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Key Issues

  1. Value Proposition of the Canada Infrastructure Bank
  2. Canada Infrastructure Bank Projects and Investments
  3. Canada Infrastructure Bank Operations
  4. Canada Infrastructure Bank Act Legislative Review
  5. Lake Erie Connector Project
  6. Government Response to TRAN Committee Report
  7. 2024-25 Main Estimates – Portfolio
  8. 2023-24 Supplementary Estimates (C)
  9. 2024-25 Departmental Plan

Value Proposition of the Canada Infrastructure Bank

Issue / question

Why does the Government of Canada continue to spend money on the Canada Infrastructure Bank?

Suggested response

  • The Canada Infrastructure Bank (CIB) represents an additional federal tool to help close the infrastructure gap. Its unique model of investing in revenue-generating projects and attracting private capital allows the CIB to take on risks that the private sector alone would not be able to bear. The CIB model is helping projects get built at a lower cost to taxpayers.
  • The CIB has mobilized $11.1 billion in private and institutional capital towards 56 projects with a combined value of $31.7 billion. Thirty-seven of these projects are under active construction. Through partnerships with the private sector, these projects are also benefiting from additional innovation and due diligence.
  • The Canada Infrastructure Bank Act legislative review re‑affirmed the ongoing need for the CIB’s funding model, and that the Bank’s involvement allows for projects that would otherwise get delayed or not get funded to move forward.

Background

  • The Canada Infrastructure Bank (CIB) was established to work with governments across Canada to attract investment from private and institutional investors, like pension funds, in revenue-generating infrastructure projects that are in the public interest, such as those that support economic growth or transition to net-zero emissions. The CIB plays an important advisory role through building capacity and structuring complex projects.
  • The CIB was created as part of the Investing in Canada Plan in June 2017. As part of the Plan, the CIB is mandated to invest $35 billion over 11 years, with a net fiscal expense of $15 billion to support innovative approaches to infrastructure funding, for instance by offering below market rates or subordinated terms, and to cover the Bank’s operating costs.
  • Over time the CIB’s role has expanded. In 2020, the CIB launched its three-year Growth Plan that led to $10  billion of investments in strategic initiatives such as zero-emission buses, energy efficiency building retrofits, agricultural irrigation, broadband, and clean energy transmission, renewables, and storage. In Budgets 2022 and 2023, the Government provided the Bank with authorities to invest in private sector-led infrastructure projects that accelerate Canada's transition to a low-carbon economy and positioned the CIB as the government’s primary financing tool for supporting clean electricity generation, transmission, and storage projects.
  • Consistent with priorities outlined in the September 2023 Statement of Priorities and Accountabilities, the 2023 Fall Economic Statement (FES) indicated that the CIB is exploring further ways to support the infrastructure required to build more homes, and that further details would be announced by Budget 2024.
  • The 2023 FES also announced proposed amendments to the Income Tax Act that will ensure that CIB concessionary loans with reasonable repayment terms would not constitute federal government assistance, and as such, would not reduce the Investment Tax Credit to which the borrower may be eligible.
  • The Government of Canada has set a target for the CIB to invest at least $1 billion in total from its existing funding allocation across its five priority sectors for revenue-generating projects that benefit Indigenous Peoples. In response, the CIB established the Indigenous Community Infrastructure Initiative, which provides low-cost and long-term debt for Indigenous community-based projects. To support Indigenous participation in major projects, Budget 2023 announced the CIB will provide loans to Indigenous communities to support them in purchasing equity stakes in infrastructure projects in which the Bank is also investing.
  • As of December 31, 2023:
    • CIB is investing in 56 infrastructure projects (including 53 investments that have reached financial close and 37 in active construction);
    • CIB’s approved investments of $11.6 billion have attracted $11.1 billion in private and institutional capital; and
    • CIB’s approved investments are in projects with a total capital cost of $31.7 billion.

Canada Infrastructure Bank Projects and Investments

Issue / question

How have the Canada Infrastructure Bank’s projects and investments progressed over the years?

