Investing in Canada: Canada's Long-Term Infrastructure Plan

Investing in Canada: Canada's Long-Term Infrastructure Plan (3.34 MB)

Table of Contents

• Minister's Message
• Executive Summary
• 1. The Infrastructure Gap
  • Why Infrastructure is Important
  • Ownership and Investments in Infrastructure
  • The Need for Better Infrastructure Data
  • Innovation in Infrastructure
  • Private Sector Investment and Alternative Financing Mechanisms
• 2. Canada's Infrastructure Challenges and Opportunities
  • Global Changes and Opportunities
  • Diverse Needs: Cities and Small Communities
  • Infrastructure and Social Development
  • A Need for Action
• 3. Investing in Canada: A Comprehensive, Long-Term Plan
  • A Bold Vision for an Inclusive Country: Three Key Objectives
  • Outcomes
  • Five Principles
  • Investment Streams
  • Opening the Door to Innovation
  • Addressing the Data Gap
  • Delivering Infrastructure Funding
  • Reporting to Canadians
• 4. Key Investments
  • Public Transit
  • Green Infrastructure
  • Social Infrastructure
  • Rural and Northern Communities
  • Trade and Transportation Infrastructure
  • Supporting Indigenous Communities
  • Canada Infrastructure Bank
  • Smart Cities Challenge
  • Post-Secondary Institutions Strategic Investment Fun
• 5. Conclusion
• Annex A: Existing Infrastructure Funding
• Annex B: Shared Results
• Annex C: Partnerships with Provinces and Territories
• Annex D: Overview of New Funding by Department
• Endnotes

List of Figures

• Figure 1: Investing in Canada Plan, by Stream
• Figure 2: Ownership of Public Infrastructure by Order of Government
• Figure 3: Investing in Canada Plan Funding Streams
• Figure 4: Investing in Canada Interactive Geomap
• Figure 5: Public Transit Investments
• Figure 6: Green Infrastructure Investments
• Figure 7: Social Infrastructure Funding
• Figure 8: Rural and Northern Communities Infrastructure Funding
• Figure 9: Trade and Transportation Infrastructure Funding
• Figure 10: Existing Infrastructure Funding
• Figure 11: Investing in Canada Infrastructure Program Funding
• Figure 12: Investing in Canada Plan: Overview of New Funding by Department

Minister's Message

Five Investment Streams

PUBLIC TRANSIT Build new urban transit networks and service extensions that will transform the way Canadians live and work.

GREEN INFRASTRUCTURE Ensure access to safe water, clean air, and greener communities where Canadians can watch their children grow.

SOCIAL INFRASTRUCTURE Provide adequate and affordable housing and child care and cultural and recreational centers that will ensure communities are great places to call home.

TRADE AND TRANSPORT Provide sustainable and efficient transportation systems that will bring global markets closer to Canada to help businesses compete, grow and create more jobs.

RURAL AND NORTHERN COMMUNITIES Grow local economies, improve social inclusiveness and safeguard the health and environment of communities.

Climate change is happening and it is already affecting communities across Canada. Now is the time to invest in infrastructure that helps make communities more sustainable. Our investments in disaster mitigation and adaptation infrastructure will help reduce our impact on the environment and prepare communities to face the effects of climate change now and in the future.

Our world is more integrated than ever before. To compete in a globally competitive marketplace, we must invest in innovative ways to get our goods to market and onto the world stage. To do this, we need to invest in the next generation of roads, railways, ports and airports that will connect our cities, rural and northern communities to essential trade corridors.

We want to build an economy that benefits all Canadians. To make this a reality, we must put in place social infrastructure - like affordable childcare, safe, affordable and secure housing for all, and support for our aging population - that ensures every Canadian has access to the supports and services they need.

Now is the right time to make these investments. Canada is well positioned economically and can afford to invest in both our short-term successes and the success of future generations.

A Two-Phased Approach

We firmly believe that local decision-making results in better outcomes for Canadians. That is why one of my first priorities was to establish strong working relationships with our counterparts in other orders of government. Through extensive consultations with provincial, territorial, municipal and Indigenous partners, and national and regional stakeholders, it became clear that certain investments had to be made quickly, while others required significant planning. Before making massive investments in major, transformative projects, we needed to restore, modernize and adapt our existing infrastructure. We also learned that all orders of government needed some time to effectively plan for long term projects. This is why we developed a two-phased approach.

The first phase of our infrastructure plan focuses on repairing and upgrading our vital public transit systems; investing in water and wastewater systems to ensure all communities, including Indigenous and rural communities, have secure access to clean drinking water; and that funds were available to build and repair much-needed affordable housing, including essential investment in Indigenous housing. We also provided funding for planning and design work to allow communities to prepare for longer term projects.

The second phase of our historic, long-term plan focuses investment in small and large projects that will help build our economy for the future. Our plan will help Canadian communities face the challenges - and reap the rewards - of the 21^st century global economy. These investments will help us achieve our vision for Canadian communities: better movement of people and goods, cleaner air and water, reduced greenhouse gas emissions, smarter and more efficient cities, greener transportation systems, improved water management, better access to affordable housing, more affordable child care, new public spaces that make our communities even greater places to live, better transportation and digital infrastructure for people living in remote communities, and improved energy security and a reduced reliance on diesel in the North.

To achieve this ambitious vision, we will continue working closely with our provincial, territorial, municipal, Indigenous partners; stakeholders across the country; and of course, with all Canadians. Collaboration and partnership will remain at the heart of our success.

Innovative Approaches

We need to innovate and try new approaches to address Canada's infrastructure gap. The Canada Infrastructure Bank is designed to do just that. The Bank is an additional tool available to our provincial, territorial, municipal and Indigenous partners that allows them to use public funds to attract private sector and institutional investment for new, revenue-generating infrastructure projects in the public interest. By leveraging the capital and expertise of the private sector, public dollars will go further to support projects that might not otherwise move forward and allow grant dollars to support projects that are more appropriate for traditional funding mechanisms.

We also want to empower our partners to take risks and think outside the box. That is why we launched the Smart Cities Challenge - a Canada- wide competition open to communities of all sizes, including municipalities, regional governments and Indigenous communities. The Challenge encourages communities to improve the lives of their residents by using data and connected technology in innovative ways.

Transparency

We are committed to full transparency and using evidence-based planning as we move forward with our ambitious plan to transform Canada for years to come. We will work with our partners to improve the quality of data and reporting and the Government of Canada will report annually to Canadians on the plan's progress and results. We are proud to have launched the online Investing in Canada plan project map where Canadians can search for investments made in their communities and I encourage you to check out the project map yourself.

Our Commitment

This plan demonstrates our commitment to ensuring that all Canadians, no matter where they live, have opportunities to reach their full potential. Infrastructure is the backbone of our communities and plays a key role in our vision for the future of our country.

As we move forward, we will continue our close collaboration with leaders across the country to help Canada - and all Canadians - build on our past successes and secure a strong, prosperous, and inclusive country for generations to come.

The Honourable Amarjeet Sohi,
P.C., M.P. Minister of Infrastructure and Communities

Executive Summary

The Investing in Canada plan is the Government of Canada's comprehensive, long-term plan for building a prosperous and inclusive country through historic infrastructure investments. Through this Plan, the Government is investing in people: to enable Canadians to get to work and home quicker and spend more time with their families; to have places to play and stay healthy; to enjoy clean drinking water and pristine environments; and to run their businesses and access services regardless of where they live.

Addressing Local Needs and National Priorities

The Investing in Canada plan addresses the unique local needs of urban, rural, remote and Indigenous communities while also addressing national priorities. From coast-to-coast-to-coast, Canadians will see the direct impacts of infrastructure investments - including more affordable housing, improved air and water quality, decreased urban congestion and enhanced resilience to a changing climate.

Through the first phase of the Plan, launched in 2016, the Government made significant and timely investments to address immediate infrastructure needs. The next phase, to be delivered over 10 years, will have transformative impacts on Canada's economy and communities. Coupled with ongoing investments, these new investments represent an historic level of federal infrastructure funding.

The focus on outcomes will be key. To allow Canadians to see exactly what difference infrastructure investments are making in their communities and lives, the Government will track and report regularly on the following outcomes:

1. Rate of economic growth is increased in an inclusive and sustainable way
2. Environmental quality is improved, greenhouse gas (GHG) emissions are reduced and the resilience of communities is increased
3. Urban mobility in Canadian communities is improved
4. Housing is affordable and in good condition and homelessness is reduced year over year
5. Early learning and child care is of high quality, affordable, flexible and inclusive
6. Canadian communities are more inclusive and accessible
7. Infrastructure is managed in a more sustainable way

Five Priority Investment Streams

The Plan will help close Canada's infrastructure gap by making significant investments over the long-term in five priority investment streams: public transit ($28.7 billion), green infrastructure ($26.9 billion), social infrastructure ($25.3 billion), infrastructure for rural and northern communities ($2 billion) and trade and transportation infrastructure ($10.1 billion) (Figure 1). In addition, the Plan includes permanent funding such as the Gas Tax Fund and funding committed prior to 2016 such as the New Building Canada Fund.

Public Transit - By improving the capacity, quality, safety and accessibility of public transit infrastructure throughout Canada, the Plan will reduce urban congestion and increase the proportion of Canadians who use transit and active forms of transportation to access jobs, education, health care and social activities. Investments will also support the transition to a low-carbon economy and reduce air pollution and GHG emissions.

Green Infrastructure - The Plan will address persistent challenges to air, water and soil quality and make Canadian communities, including Indigenous communities, more resilient to climate change, natural disasters and extreme weather events. Infrastructure that reduces greenhouse gas emissions through cleaner electricity grids, energy efficient buildings and transportation systems sets us on a path to a low-carbon future. Other investments in green infrastructure are building Canada's resilience to the risks we face from the impacts of climate change. Collectively, these investments will enable and advance the objectives of the Pan-Canadian Framework on Clean Growth and Climate Change and generate sustainable economic growth.

Social Infrastructure - Investments in housing, early learning and child care, accessible infrastructure and in community, culture and recreation infrastructure will create stronger, more vibrant communities. Funding will be broadly available for large and small projects, depending on the needs of communities. These investments will lead to new opportunities and improved social inclusion for many Canadians, especially Indigenous Peoples and low-income populations. The Plan allocates dedicated funding for housing, early learning and child care, and cultural and community infrastructure for First Nations, Inuit and Métis communities.

Rural and Northern Communities - Investments will help rural and northern communities overcome the challenges that come with small, often widely dispersed populations and long distances from markets, which together make infrastructure projects expensive and complex. This in turn has led to larger infrastructure gaps - including little or no access to reliable transportation and broadband Internet connectivity and a lack of energy security - than for larger communities. By addressing these gaps, the Plan will also create new economic opportunities in these regions.

