2011-2012 Departmental Performance Report - Supplementary Information Tables - Details of Transfer Payment Programs
Infrastructure Canada manages the following Transfer Payment Programs1:
- Contributions under the Canada Strategic Infrastructure Fund (CSIF);
- Contributions under the Border Infrastructure Fund (BIF);
- Contributions under the Municipal Rural Infrastructure Fund (MRIF);
- Transfer Payments under the Gas Tax Fund (GTF);
- Transfer Payments under the Provincial-Territorial Infrastructure Base Fund (PT Base Fund);
- Contributions under the Building Canada Fund-Communities Component (BCF-CC);
- Contributions under the Building Canada Fund-Major Infrastructure Component (BCF-MIC);
- Contributions under the Building Canada Fund-Communities Component Top-Up (BCF-CC Top-Up);
- Building Canada Fund-Strategic Research and Partnerships;
- Building Canada Fund-Feasibility and Planning Studies;
- Contributions under the Green Infrastructure Fund (GIF); and
- Contributions under the Infrastructure Stimulus Fund (ISF).
Canada Strategic Infrastructure Fund (CSIF)
1. Name of Transfer Payment Program: Canada Strategic Infrastructure Fund
2. Start Date: 2003-04
3. End Date: 2016-172
4. Description: This program activity provides funding to support large-scale projects in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians. It supports infrastructure projects in the categories of highways and railways, local transportation, tourism or urban development, water or sewage and broadband (telecommunications connectivity). Investments are made in cooperation with the provinces, territories, municipalities and the private sector to support the construction, renewal and/or enhancement of public infrastructure to build infrastructure capacity in partnership with recipients. The Canada Strategic Infrastructure Fund levers additional contributions from other partners by providing up to 50 percent of funded costs for eligible projects. The Fund benefits Canadians by promoting the safer and faster movement of people and goods on Canada's transportation systems, reduced greenhouse gas emissions and pollutants, increased economic activity and innovative technologies.3
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: During 2011-12, with the help of its Federal Delivery Partners, the Department continued to monitor the progress of projects. Four projects worth $253.3 million were completed by project proponents during the period. This is fewer than the forecasted amount due to delays caused by inclement weather and technical and other construction-related issues beyond the control of Infrastructure Canada.
Since the inception of the program, Infrastructure Canada has committed more than $4.4 billion in federal funding to 75 projects, generating about $8.4 billion in investment from funding partners. The largest categories of investments in terms of the number of funded projects are highway/rail infrastructure, urban development and water/sewage treatment infrastructure. So far, 43 projects have been completed under the program, improving infrastructure across the country.
13. Program Activity: Canada Strategic Infrastructure Fund
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $419.6 | $335.3 | $378.2 | $480.4 | $188.1 | $190.1 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $419.6 | $335.3 | $378.2 | $480.4 | $188.1 | $190.1 |
16. Comment(s) on Variance(s): Actual Spending in 2011-2012 was lower than planned
This is the result of a number of factors including lower than anticipated project costs and project delays resulting from inclement weather, technical and other construction-related complexities that caused numerous construction delays. It is also noted that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred. The CSIF was recently extended to allow recipients that have encountered delays to access the remainder of their federal contribution and complete their projects as expected.
In 2011-12, Infrastructure Canada implemented new measures to increase accuracy of spending forecasts and minimize the amount of lapsed funding. One of these measures involves a conservative approach in calculating Payables-At-Year-End (PAYE). While this is expected to minimize the amount of lapses in the long run, it has led to increased lapses in 2011-12 for some projects, as expenditures forecasts were based on the former PAYE method.
17. Audit Completed or Planned: An audit of CSIF program has recently been launched. The audit results will be reported by the end of 2012-13.
18. Evaluation Completed or Planned: A joint evaluation of the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund is planned for 2012-13, and is expected to be completed in 2013-14.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Border Infrastructure Fund (BIF)
1. Name of Transfer Payment Program: Border Infrastructure Fund
2. Start Date: 2003-04
3. End Date: 2015-164
4. Description: This program activity provides funding for investments in physical infrastructure capacity and intelligent transportation systems at surface border crossings between Canada and the United States, as well as several other crossing points in Canada. These investments help to reduce congestion and support the implementation of the Smart Borders Action Plan, and to enhance safety and security at border crossings. The Fund is critical to Canada's growing economic and trade relationship with the United States. Announced in 2001, the fund provides up to 50 percent of funding for eligible project costs. Projects under this program activity are carried out in partnership with funding recipients and include the construction, renewal and/or enhancement of public infrastructure to build infrastructure to enhance border surface capacity. The Border Infrastructure Fund benefits Canadians by reducing border crossing times for trucks and cars travelling between Canada and the United States, more efficient movement of goods, thereby contributing to increased trade and production, increased safety and security and improved Canada-United States relations.5
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: As of March 31, 2012, eight projects under the fund have been completed, representing 100 percent of the planned target. The total value of projects completed by project proponents was lower than the target as a large project encountered delays and was not completed by year end as forecast. Typically, project delays occur as a result of inclement weather, technical and other construction-related complexities that cause numerous construction delays.