Suggested response

  • I am encouraged to see the Canada Infrastructure Bank’s (CIB) growing portfolio of projects. It has now committed $11.6 billion in capital to advance 56 infrastructure projects worth $31.7 billion from coast to coast to coast.
  • The Bank has also made significant progress in attracting private and institutional investment in projects: $11.1 billion to date.
  • Thirty-seven of its projects are now under construction, and several of its projects are also in operation, including:
    • Phase 1 of the REM light rail project which now provides daily ridership to 30,000 citizens in Montréal; and,
    • More than 200 zero emission transit and school buses currently in service in several municipalities, including 20 transit buses in Edmonton where the Transit Service provides more than 87 million rides a year across its fleet.

Background

  • As of December 31, 2023:
    • The CIB is investing in 56 infrastructure projects, including 53 that have reached financial close and 37 in active construction; and
    • CIB’s $11.6 billion total investment commitments in projects with a total capital cost of $31.7 billion have attracted $11.1 billion in private and institutional capital.
  • The CIB has made investment commitments across Canada in its five priority sectors (as of December 31, 2023):
    • Public Transit                                     12 projects
    • Clean Power                                      10 projects
    • Green Infrastructure                         20 projects
    • Broadband                                           9 projects
    • Trade and Transportation                 5 projects
  • Notable CIB investments, along with their impact, include:
    • Zero emission buses (ZEBs), across Canada
      • As of March 31, 2023: more than 200 ZEBs on the road, including transit buses in Edmonton and school buses in Quebec, serving 174,000 daily transit riders;
      • CIB currently covering upfront capital costs of ZEBs transit buses in Brampton, Edmonton, Ottawa, Durham Region, Calgary, York Region, and ZEBs school buses in Quebec and British Columbia; and
      • As of March 31, 2023: $1.6 billion in CIB financing to support the purchase of 5,300 ZEBs.
  • Electric vehicle charging stations across Canada:
    • The CIB is providing funding for close to 4,000 public fast charging ports through two investments (1,900 chargers with FLO; 2,000 chargers with Parkland), which has a positive impact on making more charging points available more quickly.
    • CIB investment: $430 million ($220 million in FLO; $210 million in Parkland).
  • Oneida Energy Storage, Southwest Ontario:
    • One of the largest clean energy storage facilities in the world
    • Will help reduce greenhouse gas (GHG) by 4.1 million tonnes, the equivalent of taking 40,000 cars off the road every year
    • More than 60 workers on-site daily, half of whom are members of a joint venture between Six Nations of the Grand River Development Corporation and Aecon
    • Operations expected to begin in 2025; will provide enough power to meet peak demand of a city the size of Oshawa
    • CIB investment: up to $535 million
  • Enhanced broadband in underserved Manitoba communities:
    • Low population density and current lack of broadband infrastructure in Manitoba make the cost of connection per household very high, which was a deterrent to private investment
    • CIB investment will help provide broadband of up to 1 gigabit per second to 49,000 underserved households across rural municipalities
    • Up to 400 jobs during construction and 50 permanent jobs
    • CIB investment: $164 million; total project value: $328 million
  • REM in Montréal:
    • 26 stations and 67 km of tracks, almost doubling the current Métro network, largest public transit project in Québec in 50 years
    • Once in service, REM will contribute to decreasing 2.5 million tonnes of GHGs through 25 years of operation
    • CIB investment: $1.28 billion
  • Varennes carbon recycling:
    • One of the world's first large-scale biorefinery coupled with an electrolyzer producing biofuels and circular chemicals
    • Will reduce GHGs by more than 170,000 tonnes annually
    • Creates 500 construction jobs and about 100 permanent jobs during operations
    • Commercial operations expected to launch in 2025
    • CIB investment: $277 million
  • The CIB’s website includes a comprehensive list of CIB projects, initiatives, and advisory engagements, with further detail on how the projects are helping Canadians.

Canada Infrastructure Bank Operations

Issue / question

What are the operating costs of the Canada Infrastructure Bank, including compensation?