Trade and Transportation Infrastructure - The Plan calls for investments that will help Canadian businesses compete in the global marketplace. By increasing the capacity of major trade corridors and port facilities, the Plan will help exporters get products to market more quickly. By addressing transportation needs and connecting communities in the territories, it will help accelerate northern and Indigenous economic and social development. It will also make Canada's trade and transportation infrastructure more resilient to climate change impacts and position Canada for lower-carbon economic growth.

Figure 1: Investing in Canada Plan, by Stream

NOTES
(i) Existing funding envelope of $92.2B is not presented in this graphic. See Annex A, Figure 10.
(ii) New investments under the IICP represent $95.6B. In this figure, totals do not add up to $95.6B due to fiscal framework adjustments, rounding and other revenues.
(iii) Initiative partially funded through the Investing in Canada plan
(iv) Includes funding to support capital projects where costs are amortized over the useful life of the asset.

Opening the Door to Innovation

Delivering the Plan

The Government of Canada's Investing in Canada plan will be delivered by Infrastructure Canada, along with other federal departments and agencies including Indigenous Services Canada, Natural Resources Canada, the Canada Mortgage and Housing Corporation, Employment and Social Development Canada and Transport Canada. Infrastructure Canada is responsible for the overall coordination and annual reporting on results for the Plan. Reflecting the partnership focus, bilateral agreements between the federal government and each of the provinces and territories are a key delivery mechanism for the Plan.

1. The Infrastructure Gap

The Minister of Infrastructure and Communities' 2015 mandate letter reflects the need to address Canada's broad-based infrastructure gap. Extensive research, public engagement and the advice of the Advisory Council on Economic Growth ^{Footnote 1} make it clear that Canada needs a long-term approach to investing in infrastructure to improve the quality, accessibility and sustainability of services that Canadians use every day.

Why Infrastructure is Important

Infrastructure is the set of basic facilities and systems required for a country, city or community to function. What kind of infrastructure exists and how well it works affects the success and prosperity of communities and determines whether they have the capacity to deal with economic, social or other challenges.

Roads and railways ease the flow of people and goods, allowing economic activities to be concentrated and specialized across regions, facilitating a strong economy. Tele-communications, especially digital and cellular, enable real-time information transfer regardless of distance, helping Canadians in all regions stay in touch and access services. Secure water supply and sewage treatment safeguard human health so that Canadians are able to enjoy clean drinking water and pristine environments. Housing and early learning and childcare investments provide integral supports for individuals and families. Community hubs bring together health, social, cultural, sport and recreational services providing Canadians with places to play and stay healthy. Increasingly, there is recognition of the role of infrastructure - including natural solutions such as wetlands for storm water retention as an alternative or complement to traditional built infrastructure - in helping societies address the challenges presented by the changing climate and extreme weather events.

The public benefits of infrastructure, including those related to human health and well-being, and the high costs to develop and build it, have naturally emphasized the central role of governments or state-owned enterprises in the sector. In Canada, infrastructure is largely developed, owned and managed by provincial, territorial and municipal governments. This includes highways, roads, bridges and other transportation infrastructure; water and wastewater facilities; education and health infrastructure; and social infrastructure including housing, early learning and child care and community centres.

Policy makers, academics and practitioners increasingly recognize that the private sector can contribute in a variety of ways to infrastructure investments, operations and regulations. Already, private companies build and operate power generating plants, water supply and wastewater treatment facilities and run telecommunication companies, airlines, toll roads, buildings and port facilities. Other infrastructure sectors in Canada are managed by varying degrees of public and private entities. For instance, semi-private entities like Crown corporations play a role in energy, airports and ports, and non-profit associations work with publicly-owned entities to develop sport, recreational and cultural infrastructure.

Ownership and Investments in Infrastructure

In recent years, all orders of government in Canada have increased their investments in infrastructure. Provinces, territories and municipalities, which own the vast majority of core public infrastructure (such as roads, bridges, transit systems, water and wastewater systems and culture, sport and recreation infrastructure) (Figure 2), collectively doubled their investments between 2003 and 2013, from $14.5 billion to $29.5 billion.^{Footnote 2}

Figure 2: Ownership of Public Infrastructure by Order of Government^{Footnote 3}

Text description of Figure 2.

Figure 2 is a representation of the ownership of public infrastructure by order of government. The Federal Government owns 2.1% of public infrastructure, the Provincial/Territorial Government owns 38.1% of public infrastructure, and the Municipal Government owns 59.8% of public infrastructure.

Source: Infrastructure Canada, 2016.

The federal government also increased its spending on core public infrastructure, from $600 million annually in 2003–04 to $5.5 billion annually by 2014–15.^{Footnote 4} These investments have helped reduce the average age of Canada's public infrastructure from 17.8 years in 2000 to 14.7 in 2013.^{Footnote 5}

Even so, infrastructure demand has outpaced investments for several decades. While the size of Canada's infrastructure gap is a matter for debate - in 2013 estimates ranged from $50 billion to $570 billion depending on the methodology used^{Footnote 6} - there is consensus that significant investments are needed to address it. The additional $95.6 billion in federal support announced in Budgets 2016 and 2017, including more than $7.6 billion for Indigenous communities, along with significant investments in infrastructure by other orders of government, will help to close the gap while also supporting longer term investments to address emerging challenges and opportunities.

The Need for Better Infrastructure Data

Innovation in Infrastructure

International experience shows that investments in technologies to make better use of infrastructure can significantly increase productivity. For example, embedded remote sensors and real-time wireless technologies enable assets to become "intelligent" by connecting them with one another, so that structures can "talk" to a central data platform. This allows for remote monitoring that can capture critical performance parameters and provide real-time information on how infrastructure is performing, as well as early warning of potential service disruptions so that they can be more easily addressed, minimizing loss of service.

There is great potential for infrastructure innovation: in design, materials, products, processes and methods used to build infrastructure, as well as in the services or functions it provides, including nature-based solutions. Alternative solutions may derive from new ideas, or from existing ideas not yet routinely used either in Canada or across different asset classes. For example, the transportation sector can do more research, development, pilot testing and deployment to integrate innovations such as driverless vehicles. These innovations have the potential to increase transportation productivity, which would position Canada at the forefront of emerging technologies in the sector. The effective use of technology to make buildings more energy efficient cannot only lower energy costs and mitigate environmental impacts, but also spur innovation, create jobs and help advance Canada's transition to a low-carbon economy. Despite this, many investment decisions tend to favour "tried and true" approaches, which can be a barrier to successfully developing infrastructure capable of meeting the needs of tomorrow.

A key barrier to innovation in public infrastructure is a lack of capacity during the pre-development phase of a project, exacerbated by a lack of data and often short time frames for accessing funding. Many municipalities, small and northern communities in particular, sometimes lack the capacity to adopt innovative planning and development methods, a challenge compounded by a lack of capacity for data and asset management.

Research and development is required to fill the knowledge gaps in how to make smart, innovative and resilient infrastructure that will contribute to sustainability, economic growth, improved performance in key sectors such as construction while also solving major societal challenges, including the need to reduce GHG emissions and enhance the resilience of Canadians and their communities to the impacts of a changing climate. Validation and demonstration of emerging technologies encourages their uptake while lowering the costs, creating economies of scale and supporting competitiveness and innovation.

Private Sector Investment and Alternative Financing Mechanisms

There are opportunities for innovation in the way infrastructure is funded and financed. Fiscal constraints on all governments have increased the interest in exploring private sector investment, ownership options, and alternative financing mechanisms as a means to increase investment in infrastructure.

Public-Private Partnerships (P3s) are one such mechanism. P3s for infrastructure can range from minimal private sector involvement, such as delivering garbage collection services, to comprehensive private involvement in the designing, building, owning, operating and financing of a facility.

The gaps in infrastructure and their effects are felt by Canadian communities grappling with rapidly evolving challenges in global trade, the environment and society. These gaps also make it difficult to take advantage of opportunities presented by these changes.

Furthermore, infrastructure gaps and challenges are felt more keenly by some than by others. For example, Indigenous communities face unique challenges, especially in the context of rapid population growth and existing gaps in even basic infrastructure. This section explores current and future challenges that Canadians face in how they live and work. It is these challenges that the Investing in Canada plan will address to help secure a prosperous future for all Canadians and support reconciliation with Indigenous Peoples.

Global Challenges and Opportunities

Climate Change

Canada's climate is changing. Temperatures in Canada have been increasing at roughly double the global average; in Canada's North, they are rising at roughly three times the global average.^{Footnote 20}

Increased temperatures have brought with them: longer heat waves; more intense, frequent and extreme storms; permafrost degradation; diminishing sea ice and snow cover; and rising sea levels.

Climate change and extreme weather events threaten existing infrastructure across the country, impacting its effectiveness, lifespan, cost, maintenance, rehabilitation and renewal. For example, some older water systems cannot process an increase in precipitation, which increases the risk of flooding.^{Footnote 21} Climate-related infrastructure failures can threaten health, safety and social well-being, disrupt essential services and economic activity, and often require expensive repair or replacement. For example, one of Canada's costliest disasters - the June 2013 floods in Alberta - resulted in an estimated $6 billion in damages and recovery costs, saw 1,000 km of roads destroyed, caused hundreds of bridges and culverts to wash out, and forced an 11-day shut-down of two main rail lines. Some areas are at greater risk than others: coastal regions and the North are particularly vulnerable to the effects of rising temperatures such as thawing permafrost and higher sea levels.

Rising GHG emissions continue to be a serious concern. Under the Paris Agreement, Canada has set an economy-wide target to reduce GHG emissions by 30% below 2005 levels by 2030.^{Footnote 22} If no further measures are taken by the federal, provincial or territorial governments, Canadian GHG emissions are projected to reach 722 megatonnes (Mt) in 2030, 38% higher than Canada's Paris Agreement target of 523 Mt.^{Footnote 23}

The technology for achieving this target is available but deploying it will require coordinated action. For example, the transportation sector is Canada's second largest source of GHG emissions (after the oil and gas sector) accounting for 24% or 170 Mt in 2015.^{Footnote 24} The wide-scale deployment of electric and alternative fuel vehicles would substantially reduce emissions. At the same time, however, challenges to deployment remain, including the lack of an extensive recharging and refuelling network.

The estimated cost of responding to climate impacts in Canada - including impacts from extreme weather and other climate-related natural disasters - is projected to grow from an annual average of $5 billion in 2020 to $21–$43 billion by 2050.^{Footnote 25} The Parliamentary Budget Officer forecasts that over the next five years the Government of Canada can expect weather- related disasters to cost the federal government an average of $902 million per year.^{Footnote 26}

Disaster mitigation actions provide significant return on investment. Benefit-cost ratios for flood prevention measures in Australia, the United States and the United Kingdom are 3:1, 4:1 and 5:1, respectively. In Canada, $63.2 million invested in the Manitoba Red River Floodway in 1960 has saved an estimated $8 billion in potential damage and recovery costs.^{Footnote 27} Ensuring assets are designed, built, operated and maintained in consideration of current and future climate risks will reduce vulnerability, enhance resilience and help protect Canadians and their communities.

