $14.3 million.
  • Investments in community infrastructure improving the quality of facilities enjoyed by Canadians while supporting job creation in communities across the country through the Community Infrastructure Improvement Fund. Examples of projects include:
    • Modernization of the Stettler Public Library in Alberta supported by a federal contribution of $250,000.
    • Rehabilitation and expansion of the Saint-Prime Marina in Quebec supported by a federal contribution of $237,000.
    • Improvements to the accessibility and functionality of the Leif Erikson Park in Yarmouth, Nova Scotia supported by a federal contribution of $125,000.
    • Renovations to the Northern Frontier Visitors Centre in Yellowknife supported by a federal contribution of $200,000.

Facilitating Trade Through the Asia-Pacific Gateway and Corridor Initiative

The Asia-Pacific Gateway and Corridor is a network of major ports in British Columbia, principal road and rail connections stretching across Western Canada and south to the United States, key border crossings and major Canadian airports. It is critical to supporting Canadas long-term trade agenda and our collective interest in creating jobs and increasing our economic prosperity.

Under the Asia-Pacific Gateway and Corridor Initiative, the federal government has invested $1.4 billion to date in almost 50 infrastructure projects, valued at over $3.3 billion, in partnership with all four Western provinces, municipalities and the private sector. These investments have helped Canadian exports to the Asia-Pacific region reach record levels. Highlights of projects supported by the Initiative include:

  • The construction of a road, rail and utility corridor at the Port of Prince Rupert supported by a federal contribution of up to $15 million.
  • Investments at the Port of Vancouver to enhance efficiency and safety of operations, including up to $31 million under the South Shore Corridor Project to streamline road and rail movements and up to $19.9 million to increase container capacity at the Deltaport Terminal.
  • Construction of the South Fraser Perimeter Road, a 40-kilometre four-lane road connecting Deltaport to Highway 1 and the Golden Ears Bridge in British Columbia, to act as a designated east-west truck route to enhance international freight movement and reduce impacts on municipal roads supported by a federal contribution of up to $365 million.
  • Twinning of the Trans-Canada Highway in Banff National Park, supporting trade between the dynamic economies of Alberta and British Columbia supported by a federal contribution of $267 million.
  • The Global Transportation Hub in Regina to provide proper access to the new larger-capacity terminal supported by a federal contribution of up to $27 million.

Annual support for First Nations infrastructure of over $1 billion is provided primarily through Aboriginal Affairs and Northern Development Canada. Significant program investments have been announced since 2006, including:

  • Over $1 billion for drinking water and wastewater infrastructure to address health and safety priorities in communities across Canada. Over the 2010-2012 period alone, 48 major water and wastewater infrastructure projects were completed in First Nations communities.
  • $200 million over two years for school infrastructure on reserve, announced in Budget 2009, which helped to build or renovate 12 schools, part of the over 30 new schools and over 200 renovations on reserve since 2006.
  • Over $170 million for health and policing infrastructure and fuel tanks, resulting in the completion of 175 health and 22 policing infrastructure projects.
  • Over $270 million from the 2007 Building Canada Fund and the Gas Tax Fund for projects such as roads, bridges, energy systems and schools. Combined with other funding sources, 141 road and bridge projects have been completed, and 42 energy systems funded in First Nations communities.

The Government of Canada is custodian of a large portfolio of infrastructure assets such as office buildings, laboratories, roads, bridges, ports, fishing harbours, border facilities, military bases, and many others. Investments since 2006 include:

  • $324 million for the repair and rehabilitation of federally owned bridges.
  • $319 million for border infrastructure, including modernized and expanded border facilities at St. Stephen, New Brunswick; Niagara-on-the-Lake, Ontario; and Pacific Highway, British Columbia.
  • $194 million for capital repairs and rehabilitation of federally-owned ports and airports. This includes various investments to keep these assets in good operating condition such as rehabilitation of wharves, resurfacing of runways, or repairs to terminal buildings.
  • Close to $1 billion to repair and maintain small craft harbours across Canada and to accelerate the construction of the Pangnirtung Harbour in Nunavut.
  • Over $202 million to maintain and improve the portfolio of federal engineering assets, which includes dams and other specialized assets that are located across Canada, such as the Esquimalt Graving Dock in British Columbia.
  • $307 million to maintain and improve the portfolio of federal buildings.