Suggested response

  • Like other Crown corporations, the Canada Infrastructure Bank (CIB) incurs operating expenses in carrying out its mandate. The CIB’s Board of Directors, which operates at arm’s-length from the Government, oversees day-to-day operations and ensures that all expenditures are aligned with its goals.
  • In 2022-23, the CIB reported operating expenses of $46 million, which accounted for 0.5% of the Bank’s $9.7 billion in committed capital at the time. This provides good value for taxpayers. As of the end of the third quarter, the CIB had incurred operating expenses of $38.7 million in 2023-24.
  • The CIB’s compensation framework aligns with best practices of Crown corporations and the private sector across Canada, ensuring it attracts and retains top talent. The CIB is bound by the Privacy Act and the Access to Information Act. Information concerning specific individuals and their compensation is personal information and protected under this legislation.

Background

CIB Operations

  • The operating expenses of the Canada Infrastructure Bank (CIB) were $46 million in 2022-23, including $30.2 million in compensation, compared to $36.6 million in 2021-22, including $23.9 million in compensation. As of the end of the third quarter on December 31, 2023, the CIB’s year-to-date operating expenses for 2o23-24 were $38.7 million, including $26.4 million in compensation.
  • The year-over-year increase between 2021-22 and 2022-23 was primarily attributable to a $6.3 million increase in compensation, due to the continued buildout of staffing to meet the demands of the CIB’s increased investment activity. As of March 31, 2023, the CIB had 122 employees.
  • In addition to compensation, the CIB’s operating expenses are related to general and administration expenses, which include professional fees for due diligence activities for projects, as well as for non-transaction activities such as the investment, accounting, and risk management frameworks.
  • The CIB provides quarterly financial details on its website and in its annual report.

CIB Compensation

  • In 2022-23, the CIB paid $30.2 million in compensation, including $4.8 million to “key management personnel,” which are defined as those officers having authority and responsibility for planning, directing, and controlling the activities of the CIB, including members of the Board of Directors. As of March 31, 2023, the median base salary for executive officers (other than the CEO and Board members) was $293,550.
  • As an arm's length entity, the CIB’s Board of Directors is responsible for the governance and oversight of the strategic direction, forward planning, investment decisions and business operations of the CIB, in alignment with the Government of Canada’s identified priorities.
  • Its compensation framework, including the governance, compensation philosophy, structure, and competitive positioning, is disclosed via the CIB Annual Report in compliance with requirements for Crown corporations under the Financial Administration Act and applicable Treasury Board policies. Compensation expenses for each fiscal year are also reported in the CIB’s annual financial statements.
  • Chief Executive Officer (CEO) compensation, which includes ranges for short- and long-term performance incentive awards, is recommended by the Board of Directors based on market comparables and position requirements. The final determination is made by the Govenor in Council.
  • All Crown corporation CEOs are subject to the annual performance review process for Governor-in-Council appointees. Performance rating recommendations are provided by the Board of Directors to the designated Minister.
  • The CEO’s base salary is fixed by the Governor in Council on the recommendation of the Board at $510,000 - $600,000. The CEO also receives both short- and long-term performance-based incentive awards.
  • Employees (other than the CEO) receive a base salary for carrying out their day-to-day responsibilities. Salaries reflect each employee’s level of responsibility, skills, experience, and market competitiveness. Salary reviews are overseen by the Human Resources and Governance Committee of the Board of Directors; they are carried out periodically and informed by a market review of the benchmark group and other relevant comparable organizations.
  • CIB executives are paid a performance-based incentive award which ranges from 20 to 110% of the executive’s base salary. Executives are required to defer a portion of the incentive award over three years. This is to ensure that executives are delivering on long-term goals and encourage employee retention.
  • All CIB employees are eligible to participate in the CIB’s performance-based incentive plan. The incentive plan target for each employee is determined based on a percentage of the employee’s base salary earned during the preceding financial year in alignment with market practices for comparable positions. At the end of the financial year, the employee’s performance is evaluated in relation to the achievement of the CIB’s planned results outlined in the Corporate Plan and the employee’s personal objectives and actions in contributing to the CIB’s values and culture.

Canada Infrastructure Bank Act Legislative Review

Issue / question

What are the overall findings of the legislative review of the Canada Infrastructure Bank Act?

