2014-2015
Departmental Performance Report
Supplementary Information Tables

Canada Strategic Infrastructure Fund. (Payments under this program are voted).

2003-2004

2018-2019 ^{Footnote 2}

2011-2012 ^{Footnote 3}

Public Infrastructure for a More Prosperous Canada

Program 1.4: Large-Scale Infrastructure Investments

This program supports projects that sustain economic growth and enhance the quality of life of Canadians. Investments are made in cooperation with the provinces, territories, municipalities, and the private sector, and contribute to the construction, renewal and/or enhancement of public infrastructure. The Canada Strategic Infrastructure Fund leverages additional contributions from other partners by providing up to 50 percent funding for eligible projects. ^{Footnote 4}

In 2014-2015, the Department continued to monitor and deliver the program with provincial and territorial partners and Transport Canada for the Canada Strategic Infrastructure Fund:
•3 projects with a federal contribution of $125 million and total value of $392.8 million were completed; and,
•24 projects with a federal contribution of $1.5 billion and total value of $4 billion are still underway.
As of this fiscal period, a total of 82 projects have been funded under the program, and $4 billion in federal funding has been committed to these projects. Collaboration with federal delivery partners and stakeholders is effectively supporting program delivery. Over 70 percent of projects are completed.
The largest categories of investment under the Canada Strategic Infrastructure Fund are the following: Public Transit, with a total federal investment of over $1.5 billion, and Core National Highway System, with a total federal investment of close to $1.2 billion.
Infrastructure Canada has largely met its targets under the program and intends to continue the monitoring and due diligence of ongoing projects to ensure their completion as part of the closeout activities of the program.

Actual Spending in 2014-2015 was lower than originally projected, given that CSIF projects are large-scale and complex in nature, many unknowns may arise during the course of the fiscal year. These factors range from lower than anticipated project costs to project delays resulting from inclement weather and from technical and other construction-related complexities that also cause construction delays, which explain deviations of actual expenditures from the original forecast.
It is also important to note that actual disbursement of federal contributions lag behind the actual construction of projects as recipients are reimbursed for expenditures only once they submit claims. The CSIF program was extended in 2011-2012, to allow recipients that have encountered construction delays to access the remainder of their federal contribution in order to complete their projects as expected.

Internal audits of the Canada Strategic Infrastructure Fund program were conducted in 2007-2008 and in 2012-2013.

A joint evaluation of the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund was completed in 2014-2015. A final evaluation of the Canada Strategic Infrastructure Fund is planned for completion in September 2019.

All funding available for projects under this program has been committed. The Department continues to work with recipients to flow funding, including final payments and ensure that projects are closed.

Total grants

Total contributions

239,189,191

196,634,325

251,695,831

251,695,831

233,373,467

(18,322,364)

Total other types of transfer payments

Border Infrastructure Fund. (Payments under this program are voted).

2003-2004

2017-2018 ^{Footnote 5}

2011-2012 ^{Footnote 6}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

This program supports projects that sustain economic growth and enhance the quality of life of Canadians. Investments are made in cooperation with the provinces, territories, municipalities, and the private sector, and contribute to the construction, renewal and/or enhancement of public infrastructure. The Canada Strategic Infrastructure Fund leverages additional contributions from other partners by providing up to 50 percent funding for eligible projects. ^{Footnote 7}

As of March 31, 2015, the federal government has announced support for 11 border improvement infrastructure projects, with a combined total investment of $1.2 billion for transportation systems that promote improvements in the efficiency and capacity at border crossings.
In 2015-2016, Transport Canada will continue to support the implementation of the final three projects still underway under the Border Infrastructure Fund on behalf of Infrastructure Canada, with a federal contribution of $204 million and total value of $567 million.

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 as was the case in previous year. Projects faced delays for various reasons including technical and other construction-related complexities. Those factors lead to delays in the disbursement of federal contributions which lags the actual construction of projects as recipients are reimbursed for incurred expenditures only once they submit claims.

An internal audit of the Management Control Framework of the Canada Strategic Infrastructure Fund (CSIF) and the Border Infrastructure Fund (BIF) was completed in 2007-2008. An internal audit of Closing Programs (PT Based and BFF) is planned for completion in December 2017.

A joint evaluation of the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund was completed in June 2014-2015.

All funding available for projects under this program has been committed. The Department continues to work with recipients to flow funding, including final payments and ensure that projects are closed. 

Total grants

Total contributions

7,449,802

28,196,496

51,032,163

51,032,163

20,863,226

(30,168,937)

Total other types of transfer payments

Municipal Rural Infrastructure Fund. (Payments under this program are voted).

2004-2005

2014-2015 ^{Footnote 8}

2010-2011 ^{Footnote 9}

Public Infrastructure for a More Prosperous Canada

Program 1.5: Infrastructure Investments in Smaller Communities and Rural Areas

This program supports small-scale municipal infrastructure projects designed to promote and improve quality of life in both urban and rural communities. The program initially provided $1 billion in federal funding and was augmented with an additional $200 million in Budget 2007. At least 80 percent of funding under the program has been dedicated to municipalities with a population of less than 250,000. For most projects, the MIRF provides up to one-third funding for eligible projects. Its long-term commitment to public infrastructure helps promote sustainable economic growth, innovation and healthy communities. Projects contribute to the construction, renewal and/or enhancement of public infrastructure to build capacity in partnership with recipients. It is delivered through a partnership with federal regional development agencies ^{Footnote 10}.

The Municipal Rural Infrastructure Fund program formally concluded on March 31, 2014 in most provinces and territories. Over the past year, Infrastructure Canada, in close collaboration with federal delivery partners, has been focusing its effort on program closeout activities. The closeout process has been implemented by Infrastructure Canada and its federal delivery partners over the past few years in order to have consistent and effective procedures to monitor the Municipal Rural Infrastructure Fund program closeout. Partners are continuing to implement the closeout procedures.
Infrastructure Canada has met its targets for the year. To date, over 99 percent of projects funded under the Municipal Rural Infrastructure Fund have been successfully completed, representing $956 million in federal funding.

Program spending in 2014-2015 was lower than planned. This can be attributed to a number of factors beyond the control of the funding recipient. Those factors such as inclement weather, geological challenges and technical delays and other construction-related complexities result in longer project timelines.

An internal audit of the Municipal Rural Infrastructure Fund was completed in 2011-2012.

All program evaluations for the Municipal Rural Infrastructure Fund were completed as of 2007-2008.

Contribution funding under this program has been fully committed. INFC is presently engaging with program recipients to ensure that funded infrastructure projects are completed and that the program is closed down.

Total grants

Total contributions

35,296,905

42,337,674

0 ^{Footnote 11}

24,744,902

9,410,559

9,410,559

Total other types of transfer payments

Gas Tax Fund. (Payments under this program are statutory).

2005-2006

Ongoing ^{Footnote 12}

2013-2014 ^{Footnote 13}

Public Infrastructure for a More Prosperous Canada

Program 1.2: Permanent and Flexible Infrastructure Funding

This program provides municipalities with predictable long-term funding, enabling construction and rehabilitation of core public infrastructure. The federal government has concluded renewed Agreements with provinces, territories, the Association of Municipalities of Ontario, the Union of British Columbia Municipalities and the City of Toronto for the permanent Gas Tax Fund, starting in 2014-2015.Gas Tax Fund Agreements establish an accountability framework allowing the Government of Canada to flow Gas Tax Fund money twice a year to signatories which, in turn, flow funds to municipalities based on an agreed-upon allocation formula. For their part, municipalities decide which projects to prioritize within established investment categories. In addition to supporting environmental objectives, the permanent Gas Tax Fund supports increased productivity and economic growth and strong cities and communities via an expanded list of eligible investment categories. 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 Gas Tax Fund Agreements. As announced in Economic Action Plan 2013, the renewed Gas Tax Fund is now indexed at 2 percent per year, and will give municipalities greater flexibility to spend federal funding on a broader range of infrastructure priorities.

During 2014-2015, all renewed Gas Tax Fund agreements were negotiated and signed, and annual funding letters were issued to each jurisdiction. By April 2015, $1.97 billion flowed to all provinces and territories under the Gas Tax Fund.

Funding letters issued to signatories are dependent on the submission and acceptance of an Annual Report (Financial Report Table, Project List) and an Independent Audit Opinion or Audit Based Attestation. In the absence of duly completed reports, Infrastructure Canada can withhold funding letters from recipients until such time that completed reports are accepted. In 2014-2015, the submission of 12 out of 13 reports explains the difference between planned and actual compliance level with regards to reporting requirements.