As a result of these significant and sustained investments in public infrastructure by all levels of government, the average age of public infrastructure in Canada has been declining. Between 2001 and 2011, the average age of our core public infrastructure assets declined from a peak of 17 years to an estimated 14.4 years; this includes a drop of a full year between 2008 and 2009. The average age of Canadas core public infrastructure is now lower than the average of 15.4 years over the period from 1961 to 2011.

Historic Investments Have Reduced the Average Age of Canada’s Core Public Infrastructure

Chart 3.3.1 Average Age of Infrastructure Chart 3.3.1 - Average Age of Infrastructure. For more details, see previous paragraph.
Source: Infrastructure Canada, 2011-12 Departmental Performance Report.

New Federal Investments in Job Creating Infrastructure

Federal infrastructure funding will total $70 billion over 10 years.

In Budget 2011, the Government indicated that it would develop a new plan to support public infrastructure that would extend beyond the expiry of the 2007 Building Canada plan in 2013-14. The Minister of Transport, Infrastructure and Communities has consulted provinces, territories, the Federation of Canadian Municipalities and other stakeholders across the country on the directions for new federal investments in provincial, territorial and municipal infrastructure, focusing on best practices, lessons learned, and how to ensure future infrastructure spending supports productivity and economic growth.

Economic Action Plan 2013 delivers a new Building Canada plan to build roads, bridges, subways, commuter rail and other public infrastructure in cooperation with provinces, territories and municipalities. The new Building Canada plan provides approximately $53.5 billion in new and existing funding for provincial, territorial and municipal infrastructure. In addition, over the next 10 years, the Government will make significant investments in First Nations infrastructure, and in federal infrastructure assets. Overall, federal infrastructure funding will total $70 billion over 10 years, the largest federal investment in job-creating infrastructure in Canadian history.

The new plan supports Canadas infrastructure advantage, a key enabler of economic growth and job creation. New investments will focus on projects that promote productivity and economic growth, such as highways and public transit, and are designed to capitalize on innovative approaches, such as public-private partnerships (P3s). The new plan includes the largest and longest federal investment in provincial, territorial and municipal infrastructure in Canadian history, providing predictable, long-term funding while being affordable and sustainable over the long term.

New Building Canada plan

Economic Action Plan 2013 proposes to provide federal support of over $53 billion, including over $47 billion in new funding over 10 years, starting in 2014-15, for provincial, territorial and municipal infrastructure projects.

The original Building Canada plan marked a new era for federal infrastructure funding and a new partnership among all three levels of government. Through Building Canada, the Government has provided support to provinces, territories and municipalities for strategic investments in projects that contribute to economic growth, a clean environment and strong cities and communities.

Following on the success of the 2007 Building Canada plan, Economic Action Plan 2013 proposes a new 10-year funding commitment to provincial, territorial and municipal infrastructure, starting in 2014-15, through three key funds:

  • Community Improvement Fund $32.2 billion consisting of an indexed Gas Tax Fund and the incremental GST Rebate for Municipalities to build roads, public transit, recreational facilities and other community infrastructure across Canada that will improve the quality of life of Canadian families.
  • New Building Canada Fund $14 billion in support of major economic infrastructure projects that have a national, regional and local significance.
  • Renewed P3 Canada Fund $1.25 billion to continue supporting innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through public-private partnerships.

In addition, about $6 billion in federal support will be provided to provinces, territories and municipalities under current infrastructure programs in 2014-15 and beyond. This brings total federal investments in provincial, territorial and municipal infrastructure to approximately $53.5 billion from 2014-15 to 2023-24 an average of $5.35 billion per year over the 10-year period (Chart 3.3.2). Between 2006 and 2023, federal investments in provincial, territorial and local infrastructure are expected to total close to $90 billion.

This long-term commitment will offer predictability and flexibility to provinces, territories and municipalities to plan and deliver large infrastructure projects efficiently. There will be a five-year review, by the end of 2018-19, to ensure that objectives are being met.

The Largest and Longest Federal Commitment to Provincial-Territorial-Municipal Infrastructure in Canadian History

Chart 3.3.2 Federal Investments in Provincial-Territorial-Municipal Infrastructure Chart 3.3.2 - Federal Investments in Provincial-Territorial-Municipal Infrastructure. For more details, see previous paragraph.
Source: Infrastructure Canada, Department of Finance.

