Tab B: Briefing Notes - INFC

1. INFC Programming
1. Investing in Canada Plan – Status Update
2. OAG Audit of the Investing in Canada Plan
3. Integrated Bilateral Agreements
4. Disaster Mitigation and Adaptation Fund
5. Canada Community-Building Fund (currently Gas Tax Fund)
6. Programs Administered Through the Federation of Canadian Municipalities
7. Green and Inclusive Community Buildings
8. National Infrastructure Assessment
9. Canada Healthy Communities Initiative
10. Transit Funding
2. Rural and Broadband
11. INFC Funding for Rural and Northern Communities
12. INFC Broadband Funding
13. Eastern Ontario Regional Network Cellular Gap Project
14. Nunavut Undersea Fibre Optic Cable Project
15. Southwestern Integrated Fibre Technology (SWIFT) Project
16. Canada Infrastructure Bank – Broadband Investments
17. Affordable Housing Investments
3. Other
18. Indigenous Infrastructure Investments
19. Operational Funding for Municipalities and Transit - Safe Restart Agreement
20. Economic Impacts of Infrastructure Investments
21. Flow and Lapse of Funds
22. Financial Information – Main Estimates – INFC

I. INFC Programming

1. Investing in Canada Plan – Status Update

Topic

Through the Investing in Canada plan, the Government of Canada is investing more than $180 billion over 12 years in public infrastructure to build inclusive, connected and resilient communities across Canada.

Responsive Lines

• The Investing in Canada plan has committed over $81 billion and supported thousands of projects across the country that are building stronger, more inclusive communities and generating regional and national economic growth. The Plan is delivered through 93 programs and managed by 21 federal departments and agencies.
• Infrastructure Canada's Investing in Canada Infrastructure Program has invested over $343 million for 13 connectivity projects through the Rural and Northern Communities Infrastructure Stream and the COVID-19 Resilience stream.
• The Connect to Innovate program is also investing $500 million and will bring high-speed Internet to 975 rural and remote communities in Canada, including 190 Indigenous communities. Over 100 mostly rural communities now have high-speed internet, with hundreds more soon to be connected with over 22,000 km of fibre by 2023.
• In response to COVID-19, the Government of Canada created the new temporary COVID-19 Resilience stream, with over $3 billion available in existing funding, to provide provinces and territories with added flexibility to fund quick-start, short-term projects that might not otherwise be eligible under the existing funding streams. To date, nine provinces have submitted projects under this stream, with over 1317 projects approved. This will be critical for job creation and recovery.
• Infrastructure investment will be a cornerstone as we respond to COVID-19 and prepare to "build back better" in a post-pandemic recovery.
• The Investing in Canada plan provides a basis on which to build a refreshed and renewed infrastructure agenda. We have already begun to do so with a historic commitment to permanent public transit funding, Universal Broadband Fund and other initiatives.

Background

The Investing in Canada Plan comprises $95.6 billion in new funding for infrastructure programs, committed in Budgets 2016 and 2017. Additionally, the Plan is designed to deliver $92.2 billion through pre-Budget 2016 programs.

Infrastructure Canada reports on the Plan's progress via an online funding table, geomap and project list. It also reports annually on progress against the Plan's objectives through a supplementary horizontal initiatives table as part of Infrastructure Canada's Departmental Results Report. In addition, a progress report is produced that highlights the progress and results achieved under the Plan, highlighting the impacts it has on communities across Canada.

Response to COVID-19

Programs under the Plan are being modified to increase flexibility, in order to address new concerns in light of COVID-19. For example, the Canada Healthy Communities Initiative (CHCI) will provide up to $31 million in existing federal funding to support communities as they deploy new ways to adapt spaces and services to respond to immediate and ongoing needs arising from COVID-19 over the next two years.

Additionally, the Government of Canada is adapting the Investing in Canada Infrastructure Program to respond to the impacts of COVID-19. A new temporary COVID-19 Resilience stream, with over $3 billion available in existing funding, has been created to provide provinces and territories with added flexibility to fund quick-start, short-term projects that might not otherwise be eligible under existing funding streams.

2. OAG Audit of the Investing in Canada Plan

Topic

On March 25, 2021, the Office of the Auditor General (OAG) released its performance audit of the Investing in Canada Plan (the Plan).

Responsive Lines

• We welcome the Auditor General's report and findings. Infrastructure Canada agrees to implement the Auditor General's recommendation to more clearly report on progress made under the Investing in Canada plan.
• We are pleased to see confirmation that our reporting provides an accounting of the Plan's full $188 billion budget.
• Five years in, we are 40 percent of the way through the 12-year Plan and we have delivered over 40 percent of the funding available. We are on track and on time.
• The Plan supports infrastructure projects that build modern, resilient, inclusive and green communities across Canada. It is getting high-speed internet to Canadian households, cleaning our air and water, and making our communities safer, more resilient, and inclusive.
• The plan is delivering jobs and growth. The Plan is associated with the creation of 100,000 good, well-paying jobs each year and boosting our GDP at a time when we need it most.
• And the Investing in Canada Infrastructure Program is just under a third [28%] of the way to its GHG emissions reduction target of 10 Mt.
• That's the immediate benefit of building infrastructure. This is significant, measurable progress at a time we need it most.
• We agree with the Auditor General—the full value of these investments has yet to be tallied. The Investing in Canada plan was created to pay dividends for generations to come.

Flow of federal funding

• It is important to understand that the work that matters to Canadians, the "shovels in the ground," happens well before a dollar of federal money is ever spent.
• Under the majority of Infrastructure Canada's programs, construction work can begin once a project is approved. Jobs are being created, infrastructure is being built, and benefits are being realized even before federal funds officially flow. Infrastructure Canada pays when receipts are submitted – so our funding often flows last.
• The progress of infrastructure projects is up to the proponents. Sometimes, progress is not as fast as anticipated. In these cases, we defer the spending – we reprofile unspent funds to the future years when the costs are likely to be incurred.
• Reprofiling of funding contributes to a more back-end loaded overall funding profile. However, this would only put the ultimate objectives of the Plan at risk if the Government were to "turn off the taps" at the end of the 12 years instead of extending the programs, which it will not do.

Reporting on progress

• The Auditor General's report found that the 21 departments and agencies responsible for the 85 programs do not all report in exactly the same way, and do not all provide the same level of information—nor are they required to.
• This is to be expected given the scope and breadth of the Plan. Some of the programs, what we call "legacy programs," were created and in operation before the Investing in Canada plan was launched. These programs were not originally designed to report against the Investing in Canada plan's objectives, and thus the reporting is different.
• Some other programs do not submit reports that are as detailed, or complete, as others for two very good reasons.
• First, some programs, such as the Gas Tax Fund, are administered by partners according to pre-existing agreements that do not require the same level of details as those programs provided directly by the Government of Canada.
• And second, some programs such as the Supporting Shelters for Victims of Family Violence program delivered by the CMHC don't report details such as addresses for shelters that would compromise the safety of some of Canada's most vulnerable people.
• INFC will work with partner departments to improve reporting on existing "legacy" programs under the Plan. While our reporting on legacy programs could be strengthened, these programs are contributing to the Plan's objectives.

Sustainable Development Goals

• The Auditor General notes in the report that the Investing in Canada plan will very likely have meaningful impact in achieving the United Nations' Sustainable Development Goals (SDGs).
• Employment and Social Development Canada is responsible for reporting on the SDGs for the Government of Canada. While it is true that the Plan is not specifically designed to report progress against the SDGs, there is not a single SDG that is not advanced by programs under the Plan.

Background

The Auditor General's audit of the Investing in Canada Plan was undertaken in response to a motion adopted by House of Commons on January 29, 2020:

Motion of Mr. Berthold (Mégantic—L'Érable), seconded by Mr. Lehoux (Beauce):

That, given the Parliamentary Budget Officer posted on March 15, 2018, that "Budget 2018 provides an incomplete account of the changes to the government's $186.7 billion infrastructure spending plan" and that the "PBO requested the new plan but it does not exist", the House call on the Auditor General of Canada to immediately conduct an audit of the government's "Investing in Canada Plan", including, but not be limited to, verifying whether the plan lives up to its stated goals and promises; and that the Auditor General of Canada report his findings to the House no later than one year following the adoption of this motion.

During its audit, the Office of the Auditor General (OAG) collaborated with Canada Mortgage and Housing Corporation, Indigenous Services Canada, and Infrastructure Canada, selecting a number of their programs under the Plan to analyze in detail. Together these three departments account for 83% of the Plan's funding commitment.

The final OAG report, which was published on March 25, 2021, includes two principal findings and one recommendation:

• Finding 1: Infrastructure Canada was unable to report complete information on the Investing in Canada Plan.
• Finding 2: Federal partner organizations did not spend infrastructure funds as quickly as planned.
• Recommendation: To improve monitoring, tracking and reporting on progress towards the Investing in Canada Plan's objectives, Infrastructure Canada should work with its federal partners in the Plan and with central agencies to determine:
  • how to better measure progress of projects toward the objectives of the Plan;
  • which legacy programs are meant to contribute to the objectives of the Plan and how to report on them; and
  • what information the department needs from federal partners to provide complete and consistent public reporting on the Plan.

As part of her tabling of this audit, the Auditor General released a message noting that it is challenging for lead departments to successfully deliver a horizontal initiative, such as the Plan, without clear authorities and power. She called for the government to consider how it manages horizontal initiatives, and to improve coordination between federal departments.