An internal audit of the Management Control Framework for the Gas Tax Fund was completed in 2009-2010. An internal audit of the Gas Tax Fund Management Control Framework is planned for completion in March 2018.
The Office of the Auditor General is conducting a performance audit of Federal Support to Sustainable Communities in 2015-2016 and will include the GTF in the scope of the audit.

An evaluation of the Gas Tax Fund was completed in 2009-2010. A summative evaluation of the Gas Tax Fund was completed in July 2015.

With program design for the permanent GTF now approved, negotiations have been taking place with all jurisdictions to finalize bilateral agreements for the beginning of this fiscal year. The negotiations come on the heels of various engagement initiatives with provinces and territories, the initial recipients of GTF funds. Once agreements are in place, new funds from the permanent GTF can begin to flow, with the first allocation being transferred no later than July 15, 2014.

Total grants

Total contributions

Total other types of transfer payments

1,964,039,431

2,106,864,500

1,973,269,432

1,973,269,432

1,973,269,432

0

Provincial-Territorial Infrastructure Base Fund. (Payments under this program are voted).

2007-2008

2016-2017 ^{Footnote 14}

2013-2014 ^{Footnote 15}

Public Infrastructure for a More Prosperous Canada

Program 1.1: Funding for Provincial-Territorial Priorities

This program provides base funding to each province and territory for core infrastructure priorities. In addition, funding under the Building Canada Fund for the three territories is managed under this fund. The Provincial-Territorial Infrastructure Base Fund was designed to help restore fiscal balance while enhancing Canada's public infrastructure system. It also supports economic growth and productivity, and promotes a cleaner environment and prosperous communities. While payments are made to provinces and territories, ultimate recipients can also include local and regional governments or private sector bodies. In order for federal funding to flow, provinces and territories submit a list of infrastructure initiatives through a capital plan which must be accepted by the Minister of Infrastructure, Communities and Intergovernmental Affairs. Payments are made in advance and cost-sharing provisions apply to a capital plan as a whole, and not individual initiatives. Provinces and territories may pool, bank, or cash-manage these funds to give them flexibility in implementation.

Following the acceleration of the Provincial-Territorial Infrastructure Base Fund (PT Base Fund) as part of the 2009 Economic Action Plan, all funds available under the Provincial-Territorial Infrastructure Base Fund ($2.3 billion) have been committed as of March 31, 2014.
During the reporting period, four Expenditure Reports for four jurisdictions were approved; one of these resulted in a final payment to the jurisdiction. One amended capital plan was approved for one jurisdiction, to add a new initiative due to overall capital plan cost-savings. This ensured that program cost-sharing provisions continued to be respected, and leveraged an additional $2.8 million from partners.
Provincial-Territorial Infrastructure Base Fund program parameters require provinces and other funders to cost share funds equal to the federal contribution for projects identified in their capital plans. In the territories, the federal contribution to a capital plan can be a maximum of 75%. Actual results show that provinces and territories have contributed well beyond the program's cost sharing requirements.
Infrastructure Canada continues to work with provincial and territorial governments to ensure that the required reports are submitted in a timely fashion, and the Department provides guidance on any issues that may arise during the provincial or territorial audit that would potentially delay their report submissions and related payments. By March 31, 2015, three of thirteen jurisdictions have completed all reporting obligations and have received their final payments under the PT Base Fund.

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. As reporting is cumulative, any delay in the submission of a given report will result in delays to subsequent reports, and related payments. In one jurisdiction, reporting is significantly behind resulting in four delayed payments. In addition, the final report must demonstrate that all PT Base Fund initiatives have been completed; however this requirement was not met by eight jurisdictions by the end of 2014-2015, thus delaying the submission of final reporting.

An internal audit of the PT Base Fund was completed in 2011-2012. An Audit of Closing Programs (PT Base and BIF) is planned for completion in December 2017.

An evaluation of the PT Base Fund was completed in 2012-2013.

The Department continues to work with jurisdictions to flow funding, including final payments, under the PT-Base Fund.

Total grants

Total contributions

Total other types of transfer payments

236,814,200

191,431,000

55,334,800

62,500,000

25,000,000

(30,334,800)

Building Canada Fund-Communities Component. (Payments under this program are voted).

2008-2009

2016-2017 ^{Footnote 16}

2013-2014 ^{Footnote 17}

Public Infrastructure for a More Prosperous Canada

Program 1.5: Infrastructure Investments in Smaller Communities and Rural Areas

This program supports infrastructure needs of smaller communities with populations of less than 100,000. Project costs are shared with provincial, territorial and municipal governments, with each order of government generally contributing one-third of the eligible costs. The fund supports the construction, renewal, and enhancement of basic infrastructure such as potable water, wastewater treatment, local roads, and other infrastructure needs of small communities. ^{Footnote 18}

• In most jurisdictions, the BCF-CC project approval deadline was March 31, 2014 and the construction completion deadline March 31, 2016.
• As of this fiscal period, a total of 941 infrastructure projects in 14 of the 17 eligible categories have been funded under this program, representing over $1 billion in federal contributions approved. By March 31, 2015, 731 projects were completed which represents over 77 percent of approved projects.
• In 2014-2015, Infrastructure Canada and its federal delivery partners made progress in implementing the BCF-CC:
• 38 projects with a federal contribution of $50.8 million and a total value of $169.6 million were completed;
• 27 projects with a federal contribution of $30.9 million and a total value of $92.8 million began construction; and
• 224 projects with a federal contribution of $366.7 million and a total value of $1.1 billion are still underway.
• The Department continues to work in collaboration with its Federal Delivery Partners and provincial partners to monitor the status of all outstanding projects, and request monthly updates via SIMSI regarding status, and risk of non-completion for all ongoing projects.
• Consequently, in order to support a timely and efficient program closure process, increased focus has been placed on monitoring the status of ongoing BCF-CC projects.

Program spending in 2013-2014 was lower than planned. This can be attributed to a number of factors beyond the control of funding recipients. These factors range from lower than anticipated project costs to project delays resulting from inclement weather and from technical and other construction-related complexities that can lead to construction delays, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note that the disbursement of federal contributions follows the actual construction of projects as recipients are reimbursed for incurred expenditures only once they submit claims.

An internal audit of the Building Canada Fund-Communities Component was completed in 2011-2012.
Operating funding has been provided to the Federal Delivery Partners for program delivery through to 2016-2017 and is governed by a Service Level Agreement. A program audit of the BCF-CC will be undertaken prior to its expiry on March 31, 2017.

An evaluation of the BCF-CC was completed in July 2015.

The Department is working with partners and stakeholders to ensure timely completion of projects under the BCF-CC.

Total grants

Total contributions

184,690,213

120,382,787

139,298,397

139,298,397

76,338,704

(62,959,693)

Total other types of transfer payments

Building Canada Fund-Major Infrastructure Component. (Payments under this program are voted).

2008-2009

2018-2019 ^{Footnote 19}

2013-2014 ^{Footnote 20}

Public Infrastructure for a More Prosperous Canada

Program 1.4: Large-Scale Infrastructure Investments

This program targets larger infrastructure projects of national or regional significance. It increases overall investment in public infrastructure and contributes to broad federal objectives: economic growth, a cleaner environment and strong and prosperous communities. At least two-thirds of the funding is targeted to national priorities: 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 federal funding on a cost-shared basis, it leverages additional contributions from other partners to increase overall investment in infrastructure. Projects must be supported by a business case and undergo a federal review against key program criteria. ^{Footnote 21}

In 2014-2015, Infrastructure Canada and its federal delivery partners made progress in the implementation of the Building Canada Fund-Major Infrastructure Component:
•18 projects with a federal contribution of $535 million and a total value of $859.6 million were completed;
•12 additional projects with a federal contribution of $180.9 million and a total value of $524 million began construction; and
•158projects with a federal contribution of $6.5 billion and a total value of $19.4 billion are still underway.

As of this fiscal period, a total of $7 billion in federal funding has been committed to 188 projects. Collaboration with federal delivery partners and stakeholders is effectively supporting program delivery. Nearly half (48%) of the projects are completed.

The largest investments under the BCF-MIC by categories are as follows: public transit infrastructure, with a total federal investment of nearly $3 billion, and national highway system infrastructure, with a total federal investment of nearly $1.4 billion.