Since the inception of the program, the federal government has announced support for 13 border improvement infrastructure projects, generating $1.2 billion in infrastructure investment from its partners. In addition, actual spending lags behind the actual rate of construction of projects since recipients are reimbursed once eligible expenses have been incurred and claims are submitted.
13. Program Activity: Border Infrastructure Fund
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $80.8 | $67.8 | $51.6 | $44.3 | $35.0 | $16.6 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $80.8 | $67.8 | $51.6 | $44.3 | $35.0 | $16.6 |
16. Comment(s) on Variance(s): Transportation projects funded under the BIF are large and complex by nature which makes them at higher risk of experiencing unexpected delays during their implementation. During 2011-12, a number of projects encountered delays due to various reasons that included issues related to the complexity of the terrain, the acquisition of property and expropriations and difficulties in obtaining approvals to construct on third party property. It is also noted that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred.
In 2011-12, Infrastructure Canada implemented new measures to increase accuracy of spending forecasts and minimize the amount of lapsed funding. One of these measures involves a conservative approach in calculating Payables-At-Year-End (PAYE). While this is expected to minimize the amount of lapses in the long run, it has led to increased lapses in 2011-12 for some projects, as expenditures forecasts were based on the former PAYE method.
17. Audit Completed or Planned: There were no audits completed and no new audits launched or planned in 2011-12.
18. Evaluation Completed or Planned: A joint evaluation of the Border Infrastructure Fund and the Canada Strategic Infrastructure Fund is planned for 2012-13 and is expected to be completed in 2013-14.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Municipal Rural Infrastructure Fund (MRIF)
1. Name of Transfer Payment Program: Municipal Rural Infrastructure Fund
2. Start Date: 2004-05
3. End Date: 2013-14
4. Description: This program activity provides funding for smaller-scale municipal infrastructure projects designed to promote and improve quality of life in both urban and rural communities. At least 80 percent of funding under the Municipal Rural Infrastructure Fund has been dedicated to municipalities with a population of less than 250,000. Eligible project categories under this fund include water and wastewater treatment, and cultural and recreation projects for smaller communities. In May 2007, the Government of Canada announced an additional $200 million for the initial $1 billion program. For most projects, the Fund provides up to one-third federal funding for eligible projects, thereby promoting increased infrastructure investments. Projects funded under this program activity contribute to the construction, renewal and/or enhancement of public infrastructure, improving and increasing the stock of core public infrastructure. The program aims to promote sustainable economic growth, innovation and healthy communities.6
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: During 2011-12, with the help of its Federal Delivery Partners, the Department continued to monitor the progress of projects, with 67 projects valued at $220 million completed during the period. This brings the total number of completed projects to 1,617, with a total value of $2.5 billion. Improved forecasting and better coordination between Infrastructure Canada and Federal Delivery Partners have helped the Department meet its planned targets for project completions.
Since the inception of the program, Infrastructure Canada has committed more than $991 million in federal funding to 1,938 projects generating an additional $2.5 billion in investment from funding partners. The largest categories of investments in terms of the number funded projects are municipal capacity building and water infrastructure.
13. Program Activity: Municipal Rural Infrastructure Base Fund
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $221.2 | $146.1 | $46.6 | $127.7 | $87.9 | -$41.3 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $221.2 | $146.1 | $46.6 | $127.7 | $87.9 | -$41.3 |
16. Comment(s) on Variance(s): In 2010-11, Infrastructure Canada lapsed funds and as a result there was more project spending in the 2011-12 fiscal year than initially anticipated. It is not expected that these variances will continue as recipients refine their forecasts and as the program draws closer to termination.
In 2011-12, Infrastructure Canada implemented new measures to increase accuracy of spending forecasts and minimize the amount of lapsed funding. One of these measures involves a conservative approach in calculating Payables-At-Year-End (PAYE). While this is expected to minimize the amount of lapses in the long run, it has led to increased lapses in 2011-12 for some projects, as expenditures forecasts were based on the former PAYE method.
17. Audit Completed or Planned: There were no audits completed and no new audits launched or planned in 2011-12.
18. Evaluation Completed or Planned: An evaluation of the Municipal Rural Infrastructure Fund is planned for 2014-15.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Gas Tax Fund (GTF)
1. Name of Transfer Payment Program: Gas Tax Fund
2. Start Date: 2005-06
3. End Date: Ongoing7
4. Description: This program activity provides municipalities with predictable long-term funding coupled with local decision-making to enable them to build and rehabilitate their core public infrastructure. Under this program activity, Canada has entered into Gas Tax Fund Agreements with provinces, territories, the Association of Municipalities of Ontario, the Union of British Columbia Municipalities and the City of Toronto. These agreements establish an accountability framework allowing Canada to flow Gas Tax Fund monies twice a year to signatories which in turn, flow funds to municipal recipients based on an agreed upon allocation formula. For their part, municipal recipients decide which projects to prioritize within established investment categories that contribute to shared national outcomes of cleaner air, cleaner water and reduced greenhouse gas emissions, and increase community capacities to undertake long-term planning. Municipalities can pool, bank and borrow against this funding, providing significant additional financial flexibility. Eligible recipients are required to report annually on their use of funds and their compliance to terms and conditions of the federal-provincial Gas Tax Fund Agreements. Budget 2007 added $8 billion in new funding and extended the Gas Tax Fund from 2010 to 2014, doubling it to $2 billion per year. Budget 2008 announced that the government will make it ongoing.