Suggested response

  • The legislative review of the Canada Infrastructure Bank Act examined whether the Act functioned as it was intended when it was first established in 2017. The review was informed by extensive engagement with key partners and stakeholders. Overall, the review found that the legislation governing the Canada Infrastructure Bank (CIB) is fit for its purpose and the CIB’s objectives remain sound and relevant.
  • The review also confirmed the CIB’s strong value-add, which was echoed by stakeholders. Specifically, it found that the CIB has grown as an institution and is playing a critical role in supporting the Government's efforts to expand infrastructure development, facilitate the transition to a net-zero economy, and foster Indigenous reconciliation across Canada.
  • The review also highlighted some areas for improvement including the need for greater clarity on the CIB’s role and model, and for the need to expand its reach to smaller municipalities and Indigenous communities.
  • The Government of Canada reinforced these findings and related guidance to the CIB in a Statement of Priorities and Accountabilities that I issued to the Chair of the CIB Board in September 2023. Work is underway to respond to these findings.

Background

  • The Canada Infrastructure Bank Act, the enabling legislation for the Canada Infrastructure Bank (CIB), requires the Minister to undertake a review of the provisions and operations of the CIB Act every five years beginning on the day on which it came into force. The review was initiated by the then-designated Minister for the period covering June 22, 2017, to June 22, 2022.
  • The CIB Act requires that a report on the findings of the review be tabled before Parliament one year from the day the review was undertaken, and this report must be reviewed subsequently by the relevant parliamentary committee. The report was tabled in Parliament in June 2023.
  • Beginning in the fall of 2022, consultations were conducted with departments and agencies at the federal, provincial, and territorial level. Externally, the legislative review engaged representatives from banking and finance, business, and industrial sectors, as well as national Indigenous organizations.
  • In January 2023, a public call for written comments was posted on the Infrastructure Canada website and promoted on the Consulting with Canadians website and on the CIB’s website, as well as through social media. Written submissions received through this process included those from provincial and territorial governments, municipalities, unions, and think tanks.
  • In total, representatives from over 80 stakeholder organizations were engaged and over 40 written submissions were received.
  • The review assessed: whether the premises and context that underpinned the creation of the CIB were still valid and pertinent; whether the CIB’s mandate and authorities to support its operations remained relevant; and whether any changes or clarifications were warranted to position the CIB going forward.
  • The findings of the review re-affirmed the importance of the CIB in delivering on Government of Canada priorities and that its mandate remains relevant. It found that the CIB has grown and matured as an arms-length Crown corporation making independent investment decisions, acknowledging that the CIB required time to first establish itself as an institution, to develop appropriate investment tools and offerings, and to work with partners to identify the right projects that would benefit from the CIB’s model. Following an initial three year-period of slow portfolio growth, the CIB’s pace of investments has accelerated from 2020 to the present. The report further mentioned that the CIB is well-positioned for continued and sustained success. The review found that no amendments to its enabling legislation were recommended.
  • Additionally, the review identified several key areas where the CIB can make improvements going forward including:
    • Providing greater clarity on the CIB’s role and model;
    • Advancing the use of alternative financing; and
    • Enhancing CIB governance and results measurement.
  • A Statement of Priorities and Accountabilities was issued to the CIB in September 2023 which provided CIB guidance in these areas. The CIB has incorporated this guidance into its forward plans.
  • It is important to note that the House of Commons Standing Committee on Transportation, Infrastructure and Communities (TRAN) examined the CIB’s progress in early 2021 and issued a report in March 2022 with a sole recommendation: that the Canada Infrastructure Bank be abolished. In its report, the Committee described how the CIB had failed to meet expectations related to efficiency, cost, transparency, community needs, and private sector involvement.
  • However, no witness testimony called for the CIB to be abolished. While some witnesses were critical, others were supportive. Moreover, the Committee’s report relied exclusively on testimony and data compiled from February to March 2021, as well as the April 2021 Parliamentary Budget Officer report. The Committee’s report was issued more than a year after its study was completed. By 2022, the acceleration of the Bank’s activities was evident and continued since then. Given the time spent between the end of the study and the issuance of the report, such progress was not captured.
  • The Government Response to the Committee’s report was tabled on September 15, 2022. The Government Response declines the Committee’s recommendation and highlights CIB investments and close collaboration with provinces, territories, municipalities and Indigenous partners to respond to community needs, including mitigating and adapting to climate change; connecting communities through transit and broadband; addressing the Indigenous infrastructure gap; and advancing projects of national significance.
  • Between May 2023 and June 2023, TRAN heard testimony as part of its study on the Role of McKinsey & Company in the Creation and the Beginnings of the Canada Infrastructure Bank. The Committee has not yet issued a report on this study.