In order to encourage greater involvement of the private sector in the provision of public infrastructure and ensure better value for taxpayers, projects with capital costs of over $100 million submitted for federal funding under the new Building Canada Fund will be subject to a P3 screen to determine whether better value for money can be achieved through P3 procurement.

The Government will also encourage provinces, territories and municipalities to support the use of apprentices in infrastructure projects receiving federal funding.

To maximize the value and ensure the sustainability of investments in our public infrastructure, the Government encourages all jurisdictions to undertake life-cycle cost assessments and develop robust capital asset management plans. These tools allow governments to take into account the costs associated with building the asset, as well as maintenance and rehabilitation costs over the projects full life cycle. By incorporating such analysis and planning in infrastructure investment decisions, governments maximize the value of these investments for taxpayers by minimizing the costs of maintaining assets at an acceptable standard and ensuring sustainability over time. This approach contributes to improved benefits for our communities.

Community Improvement Fund

Economic Action Plan 2013 proposes the Community Improvement Fund with funding of $32.2 billion over 10 years, consisting of an indexed Gas Tax Fund and the incremental GST Rebate for Municipalities to offer stable, predictable funding to support community infrastructure projects such as roads, public transit and recreational facilities.

Since 2006, the Government has provided increased infrastructure funding to municipalities. In Budget 2011, the Government committed to working with the provinces, territories and the Federation of Canadian Municipalities to develop a new long-term plan for infrastructure. In the consultations on the new plan, mayors from across the country and the Federation of Canadian Municipalities asked that federal funding for municipal projects be indexed and greater flexibility be afforded for municipalities to address their specific infrastructure needs.

The Government is responding to the requests from Canadas mayors and the Federation of Canadian Municipalities by introducing the Community Improvement Fund. The Community Improvement Fund provides funding for Canadian municipalities of $32.2 billion over the 10 years of the new Building Canada plan. Funding starts at approximately $2.9 billion in 2014-15 and increases to over $3.6 billion in 2023–24. The new Community Improvement Fund will afford municipalities greater flexibility to allocate federal support toward a broader range of infrastructure priorities.

The Community Improvement Fund includes:

  • $21.8 billion over 10 years through Gas Tax Fund payments. Currently $2 billion per year, it is proposed that these payments be indexed at 2 per cent per year, starting in 2014-15, with increases to be applied in $100-million increments. The Government will conclude new Gas Tax Fund agreements before the end of current agreements on March 31, 2014. The list of existing eligible investment categories will be expanded to include: highways, local and regional airports, short-line rail, short-sea shipping, disaster mitigation, broadband and connectivity, brownfield redevelopment, culture, tourism, sport, and recreation.
  • $10.4 billion over 10 years under the incremental GST Rebate for Municipalities to provide communities with additional resources to address their infrastructure priorities, from the construction of new infrastructure assets to the maintenance and operation of existing public infrastructure and facilities.
Gas Tax Fund

Canadas Gas Tax Fund provides predictable, long-term funding for Canadian municipalities to help them build and revitalize their public infrastructure assets. Communities choose projects locally and prioritize them according to their needs. From Bonavista, Newfoundland and Labrador, to Prince George, British Columbia, to Tuktoyaktuk, Northwest Territories, the Gas Tax Fund is making a difference in communities across Canada. To date, over 3,600 municipalities have benefited from the financial support and flexibility the program offers, and since its inception, over 13,000 projects across Canada have received funding.

On April 1, 2009, the Government doubled Gas Tax Fund payments from $1billion to $2 billion per year for Canadas municipalities. On December15,2011, federal legislation made payments under the Fund a permanent source offederal infrastructure support.

Building Canada Fund

Economic Action Plan 2013 proposes to provide $14 billion over 10 years for a new Building Canada Fund to support infrastructure projects of national, regional and local significance.

The new Building Canada Fund will have two components:

  • A $4-billion National Infrastructure Component that will support investments in projects of national significance, particularly those that support job creation, economic growth and productivity, such as highways, public transit, and gateway and trade corridor-related infrastructure. Investments in disaster mitigation infrastructure projects will also be eligible. Funding under the National Infrastructure Component will be allocated to projects on a merit basis.
  • A $10-billion Provincial-Territorial Infrastructure Component that will support projects of national, regional and local significance in communities across the country in a broader range of categories including highways, public transit, drinking water, wastewater, connectivity and broadband, and innovation (including infrastructure at post-secondary institutions that supports advanced research and teaching). This component will include base funding for each province and territory; details on provincial and territorial funding allocations will be announced in the near future.