5. Strategic Outcome(s): Provinces, territories, and municipalities have federal financial support for their infrastructure priorities.
6. Results Achieved: Throughout the year, Infrastructure Canada worked closely with provinces and territories to resolve outstanding issues with annual expenditure reports. The Department also continued to establish and enhance controls to effectively manage the program, and ensure recipient compliance with existing GTF requirements. The Department provided its annual Gas Tax allocations to partners, and also distributed $231.4 million of previously withheld funding to three jurisdictions (after receiving acceptable outstanding Annual Expenditure Reports). This brought the total amount of 2011-12 funding to more than $2.2 billion, exceeding the performance target. Just over half of that funding was spent by municipalities in 2010-11, as some jurisdictions decided to bank their allocations to future years.
Since the program's inception in 2005, funding under this program has resulted in new and improved public transit, water, wastewater, solid waste, local roads and bridges, community energy systems and community capacity.
13. Program Activity: Gas Tax Fund
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | ||||||
| 14. Total Other Types of Transfer Payments | $1,872.4 | $1,751.0 | $1,974.5 | $2,327.9 | $2,205.9 | -$231.4 |
| 15. Total Program Activity | $1,872.4 | $1,751.0 | $1,974.5 | $2,327.9 | $2,205.9 | -$231.4 |
16. Comment(s) on Variance(s): Funds flowed to GTF signatories are dependent on the submission of audited Annual Expenditure Reports. In the absence of duly completed reports, Infrastructure Canada can withhold funds until such time that completed reports are accepted. Releasing previously held funds can result in actual spending surpassing targeted funding. Conversely, withholding funds can result in actual spending coming in below targets. Infrastructure Canada will continue to work with GTF signatories to ensure that audited Annual Expenditure Reports are complete, and submitted on a timely basis to ensure planned spending targets are met. In 2011-12, the increase in actual spending over planned spending was a result of the release of previously held funds for a number of signatories.
17. Audit Completed or Planned: There were no audits completed and no new audits launched or planned in 2011-12.
18. Evaluation Completed or Planned: An evaluation of the GTF is planned for 2014-15.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Provincial-Territorial Infrastructure Base Fund (PT-Base Fund)
1. Name of Transfer Payment Program: Provincial-Territorial Infrastructure Base Fund
2. Start Date: 2007-08
3. End Date: 2013-14
4. Description: This program activity provides $175 million in base funding to each province and territory for core infrastructure priorities, balancing the Building Canada Fund's per capita allocations. Capital Plans outline infrastructure initiatives that support priorities in a given jurisdiction within the scope of eligible federal investment categories, including the construction or rehabilitation of infrastructure in most of the project categories eligible under the Building Canada Fund, including secondary provincial highway infrastructure. While payments are made to provinces and territories, ultimate recipients can also include local and regional governments or private sector bodies. The Fund provides a high degree of flexibility to provinces and territories. Payments are made in advance and provinces and territories may pool, bank, or cash-manage these funds in a manner that will afford them greater flexibility in implementing their Annual Capital Plans. The Provincial-Territorial Infrastructure Base Fund was designed to help restore the fiscal balance while enhancing Canada's public infrastructure system, promoting enhanced competitiveness and productivity of the economy, cleaner air, water and land, and stronger and healthier communities. Federal Funding, on a Capital Plan basis, is up to 50 percent in provinces and 75 percent in territories to maximize investment by all orders of government. All provinces and territories benefit from this investment in modern public infrastructure, particularly jurisdictions with smaller populations.
5. Strategic Outcome(s): Provinces, territories, and municipalities have federal financial support for their infrastructure priorities.
6. Results Achieved: Three new Capital Plans and two amended plans were approved during the year, committing another $179 million in federal funding to 30 new initiatives and leveraging almost $173 million in funding from other partners, including provinces, territories and municipalities. Also, an additional jurisdiction opted to fully commit the balance of its PT Base funds.
The fund has committed $2.05 billion in federal investments as of March 31, 2012, representing almost 89 percent of the entire $2.3 billion PT Base allocation. An additional $2.68 billion in funding was leveraged from provincial and territorial partners.
As the Department signed the only remaining funding agreement in late 2010-11, the objective of concluding agreements with all jurisdictions is now achieved and the program is being fully implemented nationwide.
13. Program Activity: Provincial-Territorial Infrastructure Base Fund
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | ||||||
| 14. Total Other Types of Transfer Payments | $671.9 | $437.3 | $347.2 | $390.9 | $188.7 | $158.5 |
| 15. Total Program Activity | $671.9 | $437.3 | $347.2 | $390.9 | $188.7 | $158.5 |
16. Comment(s) on Variance(s): Under the PT Base Fund, the Government of Canada's flow of funding to the provinces and territories is subject to the submission and federal acceptance of Capital Plans and/or Expenditure Reports. Actual spending in fiscal year 2011-12 reflects that fewer Capital Plans and Expenditure Reports were submitted and federally accepted than planned. In some cases, final payments under the program did not flow as submission of a final audited Expenditure Report are still pending from some jurisdictions demonstrating that all of their PT Base initiatives have been completed. Delays in program implementation in one jurisdiction in the 2011-12 fiscal year also delayed another significant payment.