Lake Erie Connector Project

Issue / question

What was the Canada Infrastructure Bank’s role in the Lake Erie Connector project? Does the Government of Canada consider the project a failure on the part of the Bank?

Suggested response

  • The Canada Infrastructure Bank (CIB) had committed to finance approximately one-third of the costs for this $1.7 billion project, or up to $655 million, with private-sector lenders providing additional financing. The proponent opted to cease negotiations before a deal was finalized – therefore, no funding was provided by the CIB for the project.
  • As is standard practice for any financial institution making major investments, the CIB conducts due diligence before committing funds to a project. In the case of Lake Erie Connector, the CIB spent $875,332 on legal services and engineering expertise to support due diligence.
  • Due diligence is an important step that all banks undertake to assess project-related risks and inform their investment decisions. The amount spent by the Bank on due diligence activities is less than 0.1% of the original investment commitment and is consistent with accepted industry standards for costs related to due diligence activities.
  • The CIB has an excellent investment track record, as demonstrated by the more than $11 billion it has committed to 56 projects to date, including 37 that are at various stages of completion.

Background

  • The Lake Erie Connector was a proposed 117 km underwater transmission line connecting Ontario and Pennsylvania. The 1,000 megawatt, high-voltage direct current connection was expected to help lower electricity costs for customers in Ontario and improve the reliability and security of Ontario’s energy grid. It was also expected to reduce greenhouse gas (GHG) emissions, create 845 permanent jobs, drive more than $300 million in economic activity, and boost Ontario’s GDP by $8.8 billion.
  • On April 13, 2021, the Canada Infrastructure Bank (CIB) announced an investment commitment of up to $655 million in the Lake Erie Connector, with ITC Investment Holdings (a subsidiary of Fortis Inc.) and private-sector lenders funding the balance of the $1.7 billion total project costs.
  • Fortis Inc. is a leader in the North American electric and gas utility business. Fortis' regulated utilities account for approximately 99% of total assets and serve utility customers in five Canadian provinces, nine U.S. states, and three Caribbean countries. The company was founded in 1885 and is headquartered in St. John's, Newfoundland and Labrador. Fortis Inc. operates under the Regulated Utilities and Non-Regulated segments. The Regulated Utilities segment includes ITC Investment Holdings.
  • On July 28, 2022, Fortis Inc. announced it had suspended development activities and commercial negotiations related to the Lake Erie Connector project, citing macroeconomic conditions that prevented ITC Investment Holdings from securing a viable transmission service agreement.
  • Commercial negotiations related to the Lake Erie Connector were suspended before the project reached the financial close milestone, and no CIB financing was provided with respect to the project as a result.
  • The CIB incurred $875,332 in legal expenses and technical advisory expenses to conduct due diligence on the Lake Erie Connector Project:
    • $555,145 to Gowling WLG for legal services;
    • $248,170 to Morgan, Lewis & Bockius for legal services;
    • $70,991 over two contracts to PA Consulting Group for GHG reductions analysis; and
    • $25,010 to Samuel Street Advisory for financial structuring advice.
  • Total due diligence costs incurred represent less than 0.1% of the CIB’s previously announced investment commitment in the Lake Erie Connector Project and are consistent with reasonable costs and expenses incurred by private and institutional investors to support due diligence activities related to infrastructure projects.
  • In addition to Lake Erie Connector, the CIB incurred expenses for legal and technical professional and advisory services on two other projects that were abandoned or indefinitely delayed and where no funds were provided to the project proponents:
    • Whapmagoostui Kuujjuaraapik Hybrid Power Plant Project ($185,870)
    • BC Transit Zero Emission Buses ($84,337)

Government Response to TRAN Committee Report

Issue / question

Why has the Government of Canada declined the TRAN Committee’s recommendation to abolish the Canada Infrastructure Bank?