Changing Global Trade Patterns and Transportation Needs

Over 60% of Canada's gross domestic product (GDP) is tied to international trade.^{Footnote 28} The state of Canada's trade infrastructure directly affects the ability of Canadian businesses to compete in global commerce.

Shifting global trade and production patterns, increased global demand for Canadian commodities, larger vessels requiring less frequent port stops, and opportunities from new trade agreements exert and shift pressure on existing infrastructure and trade corridors. Regions of high economic growth (e.g., Asia), are distant, which increases the complexity, time and risks associated with trade connectivity. Canadian trade and exports continue to expand, which increases the demand on transportation infrastructure capacity and performance.

For all these reasons, current trade and transportation infrastructure is not sufficient to meet the needs of the future. A 2015 report by the International Transport Forum estimates that by 2050, international freight volumes will quadruple; the North Pacific will overtake the North Atlantic as the world's most important trading route; and shifting trade patterns will increase average shipping distances by 12%.^{Footnote 29} Congestion and bottlenecks could put Canadian shippers at a disadvantage compared to international competitors able to deliver more cost effectively and quickly. The federal government's strategies for attracting foreign direct investment would also be undermined as investors gravitate towards countries with more efficient trade systems. With other countries looking at investing substantially in their domestic transportation infrastructure, Canada is at risk of falling behind should it fail to make its own investments.

Small Communities

Small communities make significant contributions to Canadian society and the economy and they too face infrastructure gaps. In fact, many small communities face unique challenges of their own due to their size, distance to markets, and changing demographics, all of which can make it more difficult to ensure basic infrastructure needs are met. Construction, operation and maintenance costs can be high due to the lack of economies of scale, and small communities tend to have a small tax base that limits the capital available for infrastructure. Local administrations in small communities may also face capacity challenges when developing their own projects or collaborating with other communities to gain efficiencies and cost savings.

In addition, Canada's small communities face changing demographics and other challenges. For example, they often lag behind urban areas in access to broadband Internet connectivity, with the gap growing as broadband speeds increase. A lack of broadband can limit access to services and information and can make economic growth difficult. Often these communities lack the density to support private sector investment.

Indigenous Communities

Northern Communities

Northern communities are affected by many of the same issues as small and Indigenous communities, in addition to their own unique challenges. Nearly 300 remote communities, most in the North, have no access to the continental electricity grid. Most of these communities rely on fossil fuels for electricity generation.^{Footnote 47}

Communities are investing in cleaner energy, but for larger renewable systems that displace use of diesel, technical, financial and policy challenges need to be addressed. In northern communities connected only to local grids, fossil fuel is usually still the most effective option and in many cases, the need for investment is urgent. For example, in 2014–15, Qulliq Energy reported that half of Nunavut's communities had power plants over 40 years old - long past the end of their useful life.^{Footnote 48}

The North has unique challenges regarding trade and transportation infrastructure. For many northern communities, year-round access is possible only by air transport, which is vital for travel, resupply of perishable foods, as well as access to health care, law enforcement and other public services. Winter roads and summer marine services are relied upon for resupplying other essential needs that cannot be feasibly or economically transported by air, including many household goods, vehicles, fuel, construction equipment and materials.

The challenges of a difficult climate and season- dependent access lead to logistical and procurement challenges, limited competition, and design and project management complexity, resulting in high costs for building infrastructure. Moreover, the challenges posed by the North's limited transportation systems are expected to worsen with climate change while the need for increased food and energy security, natural resource extraction and tourism will require more transportation infrastructure.

Investments in northern infrastructure are clearly needed,^{Footnote 49 Footnote 50 Footnote 51} particularly in ground, air and marine transportation infrastructure, to protect the safety of travellers and communities while laying the foundations for economic growth.

Infrastructure and Social Development

Infrastructure is essential to the delivery of services required to build inclusive communities where all people can participate and contribute to society.

Housing and Homelessness

Across Canada, homelessness affects a diverse cross-section of the population and the communities in which they reside. In 2014, an average of 13,857 Canadians slept in an emergency shelter on any given night, accounting for over 90% of Canada's 15,000 shelter beds. ^{Footnote 52}

Additionally, in 2016 over 1.7 million Canadian households (12.7%) were in core housing need, meaning that their housing was either in poor condition, crowded or unaffordable, and the family was unable to access acceptable alternative housing in their community. ^{Footnote 53} For 76% of Canadian households considered to be in core housing need, the main challenge is affordability. ^{Footnote 54} Indigenous Peoples are disproportionately affected by poor housing; for example, Indigenous Peoples are 10 times more likely to use a shelter than non-Indigenous people. ^{Footnote 55}

Early Learning and Child Care

Public Transit's Role in Social Development

To participate in their communities, Canadians need reliable and reasonably priced public transit that connects them to hubs of commerce, recreation and work. Public transit infrastructure investments can provide better access to housing, shelters, early learning and child care, as well as to cultural, sport and recreation infrastructure. Transit systems are struggling to meet existing demands and increasing urbanization is continually adding more pressure.

Accessibility

Due to a variety of barriers, persons with disabilities are more likely to face exclusion, poverty and isolation. They have almost twice the rate of poverty of persons without disabilities, and nearly 60% of working age adults with disabilities are unemployed or out of the labour market. ^{Footnote 60} Physical barriers in the built environment can also exacerbate economic and social exclusion. However, properly designed infrastructure can address some of these unique challenges by increasing access to transportation, public spaces and buildings.

A Need for Action

Facing a growing infrastructure gap, and pressures of climate change, trade patterns, diverse community needs and demands for essential social services, the time for transformational investment in Canada's infrastructure is now.

3. Investing in Canada: A Comprehensive Long-Term Plan

Through the Investing in Canada plan, the Government of Canada is making historic new investments in infrastructure to build the cities of the 21^st century and provide communities across the country with the tools they need to prosper and innovate. The Investing in Canada plan provides over $180 billion of federal infrastructure investment over 12 years - more than doubling existing funding.

The Plan includes $92.2 billion for permanent funding such as the Gas Tax Fund and for funding committed prior to 2016 such as the New Building Canada Fund. Details on these established programs are provided in Annex A.

The Plan also includes $95.6 billion in new funding for infrastructure programs. Sections 3 and 4 detail how the Government will determine where and how to invest this new funding, the implementation approach and how progress will be measured.

The Minister of Infrastructure and Communities is responsible for coordinating the Plan across the federal government and ensuring that the outcomes of infrastructure investments are reported to Canadians in an open and transparent manner.

The Investing in Canada plan considers the unique needs of urban, rural, remote and Indigenous communities while also addressing national priorities. The Plan builds on the Government's robust partnerships with provinces, territories, municipalities and Indigenous communities. From coast-to-coast-to-coast, Canadians will see the direct impacts of infrastructure investments - including more affordable housing, improved air and water quality and greater resilience to the impacts of a changing climate.

A Bold Vision for an Inclusive Country: Three Key Objectives

Improve the Resilience of Communities and Transition to a Clean Growth Economy

To ensure that Canada's communities are healthy and productive places to live, now and in the future, Canada is investing in sustainable solutions. A healthy environment and a strong economy go hand-in-hand. Green infrastructure investments have the potential to help achieve GHG reductions across various sectors and can drive innovation and growth by increasing technology development and adoption. This will ensure Canadian businesses are competitive in the global low-carbon economy.

Disasters related to climate change are increasing in scale and severity. Investments in infrastructure specifically designed for climate impacts, including innovative nature-based solutions, enhance the resilience of Canadian communities while continuing to safely provide essential services. By accounting for the effects of climate change in infrastructure development, communities will be better prepared to respond to and recover from severe weather events.

The Investing in Canada plan supports delivery of the Pan-Canadian Framework on Clean Growth and Climate Change, Canada's plan to meet its GHG emissions reduction target, grow the economy, and build resilience to a changing climate. ^{Footnote 61}

Improve Social Inclusion and Socio-Economic Outcomes for All Canadians

Canada's strength lies in its diversity. Future success depends on building an economy and society that are inclusive of all Canadians. As the Plan progresses, all Canadians - including women, children, seniors, newcomers to Canada and persons with disabilities - will benefit and play a role in nation-building.

The Investing in Canada plan will contribute to building communities where all Canadians have the opportunity to succeed. It will do this by improving access to quality affordable housing, shelters, early learning and child care, cultural, sport and recreation infrastructure and reliable public transit. Respecting the Government's nation-to-nation, Inuit-to-crown, government-to- government relationship with Indigenous Peoples, the Plan addresses pressing needs in Indigenous communities. Investments will also improve physical accessibility and safety for persons with disabilities.

Outcomes

To allow these programs to be viewed collectively and understood as a whole, departments will track how programs are achieving the following seven outcomes:

1. Rate of economic growth is increased in an inclusive and sustainable way
2. Environmental quality is improved, GHG emissions are reduced and resilience of communities is increased
3. Urban mobility in Canadian communities is improved
4. Housing is affordable and in good condition and homelessness is reduced year over year
5. Early learning and child care is of high quality, affordable, flexible and inclusive
6. Canadian communities are more inclusive and accessible
7. Infrastructure is managed in a more sustainable way

The Government will report publicly on progress towards these outcomes through a series of indicators measuring the long-term impacts of new investment on the quality of life of Canadians, as well as short- and medium-term progress on implementation, program outputs, and overall trends regarding the use and state of public infrastructure in Canada. Indicators used to measure the success of the Plan are selected based on the extent to which they can demonstrate change over time towards the seven outcomes.

The Government measures progress on these indicators against existing data sources where available, and by developing new data sources. For indicators where data are currently unavailable, departments are developing data strategies to establish baseline information; for example, Canada's Core Public Infrastructure (CCPI) survey, described below in "Addressing the data gap".

2. National Leadership

The Government of Canada believes that all of Canada's diverse communities will benefit from increased and sustained investment in infrastructure. In addition to supporting local priorities that contribute to the Investing in Canada plan outcomes, the Government is taking a stronger leadership role on key national priorities by, for example, building networks that cross jurisdictions and funding large disaster mitigation projects across regions.

3. Evidence-Based Decision-Making

Though sound decisions are informed by strong evidence based in research and data, Canadian infrastructure decision-makers are currently faced with a substantial infrastructure data gap. The Investing in Canada plan includes initiatives to develop better data and to build capacity in communities for infrastructure planning and asset management, and has flexibility to adapt to new data as it becomes available. The Plan also includes funding for collecting and analyzing new data on the state of Canada's public infrastructure.

4. A Focus on Outcomes

By taking an outcomes-based approach to the Investing in Canada plan, the Government has set clear goals on how to address major issues facing Canadians. The Plan's progress will be assessed against expected outcomes. Local communities have the flexibility to determine how best these outcomes can be accomplished within a coordinated federal approach to infrastructure investment.