The Minister of Transport, Infrastructure and Communities will work on outstanding program parameters with the Federation of Canadian Municipalities and other stakeholders for the new Building Canada Fund and will announce details later this year.

P3 Canada Fund

Economic Action Plan 2013 proposes to provide $1.25 billion over five years on a cash basis to renew the P3 Canada Fund.

Public-private partnerships (P3s) can improve the delivery of public infrastructure for Canadians and provide better value for money for taxpayers. Under P3 arrangements, governments continue to own the infrastructure assets while the private sector plays a larger role in their design, construction, operation and maintenance. In doing so, the private sector assumes a greater share of project risks. The risk transfer gives incentives to the private sector partner to deliver projects on time and on budget, lowering costs over the full life cycle of assets. P3s mean that Canadians benefit from quality, high-performing infrastructure.

Canada is becoming a leader in P3s and the Government is committed to supporting the further development of the Canadian P3 market. In 2008, the Government established PPP Canada Inc., a federal Crown corporation to lead efforts in encouraging the use of P3s when they can generate better value for money. PPP Canada has managed the $1.25-billion P3 Canada Fund, the first infrastructure program in Canada dedicated to supporting infrastructure projects delivered through a P3 approach. With the recent announcement of a significant P3 Canada Fund contribution to the Southeast Light Rail Transit Line in Edmonton, over $715 million in federal contributions have been committed toward 15 projects, with $3.2 billion in capital costs.

P3 Canada Fund Investment in Edmonton Light Rail Transit

On March 14, 2013, the Government announced a P3 Canada Fund contribution of upto $250 million for the Southeast Light Rail Transit Line project in Edmonton. This project will provide additional transit capacity in Edmonton, supporting the development of an efficient and sustainable transportation system and contributing to long-term economic growth and productivity. The private sector partner of the City of Edmonton will be responsible for the design, construction, financing, operation and maintenance of the project, providing budget and timing certainty to theCity, and delivering value for taxpayers.

Building on progress achieved, Economic Action Plan 2013 proposes to provide $1.25 billion over five years on a cash basis to renew the P3 Canada Fund. The Fund will continue to focus on supporting innovative P3 projects that deliver value for money for all Canadians and develop the Canadian P3 market. This new investment will focus, in particular, on jurisdictions inexperienced with P3 procurement.

Supporting Public-Private Partnerships

PPP Canada Inc. has successfully launched four successive rounds of calls forproject applications to the P3 Canada Fund from provinces, territories and municipalities. Funding has been committed toward 15 P3 projects, totalling over $715 million in federal contributions to projects with more than$3.2 billion in capital costs. P3 Canada Fund contributions include up to:

  • $29.1 million for the Downtown Eastside Housing Renewal in Vancouver, a design-build-finance-maintain project that is currently under construction and will restore 13 single-room occupancy hotels to provide the homeless with access to stable housing with integrated support services.
  • $3.8 million for the Lac La Biche Wastewater Treatment Plant in Alberta, currently under construction, which will provide a new biological nutrient removal facility to service 15,000 residents.
  • $24.5 million for the Chief Peguis Trail Extension in Winnipeg, a design-build-finance-maintain project, which was completed in 2011 on budget and one year ahead of schedule.
  • $25 million for a train maintenance centre in the borough of Lachine in Montreal, Quebec that is currently under construction and that will maintain the current and future fleet of the Agence mtropolitaine de transport commuter trains and enhance service reliability for the benefit of public transit users.

Ensuring Maximum Value for Taxpayers on Large Infrastructure Projects

Economic Action Plan 2013 proposes to implement a P3 screen on projects with capital costs of more than $100 million submitted by provinces, territories and municipalities for funding under the Building Canada Fund.

Canadians deserve the best public services for their hard-earned tax dollars, and when an infrastructure project can generate better value for money by being delivered through a P3, it should be delivered as a P3.

In Budget 2011, the Government announced that all federal projects having capital costs of $100 million or more would be subject to a P3 Screen to determine whether a P3 will deliver greater value for taxpayers. Building on this initiative, Economic Action Plan 2013 proposes to implement a P3 Screen for projects with capital costs of more than $100 million that provinces, territories and municipalities submit for federal funding under the new Building Canada Fund.