Suggested response

  • The Canada Infrastructure Bank (CIB) is an innovative alternative financial tool that complements the existing suite of government programs and initiatives in place to support infrastructure development. It plays a key role in financing projects across Canada that often would otherwise not get built at a lower cost to taxpayers.
  • Since the TRAN Committee study, the CIB has seen remarkable progress in its investment portfolio, which has expanded from $1.7 billion invested in two projects in 2021 to $11.6 billion across 56 projects today.
  • The review of the CIB’s enabling legislation, which concluded in June 2023, reaffirmed the CIB's critical role within Canada's infrastructure landscape. This review was informed by extensive engagement with key partners and stakeholders and written submissions from a wide range of parties.
  • In all, we heard from departments and agencies at the federal, provincial, and territorial level; representatives from the banking, finance, business, and industrial sectors; national Indigenous organizations; municipalities; unions; and think tanks.
  • The recommendation to abolish the CIB did not stem from a unanimous stance among the witnesses at the Committee hearings. At the time, while there were some critical voices, there was also significant support. Witness testimony did not call for the CIB’s abolishment.

Background

  • On October 29, 2020, the Standing Committee on Transport, Infrastructure and Communities (TRAN) initiated a study on the Canada Infrastructure Bank (CIB). The study spanned five committee meetings in February and March 2021, to which stakeholders and expert witnesses were called including the Parliamentary Budget Officer. TRAN’s report was tabled in Parliament on May 2, 2022, and presented a single recommendation: that the Government of Canada abolish the CIB.
  • The Committee’s recommendation was based on witness testimony focused on five areas of enquiry: efficiency, private sector involvement, reflecting the needs of communities, cost and transparency. However, no witness testimony called for the CIB to be abolished. While some witnesses were critical, others were supportive. Moreover, the Committee’s report relied exclusively on testimony and data compiled from February to March 2021, as well as the April 2021 Parliamentary Budget Officer report. The Committee’s report was issued more than a year after its study was completed. By 2022, the acceleration of the Bank’s activities was evident and continued since then. Given the time spent between the end of the study and the issuance of the report, such progress was not captured.
  • The Government Response to the Committee’s report was tabled on September 15, 2022. The Government Response declined the Committee’s recommendation and highlighted CIB investments and close collaboration with provinces, territories, municipalities, and Indigenous partners to respond to community needs. The government evolved the CIB's role over time to enable it to play a larger role in Canada's climate transition and infrastructure development, including mitigating and adapting to climate change; connecting communities through transit and broadband; addressing the Indigenous infrastructure gap; and advancing projects of national significance.
  • As of December 31, 2023:
    • CIB is investing in 56 infrastructure projects (including 53 investments that have reached financial close and 37 in active construction);
    • CIB’s approved investments of $11.6 billion have attracted $11.1 billion in private and institutional capital; and
    • CIB’s approved investments are in projects with a total capital cost of $31.7 billion.

2024-25 Main Estimates – Portfolio

Issue / question

What is the Housing, Infrastructure and Communities portfolio seeking in the Main Estimates 2024-25?

Suggested response

  • The Housing, Infrastructure and Communities portfolio is seeking $15 billion in funding for housing, public transit, major infrastructure projects, green, rural and northern infrastructure across the country.
  • The decrease of $731.7 million from the previous year’s Main Estimates is primarily attributable to:
    • Infrastructure Canada realigned funds into future years under the Investing in Canada Infrastructure Program to better align with the construction activities and planned project spending; and
    • Canada Mortgage and Housing Corporation sunsetting funding for the Rapid Housing Initiative, offset by new funding for the Housing Accelerator Fund as announced in Budget 2022.
  • As part of the Budget 2023 commitment to reduce government spending, the Housing, Infrastructure and Communities portfolio is implementing spending reductions of $416.5 million over five years and $12.8 million ongoing.