17. Audit Completed or Planned: An audit of the PT Base Initiative was completed in 2011-12 and the audit report was approved by the Deputy Minister in June 2011.
18. Evaluation Completed or Planned: An evaluation of the PT Base Fund was completed in 2011-12.
19. Contact Information: Michael Rutherford, Director, Economic and Community Initiatives, Tel: (613) 952-3366, E-Mail: michael.rutherford@infc.gc.ca.
Building Canada Fund-Communities Component (BCF-CC)
1. Name of Transfer Payment Program: Building Canada Fund-Communities Component
2. Start Date: 2008-09
3. End Date: 2016-17
4. Description: The Communities Component of the Building Canada Fund program activity provides funding to address the unique infrastructure pressures facing smaller communities focusing on project investments in communities with populations of less than 100,000. Working in partnership with federal delivery partners and recipients, program funding supports the construction, renewal and enhancement of basic infrastructure priorities such as potable water, wastewater treatment, local roads and other infrastructure needs of small communities. The fund levers additional contributions from other partners by generally providing federal funding of one-third of eligible costs. The Building Canada Fund focuses on projects that deliver economic, environmental, and social benefits to all Canadians. Priority funding categories for the fund are the core national highway system routes, drinking water, wastewater, public transit and green energy. Other eligible investment priority areas include environmental projects (solid waste management), projects that support economic growth and development (short-line rail and short-sea shipping, connectivity and broadband, tourism and regional and local airports), as well as projects that contribute to the ongoing development of safe and strong communities (disaster mitigation, culture, sport, local roads and bridges, and brownfield re-development). Funding is used to support public infrastructure owned by provincial, territorial and municipal governments and entities, as well as private industry.
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: During 2011-12:
- 137 approved projects valued at $502.1 million were completed
- 38 approved projects worth $96.3 million began construction, and
- 467 projects worth more than $2.3 billion are still underway.
In addition, as a result of available funding from cost savings and projects cancelled by proponents, Infrastructure Canada committed $16.1 million in federal funds to 29 new projects, leveraging an additional $34 million in infrastructure investment.
Since the inception of the program in 2007, more than $1 billion has been committed by the federal government generating an additional $2.1 billion (more than doubling committed federal funding) in infrastructure investment. In addition, Infrastructure Canada continues to support 14 projects in Québec funded through the Large Urban Centres Component of the Building Canada Fund through a federal allocation of $200 million. The largest categories of investments are wastewater infrastructure, water infrastructure and local road infrastructure.
13. Program Activity: Building Canada Fund-Communities Component
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $99.8 | $223.5 | $321.9 | $299.3 | $213.3 | $108.6 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $99.8 | $223.5 | $321.9 | $299.3 | $213.3 | $108.6 |
16. Comment(s) on Variance(s): Actual Spending in 2011-12 was lower than planned. This is the result of a number of factors including lower than anticipated project costs, projects cancelled by proponents and project delays resulting from inclement weather, technical and other construction-related complexities that caused numerous construction delays. It is also noted that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred.
In 2011-12, Infrastructure Canada implemented new measures to increase accuracy of spending forecasts and minimize the amount of lapsed funding. One of these measures involves a conservative approach in calculating Payables-At-Year-End (PAYE). While this is expected to minimize the amount of lapses in the long run, it has led to increased lapses in 2011-12 for some projects, as expenditures forecasts were based on the former PAYE method.
17. Audit Completed or Planned: An audit of the BCF-CC program was completed in 2011-12 and the audit report was approved by the Deputy Minister in February 2012.
18. Evaluation Completed or Planned: An evaluation of the Building Canada Fund-Communities Component is planned for 2013-14.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Building Canada Fund-Major Infrastructure Component (BCF-MIC)
1. Name of Transfer Payment Program: Building Canada Fund-Major Infrastructure Component
2. Start Date: 2008-09
3. End Date: 2016-17
4. Description: The Major Infrastructure Component of the Building Canada Fund program activity targets larger, strategic infrastructure projects both at the national and regional level. It increases overall investment in public infrastructure and contributes to broad federal objectives of economic growth, a cleaner environment and strong and prosperous communities. The objective is to target two-thirds of the funding to national priorities of water, wastewater, public transit, the core national highway system and green energy. The Major Infrastructure Component has 12 additional eligible categories of investment, and priority projects are identified through discussions with provinces. By providing up to 50 percent federal funding on a cost-shared basis, it levers additional contributions from partners to promote increased investment in strategic infrastructure. Eligible recipients include provinces, local or regional governments, public sector bodies, non-profit organizations and private companies. Projects identified as a priority must be supported by a business case reviewed against key program criteria. Once a project review is completed and a project is approved, funds are delivered through contribution agreements with eligible recipients to reimburse costs incurred. Projects under this program activity contribute to the construction, renewal and/or enhancement of public infrastructure. As part of the Economic Action Plan, the government made a commitment to accelerate funding under the Building Canada plan, and as such, the Department streamlined the federal evaluation and approval of projects under the Building Canada Fund-Major Infrastructure Component, simplifying and developing a more efficient review process to help projects get started sooner.
