GVCA - Grand Valley Construction Association

Backgrounder: Canadians to benefit from infrastructure stimulus

26 March 2009

Ottawa, Ontario

A few months ago, the Government of Canada undertook national consultations with provincial and territorial ministers in order to accelerate investments in bridges, roads and other infrastructure. Since then, the government has presented its Economic Action Plan that accelerates and increases the recent federal historical investments in infrastructure by injecting close to $12 billion over 2 years to stimulate infrastructure projects.

These investments will create jobs and stimulate the economy in the short term and help build the legacy of Canadian communities for years to come.

Progress to date

• Close to $1.5 billion in joint funding for 480 projects in smaller communities has been announced in British Columbia, Alberta, Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island and Ontario.
• GO Transit in Ontario, with a federal contribution of up to $250 million. Better transit will help families and businesses and contribute to a cleaner environment.
• Detailed design plans for the first year of the 10-year repair program on the Champlain Bridge in Montreal are complete and the tendering process for initial contracts is underway. A similar competitive bidding process will be undertaken for the Blue Water Bridge in Sarnia, Ontario and the Peace Bridge in Fort Erie, Ontario, in early spring.
• The Government of Canada is investing $50 million in the HELP Clean Water (Huron Elgin London Project) in London, Ontario, which will bring clean water to more than 500,000 people in Southern Ontario.
• Construction on the Nicomekl Bridge in British Columbia (federal commitment of more than $2.6 million) will start soon. Better roads make it easier for people and goods to move and to do so more safely.
• Broadband connectivity for 21 remote First Nations communities in British Columbia (federal contribution of $7.86 million). This will support the delivery of health, education, and government services.
• The Evergreen transit line in British Columbia previously received $66.7 million under the Public Transit Capital Trust announced in Budget 2008, with a new federal contribution of up to $350 million. Better transit contributes to qualify of life and a cleaner environment.
• Highway 11 in Saskatchewan, with a federal commitment of $62 million, the Edmonton Ring Road interchange, with a federal commitment of up to $100 million, and Highway 101 in Nova Scotia, with a federal commitment of up to $6.75 million – projects that will ease trade and make for safer travel.
• Telus World of Science in Calgary, Alberta, with a federal investment of $40 million. This Centre will have a significant economic impact in Calgary, and will generate further economic spin-offs through increased tourism.
• The Government of Canada announced its commitment to provide $13,345,000 to the Municipality of Shannon, Quebec to help the municipality complete the water supply system, which will improve its residents' quality of life.
• Since Budget 2009, communities across the country have received gas tax funding for projects identified as local priorities, such as the Squamish Commuter Corridor Trail in Squamish, British Columbia; a wastewater collection system in Chelsea, Quebec; and repairs to a collapsed culvert in the Township of Perry, Ontario. These funds -- $2 billion per year as of April 1, 2009 – will support municipal infrastructure that contributes to cleaner air, cleaner water and reduced greenhouse gas emissions.
• The Government of Canada has set aside up to $350 million for projects identified under the Programme de renouvellement des conduites d’eau potable et d’eaux usées (PRECO). This program will allow Quebec municipalities to rehabilitate and replace drinking water and waste water pipes.
• The Government of Canada will contribute a maximum of $11.75 million to a project to increase the capacity of the Desjardins water filtration treatment facility in the City of Lévis under the Major Projects Component of the Building Canada Fund. The total cost of the project is estimated at $70 million. The provincial government will be providing $11.75 million and the City of Lévis will be providing the rest.
• The governments of Canada and Quebec signed an agreement for the Communities Component and the Large Urban Centres Component, under the Government of Canada long term infrastructure plan, Building Canada. The Communities Component helps fund infrastructure projects in communities with populations of fewer than 100,000. The Large Urban Centres Component will target projects in larger cities with populations over 100,000.

These investments are made possible through the successful partnerships of all levels of government, communities and the private sector; no one level of government can accomplish what we need to do alone.

Next steps

Under the Economic Action Plan, the Government of Canada will make available up to $6.4 billion in new and accelerated infrastructure funding for provinces, territories and municipalities in 2009-2010 and 2010-2011. It is expected that this funding will be cost-shared with other levels of government.

Included in this new funding is the $4 billion Infrastructure Stimulus Fund. Discussions are being held with the provinces and territories to identify shovel-ready projects to be approved and announced in the coming days and weeks.

The Government of Canada is also accelerating $1 billion in payments under the provincial/territorial base fund. Since Budget 2009, Canada has given $115 million to provinces and territories under this initiative. Provinces and territories can choose to use all of the original $175 million allocation per jurisdiction to fund infrastructure work to be built in the next two years.

Small communities can receive an accelerated and additional $500 million in federal infrastructure funding. Furthermore, municipalities across the country continue to receive their Gas Tax Fund allocation.

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