3. Integrated Bilateral Agreements

Topic

Infrastructure Canada has signed long-term infrastructure agreements with all provincial and territorial partners to make unprecedented investments in public transit, green infrastructure, recreational, cultural, and community infrastructure, as well as rural and northern communities.

Responsive Lines

• Under the Investing in Canada Infrastructure Program Bilateral Agreements, Infrastructure Canada is providing $33.5 billion in funding for public transit, green, community, culture and recreational, and rural and northern infrastructure projects from coast to coast to coast.
• Five years in, over $12 billion for over 3,400 projects has already been approved, and an additional $7 billion is currently under review.
• The Investing in Canada Infrastructure Program now includes a new COVID-19 Resilience Infrastructure stream and expanded eligibilities under the program's previous streams to fund projects to help provinces and territories respond to the challenges of COVID-19.

Background

The Investing in Canada Infrastructure Program (ICIP) is the centrepiece of Infrastructure Canada's funding initiatives supporting the broader Investing in Canada plan.

This 10 year allocation-based program promotes strong collaboration between all levels of government by advancing outcomes in a manner that is flexible and responsive to unique local, provincial and territorial circumstances, and supporting local and regional decision-making in the realm of public infrastructure.

Provinces and territories (P/Ts), in consultation with municipalities and Indigenous communities, are responsible for identifying, prioritizing and submitting projects and flowing funds to eligible ultimate recipients.

Managed through Integrated Bilateral Agreements (IBAs), the ICIP was originally divided into four funding streams: Public Transit ($20.1 billion); Green Infrastructure ($9.6 billion); Community, Culture and Recreation Infrastructure ($1.3 billion); and Rural and Northern Infrastructure ($2 billion + $400 million).

With the onset of the COVID-19 pandemic, the new COVID-19 Resilience Infrastructure stream will help communities respond to the immediate pressures and concerns as a result of the current pandemic as well as build resiliency for the future. The new time-limited stream will have an increased federal cost-share for a broadened range of infrastructure projects and a simplified approval process to allow work to get underway quickly while respecting public health measures.

Five years into the 10 year program, approvals are as follows (Data as of April 7, 2021):

• Projects approved to date: 3,463, worth $12.79 billion (Projects approved and public are 1,722 worth $10.73 billion).
• Projects under review: 808, worth $7.302 billion
• 53% or $16.627 billion remains uncommitted

Examples of eligible projects include:

• Transit: New Light Rail Transit systems; extensions of existing subway systems; electric bus purchases; or removing barriers in the built environment, such as by providing wheelchair ramps at transit stations.
• Green: Renewable energy storage; strategic Interties; publicly-accessible electric vehicle (EV) charging stations; preservation of natural wetland systems, rehabilitation of public infrastructure to be climate resilient; or, water main and sewer replacement, waste diversion, and recycling facilities.
• Community, Culture and Recreation: Community centres, art galleries, community recreation and trail facilities, and community service hubs.
• Rural and Northern: Greenhouses, community freezers, short sea shipping wharves, and broadband projects.
• COVID-19 Stream: Upgrades to municipal buildings, hospitals or schools, temporary COVID-19 testing facilities, and active transportation pathways.

4. Disaster Mitigation and Adaptation Fund

Topic

The Disaster Mitigation and Adaptation Fund is a program aimed at strengthening the resilience of Canadian communities through investments in infrastructure projects, including natural infrastructure projects, enabling them to better manage the risk associated with current and future natural hazards, such as floods, wildfires and droughts.

Responsive Lines

• To date, the Government of Canada has announced over $1.9 billion for 69 large-scale infrastructure projects through the Disaster Mitigation and Adaptation Fund (DMAF) that will help protect Canadians, their homes and businesses, while reducing the long-term costs associated with replacing infrastructure following natural disasters.
• Of this, 34 projects are located in rural communities with a population under 100,000 – including 25 projects located in communities with a population under 30,000. Together, this represents a federal investment of over $881 million in rural communities to better mitigate the impacts of disasters.
• The majority of DMAF projects to date have been to mitigate against flooding events. In addition, wildfires, erosion, droughts, storm events, extreme weather and permafrost have been other areas of investment.
• Budget 2021 proposes to provide $1.4 billion to top up the DMAF to support projects, such as wildfire mitigation activities, rehabilitation of storm water systems and restoration of wetlands and shorelines. Of this, $670 million would be dedicated to new, small-scale projects between $1 million and $20 million in eligible costs.
• In addition, 10 percent of the total funding envelope ($138 million) would be dedicated to Indigenous recipients to benefit each distinctions-based group. Together, these investments would support projects that help small, rural, remote, northern, and Indigenous communities adapt to climate change impacts.

Background

The Disaster Mitigation and Adaptation Fund (DMAF) was launched on May 17, 2018. DMAF is a $2 billion national merit-based program that supports large-scale infrastructure projects to help communities better prepare for and withstand the potential impacts of natural disasters, prevent infrastructure failures, and protect Canadians and their homes. The DMAF funding envelope is almost fully exhausted. Infrastructure Canada is currently working on the details to launch a second call for proposals.

As of April 21, 2021, DMAF has funded 69 projects representing over $1.9 billion in federal funding. This includes 34 projects located in rural communities with a population under 100,000 representing over $881 million in federal investment, which includes 25 projects located in communities with a population under 30,000 representing an investment of over $741 million.

DMAF projects are geographically representative across all regions of the country. Federal investments by hazard type, including investments for rural communities with a population under 100,000 are as follows:

• Flood – 46 projects total over $2.3 billion, including 19 rural projects that total almost $565 million;
• Flood/Drought – 1 project that totals over $24 million for a rural community;
• Drought – 2 projects that total over $46 million for rural communities;
• Wildland Fire – 3 projects that total almost $60 million for rural communities;
• Erosion – 6 projects that total over $157 million, including 3 rural projects that total almost $67 million;
• Permafrost – 2 projects that total almost $40 million for rural communities;
• Storm/extreme temperatures – 8 projects that total about $135 million, including 4 rural projects that total over $80 million; and
• Earthquake – 1 project that totals over $15 million.

DMAF investments are supporting rural communities across the country – from over $24 million in federal investment to upgrade the Bay of Fundy dykeland system to protect 60 communities in Nova Scotia from the impacts of coastal flooding, to $16.5 million to the Inuvik airport to help protect against permafrost thaw.

5. Canada Community-Building Fund (Gas Tax Fund)

Topic

The federal Gas Tax Fund (GTF) is a permanent, legislated and indexed funding program that currently provides over $2 billion annually for municipal infrastructure.

Responsive Lines

• The federal Gas Tax Fund provides over $2 billion every year to 3,600 communities across the country, this funding supports approximately 4,000 projects per year. Municipalities are able to pool, bank, and borrow against this stable and predictable funding.
• In the 2021-2022 fiscal year, the total amount to be transferred will be $2.3 billion.
• Communities select how best to direct the funds with the flexibility to make strategic investments across 18 different project categories. The federal government does not review or approve projects under the Gas Tax Fund.
• As part of the government's ongoing response to the COVID-19 pandemic, an additional one-time transfer of $2.2 billion was announced, subject to enabling legislation, in recognition of the critical role our communities play in a safe restart.
• The government also intends to rename the currently known Gas Tax Fund as the Canada Community-Building Fund to better reflect the program's evolution over time.

Background

The federal Gas Tax Fund (GTF) is a permanent, legislated and indexed funding program that currently provides $2.2 billion annually for municipal infrastructure. In the 2021-2022 fiscal year, this amount will be increasing to $2.3 billion to account for inflation.

The GTF was established in 2005 and was originally designed to provide municipalities with $5 billion in predictable funding over five years. The program was extended and legislated as a permanent source of federal infrastructure funding for municipalities. The federal GTF (signed in 2014) has been indexed at 2% per year, to be applied in $100 million increments. From 2014 to 2024, the GTF will provide municipalities with close to $22 billion in infrastructure funding.

In 2019-2020, a top-up transfer of $2.2 billion was provided to municipalities. On March 25, 2021, the government introduced an Act of Parliament to provide $2.2 billion in additional funding to the federal Gas Tax Fund and change the name of the program to the Canada Community-Building Fund. The new funding and name change are both subject to the coming into force of the legislation.

Allocations are calculated on a per capita basis for provinces, territories and First Nations, and provide a base funding amount for smaller jurisdictions (Prince Edward Island and each territory).

Eligible categories of investment are broad and include public transit, local roads and bridges, drinking water and wastewater infrastructure, community energy systems, culture, recreation, disaster mitigation and capacity building.

The federal GTF provides annual infrastructure funding to more than 3,600 communities across the country. In recent years the funding has supported approximately 4,000 projects each year in 18 different categories.

The list Infrastructure Canada receives from recipients about projects funded by the GTF is only used to provide an estimate of funded projects. Recipients have full discretion to change the project scope or substitute projects after they have been reported to the department. Despite these limitations, the list provides a broad record of the kinds of projects being advanced by municipalities, and an indication of the overall use of funds under the program.

On June 5, 2020, a list of projects under the GTF was provided to the Parliamentary Budget Officer in response to the request to clarify the number of projects reported under the Investing in Canada plan. The federal government does not review or approve projects under the GTF, and recipients are responsible for reporting on the outcomes of their projects to their residents.