Background

  • The Main Estimates process is the means to access funding for the upcoming fiscal year for initiatives approved up to January 2024, to support the Government of Canada’s priorities. It identifies the spending authorities (votes) and the amounts to be included in subsequent appropriation bills that Parliament will be asked to approve to enable the government to proceed with its spending plans.
  • The 2024-25 Main Estimates would result in a net decrease of $731.7 million for the portfolio compared to the previous year. The decrease is explained as follows:
    • Infrastructure Canada’s (INFC) proposed Main Estimates represent a decrease of $1.4 billion when compared to the previous year, primarily related to:
      • Green and Inclusive Community Buildings Program (decrease of $135.7 million);
      • Investing in Canada Infrastructure Program (decrease of $1,836.3 million);
      • New Building Canada Fund – Provincial-Territorial Infrastructure Component – National and Regional Projects (increase of $350.3 million); and
      • Public Transit Program (increase of $367.3 million).
    • Canada Mortgage and Housing Corporation (CMHC) is seeking an increase of $522.6 million primarily related to:
      • New funding for the Housing Accelerator Fund (increase of $1,014.7 million) as announced in Budget 2022 to support local governments by incentivizing actions that remove barriers to, and accelerate the growth of, new housing supply;
      • Sunsetting funding for the Rapid Housing initiative (decrease of $901.4 million); and
      • New funding for the Affordable Housing Fund (increase of $268.6 million) as announced in Budget 2022 to improve affordable housing for communities.
    • The Jacques Cartier and Champlain Bridges Incorporated (JCCBI) is seeking an increase of $118.3 million primarily related to:
      • New funding announced in Budget 2023 for Supporting Transportation Infrastructure in Montréal to operate, maintain and repair its infrastructure in the Greater Montréal Area; and
      • New funding for the Redevelopment of the Bonaventure Expressway.
    • Windsor-Detroit Bridge Authority (WDBA) is seeking an increase of $66.5 million primarily related to:
      • New funding for the Gordie Howe International Bridge mid-project obligations; and
      • A decrease related to the project beginning to transition from the design-build phase to the operations phase.
  • To meet the Government of Canada’s Budget 2023 commitment to reduce government spending, the Housing, Infrastructure and Communities portfolio is implementing spending reductions of $416.5 million over five years and $12.8 million ongoing starting in fiscal year 2029-30. This will be achieved by the following:
    • CMHC is contributing $244.9 million over five years by reducing expenditures under the First-Time Home Buyer Incentive and Shared Equity Mortgage Providers Fund, as well as under the Affordable Housing Innovation Fund and Rent-to-Own Stream of the Affordable Housing Innovation Fund;
    • INFC is contributing $165.7 million over five years and $11.3 million ongoing by reducing expenditures under the Public Transit Program, the Smart Cities Challenge and Operating budgets including professional services and travel; and
    • JCCBI is contributing $6.0 million over five years and $1.5 million ongoing by optimizing professional services related to construction costs.
  • To ensure that departments have sufficient spending authority until such time as the Main Estimates receive Royal Assent in June 2024, interim supplies are provided for the first quarter of the year. INFC, CMHC and JCCBI are seeking the standard three twelfths whereas WDBA is seeking an additional twelfth (four twelfths total) for amounts related to legal obligations for the Gordie Howe International Bridge project.

2023-24 Supplementary Estimates (C)

Issue / question

What is the Housing, Infrastructure and Communities portfolio seeking in the 2023-24 Supplementary Estimates (C)?

Suggested response

  • The Housing, Infrastructure and Communities portfolio remains committed to delivering $18.4 billion of funding for an unprecedented level of programming for housing, public transit, major infrastructure projects, green, rural and northern infrastructure across the country.
  • The portfolio is seeking a net increase of $510.7 million in the 2023-24 Supplementary Estimates C, representing an increase of approximately 2.8% on current authorities.
  • This increase stems primarily from a recently approved funding decision of $507.3 million to meet mid-project obligations for the Gordie Howe International Bridge project.
  • The increase also stems from a recently approved realignment of $2.4 million (unused from 2022-23) for Canada Mortgage and Housing Corporation for the Canada Housing Benefit.
  • The increase is also related to internal transfers between government organizations of $0.973 million.

Background

As part of Supplementary Estimates C, the Housing, Infrastructure and Communities portfolio is seeking a net increase in funding of $510.7 million.