These project proposals will be assessed to determine whether they could deliver better value through P3 procurement than through traditional procurement. When rigorous analysis shows that a project can be successfully delivered as a P3 and generate positive value for money, the federal government will make P3 procurement a condition of its contribution towards that project. PPP Canada is the Government of Canada's centre of expertise on P3s and will play a key role in supporting the application of the P3 screen.

Support for Assessments of Infrastructure Project Procurement Options

Economic Action Plan 2013 proposes to allocate $10 million from the renewed P3 Canada Fund to support procurement option assessments undertaken by provinces, territories and municipalities.

Under the P3 Screen, provinces, territories and municipalities will be required to assess a range of procurement options, including a P3 approach, when large infrastructure projects present P3 potential. This assessment will include a rigorous quantitative and financial analysis to determine whether a P3 approach would provide better value for money than a traditional procurement approach.

Economic Action Plan 2013 proposes to allocate $10 million from the renewed P3 Canada Fund to cover up to 50 per cent of the costs incurred by provinces, territories and municipalities for their procurement options assessments (to a limit of $200,000 per project). Further details regarding the application of the screen will be announced later this year.

Table 3.3.1
Federal Support for Provincial-Territorial-Municipal Infrastructure
on a cash basis, millions of dollars
  2014-
2015
2015-
2016
2016-
2017
2017-
2018
2018-
2019
2019-
2020
2020-
2021
2021-
2022
2022-
2023
2023-
2024
Total
Community Improvement Fund 2,890 2,910 3,035 3,060 3,200 3,245 3,295 3,445 3,495 3,650 32,225
New Building Canada Fund 210 210 780 1,000 1,500 2,000 2,000 2,100 2,100 2,100 14,000
  National Infrastructure Component 15 15 195 325 500 575 575 600 600 600 4,000
  Provincial-Territorial Infrastructure
    Component
195 195 585 675 1,000 1,425 1,425 1,500 1,500 1,500 10,000
P3 Canada Fund 200 225 275 275 275 0 0 0 0 0 1,250
 
Sub-total 3,300 3,345 4,090 4,335 4,975 5,245 5,295 5,545 5,595 5,750 47,475
 
Existing program funding 1,858 1,672 1,208 810 484           6,032
 
Total new Building Canada plan 5,158 5,017 5,298 5,145 5,459 5,245 5,295 5,545 5,595 5,750 53,507

Support for First Nations Infrastructure

Economic Action Plan 2013 proposes $155 million over 10 years for First Nations on-reserve infrastructure from the new Building Canada Fund, in addition to allocations from the Gas Tax Fund.

Under the new Building Canada plan, the Government will continue to provide support for investments in First Nations infrastructure projects on reserve such as roads, bridges, energy systems as well as other First Nations infrastructure priorities.

Funding of $155 million over 10 years will be allocated from the National Infrastructure Component of the new Building Canada Fund to the First Nations Infrastructure Fund managed by Aboriginal Affairs and Northern Development Canada. Funding from the Gas Tax Fund component of the Community Improvement Fund will also be allocated to the First Nations Infrastructure Fund, with this allocation based on First Nations population on reserve. This Fund focuses on five priority areas: improving First Nations energy systems (linking to power grids, sustainable energy systems), broadband connectivity, garbage disposal (including landfills and recycling), road and bridge projects, and improving community capacity for infrastructure planning. Funding allocated from the new Building Canada Fund and the Gas Tax Fund will be at least equivalent to the level of funding allocated under the 2007 Building Canada plan.

Continued Support Under the Capital Facilities and Maintenance Program

In addition to funding under the new Building Canada plan, Capital Facilities and Maintenance Program will continue to provide support to First Nations primarily for health and safety related infrastructure projects such as water, wastewater treatment facilities, schools, and housing. Approximately $7 billion over the next 10 years will be invested under existing programming in building, operating and maintaining infrastructure on reserve.

Investments in Federal Infrastructure

Investments in federal infrastructure support employment opportunities in communities across Canada and contribute to economic growth. Federal infrastructure plays a critical role in enabling the safe and efficient movement of people and goods. It also supports government operations and the delivery of services to Canadians.

In addition to the new Building Canada plan, the federal government will also continue to make significant investments in its infrastructure asset portfolio. Over the next five years, the Government will invest over $10 billion on a cash basis in federal infrastructure assets.