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: During 2011-12, 18 major projects worth approximately $566 million in total eligible costs were completed and 24 major projects with total eligible costs of $1.32 billion started construction. In addition, the Department committed more than $103 million to new projects worth over $377 million during the fiscal year. Program funding is almost completely committed in six of the ten provinces (90 percent to 100 percent committed), and at least 70 percent of every province's allocation is committed.
Overall, the Department has committed approximately $5.61 billion in funding to 147 projects. Including investments by partners, these projects have a value of approximately $18.42 billion in total eligible costs. These infrastructure projects, small and large, improve the quality of life in communities, enhancing the safety and efficiency of road and transit networks, and strengthening the economies in communities across the nation.
13. Program Activity: Building Canada Fund-Major Infrastructure Component
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $194.8 | $403.8 | $1,267.4 | $1,222.2 | $758.5 | $508.9 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $194.8 | $403.8 | $1,267.4 | $1,222.2 | $758.5 | $508.9 |
16. Comment(s) on Variance(s): This program provides significant funding for large, complex projects. It is typical for these projects to require a significant amount of upfront planning, design and procurement. These processes may occur, in whole or in part, after funding commitments are announced. As a result, there is often a period of time that will pass between project announcements and when construction starts. It is also noted that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred.
In 2011-12, Infrastructure Canada implemented new measures to increase accuracy of spending forecasts and minimize the amount of lapsed funding. One of these measures involves a conservative approach in calculating Payables-At-Year-End (PAYE). While this is expected to minimize the amount of lapses in the long run, it has led to increased lapses in 2011-12 for some projects, as expenditures forecasts were based on the former PAYE method.
17. Audit Completed or Planned: A Program Change Analysis Internal Audit of the Building Canada Fund-Major Infrastructure Component (BCF-MIC) was completed in 2010-11, and the results presented to the Departmental Audit Committee (DAC) for discussion/information in June, 2011.
18. Evaluation Completed or Planned: An evaluation of the Building Canada Fund-Major Infrastructure Component is planned for 2013-14.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Building Canada Fund-Communities Component Top-Up (BCF-CC Top-Up)
1. Name of Transfer Payment Program: Building Canada Fund-Communities Component Top-Up
2. Start Date: 2008-09
3. End Date: 2011-12
4. Description: This program activity provides additional funding in the amount of $500 million (added to the Building Canada Fund-Communities Component program activity funding) to fund additional infrastructure projects in communities with populations of less than 100,000. The additional top-up funds were initiated given the economic recession and followed Budget 2009 (Economic Action Plan) and the government's decision to accelerate infrastructure funding and provide short-term economic stimulus. As part of the Economic Action Plan, the top-up to the Building Canada Fund-Communities Component provided an additional $500 million to be spent in the 2009-10 to 2010-11 fiscal years, in jurisdictions that have fully committed all of their regular Communities Component of the Building Canada Fund. The funds are to be allocated to projects that can be materially completed by March 31, 2011.8 Projects are selected through the same process as the Building Canada Fund-Communities Component program activity.
5. Strategic Outcome(s): Construction-ready infrastructure projects are provided with federal funding support.
6. Results Achieved: During 2011-12, Infrastructure Canada worked closely with Federal Delivery Partners and provinces as project proponents completed the final 261 projects. This represented $337.9 million of federal commitments, and leveraged an additional $735.8 million in infrastructure investments from partners. Overall, 526 projects were completed, with a federal investment of $446.9 million, and close to $1 billion in additional investment from partners by March 31, 2012.
By extending the deadline for an additional construction season, the Canadian economy benefitted from stimulus funding without additional government spending beyond the original commitments. Proponents that met the criteria for an extension were allowed to complete projects by the extended deadline with federal support. Throughout the year, the Government of Canada remained committed to timely completion of stimulus projects, while preparing to return to a balanced budget.
13. Program Activity: Building Canada Fund-Communities Component Top-Up.
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-129 | 10. Total Authorities 2011-1210 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $30.0 | $303.5 | $0.0 | $163.0 | $136.0 | -$136.0 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $30.0 | $303.5 | $0.0 | $163.0 | $136.0 | -$136.0 |
16. Comment(s) on Variance(s): In December 2010 the government announced a one-time extension for the program to October 31, 2011. The deadline extension gave proponents an additional construction season to complete their projects, further benefitting Canadians without incurring any additional government spending.
17. Audit completed or planned: An audit of the BCF-CC program (including BCF-CC top up) was completed in 2011-12 and the audit report was approved by the Deputy Minister in February 2012.
18. Evaluation completed or planned: A Joint Evaluation that includes the Infrastructure Stimulus Fund, the BCF-CC Top-Up, and the National Recreational Trails Fund was launched in 2011-12.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Building Canada Fund-Strategic Research and Partnerships
1. Name of Transfer Payment Program: Building Canada Fund-Strategic Research and Partnerships
2. Start Date: 2008-09
3. End Date: 2016-17
4. Description: To invest in provincial and community infrastructure to address both national, provincial/territorial and community priorities. This sub-component of the Economic Analysis and Research program activity supports research, knowledge and capacity-building undertaken at the national level to promote innovation and progress in delivering world-class public infrastructure and fills priority infrastructure knowledge gaps. This initiative addresses fundamental, persistent and emerging infrastructure issues including: strengthening the information base for decision-making; supporting long-term solutions and sustainability; supporting innovation and efficiency; and measuring impacts and effectiveness.11
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: No spending occurred under this program in 2011-12.