The total number of projects completed by project proponents this fiscal year and, as a consequence, the total value of projects completed were lower than planned, as some of these large-scale and complex projects encountered delays and were not completed by year-end as forecast. Typically, project delays occur as a result of inclement weather and technical and other construction-related complexities that also cause construction delays. However, construction on these projects is ongoing and Infrastructure Canada will continue to monitor progress towards completion and reimburse recipients as claims are submitted.

Program delivery policies and tools have been implemented to improve monitoring and reporting on the progress of the BCF-MIC. Monitoring of expenditures and forecasts has improved forecasting of expenditures under the program, which poses challenges due to the large scope of project investments and uncertainties around construction conditions. In addition, resources previously assigned to stimulus funding programs are now devoted to the delivery of the program in order to increase monitoring and due diligence capacity as Infrastructure Canada moves towards closure of the BCF-MIC in the next years.

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 the start of construction. Even when construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors range from lower than anticipated project costs to project delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note 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.

No audit has been conducted of this program.

An evaluation of the BCF-MIC is planned for completion in March 2017.

Although most funding has been committed, Infrastructure Canada continues to work with provinces to identify priorities for remaining funding. The Department also continues to work with recipients to flow funding, including final payments, and ensure that projects are closed.

Total grants

Total contributions

919,764,212

692,803,945

706,677,090

706,639,377

538,025,504

(168,651,586)

Total other types of transfer payments

Green Infrastructure Fund. (Payments under this program are voted).

2009-2010

2020-2021 ^{Footnote 22}

2013-2014 ^{Footnote 23}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

This program supports environmental infrastructure projects that promote cleaner air, reduced greenhouse gas emissions and cleaner water. Targeted investments in green infrastructure can contribute to improving the quality of the environment and a more sustainable economy over the longer term. There are five eligible categories of investment: wastewater infrastructure, green energy generation infrastructure, green energy transmission infrastructure, solid waste infrastructure, and carbon transmission and storage infrastructure. By providing up to 50 percent federal funding on a cost-shared basis, the fund leverages additional investments from other partners. ^{Footnote 24}

In 2014-2015, Infrastructure Canada made progress in the implementation of the Green Infrastructure Fund:

• 3 projects with a federal contribution of $157 million and total value of $679.4 million  were completed;
• 1 additional projects with a federal contribution of $15 million  and total value of  $44.9 million began construction; and
• 15 projects with a federal contribution of $445.2 million and total value of $1.3 billion are still underway.

As of this fiscal period, a total of 20 projects have been funded under this program and $725 million in federal funding has been committed to these projects.

In 2014-2015, $50 million in funding was announced for the PEI Transmission Project.  As a result, all project funding available under the GIF has now been announced.
The largest categories of investment under the Green Infrastructure Fund are the following: wastewater infrastructure, with a total federal investment of nearly $300 million, and green energy infrastructure, with a total federal investment of over $251 million.
The implementation of the Green Infrastructure Fund has been slower than for other programs. This is attributable to the nature of projects funded under this program which are innovative and often rely on newly developed technologies. Infrastructure Canada has met its targets under the program and will continue to oversee the implementation of project-specific agreements of the Green Infrastructure Fund, ensuring that the terms of agreements are respected and that claims for payment are processed efficiently.

This program provides significant funding for large, complex projects. It is typical for these projects to require a significant amount of planning, design and procurement. These processes may occur, in whole or in part, after funding commitments are announced. Once contribution agreements for projects are signed with project proponents, the Government of Canada has a legal obligation to provide the committed funding in accordance with the terms of those agreements.
Actual spending in 2014-2015 was lower than planned. A number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors range from lower than anticipated project costs to project delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays, which in turn cause claims to lag and be submitted for reduced amounts.

No audit has been conducted of this program.

An evaluation of the Green Infrastructure Fund is planned for completion in June 2016.

As of July 2011, Infrastructure Canada had received sufficient proposals for the remaining funds. $50 million was announced in respect of the PEI Transmission project in March 2015. The Department continues to work with recipients to flow funding, including final payments, and ensure that projects are closed.

Total grants

Total contributions

114,912,361

84,567,663

89,429,335

89,429,335

36,862,072

(52,567,263)

Total other types of transfer payments

Inuvik to Tuktoyaktuk Highway Program. (Payments under this program are voted).

2013-2014

2017-2018 ^{Footnote 25}

2013-2014 ^{Footnote 26}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

The objective of the Inuvik to Tuktoyaktuk Highway Program is to construct a 137 kilometer all-season road between Inuvik and Tuktoyaktuk. This includes upgrading a 19 kilometer access road to highway standards, as well as new embankment construction and related structures with final surface topping and additional work to return the land to its original state.

During the last winter construction season, over 600 individuals were employed to work on this project, the majority of which were from the northern region.

A total of 80 km of highway has been completed representing nearly $108 million in milestone payments to the Government of the Northwest Territories.

N/A

An internal audit of the Inuvik to Tuktoyaktuk Highway Control Framework was completed in January 2015.

No evaluation of this program has been completed or planned.

N/A

Total grants

Total contributions

0 ^{Footnote 27}

0 ^{Footnote 27}

52,500,000

93,525,000

79,275,000

26,775,000

Total other types of transfer payments

New Building Canada Fund-Provincial-Territorial Infrastructure Component-National and Regional Projects (PTIC-NRP). (Payments under this program are voted).

2014-2015

2023-2024

2014-2015 ^{Footnote 28}

Public Infrastructure for a More Prosperous Canada

Program 1.4: Large-Scale Infrastructure Investments

This program provides funding to support infrastructure projects of national and regional significance that contribute to economic growth, a clean environment and stronger communities. The PTIC-NRP is an allocation-based program that recognizes and supports the important role that provinces, territories, and municipalities play in helping to build Canada's public infrastructure.

The New Building Canada Fund was successfully launched on March 28, 2014. By March 31, 2015, 15 projects were announced for federal funding for the PTIC-NRP, totaling $1 billion, and leveraging over $2.4 billion from funding partners for a combined total investment of nearly $3.5 billion. These projects support the program's objectives related to economic growth, a cleaner environment and stronger communities. As of March 31, 2015, four projects are already underway.  The largest categories of investments, in terms of total eligible costs are public transit infrastructure, with a total investment of over $2.9 billion, and highway and major road infrastructure, with a total investment of nearly $265 million.

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 the start of construction. Even when construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors range from lower than anticipated project costs to project delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note 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.

An internal audit of the New Building Canada Fund – Management Control Framework is planned for completion in October 2015.

An Evaluation of the New Building Canada Fund – PTIC-NRP is planned for completion in June 2017.

Provinces and Territories are responsible for identifying and bringing forward their project priorities for federal consideration. Ministerial letters were sent out to all provinces and territories to request their respective list of priorities at the same time as the launch of NBCF. INFC's website encourages eligible recipients interested in seeking funds under the PTIC-NRP to contact their provincial or territorial ministry responsible for infrastructure in order to determine the process for submitting project proposals. INFC has further facilitated the application process for the program by providing an internet-based applicant guide. The guide provides applicants with a detailed description of how to apply for funding and outlines all information that must be included to ensure that the application is complete.

Total grants

Total contributions

0 ^{Footnote 29}

0 ^{Footnote 29}

0 ^{Footnote 30}

114,480,000 ^{Footnote 30}

11,066,545

11,066,545

Total other types of transfer payments

New Building Canada Fund-Provincial-Territorial Infrastructure Component-Small Communities Fund (PTIC-SCF). (Payments under this program are voted).

2014-2015

2023-2024

2014-2015 ^{Footnote 31}

Public Infrastructure for a More Prosperous Canada

Program 1.5: Infrastructure Investments in Smaller Communities and Rural Areas

The PTIC-SCF represents 10 percent (10%) of the overall Provincial-Territorial Infrastructure Component funding envelope, and will make $964,240,000 in contribution funding available to provinces and territories for local infrastructure. This Sub-Program will provide contribution funding for infrastructure projects in small communities with populations of 100,000 or less. Infrastructure Canada will enter into funding agreements with the provinces and territories for the implementation of the PTIC-SCF. In turn, provinces and territories will manage the project identification process in keeping with SCF program parameters. PTIC-SCF is designed to leverage the resources and existing processes of provinces and territories in managing local projects, while ensuring federal accountability and oversight for the funding envelope.

All funding agreements under PTIC-SCF have been signed by the applicable provinces and territories, with the exception of Newfoundland, Saskatchewan and Quebec.