5. Inclusivity

Canada's investments in infrastructure will help ensure continued growth for the middle class and for those working hard to join it. The Plan seeks to leverage infrastructure investments to address socio-economic inequality, understanding that certain populations and groups face disadvantages and have unique needs. Under the Investing in Canada plan, funding will be targeted to communities in which investments are needed the most.

Figure 3: Investing in Canada plan Funding Streams

Text description of Figure 3.

Figure 3 depicts the funding from Budget 2016, budget 2017, and the Canada Infrastructure Bank, categorized under the 5 Investing in Canada plan funding streams (i.e. Categories of investment).

Public Transit has a total of $28.7 billion.

• $3.4 billion from Budget 2016.
• $20.3 billion from Budget 2017
• $5 billion from the Canada Infrastructure Bank

Green Infrastructure has a total of $26.9 billion.

• $5 billion from Budget 2016
• $16.9 billion from Budget 2017
• $5 billion from the Canada Infrastructure Bank

Social Infrastructure has a total of $25.3 billion.

• $3.4 billion from Budget 2016
• $21.9 billion from Budget 2017.

Trade and Transportation has a total of $10.1 billion.

• $5.1 billion from Budget 2016.
• $5 billion from the Canada Infrastructure Bank

Rural and Northern Communities has a total of $2 billion.

• $2 billion will be spent during Budget 2017.

Investment Streams

Investing in Canada plan investments are directed through five funding streams aimed at achieving the Plan's objectives and outcomes: public transit, green infrastructure, social infrastructure, rural and northern communities, and trade and transportation (Figure 3). The Key Investments section (Section 4) details the funding for each stream.

Public Transit

By improving the capacity, quality, safety and accessibility of public transit infrastructure throughout Canada, the Plan will reduce urban congestion and increase the proportion of Canadians who use transit and active forms of transportation to access jobs, education, health care and social activities. By taking national leadership to support local priorities, the Plan will also support the transition to a low-carbon economy, reduce air pollution, and under certain circumstances contribute to reducing GHG emissions.

Green Infrastructure

The Plan will address persistent challenges to air, water and soil quality and make Canadian communities, including Indigenous communities, more resilient to climate change, natural disasters and extreme weather events. Reductions in GHG emissions will reduce the risks we face from climate change and help Canada meet its commitments under the Pan-Canadian Framework on Clean Growth and Climate Change. At the same time, these investments will also generate sustainable economic growth.

Social Infrastructure

Investments in housing, early learning and child care, accessible infrastructure and in community, culture and recreation infrastructure will create stronger, more vibrant communities. Funding is broadly available for large and small projects, depending on the needs of communities. These investments will lead to new opportunities and improved social and economic inclusion for many Canadians, especially Indigenous Peoples and low-income populations. The Plan allocates dedicated funding for housing, homelessness, early learning and child care, and cultural and community infrastructure for Indigenous communities.

Rural and Northern Communities

Investments will help rural and northern communities overcome the challenges that come with small, often widely dispersed populations and long distances from markets, which together make infrastructure projects expensive and difficult to manage. This in turn has led to larger infrastructure gaps for rural and northern communities as compared to larger communities, including little or no access to reliable transportation and broadband Internet connectivity, and a lack of energy security. By addressing these gaps, the Plan will create new economic opportunities.

Trade and Transportation Infrastructure

Smart Cities Challenge

Post-Secondary Institutions Strategic Investment Fund

Budget 2016 announced $2 billion for infrastructure projects at post-secondary institutions over three years to enhance and modernize research and commercialization facilities, as well as industry-relevant training facilities at colleges and polytechnic institutions in Canada. These investments reinvigorate Canada's research and science base and address existing needs while contributing to Canada's long-term innovation and sustainability objectives.

Addressing the Data Gap

The Investing in Canada plan will introduce new ways to measure the impact of infrastructure investments - a process that begins with improving data collection.

Excellence in planning and asset management can extend infrastructure lifespans, improve quality of life in Canadian communities and reduce the burden infrastructure imposes on the public purse. For these reasons, the Government of Canada, in partnership with the Federation of Canadian Municipalities, is investing $50 million to support asset management best practices across Canada. Through the Municipal Asset Management Program, municipalities can apply for grants to fund asset management initiatives and risk assessments; plans, policies and strategies; data collection and reporting; training and organizational development; and knowledge transfer, development and sharing. The Capital Facilities and Maintenance Program, delivered by Indigenous Services Canada, will provide an additional $15 million over five years to help First Nations and modern treaty and self- government agreement signatories develop and implement asset management plans and practices, similar to the Municipal Asset Management Program.

The Plan also includes a commitment to improving data on the state and performance of core public assets. In July 2017, Infrastructure Canada and Statistics Canada launched Canada's Core Public Infrastructure (CCPI) survey. The goal of this national survey is to improve the knowledge and understanding of Canada's core public infrastructure assets (i.e., roads; bridges and tunnels; culture, recreation and sports facilities; social and affordable housing; public transit systems; solid waste systems; and potable water, wastewater and storm water systems) across the country.

Delivering Infrastructure Funding

Building infrastructure takes time, with many steps between announcing a plan and the final accounting of project costs. Following the announcement of funding in a budget, the Government of Canada undertakes consultations with the public, key stakeholders, provinces, territories and Indigenous groups to determine the programs for delivering the funds. When programs are delivered by other orders of government, the Government establishes funding agreements with the provinces and territories; these agreements can take up to a year to complete. Under these agreements, provinces and territories consult with their municipalities and key stakeholders to bring forward priority projects to the federal government for consideration. Once the project is approved by the Government, provinces and territories can submit eligible costs for reimbursement. Some projects, once approved, move quickly into the construction phase while others have longer lead times for planning, and local approval processes (e.g., zoning and permitting). Regardless of how long planning takes or how soon ground can break, eligible costs can be submitted for reimbursement throughout the life of the project.

The Government of Canada reports on program results and spending, including tracking projects as they get underway, when costs are incurred, when federal funds flow to other orders of government, and the results achieved through Canada's investments.

Figure 4: Investing in Canada Interactive GeoMap

Text description of Figure 4.

Figure 4 is a representation of the Investing in Canada interactive geomap. The geomap is zoomed in on a Public Transit project, showing the following details:

• Name of project: Millennium Line extension (Broadway) Planning & Design
• Location: Vancouver, British Columbia
• Description: Modern, reliable public transportation service

Reporting to Canadians

Infrastructure Canada reports to Canadians on the impacts of the Investing in Canada plan. In December 2017, a geomap (Figure 4) featuring project-level results information from each department delivering on the Plan was launched on the Infrastructure Canada website to inform Canadians about where infrastructure investments are being made and how these will benefit them. The geomap, which is updated monthly, is complemented by Infrastructure Canada's website, as well as the open government portal.

Infrastructure Canada will publish an annual report on progress made toward the Plan's objectives. Five years into the Plan, a review is planned.

The timespan from the announcement of funding to the grand opening of a new facility can take years, especially for transformative projects.

However, the time in between is important and provides an opportunity for governments to demonstrate early results and progress on a project. At the same time, each program will have its own reporting and measurement framework including implementation milestones, program outputs and shorter-term targets: for example, progress towards ending all long- term drinking water advisories affecting public drinking water systems on-reserve by 2021. Each department will report on the programs they deliver through their respective annual Departmental Results Reports and on their departmental websites. Infrastructure Canada's Departmental Results Reports will also include reporting on components of the Investing in Canada plan delivered by other departments, in its role of coordinating reporting among federal departments delivering the Plan.

4. Key Investments

Through the Investing in Canada plan, the Government is investing over $180 billion in infrastructure (Figure 1) for new and established programs. The first phase of new infrastructure funding under the Plan, outlined in Budget 2016, accelerated existing programs and launched short term programs focused on rehabilitation and modernization. The next phase, outlined in Budget 2017, consists of long-term investments to address broader and more ambitious goals: a more modern, cleaner economy; a more inclusive society; and an economy better positioned to capitalize on the potential of global trade. The Plan also includes pre-existing and renewed programs, such as the Gas Tax Fund and the New Building Canada Fund (Annex A).

The Investing in Canada plan dedicates funding for public transit, green infrastructure, social infrastructure, rural and northern communities and trade and transportation. This includes funding for Indigenous communities, and funding delivered through the Canada Infrastructure Bank and the Smart Cities Challenge.

Public Transit

From Canada's small towns to its largest urban centres, efficient public transit is vital to the functioning of communities. Public transit helps to reduce traffic on roads so they can accommodate other economic activity. It is the primary means of mobility for many Canadians, allowing them to access jobs, education, health care and social activities. With increasing urbanization and an aging population, transit systems in both urban and rural areas will need to adapt their services.

The Plan devotes $28.7 billion to public transit and is already delivering results for Canadians. For instance, in the municipalities of Halifax, Moncton, Dieppe, and Riverview, 48 new buses recently purchased through the Plan use less fuel, reduce air pollution and provide accessible and reliable public transit services.

Figure 5: Public Transit Investments

Initiative	Funding
Budget 2016 investments in public transit	$3.4 billion
Public transit stream of Investing in Canada Infrastructure Program	$20.1 billion
Allocated to Canada Infrastructure Bank	$5 billion
Allocated to Smart Cities Challenge	$100 million
Total new funding	$28.7 billion*

*Not shown in the table, but included in the total: $75 million, which contributes to the larger $950 million Innovation Superclusters Initiative being led by Innovation, Science and Economic Development Canada, and which is reported on under the Innovation and Skills Plan.

The University of British Columbia's Okanagan Campus Transit Exchange Project created six new bus bays, one new drop off area and four bus layover stations, as well as transit shelters, transit lanes and bicycle storage lockers to better meet transit needs for students and other Kelowna residents.

By improving the capacity, quality, safety and accessibility of public transit infrastructure throughout Canada, investments lead to reduced urban congestion and improved access to jobs and economic growth for all Canadians. They support the transition to a low-carbon economy and provide positive environmental effects by reducing localized air pollution and under certain circumstances can contribute to reducing GHG emissions. The investments also enhance mobility options and strengthen opportunities for all Canadians to contribute to the social life of their communities. As such, public transit investments (Figure 5) contribute to the following long-term outcomes of the Investing in Canada plan:

• Rate of economic growth is increased in an inclusive and sustainable way.
• Urban mobility in Canadian communities is improved.
• Infrastructure is managed in a more sustainable way.

Budget 2016 Investments in Public Transit

Green Infrastructure

Figure 6: Green Infrastructure Investments

Initiative	Funding
Budget 2016 investments in green infrastructure	$5 billion
Green infrastructure stream of Investing in Canada Infrastructure Program	$9.2 billion
National programs and initiatives	$5.2 billion*
Arctic Energy Fund (delivered under the rural and northern stream of the Investing in Canada Infrastructure Program)	$400 million
Allocated for Indigenous communities	$2 billion
Allocated to Canada Infrastructure Bank	$5 billion
Allocated to Smart Cities Challenge	$100 million
Total new funding	$26.9 billion

*Included in this amount is $2 billion that has been reserved for programming that will begin in 2020–21; and $75 million that contributes to the larger $950 million Innovation Superclusters Initiative being led by Innovation, Science and Economic Development Canada and which is being reported on under the Innovation and Skills Plan.