13. Program Activity: Economic Analysis and Research
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-1212 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $0 | $0 | $2.5 | $0 | $0 | $2.5 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $0 | $0 | $2.5 | $0 | $0 | $2.5 |
16. Comment(s) on Variance(s): Not applicable.
17. Audit Completed or Planned: There were no audits completed and no new audits launched or planned in 2011-12.
18. Evaluation Completed or Planned: There were no evaluations completed and no new evaluations launched or planned in 2011-12.
19. Contact Information: Tom Roberts, Director, Reporting and Coordination, Tel: (613) 946-9922, E-Mail: Tom.Roberts@infc.gc.ca.
Building Canada Fund-Feasibility and Planning Studies
1. Name of Transfer Payment Program: Building Canada Fund-Feasibility and Planning Studies
2. Start Date: 2008-09
3. End Date: 2016-17
4. Description: This sub-component of the Economic Analysis and Research program activity supports the development of effective and innovative studies that will better focus infrastructure investments at the federal, provincial/territorial, and municipal levels. The objectives of this initiative are to support feasibility and planning studies on public infrastructure projects and issues. To that end, this funding will support studies that may examine potential infrastructure solutions to local, regional and national issues as well as a variety of planning studies that support infrastructure management and investment. Targeted feasibility studies may also be utilized to examine specific infrastructure issues and projects/priorities. These investments will result in better information on potential projects and improved planning as it relates to infrastructure (on a broad and sectorial basis). Information gained from the feasibility studies could also support more effective performance of project due diligence at a later date.13
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: In 2011-12, Infrastructure Canada did not fund any feasibility studies under the Feasibility and Planning Studies program.
13. Program Activity: Economic Analysis and Research
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-1214 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $0 | $0.1 | $6.7 | $0 | $0 | $6.7 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $0 | $0.1 | $6.7 | $0 | $0 | $6.7 |
16. Comment(s) on Variance(s): Given funding was reduced from this program as a result of the 2010 Strategic Review process, Infrastructure Canada did not enter into any contribution agreements in 2011-12.
17. Audit Completed or Planned: There were no audits completed and no new audits launched or planned in 2011-12.
18. Evaluation Completed or Planned: There were no evaluations completed and no new evaluations launched or planned in 2011-12.
19. Contact Information: Tom Roberts, Director, Reporting and Coordination, Tel: (613) 946-9922, E-Mail: Tom.Roberts@infc.gc.ca.
Green Infrastructure Fund (GIF)
1. Name of Transfer Payment Program: Green Infrastructure Fund
2. Start Date: 2009-10
3. End Date: 2013-14
4. Description: This program activity provides funding for public infrastructure projects that promote cleaner air, reduced greenhouse gas emissions, and cleaner land and water. Project categories include wastewater infrastructure, green energy generation infrastructure, green energy transmission infrastructure, solid waste infrastructure and carbon transmission and storage infrastructure. The objective of the Green infrastructure Fund is to improve the quality of the environment and to support a more sustainable economy over the long-term. The Fund provides up to 50 percent of eligible project costs to promote increased investment in infrastructure, in support of a more sustainable economy. Funding is provided on a cost-shared basis to provinces, territories, local or regional governments, public sector bodies, other eligible non-profit organizations and private sector companies, either alone or in partnership with a province, territory or a government body. Projects are assessed against criteria such as eligibility, leveraging financial investments and project benefits.
5. Strategic Outcome(s): Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment, and liveable communities is provided.
6. Results Achieved: In 2011-12, Infrastructure Canada focussed on project approvals and the negotiation of funding agreements. By March 31, 2012, a total of eleven projects were underway, with total eligible costs valued at more than $963 million. The combined federal contribution to these projects is $373 million, including investments by partners of approximately $590 million.
Overall, more than $617 million has been committed to 17 announced projects. Including investments by partners, these projects have a value of more than $1.7 billion in total eligible costs.