6. Programs Administered Through the Federation of Canadian Municipalities

Topic

The Federation of Canadian Municipalities (FCM) is a key stakeholder and partner in the delivery of public infrastructure funding programs. The Government works with the FCM to respond to the needs of the communities they represent.

Responsive Lines

• The Government of Canada works with the Federation of Canadian Municipalities (FCM) to help municipalities strengthen their asset management practices, reduce greenhouse gas emissions and manage the impacts of climate change.
• The FCM administers funding from Infrastructure Canada to support initiatives that help Canadian municipalities in making smart, data-driven decisions about key infrastructure to better prepare for and adapt to the new realities of climate change as well as reduce greenhouse gas emissions.
• These programs also support initiatives that advance innovative solutions to environmental challenges to improve air, water and land quality, reduce greenhouse gas emissions, and generate economic and social benefits to local communities.

Background

The Green Municipal Fund supports grants, loans and loan guarantees to encourage investment in environmental municipal projects. Since 2000, the Green Municipal Fund has financed more than 1,360 municipal sustainability initiatives. These projects have cut 2.7 million tonnes of greenhouse gas emissions through $946 million worth of approved sustainability initiatives.

Budget 2019 significantly expanded the work of the Green Municipal Fund. Three initiatives are being implemented through this additional funding:

• Making affordable and social housing units more energy efficient.
• Supporting home energy projects to make homes more affordable and energy efficient.
• Supporting activities that reduce greenhouse gas emissions from large community buildings.

The Federation of Canadian Municipalities (FCM) delivers two programs funded by Infrastructure Canada, that were launched in February 2017:

• The Municipal Asset Management Program
  • Initially designed as a five-year, $50 million program. Budget 2019 committed to provide an additional $60 million in funding extending the program for an additional three years to 2024-2025.
  • The program provides funding to municipal governments and municipal partners to support the strengthening of asset management practices, including planning, municipal data collection, and awareness among municipal leaders.
  • The program has funded over 700 municipal asset management projects and partner grants reflecting federal investments over $39 million.
• The Municipalities for Climate Innovation Program
  • Initially a five-year, $75 million program, the program duration has been extended by one year to ensure projects impacted by COVID-19 could be completed.
  • The program provides funding, training and resources to help Canadian municipalities adapt to the impacts of climate change and reduce greenhouse gas emissions. The Program is scheduled to end in March 2022 and is fully subscribed.
  • The program has funded 276 municipal climate capital projects, reflecting federal investment of $48.5 million.

7. Green and Inclusive Community Buildings

Topic

Announced as part of Canada's Strengthened Climate Plan, the $1.5 billion Green and Inclusive Community Buildings (GICB) program will provide funding support for green and inclusive retrofits of existing community buildings and for the construction of new community buildings that achieve green and inclusive outcomes.

Responsive Lines

• The Government of Canada recognizes that investments in green and inclusive community buildings will help shape a resilient economic recovery that includes all Canadians.
• The Green and Inclusive Community Buildings (GICB) program is part of the Government of Canada's strengthened climate plan. It will invest $1.5 billion in community infrastructure projects across Canada over the next five years.
• This investment will support good jobs and economic growth, contribute to achieving Canada's climate objectives, and help serve disadvantaged populations. It will fund retrofits that will improve energy efficiency of existing community infrastructure, as well as new build projects that are net-zero, net-zero ready or at the highest efficiency level, where net-zero still not practical, such as in the North.

Background

On December 11, 2020, the federal government released Canada's Strengthened Climate Plan, A Healthy Environment and a Healthy Economy. Included in this plan is $1.5 billion in funding for the new Green and Inclusive Community Buildings (GICB) program, with funding that starts in April 2021 and ends in March 2026.

The program launched on April 14, 2021, and will be delivered directly by Infrastructure Canada (INFC). Eligible recipients include provinces and territories, municipalities, local service districts, not-for-profits, and Indigenous governments and organizations.

The purpose of the program is to make community buildings "greener" while improving the condition and broad availability of these buildings across Canada for the benefit of communities with a particular emphasis on serving underserved communities and high-needs groups. To do this, the GICB program will fund building retrofits that decrease greenhouse gas emissions and advance best practices for improved energy efficiency and climate resilience. The program will also support construction of new community buildings that will achieve net-zero carbon, net-zero carbon readiness or the highest efficiency standards where net-zero is still impractical (e.g. in the north).

Investments in retrofits and new construction of community buildings infrastructure in the short-term are also intended to generate employment and community development opportunities, helping communities to recover from the impacts of COVID-19.

In keeping with the Government of Canada's commitment to move forward with Indigenous peoples along a shared path of reconciliation, the GICB program has also earmarked 10% of the funding envelope ($150 million) for projects benefiting Indigenous communities. This is a minimum level of funding reserved for such projects, and projects will also be considered for the ways in which they help to close socio-economic gaps and eliminate systemic barriers facing First Nations, Inuit, and Métis peoples as well as non-status and unaffiliated Indigenous populations in urban centres.

8. National Infrastructure Assessment

Topic

On March 16, 2021, the Minister of Infrastructure and Communities launched an engagement process about Canada's first-ever national infrastructure assessment.

Responsive Lines

• The Government has committed to conducting the country's first-ever National Infrastructure Assessment to inform long-term planning toward a net-zero emissions future.
• The Assessment will provide independent advice based on data, varied expertise and engagement, on how infrastructure investments can best achieve the government's core objectives.
  • Long-term infrastructure planning is considered a global best practice and have already been implemented in the United Kingdom and Australia.
• We have already launched an engagement process to seek feedback from other governments, Indigenous groups, and the private sector about conducting the Assessment. Once this engagement concludes, we will move on to the next steps of this process.

Background

As part of Canada's strengthened climate plan, A Healthy Environment and a Healthy Economy, the Government of Canada announced its intention to conduct Canada's first-ever national infrastructure assessment starting in 2021, to identify the needs and priorities for Canada's infrastructure, and plan for a net-zero emissions future by 2050. This work will build on the Government's 12-year Investing in Canada Plan. Budget 2021 also proposes to provide $22.6 million over four years to the National Infrastructure Assessment, starting in 2021-22.

Long-term infrastructure planning is a global best practice recommended by the IMF and OECD and has been adopted in other advanced economies, including Australia and the UK. This Assessment will benefit all Canadians by strengthening long-term infrastructure planning, and helping all orders of government make informed decisions about infrastructure projects that ensure we have stronger, cleaner, more resilient communities. Ultimately, stronger planning and better decision-making today will result in better infrastructure tomorrow, which will benefit younger and future generations, promote jobs and growth, foster inclusivity and social equality, and reduce greenhouse gas emissions.

The first milestone for the National Infrastructure Assessment was the release of Building the Canada We Want in 2050: Engagement Paper on the National Infrastructure Assessment. It underscored that the Government of Canada's infrastructure investments are focused on achieving three core objectives: promoting economic growth, job creation and competitiveness; tackling climate change and increasing resilience; and improving social inclusion and quality of life for all Canadians.

To achieve these objectives, the Engagement Paper announced that the assessment will focus on three priorities:

• Assessing infrastructure needs and establishing a long-term vision: The assessment will allow for a comprehensive, evidence-based and expert-driven assessment of Canada's infrastructure near and medium-term needs, and establish a long-term vision for public and private infrastructure investments.
• Improving coordination between infrastructure owners: The assessment will examine and provide advice on how to improve coordination, collaboration and alignment among public and private sector infrastructure owners and funders, and in doing so will respect jurisdictional boundaries within Canada's federation and the self-determination of Indigenous Peoples.
• Determining the best ways to fund and finance infrastructure: The assessment will support a better understanding of the gap between the current state of Canada's infrastructure and future needs, and will explore opportunities to improve public and private sector funding, financing and innovative ways to pay for the infrastructure Canada needs.

The Engagement Paper also outlined the Government's intention to engage directly with provinces and territories, as well as First Nations, Inuit and Métis Peoples on a distinctions-basis to seek their views on the Assessment's priorities. Mayors and municipal leaders will also be engaged, including in partnership with the Federation of Canadian Municipalities. Feedback is also welcomed from experts, industry leaders, and various organizations in the private, non-profit, and civil society sectors, to inform the assessment's priorities and the next steps for carrying out the assessment.

Following the engagement process, the Government will consider the next steps for the National Infrastructure Assessment, including establishing an independent advisory body, setting out the processes for obtaining expert advice, ongoing public engagement and producing interim studies and reports to inform infrastructure policy and investment.

The UK National Infrastructure Assessment

Infrastructure assessments in the UK are undertaken by the UK National Infrastructure Commission. The Commission is an executive agency of the Treasury that provides impartial, expert advice and make independent recommendations to the government on economic infrastructure.

The Commission is required to carry out an assessment of the UK's infrastructure requirements every five years, guided by its objectives to support sustainable economic growth throughout the UK, improve competitiveness and improve quality of life.