Budget 2016 Investments in Green Infrastructure

To ensure that Canada's communities are healthy and productive places to live, Budget 2016 included $5 billion in funding for infrastructure that protects communities and supports Canada's ongoing transition to a clean growth economy. Specifically, the Government is investing in electric vehicle and alternative transportation fuel infrastructure, initiatives to foster regional electricity cooperation, and the development of building codes and standards that integrate climate resiliency requirements. Working with provinces, territories, municipalities and First Nations communities, the Government is also investing to modernize water and wastewater infrastructure.

Green Infrastructure Stream of the Investing in Canada Infrastructure Program

$9.2 billion over 10 years, delivered by Infrastructure Canada

Investments under the green infrastructure stream of the Investing in Canada Infrastructure Program support GHG mitigation projects; infrastructure that will help communities respond and adapt to the impacts of a changing climate; and other green infrastructure that supports a healthy environment, such as water and wastewater infrastructure.

Under the Investing in Canada Infrastructure Program, an agreement is signed with each province and territory regarding cost-sharing for agreed-to projects (Annex C).The jurisdictional allocation for the green infrastructure stream consists of a base amount of $200 million for each province and territory. The remainder is allocated on a per capita basis, using 2016 Statistics Canada Census data. Funding for the green infrastructure stream is delivered via three sub-streams. Each category ensures that Canada meets its long-term priority outcomes:

Climate Change Mitigation investments result in reduced greenhouse gas emissions. Examples include electricity generation and transmission (e.g., smart grid and renewables), built environment (e.g., increased energy efficiency), transportation (e.g., electric vehicles and alternative fuel infrastructure), active transportation infrastructure and higher order rapid transit (e.g., heavy rail, subway, light rail transit or bus rapid transit), or the adoption of vehicles that use a renewable fuel source (e.g., fleet electrification) in a public transit fleet. Under the green stream, 45% of a province's allocation will be invested in greenhouse gas emission mitigation projects.

Adaptation, Resilience, Disaster Mitigation investments support community resilience to climate change. These projects could include constructed infrastructure (e.g., dykes, winter ice road replacement) and natural infrastructure (e.g., natural shorelines and wetlands) projects that result in increased infrastructure capacity to withstand and adapt to climate change impacts and climate-related disasters.

Environmental Quality investments result in increased capacity to treat and manage water and wastewater and reduce or remediate soil and air pollutants. Funding could include investments in natural infrastructure as well as upgrades to water, wastewater infrastructure, replacement of diesel storage tanks and reduction of the environmental impact of landfills.

National Green Infrastructure Programs and Initiatives

Electric Vehicle and Alternative Fuel Infrastructure

$120 million over four years, delivered by Natural Resources Canada

The Electric Vehicle and Alternative Fuel Infrastructure program funds the deployment of infrastructure for electric vehicle charging and refuelling for other alternative fuels such as natural gas and hydrogen. It also funds electric vehicle charging technology demonstration projects and the development of codes and standards.

Smart Grid

$100 million over four years, delivered by Natural Resources Canada

The Smart Grid program supports the demonstration and deployment of smart-grid technologies that make the most efficient use of existing electricity assets while integrating renewable energy and increasing electricity system flexibility and resiliency with maintained or enhanced cyber security.

Series of Initiatives in Support Of Climate Adaptation and Resilience

$281 million over 11 years, delivered by multiple departments

In addition to the programs listed, Environment and Climate Change Canada, Natural Resources Canada, Indigenous Services Canada, Crown-Indigenous Relations and Northern Affairs Canada, and other departments are delivering a suite of programs and initiatives that will each contribute towards climate adaptation and resilience in Canada, the results of which will be reported under the Pan-Canadian Framework for Clean Growth and Climate Change.

Social Infrastructure

Figure 7: Social Infrastructure Funding

Initiative	Funding
Budget 2016 investments in social infrastructure	$3.4 billion
Community, Culture and Recreation Stream of the Investing in Canada Infrastructure Program	$1.3 billion
National programs and initiatives	$24.6 billion
Allocated for Indigenous communities	$2 billion
Allocated to Smart Cities Challenge	$100 million
Total new funding	$25.3 billion*

* $6.1 billion of funding in support of social infrastructure is sourced from the fiscal framework and other revenues; therefore the total is less than the sum of the initiatives. Totals may not add due to rounding.

Budget 2016 Investments in Social Infrastructure

The Budget 2016 Investing in Canada plan commitments included social infrastructure investments totalling $3.4 billion over five years. These investments are expanding affordable housing, supporting early learning and child care, renewing cultural and recreational infrastructure and improving community health care facilities (including nursing stations, treatment centres and accommodation space for visiting health care professionals) on reserve. The Budget 2016 investments in social infrastructure will help strengthen the middle class, promote inclusive growth for Canadians, and lift more Canadians - including children and seniors - out of poverty.

Community, Culture and Recreation Stream of the Investing in Canada Infrastructure Program

$1.3 billion over 10 years, delivered by Infrastructure Canada

The community, culture and recreation stream of the Investing in Canada Infrastructure Program provides funding for the construction, expansion or rehabilitation of new community, culture, sports and recreation facilities. Community infrastructure is defined as publicly accessible, multi-purpose spaces that bring together a variety of different services, programs and/or social and cultural activities to address local needs. This also includes a provision for investments in infrastructure for urban Indigenous populations. Under the Investing in Canada Infrastructure Program, an agreement is signed with each province and territory regarding cost-sharing for agreed-to projects (Annex C).

National Social Infrastructure Programs and Initiatives

National Housing Strategy

$16.1 billion over 11 years i, led by the Canada Mortgage and Housing Corporation

Through the National Housing Strategy, the Government is re-engaging in affordable housing by investing in the growth of livable communities and the resilience of the community housing sector. The Strategy was developed in collaboration with the province and territories, and in consultation with municipalities, Indigenous Peoples, industry experts, stakeholders and Canadians living with the challenge of finding adequate and affordable housing.

Key elements of the National Housing Strategy include:

• An expanded federal homelessness program to reduce homelessness.
• A National Housing Co-Investment Fund to ensure existing rental housing is not lost to disrepair and to develop that is new, high-performing affordable housing integrated with support and services.
• A renewed partnership between the government and provinces and territories to address distinct housing priorities, including affordability, repair and construction.
• Additional federal funding to address housing in the Canada's North.
• Housing support for off-reserve Indigenous households living in social housing in urban and rural communities.
• Making federal lands available for affordable housing.
• Enhanced housing research, data and demonstration to inform our policies and lead to better housing outcomes for all Canadians.

Canada Mortgage and Housing Corporation is also supporting Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to co-develop distinctions-based Indigenous housing strategies with First Nations, Inuit and Métis in order to support enhanced self-determination and improve housing outcomes.

Early Learning and Child Care Framework

$7.5 billion over 11 years, led by Employment and Social Development Canada

To help Canadian children get the best start in life and to better support Canadian families, Budget 2016 and 2017 announced investments totalling $7.5 billion over 11 years, starting in 2017–18, to support and create more high-quality, affordable child care across the country, particularly for families more in need, including Indigenous families and children living on and off reserve.

On June 12, 2017, the Government of Canada announced an historic agreement with provincial and territorial governments on a Multilateral Early Learning and Child Care Framework. The Framework will seek to increase the quality, accessibility, affordability, flexibility, and inclusivity in early learning and child care, in particular for families that need child care the most. The Government of Canada is working with each province and territory to enter into three-year bilateral agreements that will address their early learning and child care needs.

The Government is working in partnership with Indigenous Peoples to co-develop the Indigenous Early Learning and Child Care Framework to better support the distinct needs of Indigenous children and families. Indigenous early learning and child care has been identified as a priority by the Canada-Métis Nation Accord, the Inuit-Crown Partnership Committee and the Assembly of First Nations.

Home Care Infrastructure

Rural and Northern Communities

Rural and northern communities have particular 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. Rural and northern communities have small populations and face challenges related to a changing climate, physical dispersion and distance from markets. When combined, these factors can make projects difficult and expensive to implement, which in turn makes certain infrastructure gaps, such as lack of access to reliable transportation, broadband Internet connectivity and energy security, more prevalent in these communities. To ensure that they have the funding they need, the Investing in Canada plan includes a funding stream dedicated specifically to rural and northern communities. This is in addition to the funding provided by all the other streams, which provinces and territories can allocate to rural and northern communities.

Figure 8: Rural and Northern Communities Infrastructure Funding

Initiative	Funding
Rural and northern stream of the Investing in Canada Infrastructure Program	$2 billion
Total new funding	$2 billion

The Plan devotes $2 billion to the rural and northern communities infrastructure investment stream of the Investing in Canada Infrastructure Program (Figure 8). By investing in transportation connectivity in rural and northern regions, improving broadband Internet connectivity, and enhancing energy efficiency and reliability in communities that are not connected to the continental energy grid, these investments help set the conditions for social inclusivity and create more economic opportunities in Canada's northern and rural communities. These investments contribute to the following outcomes of the Investing in Canada plan:

• Rate of economic growth is increased in an inclusive and sustainable way.
• Environmental quality is improved, GHG emissions are reduced and resilience of communities is increased.
• Canadian communities are more inclusive and accessible.
• Infrastructure is managed in a more sustainable way.

Rural and Northern Communities Stream Of The Investing In Canada Infrastructure Program

Connect to Innovate: Rural and Remote Broadband

$500 million over five years, delivered by Innovation, Science and Economic Development Canada

In Budget 2016, the Government announced an investment of up to $500 million over five years for a new program to extend and enhance broadband service in rural and remote communities. The Connect to Innovate program's objective is to bring high-speed Internet to 300 rural and remote communities, so that Canadians can make the most of the digital economy no matter where they live.

Arctic Energy Fund

$400 million over 10 years, delivered by Infrastructure Canada

In addition, the $400 million Arctic Energy Fund, sourced from the green infrastructure stream of the Investing in Canada Infrastructure Program, is delivered as part of the rural and northern communities stream to support energy security, reliability and efficiency in fossil fuel-dependent communities in the territories, including Indigenous communities. The Arctic Energy Fund provides funding for communities to upgrade existing fossil fuel-based energy systems or to supplement or replace these systems with renewable energy options, which contributes to improved reliability, efficiency and pollution reduction.

Trade and Transportation Infrastructure

The performance of the country's trade infrastructure directly affects the ability of Canadian firms to compete in the global marketplace. Investments in critical trade-related transportation infrastructure will position Canadian businesses to take advantage of trade opportunities in high-growth markets globally and within North America.