During 2014-2015, there were 26 projects approved for funding in Manitoba representing $15.9 million federal share of the $1 billion was committed for this program.

Negotiations of the funding agreements with Newfoundland, Saskatchewan and Quebec are close to being finalized.

An internal audit of the New Building Canada Fund – Management Control Framework is planned for completion in October 2015.

An Evaluation of the New Building Canada Fund – PTIC-SCF is planned for completion in December 2018.

The provincial and territorial governments have been accepting project proposals through consultation and engagement with municipalities to identify priorities. To date, Infrastructure Canada has received project lists from several jurisdictions including Manitoba, Nova Scotia and Prince Edward Island.

Total grants

Total contributions

0 ^{Footnote 32}

0 ^{Footnote 32}

0 ^{Footnote 33}

12,720,000 ^{Footnote 33}

0 ^{Footnote 32}

Not Applicable

Total other types of transfer payments

New Building Canada Fund-National Infrastructure Component (NBCF-NIC). (Payments under this program are voted).

2014-2015

2023-2024

2014-2015 ^{Footnote 34}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

This program supports projects of national significance, that have broad public benefits, and that contribute to Canada's long-term economic growth and prosperity. The NIC is a merit-based application-driven program, and as such there are no pre-determined provincial or territorial allocations.

The New Building Canada Fund was successfully launched on March 28, 2014. By March 31, 2015, two projects has been announced for federal funding for the NIC, totaling over $68 million, and leveraging over $137 million from funding partners for a combined total investment of $205 million. These projects are of national significance, and will contribute to Canada's long-term economic growth and prosperity. The announcements represent a total investment of $131 million in port infrastructure and a total investment of $75 million in local and regional airport infrastructure.

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 the start of construction. Even when construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors range from lower than anticipated project costs to project delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note 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.

An internal audit of the New Building Canada Fund – Management Control Framework is planned for completion in October 2015.

An Evaluation of the New Building Canada Fund – NIC is planned for completion in March 2019.

INFC engaged all provinces and territories to inform them that the program was “open for business” as well as some municipalities and other potential proponents through different outreach events. INFC also facilitated the application process for the program by providing an internet-based application guide. The guide provides applicants with a detailed description of how to apply for funding and outlines all information that must be included to ensure that the application is complete.

Total grants

Total contributions

0 ^{Footnote 35}

0 ^{Footnote 35}

0 ^{Footnote 36}

15,000,000 ^{Footnote 36}

0 ^{Footnote 35}

Not Applicable

Total other types of transfer payments

National Recreational Trails Program. (Payments under this program are voted).

2014-2015

2015-2016

2014-2015 ^{Footnote 37}

Public Infrastructure for a More Prosperous Canada

Program 1.5: Infrastructure Investments in Smaller Communities and Rural Areas

Budget 2014 announced that the Government of Canada would enter into an agreement with the National Trails Coalition (NTC) to improve and expand snowmobile and recreational trails across the country. Funding is divided between the three major forms of trail work (snowmobile; all-terrain vehicle; and non-motorized) with notional allocations for each province and territory. Infrastructure Canada has no role in the project selection process. The NTC is an umbrella organization composed of three national-level not-for-profit organizations: the Canadian Trails Federation, the Canadian Off-Highway Vehicle Distributors Council and the Canadian Council of Snowmobile Organizations.

The NTC has approved 250 projects since the program inception, resulting in the commitment of over $9.4 million in federal funding to projects representing over $33.4 million in total project cost. This represents leveraging of federal funding in the order of 350%, exceeding the 200% target outlined in the Report on Plans and Priorities. Results relating to completed projects will be reported upon in next year's Departmental Performance Report.

Not applicable; as the program was approved in March 2014, there was no 2014-2015 Planned Spending under the National Recreational Trails program in the 2014-2015 Report on Plans and Priorities.

An internal audit of the Funding for National Recreational Trails was completed in April 2011.
A compliance audit was conducted in March 2015. A financial audit is expected to be conducted by March 2016.

No evaluation of the program has been completed or is planned.

The program has been successful in leveraging federal funding to 250 projects across the country. The program is providing opportunities for employment in small and rural communities and will result in a lasting legacy of recreational trails that will benefit Canadians for many years to come.

Total grants

Total contributions

0 ^{Footnote 38}

0 ^{Footnote 38}

0 ^{Footnote 39}

5,000,000 ^{Footnote 39}

5,000,000

5,000,000

Total other types of transfer payments

Canada Strategic Infrastructure Fund

Infrastructure Canada

• Atlantic Canada Opportunities Agency (ACOP)
• Western Economic Diversification (WED)
• Transport Canada

N/A

2003-2004

2018-2019 ^{Footnote 41}

$4.3 Billion

N/A

The Canada Strategic Infrastructure Fund (CSIF), which received funding in the 2001, 2003 and 2006 federal budgets, is a cost-shared contribution program for strategic infrastructure projects. To date, funding has been approved to support 82 projects.
Investments are directed to projects of major national and regional significance and are to be made in areas that are vital to sustaining economic growth and supporting an enhanced quality of life for Canadians. The CSIF is delivered through negotiated agreements with provincial, territorial or local governments, private partners or non-governmental organizations. Contribution agreements are tailored based on the project requirements.
The Canada Strategic Infrastructure Act outlines the prime categories of investments in projects that involve fixed capital assets that are used or operated for the benefit of the public. The categories eligible under the Canada Strategic Infrastructure Fund are:

• Highway and Rail Infrastructure;
• Local Transportation Infrastructure;
• Tourism or Urban Development Infrastructure;
• Water or Sewage Infrastructure; and
• Other categories approved by regulation, e.g. Advanced Telecommunications and High-Speed Broadband, Northern Infrastructure.

The overall planned results Infrastructure Canada expects to achieve through CSIF are to invest in projects which:

• facilitate the movement of goods and people on Canada's National Highway System for the purposes of increasing the productivity, economic efficiency, and safety of Canada's surface transportation system;
• facilitate the safe and efficient movement of goods and people, ease congestion, or reduce greenhouse gases and airborne pollutants;
• ensure that tourism continues to contribute to the economic well-being of Canadians and to serve as a bridge between Canada and the world;
• ensure that drinking water is safe, clean and reliable at drinking water facilities, and ensure sustainable treatment of wastewater; and
• expand broadband networks in Canada.

All CSIF projects are selected under the authority of the Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec. Prior to selecting projects, the Minister consults other Ministers who have an interest in the region or in the substantive project area. After project selection, Treasury Board approval is sought for each contribution. At the same time, incremental operating funds required for project oversight and management by the implementing departments/agencies are identified and sought in the Treasury Board submission.
The fund is delivered in partnership involving primarily three sets of key collaborators:

1. Infrastructure Canada: As the coordinating and funding agent for the contribution, Infrastructure Canada is responsible for project review, selection, approval, public announcements, environmental assessment in some cases, and program evaluation. It leads the negotiation of contribution agreements with each of the funding recipients, except for transportation projects where Transport Canada is the lead. Infrastructure Canada (or Transport Canada, for transportation projects) develops, in coordination with the implementing department/agency, the submission to Treasury Board for the approval of funds. Infrastructure Canada is also responsible for the overall management of program funding, for seeking appropriation of funds from Parliament through Contribution Votes and for transferring funds to the federal delivery partners. To monitor activities and milestones throughout the project life cycle, an Infrastructure Canada representative will usually sit on the project's Agreement Steering Committee.
2. A federal delivery partner: Infrastructure Canada's relationship with each federal delivery partner varies with the capacity and the complexity of the project. Umbrella Memoranda of Understanding govern the relationship between Infrastructure Canada and each federal delivery partner for the implementation of CSIF projects. Responsibilities may however also be negotiated specifically for each project. The federal delivery partner may provide technical assistance in the analysis of the business case, determining the costs and benefits to be realized, and providing advice on the development of the contribution agreement and Treasury Board submission. Except for broadband projects where Infrastructure Canada retains all responsibilities for the implementation of the project, the federal delivery partner will support implementation of CSIF projects in a manner that upholds federal due diligence in such areas as overseeing the implementation of mitigation measures identified in the environmental assessment, assessing the eligibility and reasonability of project costs, providing information pertaining to cash flow and budget, approving claims, making payments, and conducting audits and evaluation of projects. The federal delivery partner normally serves as the federal co-chair of the project's Agreement Steering Committee. The federal delivery partner also ensures adherence to information management requirements, including the use of the Shared Information Management System for Infrastructure, which captures, monitors and reports on project information. The federal delivery partner also provides communication support.
3. The funding recipient: The recipient may be a provincial, territorial, or local government, a private partner, a non-government organization, or a combination thereof. Once the project has been selected, Infrastructure Canada or Transport Canada leads the negotiations to develop a contribution agreement. The funding recipient is responsible for ensuring that the project is completed as per the Terms and Conditions of the Contribution Agreement.