The Government will continue to ensure that federal infrastructure projects use the procurement approach that provides the best value for money, building on the success of federal projects delivered through P3 arrangements. For example, construction of the new headquarters for the Royal Canadian Mounted Police E Division in Surrey, British Columbia, was completed in December 2012. The Long-Term Accommodation for the Communications Security Establishment Canada in Ottawa is currently under construction, and is expected to be completed in 2014.

The Government is actively exploring the P3 potential of its two major bridge projects, the New Bridge for the St. Lawrence and the Windsor-Detroit International Crossing, in order to ensure value for taxpayers in delivering infrastructure investments for these important trade corridors.

The Government is also changing its approach to procurement and will introduce measures to support the use of apprentices in federal construction and maintenance contracts.

The New Bridge for the St. Lawrence

Economic Action Plan 2013 proposes to provide up to $124.9 million to build a bridge-causeway between Nuns Island and the Island of Montreal.

The Champlain Bridge is the busiest crossing in Canada. It provides an essential link for local commuters, and for businesses getting their goods to the marketplace. The Government has announced that it will build a new bridge over the St. Lawrence River to replace the Champlain Bridge and associated infrastructure. The environmental assessment process was launched in 2012 and consultations with partners and stakeholders are ongoing. In addition, contracts have been awarded to advance preparatory work supporting the procurement process. Delivering this project on time and on budget will be critical to ensuring that users can benefit from state-of-the-art, durable and affordable bridge corridor assets. The New Bridge for the St. Lawrence will provide lasting economic benefits to the municipalities on each side of the river and more broadly to the region as a whole.

Economic Action Plan 2013 proposes to provide up to $124.9 million to build a bridge-causeway to ensure the safety of commuters between Nuns Island and the Island of Montreal during the construction of the New Bridge for the St. Lawrence.

The Windsor-Detroit International Crossing

Economic Action Plan 2013 proposes to provide $25 million over three years to advance the Windsor-Detroit International Crossing project.

The Windsor-Detroit trade corridor is the most important international land crossing in North America, handling almost 30 per cent of Canada-U.S. surface trade worth $120 billion per year. An efficient and secure trade corridor is essential to both our economies. The Government has made progress in advancing the construction of a new bridge to facilitate the efficient movement of goods and people between Windsor and Detroit by concluding a historic governance agreement with the State of Michigan in June 2012 and by enacting legislation in December 2012.

The overall Windsor-Detroit International Crossing project will include a new six-lane bridge across the Detroit River, customs plazas on both sides of the border and a connection to Interstate 75 in Michigan. Construction of a parkway that will connect the new crossing to Highway 401 is already underway as a separate P3 project, supported by a federal contribution from the Gateways and Border Crossings Fund.

Economic Action Plan 2013 proposes to provide $25 million over three years to advance this important project into pre-procurement.

VIA Rail Canada and Passenger Rail Services for Remote Communities

Economic Action Plan 2013 proposes to provide $54.7 million in 2013-14 to support VIA Rails operations and $58.2 million over five years to maintain passenger rail services for remote communities that have limited access to the national transportation network.

Economic Action Plan 2013 proposes to provide $54.7 million in 2013-14 to support VIA Rails operations, and investments in its equipment.

Rail operators supported under Transport Canadas Regional and Remote Passenger Rail Class Contribution Program provide the only surface transportation option to several communities with no road links. Economic Action Plan 2013 proposes to provide $58.2 million over five years starting in 2013-14 to ensure that existing passenger rail services to remote communities can be continued.

Rehabilitation of Port Weller Dry Docks

Economic Action Plan 2013 proposes to provide up to $5 million in 2013-14 to support the rehabilitation of the Port Weller Dry Docks.

The St. Lawrence Seaway is an integral part of our transportation system and is vital for Canada's trade. The Port Weller Dry Docks facility, a federal asset located on the Welland Canal near St. Catharines and managed by the St. Lawrence Seaway Management Corporation, is 80 years old and in need of repairs.

Economic Action Plan 2013 proposes to provide up to $5 million to support the replacement of the main gate and other required repairs at the Port Weller Dry Docks, contingent on the private sector partner leasing the property contributing funds that match the federal investment.

Long-Term Vision and Plan for the Parliamentary Precinct

Economic Action Plan 2013 proposes to provide further support for the rehabilitation of the Parliamentary Precinct.