Figure 9: Trade and Transportation Infrastructure Funding

Initiative	Funding
National Trade Corridors Fund	$2 billion
Additional programs that support Canada's transportation sector	$3.4 billion
Allocated to Canada Infrastructure Bank	$5 billion
Total new funding	$10.1 billion*

*$309 million of funding in support of trade and transportation is sourced from the fiscal framework and other revenues, therefore the total is less than the sum of the initiatives.

The Plan provides $10.1 billion in funding to the trade and transportation infrastructure stream (Figure 9), delivered by Transport Canada and the Canada Infrastructure Bank. Trade and transportation investments increase the efficiency, safety and resilience of Canada's transportation system and improve supply chain fluidity and performance.

Stronger trade corridors help the natural resource and agricultural sectors move products to market more efficiently, contribute to northern and Indigenous economic and social development, bolster the Government's trade and investment strategy, strengthen innovation networks and clusters, increase transportation infrastructure's resilience to climate change impacts and position Canada for lower-carbon growth. Investments in trade and transportation infrastructure reinforce trade and economic links across the country, contributing to the following outcomes of the Investing in Canada plan:

• Rate of economic growth is increased in an inclusive and sustainable way.
• Infrastructure is managed in a more sustainable way

National Trade Corridors Fund

$2 billion over 11 years, delivered by Transport Canada

The National Trade Corridors Fund is a merit- based program to make Canada's trade transportation system more efficient and reliable. The program invests $2 billion over 11 years to: support the flow of goods and passengers by reducing bottlenecks and addressing capacity issues; strengthen the climate resiliency of the transportation system and ensuring it is able to support new technologies and innovation; address the unique transportation needs in Canada's territorial North to improve safety and foster economic and social development; and build on investments made by a variety of public and private sector partners. Well-functioning trade corridors will allow Canadians to compete in key global markets and trade more efficiently with essential partners. In addition, funding for streamlining transportation along Canada's major trade corridors, up to $400 million, is dedicated to improving the flow of supplies to communities in the territorial north and to supporting safety needs and economic opportunities in Yukon, Northwest Territories and Nunavut.

Additional Programs That Support Canada's Transportation Sector

Canada Infrastructure Bank

Governance

The CIB is a Crown corporation that operates at arm's length from government. It is governed by an independent Board of Directors and led by a professional management team. This provides it with significant independence in its operations, which is important for it to be a credible commercial counterparty with investors and to make recommendations to governments based on commercial assessments and analysis.

Financial Tools

The CIB will execute complex infrastructure deals using a wide range of financial instruments at its disposal, including loans, loan guarantees, equity investments and other innovative financial tools.

The CIB is responsible for delivering $35 billion on a cash basis over 11 years, and will prudently manage its portfolio such that the total net fiscal expense over that period will remain under $15 billion. The CIB's financial support is structured to attract private sector capital and conclude project deals. The timing and design of federal support seeks to minimize the amount required to make projects financially viable.

The CIB will invest at least $5 billion in each of the following priority areas:

• public transit systems;
• trade and transportation infrastructure; and
• green infrastructure projects.

Innovative Infrastructure Deals That Deliver More Value for Canadians

The CIB has flexibility to participate in complex infrastructure deals in new and innovative ways. This could include:

• Participating as a subordinated equity partner in a new large public transit project to encourage the transfer of revenue risk to the private sector investor.
• Facilitating an interprovincial clean energy grid project through the provision of a loan guarantee to lower risk and reduce financing costs for the proponent.
• Providing low-cost loans to advance complex trade corridor projects.

By using innovative financing tools to leverage private sector capital, the CIB can make public infrastructure dollars go farther and build more projects.

The CIB will deploy its innovative financial tools in a manner that is informed by examples from around the world, such as:

• The US Transportation Infrastructure Finance and Innovation Act loan program provided a subordinated loan of US$430 million to help attract $896 million of private financing to build a four-lane toll road near Austin, Texas. ^{Footnote 68}, ^{Footnote 69}
• In 2015, the UK Green Investment Bank mobilized private investment in the £1.5 billion Galloper offshore wind farm by taking a 25% equity position alongside Siemens, Macquarie and RWE Innogy. The joint venture secured £1.37 billion of debt facilities from a consortium of 12 commercial banks plus the European Investment Bank. ^{Footnote 70}
• The €7.8 billion Tours-Bordeaux High-Speed Rail project in France involved a consortium of investors responsible for financing €3.8 billion of the project cost, which included equity contributions, the European Investment Bank, Fonds d'Epargne, bank debts guaranteed by the French Government and non-guaranteed bank debts. Public subsidies offered by the French government, local communities and the EU will amount to nearly €3 billion. The public sponsor Réseau Ferré de France also invested €1 billion in the project. ^{Footnote 71}

Benefits of the CIB Model

The CIB model builds on Canada's mature public- private partnerships market. It will help shift the funding of major infrastructure projects off the tax base onto those who use and benefit from it. This allows governments to direct traditional grant funding streams towards projects that require full public funding.

Through the CIB model, federal support can be used more strategically by transferring risk to the private sector. This encourages greater innovation and efficiency in meeting infrastructure needs by involving the private sector earlier, in scoping projects to consider the best way to manage infrastructure assets across their lifespan.

Investment Criteria

The CIB will make investments in infrastructure projects that are in the public interest and generate revenue; for example, through user fees, tolls and land value uplift capture (i.e., the capture of the increase in the value of land and development generated by the infrastructure project), which are already being examined by several jurisdictions. A key consideration for CIB will be if the project attracts private sector capital that would not have otherwise been invested in public infrastructure.

The Bank's investments will be made strategically, with a focus on transformative projects that are in the public interest such as public transit systems, trade and transportation corridors and green infrastructure projects, including those that reduce GHG emissions, deliver clean air and safe water systems and promote renewable power.

5. Conclusion

The Investing in Canada plan is an ambitious long-term blueprint for investing in and building the infrastructure that Canada needs for today and for generations to come. It is focused on addressing infrastructure challenges across Canada and reflects the priorities of Canadians. It is a plan that seeks to benefit all Canadians. As with all long-term plans and major investments, the results will unfold over time. To ensure that the Investing in Canada plan is a success, the Government is working closely with other orders of government to deliver on its commitments and report regularly to Canadians.

The Government has been making significant and timely investments in Canada's infrastructure to address immediate challenges and achieve the objectives outlined in the Investing in Canada plan through the first phase launched in 2016.

The new long-term investments announced in Budget 2017, most of which began to deliver funding in 2018–19, will continue to address these challenges and objectives by making further transformative investments in Canada's infrastructure.

The Government is already well on its way in delivering the long-term initiatives under the Investing in Canada plan. Initiatives for national trade corridors, cultural spaces, and smart cities, plus many others, are underway. Furthermore, the Government has established the Canada Infrastructure Bank, which is working with project sponsors and private sector investors to identify investment opportunities that provide economic, social and environmental returns.

The Government is working closely with partners to deliver significant investments. The Minister of Infrastructure and Communities has announced the Investing in Canada Infrastructure Program with provinces and territories to deliver $33 billion in funding. In addition, separate bilateral agreements will deliver funding for Early Learning and Child Care, the National Housing Strategy and the Community Educational Infrastructure Initiative.

The Government is also putting into place the means to report to Canadians on the state of Canada's infrastructure and the Investing in Canada plan progress, investments and impacts in Canadians communities. Data from Canada's first Core Public Infrastructure Survey will be available in fall 2018 to strengthen future infrastructure planning. Infrastructure Canada will publish the Minister's Progress Report on the Investing in Canada plan annually, with the first report to be published in 2018. Reports will include an update on implementation and the results of investments to demonstrate how the plan is benefitting Canadians. The first report will include implementation and early results, while later reports will include progress towards long-term outcomes.

Investing in Canada is a plan for a prosperous, inclusive and sustainable future and it will have a transformative effect on Canada and Canadians. These investments in infrastructure over the next ten years will pay dividends for decades to come: delivering clean, sustained economic growth; building stronger, more inclusive communities; and creating more good, middle-class jobs for Canadians. Through the Investing in Canada plan, Canadian communities from coast-to-coast-to-coast will benefit from the many positive impacts of sound public infrastructure, improving lives and opening up opportunities in communities across the country.

Annex A: Existing Infrastructure Funding

The Investing in Canada plan includes $92.2 billion in existing programs established prior to 2016. A summary of these programs is provided below.

Figure 10: Existing Infrastructure Funding
Pre-2016 Infrastructure Programs ($ millions)

Program	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22	2022-23	2023-24	2024-25	2025-26	2026-27	2027-28	Total
Infrastructure Canada
Community Improvement Fundi	3,113	3,130	3,250	3,271	3,293	3,415	3,437	3,560	3,583	3,706	3,731	3,855	41,344
New Building Canada Fund	284	589	814	1,119	1,593	2,009	1,758	1,794	819	691	228	153	11,853
Building Canada Fund	563	370	455	312	203	165	126	120	21	0	0	0	2,335
P3 Canada Fund	168	230	210	290	262	0	53	0	0	0	0	0	1,213
Green Infrastructure Fund	45	43	23	31	46	41	42	42	32	32	31	21	428
Other Infrastructure Canada Programsii	114	133	85	34	0	0	0	0	0	0	0	0	366
Transport Canada
Gateways and Corridors Programs	157	81	93	9	1	0	0	0	0	0	0	0	341
Regional Development Agencies
Canada 150 (Budget 2015)	69	77	0	0	0	0	0	0	0	0	0	0	146
Total - Legacy Infrastructure Programs	4,514	4,653	4,931	5,065	5,399	5,630	5,417	5,516	4,455	4,429	3,989	4,029	58,026

Social and Green Infrastructure ($ millions)

Program	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22	2022-23	2023-24	2024-25	2025-26	2026-27	2027-28	Total
Canada Mortgage and Housing Corporation
Existing Housing Programs	2,021	2,012	1,953	1,683	1,590	1,504	1,440	1,288	1,134	1,006	874	759	17,262
Indigenous and Northern Affairsiii
Support for On-Reserve Housing	133	162	164	165	165	165	165	165	165	165	165	165	1,940
Support for Education Facilities	258	296	263	263	238	238	238	238	238	238	238	238	2,984
Social Community Infrastructure	421	461	485	485	492	514	537	559	583	607	631	656	6,430
Water and Wastewater Infrastructure	180	208	204	204	204	204	204	204	204	204	204	204	2,430
First Nations Infrastructure Fund	18	15	15	16	16	16	16	16	0	0	0	0	128
Health Canadaiii
On-Reserve Health Infrastructure	82	86	49	49	49	49	49	49	49	49	49	49	654
Employment and Social Development Canada, Public Health Agency of Canada and Health Canadaiii
Indigenous Early Learning and Childcare	133	133	133	133	133	133	133	133	133	133	133	133	1,591
Employment and Social Development Canada
Homelessness Partnering Strategy	119	119	119	0	0	0	0	0	0	0	0	0	357
Canadian Heritage
Canada Cultural Spaces Fund	30	30	30	30	30	30	30	30	30	30	30	30	360
Total - Social and Green Infrastructure	3,395	3,521	3,414	3,027	2,916	2,852	2,811	2,681	2,535	2,430	2,322	2,232	34,137
Total Pre-2016 Infrastructure Programs	7,909	8,174	8,345	8,092	8,315	8,482	8,228	8,197	6,990	6,859	6,311	6,261	92,163

(i) Includes the Gas Tax Fund and the incremental GST rebate for municipalities.
(ii) Includes the Canada Strategic Infrastructure Fund, Border Infrastructure Fund, PT Base Funding, and the Inuvik to Tuktoyaktuk Project.
(iii) As of November 30, 2017, programming under Indigenous and Northern Affairs Canada and Health Canada was transferred to the newly-created Department of Indigenous Services Canada.