In 2018, the Commission released its first National Infrastructure Assessment, covering all sectors of economic infrastructure (broadly defined to include transport, energy, water and waste water, flood resilience, digital connectivity, and solid waste). This Assessment involved an engagement with both the public across the UK as well as industry experts and academics. Work on the Assessment involved a number of activities:

• October 2015 to April 2016: Creating and setting up the Commission
• May 2016 to October 2016: Scoping and Methodology (including initial consultations)
• November 2016 to October 2017: Vision and Priorities (interim report published in October 2017)
• October 2017 to July 2018: Conclusions and Recommendations (final report published in July 2018)
• June 2018 to November 2020: Government Response (final response published in November 2020)

Infrastructure Australia

Infrastructure assessments in Australia are undertaken by Infrastructure Australia, which is an independent body that advises governments, industry and the community on the investments and reforms needed to deliver better infrastructure. Their work follows a five-year policy cycle.

• Every five years, Infrastructure Australia conducts an infrastructure audit, which presents a forward-looking view of the country's infrastructure needs.
• Following the Audit, they produce an Australian Infrastructure Plan, which provides a roadmap for infrastructure reform that responds to the challenges and opportunities identified in the Audit. The Plan sets out detailed recommendations to deliver better infrastructure.
• Their "Prioritising Reform" report provides a two-year update on the progress of infrastructure reform identified in the Australian Infrastructure Plan.
• In addition, they also maintain an infrastructure priority list to provide decision makers with advice and guidance on specific infrastructure investments. It draws on evidence from the Audit and proposals from proponents around Australia.

Infrastructure Australia has released two Infrastructure Audits (2015 and 2019). The 2015 Audit focused on sectors of transport, energy, telecommunications, and water while also discussing implications for growth and the future. The 2019 Audit discussed progress made since the first Audit and also included social infrastructure. The next Plan will be released in 2021.

The approach to developing the 2019 Audit was informed by strategic foresight methods (rather than extrapolating the future from past trends). These methods were applied to develop a three-stage methodology of horizon scanning, interpretation and analysis, and identifying challenges and opportunities. Infrastructure Australia also drew evidence from government agencies and industry representatives while commissioning supporting papers to supplement the second Audit's evidence base.

Unlike in the UK, the Australian Government is not required to formally respond to either the Audit or the Infrastructure Plan. However, the advice contained in both documents has influenced both the federal and state governments in Australia. In particularly, state governments have invested more time in planning and prioritizing investments as a result of the advice provided by Infrastructure Australia.

9. Canada Healthy Communities Initiative

Topic

The Canada Healthy Communities Initiative (CHCI) will provide up to $31 million in existing federal funding to support communities as they deploy new ways to adapt spaces and services to respond to immediate and ongoing needs arising from COVID-19 over the next two years.

Responsive Lines

• COVID-19 has exposed a real need for low-cost, locally-driven ideas to help communities adapt and thrive. Whether it's pop-up bike paths, community gardens, art installations or Wi-Fi hot spots, Canadians want to work, play and learn in safe, vibrant and inclusive communities.
• The Canada Healthy Communities Initiative will support small-scale infrastructure-related projects. These projects can have a big impact as local governments, Indigenous communities and their non-profit partners rethink public spaces. Some of the proposed initiatives include new multi-purpose community spaces; opened streets for increased pedestrian zones and active transportation; and virtual farmers' markets to connect farmers and consumers.
• Through an open and competitive call for applications, Community Foundations of Canada was selected to work directly with communities to identify and fund local projects and solutions to the challenges presented by COVID-19. They launched their application portal on February 9, 2021, with the first intake having closed on March 9, 2021. The response from communities across Canada has been significant – over 3000 applications totalling $356 million. The first funding announcement occurred on March 24, 2021 - $95,000 to expand March of Dimes' "Hi, Tech!" program which helps people with disabilities learn how to use virtual platforms to access services and reduce social isolation. A second intake will open in mid-May.
  

Background

Announced by Minister McKenna on August 13, 2020, the Canada Healthy Communities Initiative (CHCI) will provide up to $31 million in existing federal funding to support communities as they deploy new ways to adapt spaces and services to respond to immediate and ongoing needs arising from COVID-19 over the next two years.

Community Foundations of Canada (CFC) was selected by Infrastructure Canada through an open and competitive call for applications to work directly with communities to identify and fund local projects and solutions to the challenges presented by COVID-19. CFC will receive up to $31 million in funding over two years to identify and fund local community projects that can be put into place quickly to improve the lives of Canadians. CFC launched their application portal on February 9, 2021, with the first intake having closed on March 9, 2021. A second application intake will open May 14, 2021 and close on June 25, 2021. The first funding announcement occurred on March 24, 2021, with funding flowing to projects beginning mid-April 2021.

The Initiative will ultimately support projects in communities under three main themes:

• Creating safe and vibrant public spaces
  • Projects that create or adapt existing public places such as parks, main streets, and indoor spaces that encourage safe cultural or physical activities, and local commerce.
• Improving mobility options
  • Projects that permit physical distancing through permanent or temporary changes that make it easier for people to get around in their communities, whether walking, biking, accessing public and private transit, or other modes of transportation.
• Digital solutions
  • Innovative digital projects that address changing community needs through the use of data and connected technologies.

Funding for the Initiative is being repurposed from existing funding for a second Smart Cities Challenge competition to support communities in dealing with the immediate and ongoing challenges posed by COVID-19. The implementation of the first round of the Smart Cities Challenge is ongoing, with planning for a future competition postponed due to the impacts of COVID-19.

10. Transit Funding

Topic

Funding pressures the Government of Canada is facing given Ontario, Quebec, Alberta and British Columbia have either come forward or are expected to come forward with an ask for additional funding to cover the costs of major transit projects.

Responsive Lines

• Safe, modern, and efficient public transit systems are important for the health and sustainability of communities. That is why the Government of Canada is making significant investments in public transit projects.
• Under the Public Transit Infrastructure Stream of the Investing in Canada Infrastructure Program, the Government of Canada has approved over $6 billion of the $17.5 billion available to support nearly 300 transit projects across Canada. 
• With this funding, we are supporting major transit projects across the country, including the Broadway Millennium line in Metro Vancouver; the Edmonton Metro Line Northwest Light Rail Extension and Valley Line West Light Rail Transit; and the procurement of Azur subway cars by the Société de transport de Montréal.
• In addition to these investments, on February 10, 2021, the Prime Minister announced another $14.9 billion for public transit projects over eight years. This funding will support the acceleration of major transit projects across the country, reductions in Canada's GHG emissions, active transportation projects that support healthy lifestyles, and transit solutions for rural and remote Canadians.
• It also includes permanent funding of $3 billion per year for Canadian communities beginning in 2026-27, complementing ongoing investments from the Canada Infrastructure Bank.

Background

New transit program

The $14.9 billion announced by the Prime Minister on February 10, 2021 will support:

• The acceleration of major transit projects across the country through funding for planning and capital construction
• A reduction in GHG emissions through an investment of $2.75 billion in zero-emission vehicles and related infrastructure, which will complement the work of the Canada Infrastructure Bank
• Healthier lifestyles in communities across Canada through $400 million in funding for active transportation projects
• Canadians living in rural and remote areas through an investment of $250 million to support transit solutions that meet their needs.

It also includes permanent transit funding of $3 billion per year for Canadian communities beginning in 2026-27.

Looking forward, Infrastructure Canada will be consulting with all orders of government, Indigenous communities, transit agencies, and other stakeholders to develop an approach for the permanent public transit funding to ensure our investments deliver the greatest benefits to Canadians, and responds to the real transit needs of communities.

ICIP investments in transit

Ontario

Ontario was allocated $7.5 billion under the ICIP Public Transit Infrastructure Stream to build new urban transit network and service extensions. To date, the Province has submitted a total of 270 public transit projects for funding consideration (250 projects have been approved, 20 remain under review), which represents approximately $6 billion.

In terms of major transit projects, the Province of Ontario has prioritized a total of seven projects in the Greater Toronto and Hamilton Area, and is seeking a federal commitment to fund a minimum 40% of the provincial priority projects, requesting an additional $7.5 billion beyond the $5.1 billion already notionally allocated for these projects under the Investing in Canada Infrastructure Program (ICIP).

• These seven projects include five provincial priorities: Ontario Line, Scarborough Subway Extension, Yonge North Subway Extension, Eglinton Crosstown West Extension and the Hamilton Light Rail Transit project; and two projects put forward by the City of Toronto: Bloor-Yonge Station Capacity Enhancement and SmartTrack Stations.
• The preliminary cost estimate for the six major transit projects in Ontario is approximately $33.8 billion.
• [redacted]

British Columbia

British Columbia has allocated over $1.5 billion in federal funding to 20 transit projects with both Translink and BC Transit. Major transit investments include the Broadway Millennium line and the Expo Millennium Line Upgrades in Metro Vancouver. Mayors Council (Metro Vancouver) continues to advocate for increased federal investment in transit.

Alberta

In Alberta, three light rail transit projects (Metro Line NW and Valley Line West in Edmonton, Green Line in Calgary) have been approved for a total federal contribution of more than $2.5 billion under ICIP (both Green and Transit streams). Both cities have advocated for more stable and permanent transit funding to continue developing transit lines, but also to explore conversion to more efficient buses.

Quebec

Six public transit projects have been approved under the Investing in Canada Infrastructure Program (ICIP) in Quebec, representing a total federal contribution of almost $2.66 billion, including the Blue Line in Montréal and the Réseau Structurant in Quebec City. The remaining allocation under the Public Transit Stream in Quebec amounts to $2.38 billion.