The historical Parliamentary Precinct is the seat of our country's parliamentary system and the focal point for national celebration and expression of democracy. In 2007, the Government laid out a comprehensive approach for the rehabilitation of the Parliament Buildings that also included the creation of a secure and welcoming environment for parliamentarians, staff, visitors and tourists. The immediate objective of this plan is the rehabilitation of the three main Parliament Buildings: the West, Centre and East Blocks.

Economic Action Plan 2013 proposes to provide further support for the rehabilitation of the West Block and Government Conference Centre buildings, as well as for the East Block exterior masonry rehabilitation.

Strengthening Canada’s Meteorological Services

Economic Action Plan 2013 proposes to provide $248 million over five years on a cash basis to Environment Canada to revitalize Canada's weather services.

For over 140 years, the Meteorological Service of Canada has provided Canadians with up-to-date information about the weather. This information is vital for protecting the health, safety, security and economic well-being of individuals and communities. To revitalize Canada's weather services, Economic Action Plan 2013 proposes to provide $248 million over five years on a cash basis to Environment Canada, including new investments in federal infrastructure such as radars, and surface weather and climate monitoring stations. Canadians will benefit from more timely, accurate weather warnings and forecasts in all parts of the country as a result of these important investments.

Highways and Highway Bridges in Canadas National Parks

Economic Action Plan 2013 proposes to provide $19 million in 2013-14 on a cash basis to the Parks Canada Agency for improvements to highways and associated bridges that pass through Canada's national parks.

The Parks Canada Agency is one of the largest guardians of capital assets in the federal government. To ensure that Canadians can continue to have safe and reliable road access to parks and other protected areas, Economic Action Plan 2013 proposes to provide $19 million in 2013-14 on a cash basis to the Parks Canada Agency for improvements to highways and associated bridges that pass through our national parks, including the Trans-Canada Highway.

Ongoing Federal Infrastructure Investments

In addition to new investments announced in Economic Action Plan 2013, the Government will make a number of significant investments in federal infrastructure assets across the country over the next five years.

For example, the Government will support the safe and efficient movement of people and goods through investments in transportation infrastructure, including:

  • $53 million over the next two years for major steel repairs and reinforcement of the Honor Mercier Bridge in the Montreal area, bringing the total investment in this project to $135 million.
  • An estimated $81 million over the next four years in capital improvements at federally-owned airports across the country.
  • $195 million over the next five years for the rehabilitation of various engineering (e.g. bridges, dams, highways) and marine assets owned by the Government.

Investments in border infrastructure are also being pursued under the Beyond the Border Action Plan (and are described in greater detail in Chapter 3.2—Helping Manufacturers and Businesses Succeed in the Global Economy).

The Government will also invest approximately $450 million over five years under the Small Craft Harbours Program, which supports maintenance and repair of the national network of harbours, providing fishermen on Canada's coasts with safe and accessible facilities.

The Government will also invest in assets to support the operations of the Canadian Armed Forces. Examples include:

  • An estimated $116 million over the next five years to support the construction of the Nanisivik naval berth and refuelling facility in Nunavut, which will support Canadas Arctic / Offshore patrol ships.
  • More than $430 million over five years beginning in 2014-15 to replace the major operational A and B jetties at Canadian Forces Base Esquimalt to serve the needs of the Royal Canadian Navy's Pacific Fleet.
Table 3.3.2
Federal Investments in Job Creating Infrastructure
millions of dollars
  2013-14 2014-15 Total
New Building Canada plan      
The New Building Canada Fund   210 210
 
Subtotal—New Building Canada plan 210 210
Investments in Federal Infrastructure      
The New Bridge for the St. Lawrence   14 14
The Windsor-Detroit International Crossing 10 9 20
Support for Passenger Rail Services 68 11 79
Rehabilitation of Port Weller Dry Docks 5  
Long-Term Vision and Plan for the Parliamentary Precinct 32 34 67
Strengthening Canada's Meteorological Services 6 33 39
Highways and Highway Bridges in Canada's National Parks 1 1 2
 
Subtotal—Investments in Federal Infrastructure 123 102 225
Total—Federal Investments in Job Creating Infrastructure 123 312 435
Less funds existing in the fiscal framework 48 63 111
Net fiscal cost 75 249 324
Note: Totals may not add due to rounding