Annex B: Shared Results

The Government has made a strong commitment to deliver real results to Canadians. In fact, every Minister's mandate letter committed each Minister to track and report on the progress of the Government's commitments; assess the effectiveness of its work; and align resources with priorities to deliver results for Canadians.

The Investing in Canada plan's results and delivery strategy begins with the three overarching objectives and the seven shared outcomes presented in Section 3 of this document. This framework of shared outcomes will shape the way the Government selects and reports on projects funded under the Investing in Canada plan.

Shared Outcomes and Performance Indicators

The Government will track and measure the seven shared outcomes using high-level, long-term performance indicators providing concrete measures of the impact the Plan will have on the lives of Canadians. Many of these performance indicators will use existing data sources, while others will use new data sources that are being developed with funding from the Plan. Examples of performance indicators are listed below; these will be refined as the Plan progresses.

Outcome 1: Rate of Economic Growth is Increased in an Inclusive and Sustainable Way

Example Indicators

• Change in supply chain fluidity/performance (measured by the end-to-end multimodal transit time of freight imports from ports in Asia and Europe to inland North American markets via Canadian ports)
• Basic northern transportation infrastructure and efficiency, as measured by cargo off-load times for sealifts, and weather information availability and reliability
• Percentage of projects that incorporate community employment benefits

Outcome 2: Environmental Quality is Improved, GHG Emissions Are Reduced and Resilience of Communities is Increased

Outcome 2.1: Reduced Greenhouse Gas Emissions

Example Indicators

• Percentage change in total national greenhouse gas emissions generated from the energy, building, transportation, and waste sectors
• Percentage of non-emitting electricity generation
• Emissions intensity level (greenhouse gas emissions per dollar of GDP)

Outcome 2.2: Improved Resiliency for Communities

Example Indicators

• Percentage of municipalities that have factored climate change adaptation in the decision- making process
• Number of communities better protected from climate change impacts as a result of federal investments
• Percentage of funded infrastructure projects that incorporate natural infrastructure solutions under Integrated Bilateral Agreement - Adaptation, Resiliency and Disaster Mitigation and Environmental Quality sub-streams and Disaster Mitigation Adaptation Fund

Outcome 2.3: Improved Environmental Quality

Example Indicators

• Percentage of communities across Canada with sustained boil water advisories per year
• Percentage of First Nations communities with improved solid waste systems
• Percentage of wastewater systems that need to be upgraded to meet the effluent quality standards of the Federal Wastewater Systems Effluent Regulations
• Quantity of solid waste material diverted per capita
• Number of long-term drinking water advisories affecting public drinking water systems on First Nation reserves

Outcome 3: Urban Mobility in Canadian Communities is Improved

Example Indicators

• Modal share of public transit and active transportation
• Percentage of new social and affordable housing that is within 1,000 metres of a transit station or stop
• Percentage of Canadians living within 400 metres of a transit station or stop
• Percentage of Canadians living within 1,000 metres of a rapid transit station

Outcome 4: Housing is Affordable and in Good Condition, and Homelessness is Reduced Year over Year

Example Indicators

• Number of households whose housing needs are significantly reduced or eliminated
• Number of social and affordable units renewed
• Number of new social and affordable housing units created
• Estimated number of shelter users who are chronically homeless
• Percentage of First Nations housing that is adequate as assessed and reported annually by First Nations

Outcome 5: Early Learning and Child Care is of High Quality, Affordable, Flexible and Inclusive

Example Indicators

• Number of children in regulated child care spaces and/or early learning programs
• Number of children benefitting from subsidies (or other financial supports for child care)

Outcome 6: Canadian Communities Are More Inclusive and Accessible

Example Indicators

• Percentage of public transit fleets and stations that allow for accessibility
• Percentage of communities with accessible sport and recreational facilities by provinces and territories
• Percentage of new social and affordable housing that allow for accessibility
• Percentage of Canadians that rate the quality of cultural, arts, and heritage facilities in their communities as very good
• Percentage of Official-Language Minority Community (OLMC) population with access to OLMC cultural or community infrastructure in their communities
• Number of health facilities in First Nations communities that have been replaced or undergone renovations to improve quality

Outcome 7: Infrastructure is Managed in a More Sustainable Way

Example Indicators

• Amount of investment leveraged through engagement of private capital by the Canada Infrastructure Bank
• Percentage of communities without access to the continental grid that experience power disruptions in a year
• Level of infrastructure investment by order of government and asset class
• Change in remaining useful life and physical condition by infrastructure asset class
• Percentage of municipalities that practice asset management

Annex C: Partnerships with Provinces and Territories

The Investing in Canada plan is an evolution in how the federal government delivers infrastructure funding. It moves towards an approach that promotes partnerships with other orders of government to align priorities and programs. This is an important shift in approach, as these partnerships allow the federal government to leverage and thus significantly increase the reach of funding from the Plan. Bilateral agreements with provinces and territories in particular represent a key delivery mechanism for the Plan.

Investing in Canada Infrastructure Program

$33 billion over 10 years, delivered by Infrastructure Canada

The Investing in Canada Infrastructure Program delivers $33 billion in funding through integrated bilateral agreements (IBAs) between the federal government and each of the provinces and territories.

IBAs give the provinces and territories flexibility in how they invest funding within the context of the Government's national objectives. The IBAs cover investments in public transit, green, rural and northern communities, and cultural and recreation infrastructure and establish the terms and conditions by which infrastructure funding will be delivered over 10 years.

The IBAs take an outcomes-based approach to funding, a significant change from the way infrastructure funding was allocated in the past. Provinces and territories submit projects that align to program outcomes, identified for each funding stream, in order to be considered eligible for funding. This approach provides provinces and territories with the flexibility to determine how best to achieve results within the context of defined program outcomes.

Supporting the outcomes-based approach is a robust reporting strategy that focusses on demonstrating results for Canadians. Provinces and territories will use approximately 40 common indicators to report on investments funded through IBAs. Common indicators facilitate consistent reporting across all jurisdictions and allow for the aggregation of results at a national level. A subset of eight of these indicators have national targets associated with them. These targets are aspirational and will be challenging to achieve. They reflect the Government of Canada's intention to deliver positive and meaningful change for Canadians. Given the long-term nature of infrastructure investments, targets will be measured using expected results. Actual results will likely only be available after project completion, beyond the  timeline of the IBAs.

National targets for the IBAs are as follows:

1. Increase by 20 % the modal share for public transit and active transportation;
2. Maintain at least 96 % as the percentage of people in a municipality with a transit system that live in the service area of their transit system;
3. Contribute to a reduction of greenhouse gas emissions of 10 megatons;
4. Reduce by 40 % the number of long-term drinking water advisories in non-reserve communities;
5. Increase the number of wastewater systems achieving compliance with federal effluent regulations: 95–100 % for high risk; 85–100 % for medium risk;
6. Ensure 100 % of federally funded public facing infrastructure will meet the highest published applicable accessibility standard in a respective jurisdiction;
7. Increase by 3 percentage points the number of rural households that have access to the highest broadband speed range available in their jurisdictions; and,
8. Increase the efficiency of electricity generation by 4% (kilowatt hour per litre/m3 of fuel used) in communities that are dependent on fossil-fuel for electricity generation.

The contribution of each province and territory will be specified in their IBA and each jurisdiction is expected to work towards achieving the national targets with two exceptions: only territories will have targets associated with energy security as the Arctic Energy Fund was allocated only to the territories and Nunavut will not be expected to set targets related to public transit. In addition, the reduction of greenhouse gas emissions by 10 megatons is a national target only. The expected contribution of each province and territory will not be specified in IBAs.

The IBAs also require provinces and territories to develop and submit multi-year plans that identify potential projects. With the emphasis on outcomes, and with predictable, long-term funding, the provinces and territories have the tools they need to structure their investments in a way that achieves meaningful, long-term results.

Starting in 2018–19, the IBAs provide the following funding (Figure 11):

• $20.1 billion for public transit infrastructure, including new construction and rehabilitation, with provincial and territorial allocations determined using a formula based on ridership (70%) and population (30%). Within each jurisdiction, funding is further allocated to existing public transit systems based on their respective ridership, with some flexibility possible to address regional requirements.
• $9.2 billion for green infrastructure to support GHG mitigation projects in the provinces and territories; infrastructure that will help communities respond and adapt to the impacts of a changing climate; and other green infrastructure that supports a healthy environment, such as water and wastewater infrastructure.
• $1.3 billion for community, cultural and recreation infrastructure to build stronger communities and neighbourhoods.
• $2 billion for the unique infrastructure needs of rural and northern communities. Eligible projects include, among others, improving road access, and expanding broadband Internet connectivity.
• An additional $400 million from the Arctic Energy Fund will be allocated to the territories, through the IBAs, to help build energy security to northern communities, including indigenous communities.