  • $507.3 million to Windsor-Detroit Bridge Authority for the following items:
    • Funding of $507.3 million from a recently approved off-cycle funding decision to meet mid-project obligations for the Gordie Howe International Bridge.
    • Funding of $27,600 transferred to the Canada School of Public Service in support of learning services.
  • $2.4 million to Canada Mortgage and Housing Corporation:
    • Funding of $2.4 million of unused funds from 2022-23 made available in 2023‑24 for the Canada Housing Benefit. This funding is part of a total request of $19.9 million in unused funding from 2022-23 that will help provinces and territories meet the national target of 300,000 households in need of affordability support.
  • $1 million to Infrastructure Canada:
    • Operating funding of $467,119 transferred from Employment and Social Development Canada (ESDC) to support the Reaching Home Results Reporting Online platform. This platform is used to collect information and annual results of projects funded under the Reaching Home program from communities and for departmental program performance reporting.
    • Operating funding of $507,500 transferred from ESDC to account for compensation adjustments tied to the Housing and Homelessness mandated transfer.

2024-25 Departmental Plan

Issue / question

The 2024-25 Departmental Plan was tabled in Parliament on February 29, 2024.

Suggested response

  • The Departmental Plan outlines the work Infrastructure Canada does with all orders of government, Indigenous communities, and other stakeholders to invest in vital infrastructure projects across Canada.
  • The department’s investments help to build accessible and resilient communities, support homeless individuals find affordable housing, address climate change, support climate resilience, and grow the economy.
  • Infrastructure Canada plans to spend $8.2 billion in 2024-25 to continue its support of economic growth, affordability, and the health and well-being of Canadians through housing and infrastructure programs.
  • Infrastructure Canada will meet various community needs and foster more inclusive and sustainable communities by:
    • Supporting efforts to prevent and reduce chronic homelessness;
    • Continuing Public Transit Program funding;
    • Supporting solutions that increase the housing supply across Canada;
    • Continuing work to support core municipal and green infrastructure ; and
    • Supporting climate resilient infrastructure and communities as they consider low-carbon resilience in infrastructure projects.

Background

  • Infrastructure Canada’s (INFC) 2024-25 Departmental Plan lays out the department’s work over the next year to boost the economy and create jobs, strive toward a cleaner and healthier environment, and support more inclusive, accessible, and sustainable communities that meet the diverse needs of all Canadians and improve quality of life.
  • The department is committed to developing solutions that address the housing challenges that Canadians are facing. To that end, the department will continue to build up internal housing policy capacity and collaborate closely with colleagues at Canada Mortgage and Housing Corporation to support program development and strengthen the Government of Canada’s overall ability to provide advice and support on housing and homelessness issues.
  • The department will foster inclusion for all Canadians in communities and take measured steps to respond to the homelessness crisis. Under Reaching Home: Canada’s Homelessness Strategy and the Veteran Homelessness Program, INFC will continue to support Canadians, including veterans and Indigenous communities, to accelerate the Government of Canada’s commitment to end chronic homelessness.
  • As the Canadian environment changes, so do our climate resilience efforts and requirements. To help communities better prepare and withstand the impacts of climate events, as part of the National Adaptation Strategy, the Government of Canada Adaptation Action Plan is providing additional support through the Disaster Mitigation and Adaptation Fund. Further, it will advance several initiatives including open-access climate toolkits, resilience requirements for funding programs, and guidance, standards, and codes for climate resilient and low-carbon infrastructure, using the same channels.
  • Additionally, the department is working to ensure Canadians have resilient, climate-smart, accessible, and inclusive public infrastructure. As such, INFC is investing in green and inclusive community buildings and sustainable water and wastewater solutions. In 2024-25, INFC is continuing to support retrofits of existing and the construction of new community buildings and outdoor facilities, to ensure Canadians can gather safely in their communities, including in rural, northern, and Indigenous communities.
  • Continued funding for Canada’s public transit systems, and the design of new programs set to launch in 2026-27, will allow INFC to support sustainable transit and help municipalities and transit authorities with predictable, long-term planning. Our transit investments will encourage the alignment of transit and housing in communities that will improve the line of sight on our investment priorities and continue providing people with cleaner and more affordable access to jobs, services and recreation, and supporting housing priorities.
  • INFC will work in close collaboration with other federal departments, provinces, territories, municipalities, Indigenous communities, and other stakeholders to continue progressing on shared priorities to make investments and build strong partnerships toward a resilient and inclusive economic future while advancing reconciliation.
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