In keeping with the Government of Canada's commitment to address priority initiatives within the current fiscal framework, the Government of Canada has made a policy decision to transfer $169.98 million from the GIF to other federal departments to support high-priority initiatives. These reallocations are being considered by Parliament through a combination of Main Estimates and Supplementary Estimates as the funding is required. The proposed transfers, and amounts that have been approved by Parliament, including those approved in the 2012-13 Main Estimates, are as follows:
Natural Resources Canada (NR CAN)
| Transfer Out – Forestry Industry Transformation Program | $100 million |
| Approved by Parliament – prior to 2012-13 | $50 million |
| 2012-13 Main Estimates | $25 million |
| Balance to be transferred out in a future Estimates process | $25 million |
Economic Development Agency of Canada for the Regions of Quebec (CED)
| Transfer Out – Temporary Initiative for the Strengthening of Quebec's Forest Economies | $30 million |
| Approved by Parliament – prior to 2012-13 | $15 million |
| 2012-13 Main Estimates | $15 million |
| Transfer Out – Natural Gas Pipeline between Vallée Jonction and Thetford Mines | $18.15 million |
| 2012-13 Main Estimates | $14.50 million |
| Balance to be transferred out in a future Estimates process | $3.65 million |
Aboriginal Affairs and Northern Development Canada (AANDC)
| Transfer Out – Beaufort Regional Environmental Assessment | $21.83 million15 |
| Approved by Parliament – prior to 2012-13 | $5.45 million |
| 2012-13 Main Estimates | $7.34 million |
| Balance to be transferred out in a future Estimates process | $9.04 million |
In addition, $45 million in unallocated funds from the GIF was removed from departmental reference levels, as part of the 2010 Strategic Review process, and made available for other Government of Canada priorities. This was approved in Budget 2011, and will be included in future Estimates processes, subject to Parliamentary approval. As well, in the 2012-13 Main Estimates, $58.7 million was approved and reallocated from the GIF as a source of funds for the operating requirements of the Department. No approved projects have been cancelled or otherwise affected as a result of these reallocations.
Infrastructure Canada will continue to work closely with provinces and territories to identify priorities for the remaining funds from the proposals that have already been submitted.
13. Program Activity: Green Infrastructure Fund
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-12 | 10. Total Authorities 2011-12 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $5.2 | $33.5 | $429.6 | $389.2 | $29.8 | $399.8 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $5.2 | $33.5 | $429.6 | $389.2 | $29.8 | $399.8 |
16. Comment(s) on Variance(s): Actual Spending in 2011-12 was lower than planned. This program provides significant funding for large, complex projects. It is typical for these projects to require a significant amount of upfront planning, design and procurement. These processes may occur, in whole or in part, after funding commitments are announced. As a result, there is often a period of time that will pass between project announcements and when construction starts. It is also noted that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred.
In 2011-12, Infrastructure Canada implemented new measures to increase accuracy of spending forecasts and minimize the amount of lapsed funding. One of these measures involves a conservative approach in calculating Payables-At-Year-End (PAYE). While this is expected to minimize the amount of lapses in the long run, it has led to increased lapses in 2011-12 for some projects, as expenditures forecasts were based on the former PAYE method.
17. Audit Completed or Planned: There were no audits completed and no new audits launched or planned in 2011-12.
18. Evaluation Completed or Planned: An evaluation of the Green Infrastructure Fund is planned for 2014-15.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392, E-Mail: claude.blanchette@infc.gc.ca.
Infrastructure Stimulus Fund (ISF)
1. Name of Transfer Payment Program: Infrastructure Stimulus Fund
2. Start Date: 2009-10
3. End Date: 2011-12
4. Description: This program activity is intended to accelerate and increase the number of provincial, territorial and municipal infrastructure projects, as well as infrastructure projects submitted by not-for-profit and for-profit entities. It focuses on the rehabilitation of existing assets and new infrastructure projects that can be materially completed by March 31, 2011. Categories include water, wastewater, public transit, solid waste management, highways, roads, culture, community centers and services, temporary shelter infrastructure, parks and trails, rail and port infrastructure. As part of the Economic Action Plan, the Infrastructure Stimulus Fund helps to provide timely, targeted and short-term stimulus to the Canadian economy by increasing the total amount of construction activity in Canada during 2008-2009, 2009-2010 and 2010-2011 through the funding of projects, and by leveraging funding of other levels of government and the private sector. The Infrastructure Stimulus Fund is designed as a broad and flexible program to include both new infrastructure and rehabilitation of existing assets. By providing up to 50 percent federal funding to projects that can be materially completed by March 2011, the Fund levers funding from other partners.16
5. Strategic Outcome(s): Construction-ready infrastructure projects are provided with federal funding support.
6. Results Achieved: During 2011-12 Infrastructure Canada worked closely with provincial, territorial, municipal, and other partners as they worked towards the completion of the final 1,277 projects, representing $1.9 billion of federal commitments with an additional $3.4 billion in infrastructure investments leveraged from our partners. This brings the total number of substantially completed projects to 3,973 with a federal share of more than $3.4 billion by March 31, 2012.
By extending the deadline for an additional construction season, the Canadian economy benefitted from stimulus funding without additional government spending beyond the original commitments. To ensure fairness, all projects were eligible to apply for an extension, and those projects that met the criteria were allowed to be completed by the extended deadline with federal support. Throughout the year, the Government of Canada remained committed to timely completion of stimulus projects, while preparing to return to a balanced budget. Through the Infrastructure Stimulus Fund, the Government, generated close to $6 billion in infrastructure investment from non-federal partners, for an overall total $10 billion infrastructure investment.
13. Program Activity: Infrastructure Stimulus Fund
($ millions)
| 7. Actual Spending 2009-10 | 8. Actual Spending 2010-11 | 9. Planned Spending 2011-1217 | 10. Total Authorities 2011-1218 | 11. Actual Spending 2011-12 | 12. Variance(s) | |
|---|---|---|---|---|---|---|
| 14. Total Grants | ||||||
| 14. Total Contributions | $490.7 | $2,476.8 | $0.0 | $791.0 | $633.2 | -$633.2 |
| 14. Total Other Types of Transfer Payments | ||||||
| 15. Total Program Activity | $490.7 | $2,476.8 | $0.0 | $791.0 | $633.2 | -$633.2 |
16. Comment(s) on Variance(s): In December 2010 the government announced a one-time extension for the ISF program to October 31, 2011. The deadline extension gave proponents an additional construction season to complete their projects, further benefitting Canadians without incurring any additional government spending.