Several other major public transit projects currently under study are listed in the Plan Québécois des infrastructures (PQI) 2021-2031, representing at least $16.1 billion in additional investments. Moreover, additional investments of $18.7 billion would be made by CDPQ Infra. Quebec plans a grand total investment of $49 billion in transit over 10 years.

Based on available information, the Structuring Electric Public Transit Project Between Western Gatineau and Downtown Ottawa should be the next major project presented by Quebec for funding. Under the IBA, approximately $171 million is available for the Société de transport de l'Outaouais (STO).

Safe Restart Agreement

In July 2020, the Government of Canada announced the Safe Restart Agreement, a federal investment of over $19 billion to help provinces and territories restart their economies while protecting the health of Canadians. The investment included a contribution of up to $2 billion to support municipalities with COVID-19 operating costs for six to eight months, and a commitment to cost-match more than $2.3 billion to support any additional provincial or territorial contributions for public transit.

II. Rural and Broadband

11. INFC Funding For Rural and Northern Communities

Topic

Investments made through the Investing in Canada Infrastructure Program towards supporting rural communities.

Responsive Lines

• The Government of Canada recognizes the importance of our rural communities to our economy and our cultural identity. The impact that the COVID-19 pandemic has had on rural Canada is equally unique. The Government of Canada is committed to addressing rural needs and seeing to our national recovery.
• The Investing in Canada Infrastructure Program is one way the Government of Canada is delivering funding to communities through the Investing in Canada Plan. Under the Program, over $33-billion in funding is being delivered through bilateral agreements between Infrastructure Canada and each of the provinces and territories. These investments are being made through targeted funding streams: Public Transit, Green Infrastructure, Community, Culture and Recreation, and Rural and Northern Infrastructure.
• Through the Investing in Canada Infrastructure Program, Infrastructure Canada has approved funding of $3.2 billion for more than 2,000 projects in rural communities. This includes funding through the Rural and Northern Stream, which is specifically dedicated to investing in rural and northern communities, and supports a range of projects including broadband, clean drinking water, roads and community centres.
• In response to the pandemic, the Government of Canada adapted the Investing in Canada Infrastructure Program by adding the new COVID-19 Resilience stream, which adds flexibilities, expands project eligibility and accelerates approvals.
• In addition, $120 million in new funding was also recently added under the COVID-19 stream to improve ventilation in public buildings to help reduce the risk of aerosol transmission of COVID-19.
• To date, 1,317 projects have been approved overall under the COVID-19 Resilience stream, representing a federal investment of $1.4 billion – including 530 projects in rural and remote communities.

Background

Investing in rural infrastructure enhances rural Canadians' quality of life and supports local economies, which, in turn, can create job opportunities and improve household incomes.

The Investing in Canada Infrastructure Program (ICIP) is the centrepiece of Infrastructure Canada's funding initiatives supporting the broader Investing in Canada plan.

Managed through Integrated Bilateral Agreements (IBAs), the ICIP was originally divided into four funding streams: Public Transit ($20.1 billion); Green Infrastructure ($9.2 billion); Community, Culture and Recreation Infrastructure ($1.3 billion); and Rural and Northern Infrastructure ($2 billion + $400 million through the Arctic Energy Fund).

Each of these streams is making important infrastructure investments in rural communities across the country:

• The Green Infrastructure Stream is providing $9.2 billion towards green infrastructure to help communities reduce greenhouse gas emissions, reduce air and water pollution, provide clean water, and increase resilience to climate change.
• To date, 804 projects have been approved under the Green Infrastructure stream, representing a federal investment of over $3 billion.
• For rural and remote communities, 712 projects have been approved, representing a federal investment of $ $1.6 billion.

• The Community, Culture and Recreation Infrastructure stream is providing $1.3 billion towards community, culture and recreation infrastructure, recognizing the role that engaged, active citizens play in ensuring the strength of our communities and how social infrastructure investments enhance Canadians' overall quality of life.
• To date, 610 projects, have been approved under the Community, Culture and Recreation Infrastructure stream of the Investing in Canada Infrastructure Program, representing a federal investment of over $715 million.
• For rural and remote communities, 429 projects have been approved, representing a federal investment of $337 million.
• These investments will help build inclusive communities by supporting projects that improve cultural infrastructure, like museums and Indigenous heritage centers, support upgrades to recreational facilities, like arenas, and improve community infrastructure, like community centers and libraries.

• The Rural and Northern Communities Infrastructure stream is providing $2.4 billion to rural and northern communities, including $400 million through the Arctic Energy Fund.
• To date, 446 projects, such as broadband Internet connectivity, roads, and facilities to improve food and energy security, have been approved under the Rural and Northern Communities Infrastructure stream, representing a federal investment of over $1 billion.

• The new COVID-19 Resilience stream adds flexibilities to the Investing in Canada Infrastructure Program, expands project eligibility and accelerates approvals.
• To date, 1317 projects have been approved under the COVID-19 Resilience stream, representing a federal investment of $1.4 billion. For rural and remote communities, 530 projects have been approved, representing a federal investment of $267 million.
• Investments under the COVID-19 Resilience Infrastructure stream will support projects within five categories:
  • Retrofits, repairs and upgrades for municipal, territorial, provincial and Indigenous buildings, health infrastructure and schools;
  • COVID-19 response infrastructure, including measures to support physical distancing;
  • Active transportation infrastructure, including parks, trails, foot bridges, bike lanes and multi-use paths;
  • Disaster mitigation and adaptation projects, including natural infrastructure, flood and fire mitigation, and tree planting and related infrastructure; and
  • Ventilation improvements projects.

12. INFC Broadband Funding

Topic

Broadband investments through the Investing in Canada Infrastructure Program.

Responsive Lines

• Achieving the Government of Canada's objective of universal broadband access requires significant public and private sector funding.
• Funding for broadband projects is available through the Investing in Canada Infrastructure Program. To date, 13 broadband projects, representing over $343 million in federal funding, have been approved under the Rural and Northern Infrastructure stream.
• Funding from the Rural and Northern Infrastructure stream is supporting faster and more reliable broadband access to ensure Canadians can fully participate in the digital economy, telehealth and e-learning, no matter where they live.

Background

The Government of Canada recognizes the importance of connectivity for Canadians, as well as the scale of this challenge. Connecting all Canadians by 2030, including those in communities who are hardest to reach, requires the use of the most appropriate technology and all available tools to ensure that we can reach our goal.

As part of Infrastructure Canada's Investing in Canada Infrastructure Program (ICIP), funding for broadband is available through the $2 billion Rural and Northern Infrastructure stream. Broadband is of significant interest for provinces and territories: for example, Nunavut dedicated its entire allocation to a fibre broadband project.

To date, 13 broadband projects with a federal contribution of $343 million ($343,838,876) have been approved under the Rural and Northern Infrastructure stream and over $19 million ($19,399,313) has already been spent.

To better facilitate broadband investments in rural and Northern communities, federal cost-sharing for broadband projects with for-profit private sector recipients under the Rural and Northern Communities Infrastructure stream has increased to up to 50% of total eligible costs in provinces and up to 75% in the territories and Indigenous communities.

In response to the COVID-19 pandemic, a series of changes were made to the ICIP program, including the expanded eligibility under the Rural and Northern Infrastructure stream to include mobile/cellular projects that are able to start construction by September 30, 2023.

13. Eastern Ontario Regional Network Cellular Gap Project

Topic

The Eastern Ontario Regional Network's Cellular Gap Project will address cellular gaps in Eastern Ontario by improving service coverage and quality across the region.

Responsive Lines

• Strong and reliable cellular services are key to fostering social inclusivity and creating more economic opportunities in Canada, while also improving public safety. That is why the Government of Canada is investing $71 million in the Eastern Ontario Regional Network's Cellular Gap Project.
• The Cellular Gap Project will reduce dead zones that exist along main transportation arteries and pose a public safety risk, enhance delivery of public services in sparsely populated areas, improve social inclusion, and support economic development.
• The Cellular Gap Project's minimum coverage targets include:
  • 99% for voice calling services;
  • 95% for standard-definition (SD) level services, such as video-application calls, basic application usage and streaming of SD video; and
  • 85% for high-definition video and more data-intensive applications.

Background

The Eastern Ontario Regional Network (EORN) is a not-for-profit organization owned by the Eastern Ontario Wardens Caucus (EOWC). The organization completed a $175 million high-speed broadband project in 2015, which included a $55 million federal contribution from the Building Canada Fund – Major Infrastructure Component.

EORN's Cellular Gap Project was approved under the Rural and Northern Communities Infrastructure Stream of the Investing in Canada Infrastructure Program on June 26, 2019 based on total eligible costs estimated at $213 million. The project will expand and enhance EORN's high-capacity, fibre-optic backbone network established by the broadband project to improve cellular service coverage and quality across the region.

The federal contribution of $71 million was matched by the Province of Ontario with the balance covered by $10 million in funding from EOWC and an expected $61 million investment from the telecommunication service provider selected through a Request for Proposals (RFP).

The RFP was issued on April 20, 2020 and closed on September 3, 2020, with submissions received from Bell Mobility and Rogers Communications. Rogers Communications was selected as the successful bidder [redacted]. In addition, the company will meet or exceed coverage targets for voice call (99%), standard definition (95%) and high definition (85%) service.

The contract with Rogers Communications was finalized in late winter and jointly announced with INFC and the Province of Ontario on March 24, 2021.