In order to provide funding for quality, cost-effective public infrastructure that meets the needs of Canadians, key planning highlights under the Canadian Strategic Infrastructure Fund include:

• Overseeing the implementation of project-specific agreements, in collaboration with partners as appropriate, ensuring that the terms of the agreements are respected and that claims are processed efficiently;
• Collaborating with partners to complete amendments to individual project funding agreements, to allow sufficient time for recipients to complete all projects;
• Overseeing project completion and close-out while adhering to consistent monitoring and review procedures; and
• Collating and analyzing project information for reporting purposes.

Targets for the fiscal year were generally met, although the number of completed projects was lower than originally projected, given that CSIF are large-scale and complex in nature and many unknowns may arise during the course of the fiscal year.

N/A

Bogdan Makuc, A/Director General, Program Integration,
180 Kent street, Ottawa, Ontario
Tel: (613) 948-9392, E-Mail: bogdan.makuc@infc.gc.ca.

Transport Canada

An efficient Transportation System

Canada Strategic Infrastructure Fund

3,374,272,281

163,603,979

187,610,954

In fiscal year 2014-2015 Transport Canada will lead the implementation of nine projects on behalf of Infrastructure Canada with a combined total eligible cost of $3.1 billion. Three of these projects, with a total eligible cost of $1.3 billion, are expected to be completed in 2014-2015.

Transport Canada continued the implementation of 13 [Note: 4 projects were not included in the RPP but are being reported in the DPR] CSIF strategic transportation projects during the fiscal year, of which 1 project valued at over $75 million in eligible costs was completed.

Atlantic Canada Opportunities Agency (ACOA)

Community Development

Canada Strategic Infrastructure Fund

109,802,308

2,660,000

2,660,000

In fiscal year 2014-2015, Atlantic Canada Opportunities Agency (ACOA) will support the implementation of the Saint John Harbour Clean-Up Major Infrastructure Component project in New Brunswick as mandated by Infrastructure Canada, with a total eligible cost of $95.7 million.

The ACOA facilitated closure of the Saint John Harbour Clean-Up project. The project closed by the March 2015 deadline.

Western Economic Diversification (WED)

Community Economic Development

Canada Strategic Infrastructure Fund

265,499,508

1,742,127

1,712,743

In fiscal year 2014-2015, Western Economic Diversification (WED) will support the implementation and completion of one project as mandated by Infrastructure Canada: a water supply project in Saskatchewan, with a total eligible cost of $20.4 million.

The project is near completion, and on track for completion in 2015-16 [Note: Although the 2014-15 RPP states that it is expected that the project will be complete in 2014-15, the 2013-14 DPR reported that the project was due to be complete in 2015-16].

Border Infrastructure Fund

Infrastructure Canada

Transport Canada

N/A

2003-2004

2017-2018

$600 Million ^{Footnote 42}

N/A

The Border Infrastructure Fund (BIF), which was announced in Budget 2001, is a cost-shared contribution program. It complements some of the Government of Canada's other infrastructure programs such as the Canada Strategic Infrastructure Fund and the Strategic Highway Infrastructure Program, a Transport Canada program.
As part of "Canada's commitment to address land border pressures, such as traffic congestion, and to continue to facilitate the large volume of trade across the Canada-United States border", BIF contributions are directed at or on routes leading to Canada's border crossings, with a particular focus on the six largest:

• Windsor, Ontario;
• Sarnia, Ontario;
• Fort Erie, Ontario;
• Niagara Falls, Ontario;
• Douglas, British Columbia; and
• Lacolle, Quebec.

The fund also directs some funding toward smaller and regionally important border crossings throughout Canada. Once completed, projects supported under BIF will help alleviate traffic congestion, increase system capacity and further the Smart Border Declaration (a Canada-US Declaration — North American Partnerships).

The overall planned results expected to be achieved through BIF are investments in projects that contribute to safe and efficient border crossings. Expected outcomes are to alleviate border congestion and increase border crossing capacity and to increase security and safety at border crossings, leading to cross border trade efficiencies.

All BIF projects are selected under the authority of the Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec. Prior to selecting projects, the Minister consults with other Ministers who have an interest in the region or in the substantive project area. After project selection, public announcements are made by the Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec. Treasury Board approval is sought for each contribution. At the same time, incremental operating funds required for project oversight and management by Transport Canada are identified and sought in the Treasury Board submission.
The fund is delivered in partnership involving primarily three sets of key collaborators:

1. Infrastructure Canada: As the coordinating and funding agent for the contribution, Infrastructure Canada is responsible for project review, selection, approval, public announcements, environmental assessment (in some cases) and program evaluation. It also develops, in coordination with the implementing department/agency, the submission to Treasury Board for the approval of funds. Infrastructure Canada is also responsible for the overall management of program funding, for seeking appropriation of funds from Parliament through the Contribution Votes and for transferring funds to Transport Canada.
2. Transport Canada: An umbrella Memorandum of Understanding governs the relationship between Infrastructure Canada and Transport Canada for the implementation of BIF projects. Transport Canada may provide technical assistance in the analysis of the business case, determining the costs and benefits to be realized, and leads the development of the contribution agreement and Treasury Board submission. Transport Canada will support implementation of BIF projects in a manner that upholds federal due diligence in such areas as overseeing the implementation of mitigation measures identified in the environmental assessment, assessing the eligibility and reasonability of project costs, providing information pertaining to cash flow and budget, approving claims, making payments, and conducting audits and evaluation of projects. Transport Canada serves as the federal co-chair of the project's Agreement Steering Committee. Transport Canada also ensures adherence to information management requirements, including the use of the Shared Information Management System for Infrastructure, which captures, monitors and reports on project information.
3. The funding recipient: The recipient may be a provincial, territorial, or local government, a private partner, a non-government organization, or a combination thereof. Once the project has been selected, Transport Canada leads the negotiations to develop a contribution agreement. The recipient is responsible for ensuring that the project is completed as per the Terms and Conditions of the Contribution Agreement.

In order to provide funding for quality, cost-effective public infrastructure that meets the needs of Canadians, key planning highlights under the Border Infrastructure Fund include:

• Monitoring the implementation of project-specific agreements in partnership with Transport Canada;
• Overseeing project completion and close-out adhering to consistent monitoring and review procedures; and
• Collating and analyzing project information for reporting purposes.

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 as was the case in previous year. Projects faced delays for various reasons including technical and other construction-related complexities. Those factors lead to delays in the disbursement of federal contributions and the completion of projects.

N/A

Bogdan Makuc, A/Director General, Program Integration,
180 Kent street, Ottawa, Ontario
Tel: (613) 948-9392, E-Mail: bogdan.makuc@infc.gc.ca.

Transport Canada

An Efficient Transportation System

Border Infrastructure Fund

604,087,470

23,402,310

20,863,226

In fiscal year 2014-2015, Transport Canada will support the implementation of two projects under the Border Infrastructure Fund on behalf of INFC, with a total eligible cost of $515.2 million. These projects are all expected to be completed after fiscal year 2014-2015.

Transport Canada continues to support the implementation of three Border Infrastructure Fund projects with total eligible costs of $567 million [Note: 1 BIF project was not included in RPP but is now being reported in the DPR]

Municipal Rural Infrastructure Fund

Infrastructure Canada

• Economic Development Agency of Canada for the Regions of Quebec (CED-Q)

N/A

2004-2005

2014-2015

$1.2 Billion ^{Footnote 43}

N/A

The $1.2 billion MIRF has been structured to provide a balanced response to local infrastructure needs in urban and rural Canada and will ensure that all Canadians, whether they live in large, small or remote communities, will share in the benefits of infrastructure investments.
The fund improves and increases the stock of core public infrastructure in areas such as water, wastewater, culture, recreation. It targets communities of less than 250,000 residents as well as First Nation communities. Like other infrastructure programs, MIRF seeks to ensure that the projects it funds support the goals of the Government of Canada, encourages new and innovative approaches and favours partnerships, including an emphasis on 'green' projects which are sustainable and reduce greenhouse gases.
Through MIRF, the Government of Canada continues to work in productive partnerships with provinces, territories, and municipalities, as well as First Nations and the private sector to invest in local infrastructure projects. These projects will be vital to sustaining economic growth and supporting an enhanced quality of life in Canadian communities.
The fund is cost-shared with the Government of Canada contributing, on average, one-third of total project eligible costs. Provinces and municipalities contribute the remainder of these costs. In recognition of the unique circumstances of the First Nations and the Territories, where many communities have no tax base, the Government of Canada may contribute a higher percentage of total project eligible costs.