17. Audit Completed or Planned: An assurance engagement (i.e. audit) of the ISF program will be launched in 2012-13 and the audit report will be tabled at the January 2013 meeting of the Departmental Audit Committee.
18. Evaluation Completed or Planned: A Joint Evaluation that includes the Infrastructure Stimulus Fund, the Building Canada Fund-Communities Component Top-Up, and the National Trails Coalition Fund was launched in 2011-12.
19. Contact Information: Claude Blanchette, Director General, Program Integration, Tel: (613) 948-9392,
E-Mail: claude.blanchette@infc.gc.ca
Notes
[1] Allocations for Transfer Payment Programs include Contributions only, and do not include Operating and Maintenance (O&M).
[2] In 2011-12, funding under the Canada Strategic Infrastructure Fund was extended until 2016-17 for certain projects.
[3] Of the $4.3 billion originally allocated to the CSIF, approximately $50 million has been transferred to the Parks Canada Agency to support a high priority infrastructure project. These funds were reallocated through Main Estimates prior to 2012-13.
[4] In 2011-12, funding under the Border Infrastructure Fund was extended until 2015-16 for certain projects.
[5] Of the $600 million originally allocated to the BIF, approximately $18 million has been transferred to Canada Border Services Agency for border projects. These funds were reallocated through Main Estimates prior to 2012-13.
Under the 2010 Strategic Review process, $10.4 million in unallocated funds from the Border Infrastructure Fund was identified for reallocation to other Government priorities. Prior to 2012-13, $5.2 million was removed from departmental reference levels through the 2011-12 Supplementary Estimates. An additional $5.2 million will be removed through the 2012-13 Main Estimates, subject to Parliamentary approval. No projects have been cancelled or otherwise affected as result of this reallocation.
While additional funding to support the G8 Summit (2010) was appropriated by Parliament through the Border Infrastructure Fund, it was reported separately through the 2010-11 Departmental Performance Report since no original Border Infrastructure funding was used for G8 Summit-related projects.
[6] Under the 2010 Strategic Review process, $23 million in unallocated funds from MRIF were reallocated to other Government priorities. These funds were removed from departmental reference levels through 2011-12 Supplementary Estimates. No projects have been cancelled or otherwise affected as result of this reallocation.
[7] Legislation enacting permanent funding for the Gas Tax Fund received Royal Assent on December 15, 2011. Contribution funding under this program for 2014-15 is not reflected above but will be reflected in future documents after funding is approved by Parliament through a future Estimates process.
[8] In December 2010, the Government announced that the Building Canada Fund – Communities Component Top-Up would be extended until October 31, 2011 to allow for the completion of projects.
[9] There was no Planned Spending 2011-12 for the Building Canada Fund-Communities Component Top-Up as the program was scheduled to be completed on March 31, 2011. In December 2010 the government announced that the program would be extended until October 31, 2011 to allow for the completion of projects.
[10] As a result of the deadline extension to October 31, 2011 for projects under the Economic Action Plan, funding was obtained through 2011-12 Supplementary Estimates.
[11] Under the 2010 Strategic Review process, $25 million from the Strategic Research and Partnerships program was identified for reallocation to other Government priorities. Prior to 2012-13, $9.45 million was removed from departmental reference levels through Supplementary Estimates. An additional $4.5 million will be removed through 2012-13 Main Estimates, with the balance expected to be transferred out in the 2013-14 Main Estimates. All vote transfers are subject to Parliamentary approval.
[12] There was no Actual Spending in 2011-12, as the program had not yet been launched.
[13] Under the 2010 Strategic Review process, $10.75 million from the Feasibility and Planning Studies program was identified for reallocation to other government priorities. Prior to 2012-13, these funds were removed from departmental reference levels through the Estimates processes. All vote transfers are subject to Parliamentary approval.
[14] There was no Actual Spending in 2011-12, as no new projects have been funded.
[15] To date, $13.12 million has actually been reallocated from Infrastructure Canada, $12.79 million of which has been approved by Parliament, and $0.33 million which is currently within the Fiscal Framework and which will be approved as part of the $9.04 million identified in respect of future Estimates processes.
[16] Of the $4 billion originally allocated to the ISF, close to $200 million has been transferred to federal entities such as the Parks Canada Agency and the National Capital Commission to support high priority initiatives. These funds were reallocated through Estimates processes prior to 2011-12.
[17] There was no Planned Spending in 2011-12 for the Infrastructure Stimulus Fund as the program was scheduled to be completed on March 31, 2011. In December 2010 the government announced that the program would be extended until October 31, 2011 to allow for the completion of projects.
[18] As a result of the deadline extension to October 31, 2011 for projects under the Economic Action Plan, funding was obtained through 2011-12 Supplementary Estimates.
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