Infrastructure Canada has confirmed with the Province of Ontario and EORN that there are no federal environmental assessment requirements for the project though work continues on clarifying obligations for Indigenous consultation.

The project is expected to start construction this spring with completion targeted for December 2025.

14. Nunavut Undersea Fibre Optic Cable Project

Topic

The Nunavut Fibre Optic Project will deliver fibre optic cable-based high-speed internet to the communities of Iqaluit and Kimmirut, which are currently reliant on satellite-based service.

Responsive Lines

• Rural and northern communities have unique infrastructure needs. Investing in modern and efficient infrastructure supports local economies, which in turn can create job opportunities, improve household incomes, and enhance quality of life for those living and working in rural and northern regions.
• The Nunavut Fibre Optic project will benefit from $151 million in federal funding, enabling a dramatic improvement in internet service to over 3200 households in Iqaluit and Kimmirut, as well as to businesses and government services.
• The project will contribute the Government of Canada's goal of connecting all Canadians to high-speed internet by 2030.

Background

In August 2019, the Government of Canada announced approval of $151 million in funding for the Nunavut Undersea Fibre Optic project, through the Rural and Northern Stream of the Investing in Canada Infrastructure Plan. The Government of Nunavut is providing the balance of the project's $203 million budget.

The project will improve internet access in these communities, which are currently reliant on slow and expensive satellite-based service. Once complete, residents will have access to 50/10 megabit per second download/upload speeds, in accordance with the federal government's goal of providing this level of service across Canada. The project will also benefit businesses, and enable improvement of government services such as telehealth and distance learning.

The original routing for the project involved a connection to existing broadband service in Nuuk, Greenland. However, following federal approval in 2019, Nunavut indicated it was investigating alternative routes, and that the project would be delayed. In early 2021, Nunavut informed the federal government that its preferred option is to instead connect to the northern terminus of a cable expected to be built by the Kativik Regional Government (KRG) in northern Quebec using funding from the CRTC Broadband Fund announced in March 2021.

Nunavut anticipates bringing the revised project to Infrastructure Canada for consideration in summer 2021, once it has concluded negotiations with KRG. The project is slated to proceed with procurement in late 2021 and to commence construction in 2022. Service would begin in 2024.

The revised project routing is considerably shorter than the approved Greenland route, and the cost to construct is expected to be less than the total project budget of $203 million. This could provide the opportunity to redeploy some of the approved $151 million federal funds to other ICIP projects, or to an expansion of the fibre project to serve other communities.

15. The Southwestern Integrated Fibre Technology (SWIFT) Project

Topic

• The Southwestern Integrated Fibre Technology (SWIFT) project will bring high-speed broadband connectivity, based on the CRTC standard of 50/10 Mbps, to residences and businesses in over 300 communities with populations under 100,000.
• The federal contribution of $63.7 million was approved in June 2016 under the Small Communities Fund of the New Building Canada Fund, and is matched by the Province of Ontario.

Responsive Lines

• In July 2016, the governments of Canada and Ontario announced joint funding for the South West Integrated Fibre Technology (SWIFT) project, which will build new fibre-optic infrastructure that will connect to current networks throughout Southwestern Ontario. Once the initial build phase is completed, ultra high speed Internet service will be accessible in approximately 310 small communities.
• The SWIFT project will bring fibre optic technology and infrastructure closer to customers, making it easier for Internet service providers to connect homes and businesses to an ultra high speed broadband network.
• Federal funding for the SWIFT project will benefit one town (Caledon), two regions (Waterloo, Niagara) and 14 counties.

Background

The Southwestern Integrated Fibre Technology (SWIFT) project will bring high-speed broadband connectivity, based on the CRTC standard of 50/10 Mbps, to residences and businesses in over 300 southwestern Ontario communities with populations under 100,000.

[redacted]

[redacted]

The Province submitted revised figures for the scope change in December 2018. As a result, overall project costs dropped from $281,000,000 to $210,813,889 with total eligible costs amounting to $191,083,333, decreasing the federal contribution to $63,694,444, which is matched by the Province.

The project is being implemented by SWIFT Inc., a not-for-profit corporation owned by the Western Ontario Wardens' Caucus (WOWC). The federal contribution will apply to one town (Caledon), two regions (Niagara, Waterloo) and all 14 counties that comprise the WOWC (Brant, Bruce, Dufferin, Elgin, Essex, Grey, Huron, Lambton, Middlesex, Norfolk, Oxford, Perth, Simcoe, and Wellington).

Requests for Proposals (RFPs) to construct 88 components of the SWIFT project were issued to pre-qualified TSPs throughout 2020, all of which have been awarded with the exception of one component in Middlesex County. Construction is underway with completion forecasted for June 2023. Due to a better expected response to the RFPs, the original target of creating capacity to deliver high-speed broadband service to 50,000 premises has been exceeded by almost 17%. As of April 15, 2021, a total of 58,279 premises are projected to be available for service following construction.

16. Canada Infrastructure Bank – Broadband Investments

Topic

Broadband connectivity has been an ongoing challenge for Canadians living in rural communities during the COVID-19 pandemic. Rural Canadians have experienced slow and unreliable connections, as traffic has increased on local networks. The Canada Infrastructure Bank (CIB) recently announced broadband investments under its Growth Plan to support broadband connectivity across Canada, particularly in rural areas.

Responsive Lines

• The Canada Infrastructure Bank announced it plans to invest $2 billion to finance broadband projects to connect approximately 750,000 homes and small businesses in underserved communities.
• The Canada Infrastructure Bank is partnering with the private sector and also working in collaboration with Innovation, Science and Economic Development Canada through the Universal Broadband Fund.
• For example, the Southern Manitoba Fibre project, announced by the CIB in March 2021, will provide broadband access for 49,000 households and businesses in the province while the Kivalliq Hydro-Fibre Link project could provide both renewable hydroelectricity and broadband connectivity for remote communities in Nunavut.

Background

• Budget 2019 confirmed the Government's commitment to bring high-speed internet to 100% of Canadians by 2030. Both Innovation Science and Economic Development Canada (ISED) and the Canada Infrastructure Bank (CIB) have programming to address this policy issue.
• [redacted]. CIB investment would attract telecommunication providers investment into rural and remote broadband developments which otherwise would be uneconomical for commercial players.
• The Universal Broadband Fund, which closed for applications on March 15, 2021, encourages and positively assesses projects that leverage additional funding to ensure that as much of Canada as possible gets access to high-speed Internet.
• There is a time constraint for the CIB to invest the $2 billion in broadband projects over the next 3 years. As such, the CIB is also working with service providers to advance projects outside of the Universal Broadband Fund.

17. Affordable Housing Investments

Topic

The Government of Canada has made a number of significant investments in affordable housing in recent years, including programs under the Investing in Canada Plan which support affordable housing. Access to affordable housing helps vulnerable and low-income Canadians find a safe and affordable place to call home.

Responsive Lines

• The Government of Canada is committed to improving access to affordable housing in communities across Canada. These investments help to support vulnerable Canadians, including families, young people, low income Canadians, people experiencing homelessness, and women and children fleeing violence.
• Regardless of where you live, access to affordable and attainable housing is important, and housing access and affordability is a particular challenge in rural Canada.
• A long-term plan for a faster-growing Canadian economy must include housing that is affordable for all Canadians. Building on investments from previous Budgets and the 2020 Fall Economic Statement, Budget 2021 outlines the Government of Canada's plan to invest an additional $2.5 billion, and reallocate $1.3 billion in existing funding, to speed up the construction, repair, or support of 35,000 affordable housing units.
• Recently, the Government announced a $15 billion Permanent Public Transit Fund. Going forward, the Government is committed to incentivizing transit planning and projects that encourage and encompass opportunities to integrate affordable housing solutions where these make sense.

Background

On November 22, 2017, the federal government announced Canada's first-ever National Housing Strategy, a 10 year, $40 billion plan, to help reduce homelessness and improve the affordability, availability and quality of housing for Canadians in need.

Following new investments announced in Budget 2019, and more than $13 billion announced through the Fall Economic Statement in 2020, Canada's National Housing Strategy is now a 10 year, $70+ billion plan that will give more Canadians a place to call home.

The Canadian Mortgage and Housing Corporation (CMHC) is leading and delivering federal initiatives under the National Housing Strategy. The National Housing Strategy features complementary initiatives that address challenges across the housing continuum and spectrum of housing needs, including build new affordable housing and renew the existing affordable housing stock.

The Investing in Canada Plan supports the National Housing Strategy. CMHC has two specific programs under the Plan to help with housing affordability:

• Increasing Affordable Housing for Seniors which has 1,679 projects approved and started, worth $200,100,000 in federal investment.
• Investment in Affordable Housing which has 5,492 projects approved and started, worth $586,911,663 in federal investment.

While rural Canadians are more likely to own their own home there remains a housing access and affordability challenge in rural Canada. There is often limited rental housing in rural areas, which restricts housing options for seasonal workers and newcomers.

Rural housing markets also tend to be less dynamic than urban ones, with fewer incentives for developers, leaving them more vulnerable to economic instability.

III. Other

18. Indigenous Infrastructure Investments

Topic

Budget 2021 lays out a plan to accelerate the Government's 10-year commitment to close the infrastructure gaps in Indigenous communities, working on a distinctions basis with First Nations, Inuit, and the Métis Nation. This could include investments in clean water, housing, all-weather roads, northern airstrips, broadband, health care, and educational facilities, and other community infrastructure.