The overall expected outcomes are:

• Improved and increased core public infrastructure in areas such as water, wastewater, culture and recreation; and
• Improved quality of life and economic opportunities for small communities and First Nations.

The MIRF is based on a federal partnership arrangement between Infrastructure Canada and five federal partners: Western Economic Diversification, Economic Development Agency of Canada for the Regions of Quebec, the Atlantic Canada Opportunities Agency, Federal Economic Development Agency for Southern Ontario, and the Canadian Northern Economic Development Agency. It involves 14 sub-programs, one joint sub-program for each province and territory, and a sub-program for First Nations communities. Each of the 14 sub-programs follows the same general conditions, priorities and approaches. Also, recognizing the individual nature of each sub-program, the various agreements reflect the nature of the partnership as it relates to the order of government.
To affect expected outcomes, MIRF eligible projects must conform to a policy leveraging framework based on a common baseline, but adapted for each jurisdiction. To ensure broad support and effective, innovative project delivery, partnerships of various types, including public-private partnerships are encouraged in the formulation and delivery of the fund projects. The program relies on strong input from local and rural municipalities, including the support of the locally elected councils. In addition, municipal representatives are involved in the processes and management of the program in the respective province or territory.

The Municipal Rural Infrastructure Fund program formally concluded on March 31, 2014 in most provinces and territories. Over the past year, Infrastructure Canada, in close collaboration with federal delivery partners, has been focusing its effort on program closeout activities. These activities include:

• Overseeing project completion and close-out adhering to consistent monitoring and review procedures; and
• Collating and analyzing project information for reporting purposes.

Program spending in 2013-2014 was lower than planned. This can be attributed to a number of factors beyond the control of funding recipients. Those factors such as inclement weather, geological challenges and technical delays and other construction-related complexities can lead to construction delays which in turn cause claims to lag and be submitted for reduced amounts.

N/A

Bogdan Makuc, A/Director General, Program Integration,
180 Kent street, Ottawa, Ontario
Tel: (613) 948-9392, E-Mail: bogdan.makuc@infc.gc.ca.

Economic Development Agency of Canada for the Regions of Quebec (CED-Q)

An efficient Transportation System

Municipal Rural Infrastructure Fund

241,844,000

0 ^{Footnote 44}

7,276,897

See Footnote 44

Infrastructure Canada and the Economic Development Agency of Canada for the Regions of Quebec continued to work collaboratively towards the closure of projects during 2014-2015. By March 31, 2015, a total of 228 projects were completed of the 232 projects funded in the Province of Quebec.

Building Canada Fund

Infrastructure Canada

• Atlantic Canada Opportunities Agency (ACOA)
• Economic Development Agency of Canada for the Regions of Quebec (CED-Q)
• Transport Canada
• Western Economic Diversification (WED)
• Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

N/A

2008-2009

2016-2017

$8.8 Billion ^{Footnote 45}

N/A

The Building Canada Fund focuses on projects that deliver economic, environmental, and social benefits to Canadians.
The national priorities for funding are the core national highway system, drinking water, wastewater, public transit and green energy. Other eligible categories include projects that support economic growth and development (short-line rail and short-sea shipping, connectivity and broadband, tourism and regional and local airports), environmental projects (solid waste management and brownfield re-development), as well as projects that contribute to the ongoing development of safe and strong communities (disaster mitigation, culture, sport, recreation and local roads and bridges). Funding is used to support public infrastructure owned by provincial, territorial and municipal governments and entities, as well as the non-profit sector and private industry, in certain cases.
Funding is allocated for projects in the various provinces and territories based on their population (as of the 2006 Census). In the provinces, the program operates through two components: the Major Infrastructure Component and the Communities Component. In the territories, in recognition of their very low per capita allocations, their funding under the Building Canada Fund has been rolled into the Provincial-Territorial Base Funding Program and is managed under the terms of this latter program in each territory.
The Major Infrastructure Component (BCF-MIC) targets larger, strategic projects of national or regional significance. Under this component, at least two-thirds of national funding is to be directed to the above-mentioned national priorities. Projects under the Major Infrastructure Component are selected jointly through federal-provincial/territorial discussions with all projects required to meet minimum federal eligibility criteria.
The Building Canada Fund-Communities Component (BCF-CC) is focused on projects in communities with populations of less than 100,000. Projects are selected through an application-based process and, like projects under the Major Infrastructure Component, are evaluated on the extent to which they meet minimum federal eligibility criteria. This will significantly help smaller communities to address their infrastructure pressures, and serve as a complementary instrument to the Gas Tax Fund.
More information on the Building Canada Fund can be found on the program's webpage.

The expected outcomes are to deliver infrastructure that matters to Canadians, including cleaner air and water, safer roads and shorter commutes while supporting broad federal priorities of a stronger economy, cleaner environment and liveable communities.

1. Major Infrastructure Component of the Building Canada Fund

All BCF-MIC projects are selected under the authority of the Minister of Infrastructure, Communities and Intergovernmental Affairs, and priorities are identified through discussions with provinces. Prior to selecting projects, the Minister consults other Ministers who have an interest in the region or in the substantive project area. Following due diligence, the Minister can approve projects under all project categories under the BCF delegated threshold ($100 million federal share). Treasury Board approval is required for contributions to any projects above the delegated threshold (i.e. $100 million federal contribution) or that require exemptions to program terms and conditions. At the same time, should they be required for transportation projects, incremental operating funds required for project oversight and management by Transport Canada are identified and sought in the Treasury Board submission.
BCF-MIC is delivered in partnership involving primarily three sets of key collaborators:

1. Infrastructure Canada: As the coordinating and funding agent for the contribution, Infrastructure Canada is responsible for assessing potential priorities, undertaking the detailed review of identified priorities against program terms and conditions, and recommending projects for approval-in-principle to the Minister. Infrastructure Canada is also responsible for public announcements, environmental assessment in some cases, and program evaluation. For non-transportation projects, in addition to the above, Infrastructure Canada is responsible for the preparation of Treasury Board submissions (where required), the negotiation of contribution agreements with each of the funding recipients, and the oversight of these agreements. To monitor activities and milestones throughout the project life cycle, an Infrastructure Canada representative sits on the project's Agreement Steering Committee. Infrastructure Canada oversees the implementation of mitigation measures identified in the environmental assessment, assesses the eligibility and reasonability of project costs, monitors information pertaining to cash flow and budget, approves claims, make payments, and conducts audits and evaluations of the projects. Infrastructure Canada will use Shared Information Management System for Infrastructure to capture, monitor and report project information.
2. Transport Canada: For transportation projects, Transport Canada drafts a project review/due diligence for Infrastructure Canada's review (except Public Transit Infrastructure projects, where Infrastructure Canada is solely responsible for transit projects), prepares any required Treasury Board submissions, and leads the negotiations of contribution agreements. Transport Canada monitors activities and milestones throughout the project life cycle, and nominates federal representatives to sit on projects' Agreement Steering Committees. Transport Canada oversees the implementation of mitigation measures identified in the environmental assessment, assesses the eligibility and reasonability of project costs, monitors information pertaining to cash flow and budget, approves claims, makes payments, and conducts audits and evaluations of the projects. Transport Canada ensures adherence to Infrastructure Canada's information management requirements, including the use of Infrastructure Canada's Shared Information Management System for Infrastructure, which captures, monitors and reports project information. Transport Canada also provides communication support to Infrastructure Canada.
3. The funding recipient: The recipient may be a provincial, territorial, or local government, a private partner, a non-government organization or a combination thereof. The recipient is responsible for ensuring that the project is completed as per the Terms and Conditions of the Contribution Agreement, and is also responsible for the ongoing operation and maintenance of the asset.
4. Communities Component of the Building Canada Fund