Figure 11: Investing in Canada Infrastructure Program Funding

JURISDICTION	PUBLIC TRANSIT	GREEN	COMMUNITY, CULTURE & RECREATION	RURAL AND NORTHERNi	TOTAL ALLOCATIONii
Newfoundland and Labrador	$109,071,324	$302,364,807	$39,768,539	$104,638,175	$555,842,846
Prince Edward Island	$27,063,775	$228,147,387	$29,060,925	$82,705,236	$366,977,323
Nova Scotia	$289,589,324	$381,914,606	$51,245,475	$105,743,756	$828,493,161
New Brunswick	$165,202,662	$347,151,232	$46,230,038	$114,633,636	$673,217,569
Quebec*	$5,182,392,771	$1,808,076,797	$257,003,028	$288,465,324	$7,535,937,919
Ontario**	$8,340,401,116	$2,848,855,330	$407,159,893	$250,067,117	$11,846,483,456
Manitoba***	$546,139,840	$451,790,568	$61,326,732	$112,819,014	$1,172,076,153
Saskatchewan	$307,871,025	$416,334,673	$56,211,382	$115,905,927	$896,323,008
Alberta	$2,096,548,228	$1,001,082,871	$140,575,109	$159,650,831	$3,397,857,038
British Columbia***	$2,691,101,894	$1,115,494,721	$157,081,719	$166,001,827	$4,129,680,161
Yukon	$9,944,170	$207,065,850	$26,019,416	$202,587,865	$445,617,300
Northwest Territories	$8,344,774	$208,230,295	$26,187,414	$328,014,343	$570,776,826
Nunavut	$6,067,664	$207,079,637	$26,021,405	$327,592,915	$566,761,621
TOTAL	$19,779,738,568	$9,523,588,774	$1,323,891,073	$2,358,825,966	$32,986,044,381

(i) Includes $400 million Arctic Energy Fund in the territories.
(ii) Figures may not sum to total due to rounding. Total population data is calculated using 2016 census data.
* Allocation amounts for Quebec include $1.283 billion that could be used for Montréal's light rail network (Réseau express métropolitain).
** Allocation amounts for Ontario include over $1.091 billion for Ottawa Light Rail Phase 2 and $384.2 million for Port Lands Flood Protection and Enabling Infrastructure project.
*** Allocation amounts for British Columbia and Manitoba include $212.3 million for North Shore Wastewater Treatment Plant (BC) and $247.5 million for Lake Manitoba/Lake St. Martin Outlet Channel flood mitigation (MB) announced in Budget 2016.

The difference between the totals of provincial and territorial allocations and the numbers for each stream in the above text is due to the removal of federal administration costs prior to allocation to each province and territory. Administration costs for each province and territory will come from their allocations in the table above.

Cost-sharing ensures that other partners, such as provinces, territories, municipalities and the private sector make equitable investments in federally-funded projects. In addition, recipients cannot seek other sources of federal funds if they receive the maximum cost-share under the Investing in Canada Infrastructure Program. The Government provides funding for projects on the following basis:

• up to 40% federal funding for projects with municipal and not-for-profit partners
• up to 50% federal funding for projects with provincial partners
• up to 75% federal funding for projects with Indigenous and territorial partners
• up to 25% federal funding for projects with for-profit private sector partners, excluding cultural and recreation infrastructure projects (note: federal contributions to for-profit entities are repayable)

Indigenous recipients can access additional funding from any applicable federal source to a maximum federal contribution of 100% from all sources. Proposals for off-reserve projects will be considered if the costs of an eligible activity will be shared by at least one additional eligible or ultimate project recipient.

For public transit in the provinces, the Government of Canada provides up to 50% of eligible costs for rehabilitation projects; however, funding for rehabilitation projects is capped at 15% of total public transit funding. For new public transit construction and expansion projects, the Government provides up to 40% of eligible costs.

For projects under the rural and northern communities infrastructure stream, the Government of Canada invests up to 50% for provincial, municipal and not-for-profit projects, and up to 60% for projects in provincial municipalities with populations of less than 5,000.

National Housing Strategy Federal-Provincial-Territorial Housing Partnership Framework

$7.7 billion over nine years,iii delivered by Canada Mortgage and Housing Corporation

The National Housing Strategy's investment in provinces and territories will be committed through bilateral agreements. The National Housing Strategy recognizes that housing needs vary across the country. Funding will support regional needs and priorities related to community and affordable housing repair, construction and rental assistance.

Early Learning and Child Care Bilateral Agreements

$1.2 billion over three years, delivered by Employment and Social Development Canada

The Multilateral Early Learning and Child Care Framework sets the foundation for governments to work towards a shared long-term vision where all children across Canada can experience the enriching environment of quality early learning and child care. To implement the Multilateral Framework, $1.2 billion is provided to provinces and territories under the Early Learning and Child Care Bilateral Agreements.

Through these agreements, provinces and territories will further build their early learning and child care systems by addressing local, regional and system priorities that have an impact on families more in need by increasing the quality, accessibility, affordability, flexibility and inclusivity in early learning and child care.

Common Statement of Principles on Shared Health Priorities - Bilateral Agreements

$1 billion for home care infrastructure, delivered by Health Canada as part of an $11 billion, 10 year multilateral agreement

Federal, provincial and territorial governments reached a multilateral agreement, the Common Statement of Principles on Shared Health Priorities, which outlines key priorities for federal investments in mental health and addictions ($5 billion over 10 years), and home and community care ($6 billion over 10 years), including $1 billion for home care infrastructure under the Investing in Canada plan.

On home care infrastructure, provinces and territories agreed to focus funding on enhancing home care infrastructure, such as digital connectivity, remote monitoring technology and facilities for community based service delivery.

The Government of Canada is working with each province and territory to finalize bilateral agreements for the first four years of the funding that set out details of how each jurisdiction will use federal funding, consistent with the actions outlined in the Common Statement of Principles.

Community Educational Infrastructure Initiative

$80 million over 10 years, delivered by Canadian Heritage

Through existing bilateral education agreements with provinces and territories, this initiative will provide an additional $80 million over 10 years to modernize and build community educational infrastructure in Official-Language Minority Communities (OLMCs).

Annex D: Overview of New Funding By Department

Investing in Canada Plan: Overview of New Funding by Department - $95.6 billion ($14.4 billion Budget 2016 + $81.2 billion Budget 2017)

Initiatives delivered through Bilateral Agreements are in RED.

Infrastructure Canada = $5B

Budget 2016

• Public Transit Infrastructure Fund ($3.4 billion)
• Clean Water and Wastewater Fund ($2 billion)
• Municipalities for Climate Innovation Program ($75 million)
• Municipal Asset Management Program ($50 million)
• Codes, Guides and Specifications for Climate-Resilient Public Infrastructure ($40 million)
• Lake Manitoba/Lake St. Martin Outlet Channels ($247.5 million)
• North Shore Wastewater Treatment Plant ($212.3 million)

Budget 2017

• Investing in Canada Infrastructure Program ($33.1 billion)
• Canada Infrastructure Bank ($15 billion)
• Disaster Mitigation and Adaptation Fund ($2B)
• Smart Cities Challenge ($300M)

Employment and Social Development Canada = $9.8B

Budget 2016

• Early Learning and Child Care ($400 million)
• Homelessness Partnering Strategy ($111.77 million)
• First Nations and Inuit Child Care Initiative ($62.8 million)
• Enabling Accessibility Fund ($4 million)

Budget 2017

• Early Learning and Child Care ($7 billion)
• Homelessness Partnering Strategy ($2.13 billion)
• Enabling Accessibility Fund ($77 million)
• Women in Construction Fund ($10 million)

Canadian Heritage = $548.2M

Budget 2016

• Canada Cultural Spaces Fund ($168.2 million)

Budget 2017

• Canada Cultural Spaces Fund ($300 million)
• Community Educational Infrastructure ($80 million)

Canada Mortgage and Housing Corporation = $15.6B

Budget 2016

• Investment in Affordable Housing ($504.4 million)
• Renovation and Retrofit of Social Housing ($574 million)ⁱⁱ
• Increasing Affordable Housing for Seniors ($200.7 million)
• Renovation and Retrofit On Reserve ($127.7 million)
• Northern Housing ($97.7 million)
• Supporting Shelters for Victims of Family Violence ($89.9 million)
• Shelters for First Nations Victims of Family Violence ($10.4 million)
• Aboriginal Capacity and Skills Development ($10 million)

Budget 2017

• FPT Housing Partnership Framework ($7.7 billion)
• National Housing Co-Investment Fund ($5.1 billion)
• Other National Housing Strategy Initiatives ($1.1 billion)

(ii) A portion of this envelope ($77 million) is federally delivered, thus not under a bilateral agreement.

Transport Canada = $5.4B

Budget 2017

• National Trade Corridors Fund ($2 billion)
• Connecting Communities by Rail and Water ($1.925 billion)ⁱⁱⁱ
• Oceans Protection Plan ($1.325 billion) ⁱⁱⁱ
• Modernizing Transportation ($76.7 million)
• Trade and Transportation Information System ($50 million)
• Climate Risk Assessments ($16.4 million)
• Heavy-Duty Vehicle and Off-Road Regulations ($16 million)

(iii) Include funding to support capital projects where costs are amortized over the useful life of the asset.

Innovation, Science and Economic Development Canada = $2.65B

Budget 2016

• Post-Secondary Institutions Strategic Investment Fund ($2 billion)
• Connect to Innovate ($500 million)

Budget 2017

• Innovation Superclusters Initiative ($150 million)

Indigenous Services Canada = $6.6B

Budget 2016

• Water and Wastewater ($1.8 billion)
• On-Reserve Housing Funds ($416.6 million)
• Health Facilities Program ($270 million)
• First Nations Infrastructure Fund - Cultural and Recreational Centers ($76.9 million)
• Aboriginal Head Start on Reserve ($51.2 million)

Budget 2017

• Improving Indigenous Communities ($4 billion)
• Capital Facilities and Maintenance program ($15 million)

Natural Resources Canada = $967.5M

Budget 2016

• Electric Vehicle and Alternative Fuel Infrastructure Deployment and Technology Demonstration ($62.5 million)
• Green Municipal Fund ($62.5 million)
• Regional Electricity Cooperation and Strategic Infrastructure ($2.5 million)

Budget 2017

• Clean Energy for Rural and Remote Communities ($220 million)
• Emerging Renewable Power ($200 million)
• Energy Efficient Buildings ($182 million)
• Electric Vehicle and Alternative Fuel Infrastructure ($120 million)
• Smart Grid ($100 million)
• Building Regional Adaptation Capacity and Expertise ($16 million)
• National-Scale Knowledge Synthesis and Dissemination ($2 million)

Finance Canada = $2B

Budget 2017

• Reserved Green Funding ($2 billion)

Health Canada = $1B

Budget 2017

• Home Care Infrastructure ($1 billion)

Crown-Indigenous Relations and Northern Affairs Canada = $644.5M

Budget 2016

• First Nations Waste Management Initiative ($408.9 million)
• Inuit Housing ($80 million)

Budget 2017

• Indigenous Community-Based Climate Monitoring Program ($72.7 million)
• Climate Change Preparedness in the North Program - Implementation of Adaptation Actions in the North ($55.9 million)
• First Nation Adapt Program - Flood Plain Mapping ($27 million)

Environment and Climate Change Canada = $170.4M

Budget 2016

• Green Municipal Fund ($62.5 million)

Budget 2017

• Canadian Centre for Climate Services ($107.9 million)

Regional Development Agencies = $150M

Budget 2016

• Canada 150 Community Infrastructure Program ($150 million)

Parks Canada = $20M

Budget 2016

• National Cost-Sharing Program for Heritage Places ($20 million)

Public Health Agency of Canada = $15.4M

Budget 2016

• Aboriginal Head Start in Urban and Northern Communities ($15.4 million)

Want to learn more about the Investing in Canada plan? Visit www.infrastructure.gc.ca/plan/about-invest-apropos-eng.html.