Responsive Lines

• The government is accelerating work to close infrastructure gaps in Indigenous communities, creating good jobs and building healthier, safer and more prosperous Indigenous communities in the long-term.
• Budget 2021 proposes distinctions-based investments of $6 billion over five years, starting in 2021-22, with $388.9 million ongoing, to support infrastructure in Indigenous communities, including:
  • $4.3 billion over four years, starting in 2021-22, for the Indigenous Community Infrastructure Fund, a distinctions-based fund to support immediate demands, as prioritized by Indigenous partners, with shovel-ready infrastructure projects in First Nations, including with modern-treaty and self governing First Nations, Inuit and Métis Nation communities.
  • $1.7 billion over five years, starting in 2021-22, with $388.9 million ongoing, to cover the operations and maintenance costs of community infrastructure in First Nations communities on reserve.
• Infrastructure Canada's programs complement the core funding being delivered by Indigenous Services Canada. The recently launched Green Inclusive Community Buildings program includes a 10% distinctions-based carve out for Indigenous recipients.

Background

Infrastructure Canada

• Budget 2021 proposes to provide $22.6 million over four years, starting in 2021-22, to Infrastructure Canada to conduct Canada's first ever National Infrastructure Assessment. This Assessment will benefit all Canadians by strengthening long-term infrastructure planning, and helping all orders of government make informed decisions about infrastructure projects that ensure we have stronger, cleaner, more resilient communities. The government will engage directly with provinces and territories, as well as First Nations, Inuit and Métis Peoples on a distinctions-basis to seek their views on the Assessment.
• Budget 2021 proposes to provide $1.4 billion over 12 years, starting in 2021-22, to Infrastructure Canada to top up the Disaster Mitigation and Adaptation Fund, to support projects such as wildfire mitigation activities, rehabilitation of storm water systems, and restoration of wetlands and shorelines.
  • Of this, $670 million would be dedicated to new, small-scale projects between $1 million and $20 million in eligible costs. In addition, 10 percent of the total funding envelope would be dedicated to Indigenous recipients to benefit each distinctions-based group.
  • To date, the Government has announced almost $100 million for three projects led by First Nations, including the Mohawks of the Bay of Quinte in Ontario, along with the Skwah First Nation and the Cowichan Tribes, both in British Columbia.
• Infrastructure Canada recently launched new funding for ventilation improvements and the new Green and Inclusive Community Buildings Program. Both sources of funding include distinctions-based allocations for projects serving First Nations, Inuit, and Métis communities. This includes:
  • The new ventilation improvement funding, which provides a 20% Indigenous carve-out for Indigenous recipients which amounts to at least $30 million out of $150 million, delivered by Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada; and
  • The new Green and Inclusive Community Buildings Program, which provides a 10% carve-out for Indigenous recipients, amounting to at least $150 million out of $1.5 billion. Under this program, Indigenous recipients can receive a contribution of up to 100% of total eligible costs.
• The Canada Infrastructure Bank recently announced the Indigenous Community Infrastructure Initiative, which aims to be a part of addressing the infrastructure gap in Indigenous communities. Through this initiative, the Canada Infrastructure Bank will be contributing at least $1 billion in investment toward Indigenous community-based projects across five priority areas: clean power, green infrastructure, public transit, broadband, and trade and transportation.
• The Gas Tax Fund (to be renamed the Canada Community-Building Fund) provides dedicated funding for First Nations, the Métis Settlements in Alberta, and Inuit Nunangat. Funding for First Nations on reserve in the provinces is delivered by Indigenous Services Canada.
  • To help communities keep infrastructure projects on track, the government introduced legislation on March 25, 2021, that proposes a one-time investment of $2.2 billion to address infrastructure priorities in municipalities and Indigenous communities. This funding would be delivered through the federal Gas Tax Fund and would double the federal government's regular funding for municipalities and Indigenous communities in 2020-21. The legislation also proposes to rename the Gas Tax Fund as the Canada Community-Building Fund.
• As of April 14, 2021, under the Investing in Canada Infrastructure Program, the Government has committed more than $422 million to at least 128 First Nations projects, $283 million for 19 projects in Inuit Nunangat, and $17 million for three Métis projects. The Government has also committed more than $63 million to 16 projects with other recipients benefiting Indigenous people more generally.
  • Indigenous recipients receive a higher federal cost share (75%) and are not subject to "stacking limits" – meaning they are eligible to have federal programs (from all departments) fund up to 100% of their projects – making Indigenous projects a low cost option for provinces and territories to prioritize.
  • Under the new COVID-19 Resilience Infrastructure Stream, Indigenous ultimate recipients are eligible for up to 100% in federal cost share funding from the program (with no stacking required).
• Infrastructure Canada is co-chairing an infrastructure working group with Indigenous Services Canada and Inuit Tapiriit Kanatami under the Inuit-Crown Partnership Committee to advance a co-developed work plan.

Investments led by other Government of Canada departments

• Budget 2021 proposes significant new investments in Indigenous communities. Notably, this includes distinctions-based investments of $6.0 billion over five years, starting in 2021-22, with $388.9 million ongoing, to support infrastructure in Indigenous communities, including:
  • $4.3 billion over four years, starting in 2021-22, for the Indigenous Community Infrastructure Fund, a distinctions-based fund to support immediate demands, as prioritized by Indigenous partners, with shovel ready infrastructure projects in First Nations, including with modern treaty and self-governing First Nations, Inuit, and Métis Nation communities.
  • $1.7 billion over five years, starting in 2021-22, with $388.9 million ongoing, to cover the operations and maintenance costs.
• Under the Investing in Canada Plan, Indigenous Services Canada (ISC) and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) were allocated a total of $23.9 billion and $262 million, respectively, to support Indigenous infrastructure programs.
  • As of March 25, 2021, ISC has 13,904 projects approved, representing $8.8 billion in federal share investments, and CIRNAC has 641 projects approved, representing $195.8 million in federal share investments.
• Approximately $1 billion in additional funding was allocated to ISC in Budgets 2018 and 2019 for investments in water and waste water, urban programming, and climate change adaptation.
• As of April 13, 2021, 106 long-term drinking water advisories, and 178 short-term drinking water advisories, have been lifted since 2015, while 105 long-term drinking water advisories were in place when this government committed to eliminating long-term drinking water advisories on public systems on reserves. Since 2015, the expansion of the scope of the commitment and short-term advisories becoming long-term have added advisories to the list, but the government's commitment to end all advisories remains firm.

19. Operational Funding for Municipalities and Transit – Safe Restart Agreement

Topic

Changes in mobility patterns linked to the COVID-19 pandemic have had a marked impact on transit and municipal revenues. While the government recently announced additional capital funding for transit, the Federation of Canadian Municipalities has called on the federal government to provide more support to municipalities to help them fund the operations of existing transit services. The Safe Restart Agreement, announced in July 2020, addressed these needs within the context of the pandemic by contributing up to $2 billion to support municipalities with COVID-19 operating costs for the next six to eight months. In addition, the government committed to cost-match over $2.3 billion to support any additional contributions by participating provinces or territories for public transit operating costs and pressures.

Responsive Lines

• We recognize that municipal budgets have been hit hard since the pandemic began and we continue to work closely with all orders of government to address the ongoing challenges that it has created.
• In July 2020, the Government of Canada announced over $19 billion in funding for municipalities through the Safe Restart Agreement to help restart the economy while protecting the health of Canadians. This agreement included up to $2 billion to support municipalities with COVID-19 operating costs, as well as a commitment to cost-match more than $2.3 billion to support any additional provincial or territorial contributions for public transit.
• As we move forward, public transit remains a priority for the government. This is why we are creating permanent funding of $3 billion annually beginning in 2026-27 and investing $5.9 billion in new funds in public transit projects over the next five years.

Background

The costs of transit operations have traditionally been a municipal and provincial responsibility and the federal government's investments in transit have focused on capital expenditures. Stakeholders like the Federation of Canadian Municipalities and the Canadian Urban Transit Association have called on the federal government to begin supporting transit operational costs, often pointing to evidence that improved service frequency and availability are key drivers of increasing transit ridership.

Requests for federal operational support became more urgent when the pandemic's impact on mobility and commuting impacted transit revenues through significantly reduced ridership. Despite lower revenues, transit systems also faced pressures to maintain service levels to allow essential workers, and others unable to work from home, to access their jobs reliably and with appropriate social distancing.

In July 2020, the $19 billion Safe Restart Agreement (SRA) included a federal contribution of $2.3 billion to support any additional contributions by participating provinces or territories for public transit operating costs and pressures. Funds from this voluntary transit investment program are cost-shared 50/50 with provinces. The SRA was a whole of government approach undertaken by PCO, whereas the department's mandate remains focused on capital investments.

Municipal Finances

Prior to the COVID-19 outbreak, municipalities had relatively strong financial situations due to stable revenue streams and provincial requirements that they have a balanced operating budget, as well as legislated limitations on long-term borrowing.

Across Canada, the COVID-19 pandemic has resulted in pressures to municipal finances due to both significantly lower revenues and also higher expenses for COVID-related support programs. While the final data is not yet available, recent reports had suggested that municipal finances would result in a $12 billion shortfall compared to what was expected prior to the pandemic. The FCM forecasted the 2020 municipal operating deficit at $10-$15 billion over the first six months of the crisis.