BCF-CC is governed by separate federal-provincial contribution agreements, each of which is managed by an Oversight Committee established by the Infrastructure Framework Committee that includes both federal and provincial senior officials. To support the operation of the Communities Component and Oversight Committees, each jurisdiction has a federal-provincial Joint Secretariat staffed by Federal Delivery Partners and provincial officials.
All project applications under BCF-CC are subject to a competitive application-based process. This process is administered by the Joint Secretariat, but a material role for the respective provincial municipal association (for those provinces that have municipal associations) may also have been established as part of the application review process. Allowing some implementation flexibility to the Joint Secretariats and Oversight Committees, all competitive processes issue calls for applications (either one open window for applications or multiple shorter windows with set closing dates). Some provinces may limit the number of applications per community within and/or across all intakes.
Joint Secretariats provide the first level of due diligence, including engineering, environmental, and legal review of the applications, and prepare briefing material for the Oversight Committees. The Oversight Committees review and rank the application against the mandatory and additional leveraging criteria established in the Policy Leveraging Framework of the Building Canada Fund. The Oversight Committee presents the recommended list of projects to the Minister or the Federal Delivery Partner Minister for consideration, in accordance with the delegations of authority. After consulting with other Ministers who have a mandate in the substantive project area, the Minister or the Federal Delivery Partner Minister provide feedback on the list of projects to the Oversight Committee. The Oversight Committee then performs a final review of the list and makes a recommendation to the appropriate Minister, in accordance with the delegations of authority. Federal funding for projects is announced once final approval has been granted in writing.
The Framework Agreements stipulate that individual federal-provincial contribution agreements govern the Communities Component in each province, and that these agreements are managed by an Oversight Committee, established under the Infrastructure Framework Committee. Each Oversight Committee includes both federal and provincial senior officials and may also include representatives from provincial municipal associations (where applicable). The federal co-chair of the Oversight Committee is a senior official from Infrastructure Canada appointed by the Minister.
In the federal-provincial contribution agreement, the parties agreed to establish a Joint Secretariat to support the Oversight Committee and administer BCF-CC. This secretariat is staffed by officials from the provincial government and the Federal Delivery Partner.

Under BCF-MIC:
In order to provide funding for quality, cost-effective public infrastructure that meets the needs of Canadians, key planning highlights under the Building Canada Fund-Major Infrastructure Component include:

• Continuing to work with provincial governments to identify major infrastructure projects for funding in order to commit the remaining provincial allocations. By the end of fiscal period 2014-2015, virtually all program funding is expected to be committed (approximately $6.7 billion);
• Continuing to sign project-specific contribution agreements for major infrastructure projects announced as funding priorities under the Building Canada Fund; and
• Continuing to oversee the implementation of project-specific agreements, ensuring that the terms of agreements are respected, that claims for payment are processed efficiently and that close-out of projects is completed.

Projects funded under the Building Canada Fund-Major Infrastructure Component will contribute to a competitive economy, cleaner environment and liveable communities by targeting larger infrastructure projects of national or regional significance.
Under BCF-CC:
Working with Federal Delivery Partners, through a Service Level Agreement, Infrastructure Canada continues to deliver this program with provincial partners in support of projects in communities with populations fewer than 100,000 persons. The largest categories of investments are wastewater infrastructure, water infrastructure and local road infrastructure.
As March 31, 2014 marked the deadline for approval of new projects under the Building Canada Fund-Communities Component, program delivery in 2014-2015 will focus primarily on completing requirements for project closure, monitoring ongoing projects and preparing for program close-out in 2017-2018.

The BCF–MIC 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 the start of construction. Even when construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors range from lower than anticipated project costs to project delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays which, in turn, cause claims to lag and be submitted for reduced amounts and cause delays in the completion of projects. It is also important to note 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.

N/A

Bogdan Makuc, A/Director General, Program Integration,
180 Kent street, Ottawa, Ontario
Tel: (613) 948-9392, E-Mail: bogdan.makuc@infc.gc.ca.

Atlantic Canada Opportunities Agency (ACOA)

Community Development

Building Canada Fund-Communities Component

155,434,547

11,001,360

9,466,579

In fiscal year 2014-2015, ACOA, as mandated by Infrastructure Canada, will manage the delivery of funding to projects currently underway in Nova Scotia, New Brunswick as well as Newfoundland and Labrador. Ten of these projects are expected to be completed in fiscal year 2014-2015, with a combined eligible cost of $15.9 million.

Since inception of the program, a total of 176 projects have been completed. Of these, 7 projects were completed in 2014-2015. A total of 45 projects remain to be completed. Some projects have experienced delays due to the nature of the construction industry.

Economic Development Agency of Canada for the Regions of Quebec (CED-Q)

Strengthening of Community Economies

Building Canada Fund-Communities Component

422,615,358

72,488,000

29,284,622

In fiscal year 2014-2015, CED-Q, as mandated by Infrastructure Canada, will continue to manage the delivery of funding to projects currently underway in the regions of Québec. Three of these projects are expected to be completed during the fiscal year 2014-2015, with a combined total eligible cost of $31.9 million.

As of March 31, 2015, 72 projects under the fund have been completed which includes 3 projects completed in 2014-2015. Infrastructure Canada continues to work closely with CED–Q to monitor the progress of 60 ongoing projects.

Transport Canada

An Efficient Transportation System

Building Canada Fund-Major Infrastructure Component

4,755,519,683

456,839,923

373,297,646

Transport Canada will continue to serve as the lead federal department in the management of contribution agreements for transportation projects under BCF-MIC. In its role, Transport Canada will continue to work with recipients to implement Contribution Agreements and to deliver program funding to recipients under the Terms and Conditions of the BCF-MIC. Transport Canada and Infrastructure Canada will continue to work together to review new transportation project priorities that are identified for funds remaining under the BCF-MIC, but Infrastructure Canada will be solely responsible for reviewing transit projects. In addition, Infrastructure Canada and Transport Canada will ensure that all selected projects meet the eligibility criteria of the BCF-MIC as set out in the program Terms and Conditions. Based on information available from project proponents, it is expected that 21 projects will be completed during fiscal year 2014-2015.

Western Economic Diversification (WED)

Community Economic Development

Building Canada Fund-Communities Component

372,793,428

$36,050,039

23,869,601

In fiscal year 2014-2015, WED, as mandated by Infrastructure Canada, will manage the delivery of projects currently underway in British Columbia, Alberta, Saskatchewan and Manitoba. Seventeen of these projects are expected to be completed in fiscal year 2014-2015, with a combined total eligible cost of $111.7 million.

As of March 31, 2015, 235 projects under the fund have been completed which includes 26 projects completed in 2014-2015. Infrastructure Canada continues to work closely with WED to monitor the progress of 74 ongoing projects.

Federal Economic Development Agency for Southern Ontario (FedDev Ontario)

Community Economic Development

Building Canada Fund-Communities Component

379,198,859

20,820,125

13,717,901

In fiscal year 2014-1015, FedDev, as mandated by Infrastructure Canada, will manage the delivery of funding to projects currently underway in regions of Ontario. Five of these projects are expected to be completed in fiscal year 2014-2015, with a combined eligible cost of $41.2 million.

As of March 31, 2015, 244 projects under the fund have been completed which includes 2 projects completed in 2014-2015. Infrastructure Canada continues to work closely with FedDev to monitor the progress of 45 ongoing projects.

As of April 1, 2014, the Government of Canada will continue to take action to embed environmental considerations into public procurement, in accordance with the federal Policy on Green Procurement.

Infrastructure Canada is committed to addressing the Policy on Green Procurement.  As such, in meeting the policy requirements, it will continue to incorporate environmental considerations in its decision-making processes for all procurement.

All Programs and Internal Services.

Not Applicable.

Environmentally responsible acquisition, use and disposal of goods and services.

Departmental approach to further the implementation of the Policy on Green Procurement in place as of April 1, 2014. In 2014-2015, in the context of the Policy on Green Procurement, Infrastructure Canada accomplished the following:

• Included standard/generic environmental clauses in the terms and conditions of its service contracts, and looked for additional ways to include environmental considerations into the procurement of contracting services.

100%

• Considered standing offers from Public Works and Government Services Canada, including those with green procurement clauses.

100%

• Purchased office supplies and goods taking into account green procurement principles and objectives such as ensuring that printing paper was recycled paper (30 percent recycled or higher), and that business cards and employee nameplates are printed on recycled paper, and have the Eco Logo symbol.

100%

• Continued to promote green meetings and reduced the use of items such as paper cups and disposable dishes that go into landfills. Employees involved in meetings and conference arrangements were encouraged to purchase goods from companies that offer greener catering.