In Ontario, for example, the Financial Accountability Office of Ontario projects that (before taking into account cost savings measures implemented by municipalities and federal-provincial financial support) the impact on Ontario municipal budgets would be $4.1 billion in 2020 and $2.7 billion in 2021, for a combined negative impact of $6.8 billion over two years. The most significant revenue losses for municipalities are from transit fees and fees from recreation, culture and other services. On the expense side, municipal spending increases are largely for temporary housing and homeless shelters, public health, and social and family services (including long-term care facilities).

In response to the pandemic, municipalities have implemented cost savings measures in 2020 (such as reduced operating hours for municipal facilities or lay-offs of temporary staff). The federal government has also worked with provincial governments to provide support. For example, Ontario announced up to $4.0 billion in financial support to municipalities, which included federal government support, leveraging the SRA. Some other provinces, such as BC, have changed rules to allow for more borrowing for longer time periods, while others such as Nova Scotia have allowed for operating loans for municipalities.

As a result of both federal and provincial support, municipalities have fared the pandemic crisis better than they otherwise would have. Currently, there is a stable and positive financial outlook for municipalities. Shortfalls in revenue (lower fee based/transit revenues) have been offset by SRA funding, steps to reduce costs and use of reserves. Most municipal governments are likely to have balanced budget or surplus in fiscal 2020.

Municipalities have managed to reduce operating costs (e.g., lay-offs, fuel, electricity) and adjusted capital plans to focus on immediate needs. Costs to implement COVID-19 health safety measures were below 5% and much lower than expected.

Municipalities with land transfer tax have benefited from high volume of home sales (e.g., Toronto, Laval and Montréal). Housing permit revenues have increased in some municipalities, as there was more new building activity; but in others such as Calgary there has been less demand for new builds due to the slowdown in the energy sector. Municipalities continue to collect property taxes as planned, and most are planning to maintain or increase property taxes. 

Financial credit agencies recently reviewed a number of municipalities such as Toronto, Edmonton, Calgary, Saskatoon, Regina, York, Sudbury, Guelph, Montréal, Laval and Mississauga and all have retained their strong credit ratings. There continues to be high demand for municipal bonds.

20. Economic Impacts of Infrastructure Investments

Topic

Infrastructure investment can play a large role in stimulating short and long-term economic recovery while achieving social and environmental outcomes.

Responsive Lines

• Infrastructure investments provide both short- and long-term economic benefits. In the short term, investments support jobs across numerous sectors.
• Based on Statistics Canada data, 540,000 jobs were associated with the construction of infrastructure in 2020.
• In 2020, $82 billion was invested in infrastructure. Of this,
  73% ($60 billion) was invested by the public sector, an increase of 15% compared to public sector investment levels in 2015.
• Budget 2021 reiterated recently announced investments in infrastructure priorities that will contribute to economic growth and create good middle class jobs, including $14.9 billion over eight years to establish the Permanent Public Transit Fund;
  $1.4 billion over 12 years to top up the Disaster Mitigation and Adaptation Fund and $200 million over three years to establish the Natural Infrastructure Fund.

Background

Infrastructure investments are one of the best ways to support economic growth in both the short and long term. Investment creates immediate stimulus related to the building of projects, while in the longer term, investments can boost productivity and increase economic growth.

Based on 2020 Statistics Canada data, infrastructure investment in Canada totaled almost $82 billion, with 73% of this ($60 billion) being contributed by the public sector.

In total, 540,000 jobs across Canada are related to these investments. Over half of these jobs (278,000) are in the construction sector. Other sectors such as distributive trade and transportation services (57,600); information, finance and professional industries (116,500); and manufacturing (50,500) also benefit from the stimulus created by this construction.

The International Monetary Fund (IMF) has affirmed the important role of infrastructure investment in economic recovery. In its view, public investment can play a central role in the recovery, with the potential to generate, directly, between 2 and 8 jobs for every million dollars spent on traditional infrastructure, and between 5 and 14 jobs for every million spent on research and development, green electricity, and efficient buildings.

Additionally, the IMF found that, during periods of high uncertainty, increasing public investment in infrastructure by 1% of GDP could strengthen confidence in the recovery and boost GDP by 2.7%, private investment by 10%, and employment by 1.2% if investments are of high quality and if existing public and private debt burdens do not weaken the response of the private sector to the stimulus.

In the longer term, infrastructure investment can also increase productivity, with studies finding that public infrastructure investment has been responsible for approximately half of all productivity increases in Canada in recent decades.

The quality of infrastructure in an economy can also support economic development in more subtle ways. Quality infrastructure makes a location more attractive to both firms and high-skilled individuals who can choose where they would like to be based. It can also facilitate trade, both within the country and internationally as the cost of transportation is decreased.

Budget 2021

Budget 2021 reiterated investments that will continue to support employment across Canada. The Government of Canada has committed $14.9 billion over eight years for public transit projects. This funding will support new subway lines, light-rail transit and streetcars, electric buses, active transportation infrastructure, and improved rural transit, which will create affordable commuting options in communities and reduce Canada's emissions.

Budget 2021 also proposed to provide $1.4 billion over 12 years to top up the Disaster Mitigation and Adaptation Fund and $200 million over three years to establish the Natural Infrastructure Fund. This would support projects such as wildfire mitigation activities, rehabilitation of storm water systems, and restoration of wetlands and shoreline and natural and hybrid infrastructure projects.

In addition, Budget 2021 proposed investments in physical and digital infrastructure and other measures to transform our borders and ensure that trade and travel continue to drive Canada's economy. For example, $1.9 billion will be invested over four years, to recapitalize the National Trade Corridors Fund which could attract approximately $2.7 billion from private and other public sector partners. This would spur investments in much-needed enhancements to our roads, rail, and shipping routes, build long-term resilience for the Canadian economy, and support internal trade.

21. Flow and Lapse of Funds

Topic

Why is so little funding flowing to recipients?

Responsive Lines

• The Investing in Canada Plan is our long-term $180 billion plan to build the communities of the 21st century. The plan is on track - we are a third of the way through, with over a third of the funds committed.
• Once federal funding is approved for a project, it is available right away. However, it only flows when local partners submit their claims, often well after construction is underway.
• It is important to understand that the work that matters to Canadians, the "shovels in the ground", happens well before a dollar of federal money is ever spent—under the majority of Infrastructure Canada's programs, construction work can begin once a project is approved. Our funds flow within days of receiving recipients' claims, which can happen after the work has been done.
• Infrastructure Canada wants work to happen and claims to be paid as quickly as possible, so we work in close collaboration with funding recipients to improve the flow of funds and better align departmental spending with construction activities.
• Despite best efforts to project flow of funding, many factors lead to the need for INFC to reprofile funding and ensure the federal infrastructure programs remains available to the project proponents in future years as committed.

Background

Gaps between the flow of funds and the initial objectives may be perceived as evidence of ineffectiveness on the part of the Government of Canada to deliver on the infrastructure portfolio. However, several factors contribute to real and perceived delays in the flow of federal funding.

[redacted]. Although addressed in the newer programs, such as the Investing in Canada Plan; committed funds under older programs may still be impacted by this challenge.

In addition, the uncertainty of the Canadian construction season, limitations in work force availability, complexity inherent to multi-million and multi-billion dollar procurement, and changes in provincial, territorial, or municipal priorities are also specific to the Infrastructure domain and over which the federal government has a limited span of control.

With the current pandemic (COVID-19), it is anticipated that projects that had started prior to COVID-19 will continue to progress. While new projects may be delayed due to the shortage of labour, delays in supply chains, increased material costs and delays in Indigenous consultations due to travel restrictions in Indigenous communities.

On the other hand, INFC continues to work in close collaboration with recipients to improve the flow of funds and better align departmental spending with construction activities. Funding profiles for all existing infrastructure programs will continue to be formally updated twice a year through a call letter process and as information becomes available throughout the year to reflect the anticipated amounts to be claimed by recipients.

Considering the above, a more appropriate metric by which federal success should be measured with respect to infrastructure investments, is funds committed as opposed to the rate at which funding is flowed.

22. Financial Information – Main Estimates – INFC

Topic

Infrastructure Canada is seeking total funding of $6.8 billion in the 2021-22 Main Estimates to support the Government of Canada's priorities in investing in public infrastructure.

Responsive Lines

• INFC is seeking $6.8 billion in the 2021-22 Main Estimates:
  • $4.3 billion in grants and contributions to support 22 infrastructure programs;
  • $2.3 billion for the Gas Tax Fund;
  • $87.2 million to operate the Major Bridges, $4.4 million for contingencies for the Samuel de Champlain Bridge Corridor project and $33.6 million for land purchases tied to the Gordie Howe International Bridge; and
  • $97.4 million to operate the department.
• If asked to compare to previous year Main Estimates
  • Decrease in grant and contribution funding ($1.2 billion) tied to historical programs approaching their end of life cycle such as the Public Transit Infrastructure Fund and the Clean Water and Wastewater Fund;
  • Increase in statutory funding ($101.4 million) related to the Gas Tax Fund and employee benefit plan requirements;
  • Increase in capital funding ($33.6 million) for land purchases tied to the Gordie Howe International Bridge; and
• Increase in operating funding ($15.9 million): $8.0 million to operate the department as part of new and ongoing funding and $7.9 million to support the Major Bridges.