100%

• Continued to promote the use of video conferences and teleconferences as an alternative to travel expenses, and continued to use government travel services to encourage employees to use sustainable methods of transportation and green hotels, and overall promoted green principles for meetings and events within the Department.

100%

Number and percentage of procurement and/or materiel management specialists who completed the Canada School of Public Service Green Procurement course (C215) or equivalent, in fiscal year 2014-2015.

Four employees (80%)

Number and percentage of managers and functional heads of procurement and materiel whose performance evaluation includes support and contribution toward green procurement, in fiscal year 2014-2015.

Three positions (100%)

Procurement of Computers and Related Equipment, Printers and Photocopiers

Percentage of procurement decisions with regards to computers and related equipment, printers and photocopiers that continued to take into account green procurement principles, considerations and objectives of the Policy on Green Procurement.

100%

Procurement of Furniture, Office Supplies and Goods

Percentage of procurement decisions with regards to furniture, office supplies and goods that take into account green procurement principles, considerations and objectives of the Policy on Green Procurement.

100%

Green Procurement Information on Contracting Services

Percentage of contracting services transactions that include green procurement information, i.e. that meet green procurement principles, considerations and objectives of the Policy on Green Procurement. Number of contracting services transactions that incorporate green procurement information, relative to the total number of contracting services transactions made by the Department.

75%

7.2.1.5. Leverage common use procurement instruments where available and feasible.

100%

7.2.2. Incorporate environmental considerations into procurement instruments.

INFC uses the Public Works and Government Services Canada Instruments for procurement 100%

Best Practice
7.2.3. Train acquisition cardholders on green procurement.

Achieved

Best Practice
7.2.4. Increase awareness of the Policy on Green Procurement among managers.

100%

Since 2008-2009, the Department has continued to work with Public Works and Government Services Canada to analyze its spending patterns and to identify opportunities for improvement in its procurement practices.

Infrastructure Canada has continued to include standard, generic environmental clauses in the terms and conditions of its service contracts. Final reports are printed double-sided, and on recycled paper, in keeping with the principles of the greening government operations initiative. Since 2009-2010, Infrastructure Canada's Contracting and Procurement Unit has continued to update the departmental contracting systems to identify, track and capture green procurement information.

In its procurement decision-making processes, Infrastructure Canada implements innovative and up-to-date procurement processes and controls as it strives to find opportunities for improvement in its procurement practices. For example, when initiating procurement, the Department first considers standing offers from Public Works and Government Services Canada, including those with green procurement clauses. If no standing offers are available for the required goods or services, the Department proceeds with other available procurement mechanisms. The Department has continued to use standing offers that have green procurement considerations, and will continue to look for additional ways to include environmental considerations into procurement processes and controls.

Instruments are being used by INFC 100%

Infrastructure Canada has continued to use multi-functional printers in common areas to reduce the overall number of printers, fax and scanner devices needed. Since 2012-2013, usage-based audits were used to guide a reduction in the number of multi-function printers, shifting printers to address departmental needs and increasing the number of employees sharing each device. Energy Star certified computers, monitors and standalone printers were purchased when available, and empty toner cartridges were returned to vendors for recycling.

100%

Infrastructure Canada has continued to purchase and lease energy-efficient equipment from companies that supported environmental programs that had recycled content and recycling programs. The equipment uses multi-function photocopiers and printer machines to reduce energy consumption and recycled toner cartridges. The Department implements a policy on standard shared printers versus personal printers, and ensures that default settings on printers and photocopiers are set to print double-sided, and on black and white.

75%

Infrastructure Canada has continued to ensure that defective and end-of-life telecommunications devices and accessories are sent to vendors for recycling where they are re-used as telecommunications devices. In addition, employees are encouraged to use USB memory sticks which provide more storage capacity.

Achieved

For commuting to and from work, Infrastructure Canada has continued to encourage employees to use green modes of transportation such as buses, cycling and walking to work, if possible.

Achieved

Although Infrastructure Canada is not required to table a Departmental Sustainable Development Strategy or to report on its contribution to the Federal Sustainable Development Strategy, it continues to play an important role in helping create a more sustainable future.

The Department's broad range of infrastructure programs support thousands of projects across Canada that contribute to a cleaner environment in areas such as drinking water, wastewater, clean energy, public transit and brownfield redevelopment. Many of these infrastructure investments directly support the Federal Sustainable Development Strategy's Theme I - Addressing Climate Change and Air Quality and Theme II - Maintaining Water Quality and Availability.

During the 2014–2015 reporting cycle, Infrastructure Canada did not develop any policy, plan or program proposals that required a preliminary scan for identifying any potential important environmental effects. As such, Infrastructure Canada did not develop any initiatives that required a strategic environmental assessment.

New Bridge for the St. Lawrence Corridor Project

The existing Champlain Bridge is one of the busiest bridges in Canada with traffic estimated at over 40 million vehicles per year. It is a major Canada-United States trade corridor, handling $20 billion of international trade and 11 million transit commuters per year.
The New Bridge for the St. Lawrence Corridor (NBSLC) Project addresses the need to replace the Champlain Bridge and the temporary causeway (which is being built as a temporary replacement to the Nuns' Island Bridge), both having reached the end of their useful lives. The Project also offers an efficient solution to the movement of goods and people by widening the federally owned A15 Highway to a six-lane capacity. The NBSLC Project is being carried out as a public-private partnership (P3).

• Maintain the Safety and Efficiency of the Corridor;
• Foster Sustainable Development and Urban Integration within the Montreal area;
• Improving the Flow of People and Goods in the Montreal Area;
• Improving the Safety of Users Through Modern Design Aspects;
• Designing Bridges for the St Lawrence, and Nuns' Island with a 125 Year Life Expectancies;
• Designing a Public Transit Corridor, and A15 Highway that meet Engineering Standards;

Replacing the existing infrastructures, as well as widening the A15 Highway will mitigate any risk of disrupting the trade corridor and will improve the flow of traffic.
The project provides significant opportunities for local business to participate, notably in construction related aspect of the project's implementation.
The NBSLC Project will provide lasting economic benefits to the municipalities on each side of the river and more broadly to the region as a whole.

Infrastructure of Canada

Public Works and Government Services Canada

Public Works and Government Services Canada, Justice Canada, Fisheries and Oceans Canada, Environment Canada

Project Financial and Business Advisor
Price Waterhouse Coopers
18 York St., Suite 2600
Toronto, ON M5J 0B2

Project Technical Advisor
Arup Canada Inc.
600 Boulevard de Maisonneuve West, Office 750
Montréal, QC H3A 3J2

Traffic and Revenue Forecast
Steer Davies Gleave
Suite 970 – 355 Burrard Street
Vancouver, BC V6C 2G8

During the 2014-15 fiscal year, the NBSLC project team advanced the procurement process so as to ensure that a private partner would be selected in Spring 2015 in order to undertake the design, construction, financing, operation, maintenance and rehabilitation of the NBSLC projects various components.
Other key activities, including the acquisition of land in the Montréal and Brossard region and the negotiation of agreements with third parties, continued throughout the fiscal year.

• Necessary authorities were provided in December 2013, April 2014 and February 2015 to carry out the NBSLC project. Other authorities will be sought in 2015-2016.
• Budget 2014 supported the NBSLC project by providing $165 million over a period of two years, in order to take on the preparatory work required for the project. Subsequent approval for expenditure authority was provided.
• The NBSLC project has been identified as a Transformational project, as the total value is beyond the $100 million threshold, as set out in the Treasury Board's Policy on the Management of Projects. Project approval was granted in April 2014.
• The construction cost for Canada was estimated at between $3 billion and $5 billion. In early 2015, the Government of Canada confirmed that the project cost was of $4.239 billion.
• In April 2014, approval was provided to begin the acquisition of properties, as required for the Project.
• The P3 procurement model has been successfully implemented.

Audit of Information Technology Business Transformation - SIMSI Migration Project

Internal Services - Information Technology (IT)

June 2014

Audit of the Project Review Panel

Governance and Risk Management

October 2014

Audit of Inuvik to Tuktoyaktuk Highway

Governance and Internal Controls

January 2015

Investments in National Infrastructure Priorities and Large-Scale Infrastructure Investments

Final Report - Joint Evaluation of Infrastructure Canada's Canada Strategic Infrastructure Fund and Border Infrastructure Fund

June 2014