2016-2017
Report on Plans and Priorities
Minister's Message and Section 1

1.1 Organizational Profile

Minister: The Honourable Amarjeet Sohi, P.C., M.P.

Institutional Head: Jean-François Tremblay

Ministerial Portfolio: Minister of Infrastructure and Communities

The Office of Infrastructure of Canada is part of the Infrastructure and Communities portfolio. The portfolio includes the following:

The Jacques Cartier and Champlain Bridges Incorporated (JCCBI)ⁱⁱⁱ, a crown corporation whose mandate is to ensure users’ safe passage on its structures located in the Greater Montreal Area by their proper management, maintenance and repair, while respecting the environment and optimising traffic flow.

Effective November 4, 2015, responsibility for the Windsor-Detroit Bridge Authority (WDBA)^iv was transferred from the Minister of Transport to the Minister of Infrastructure and Communities. This crown corporation^Footnote1 is responsible for the procurement process for the design, construction, operation and maintenance of the new publicly-owned Gordie Howe International Bridge between Windsor, Ontario and Detroit, Michigan through a public-private partnership (P3).

Also effective November 4, 2015, the Minister of Infrastructure and Communities was designated as the Minister responsible for federal matters relating to the Toronto Waterfront Revitalization Initiative (TWRI)^v . In 2000, the Government of Canada, the Province of Ontario, and the City of Toronto each announced a commitment of $500 million to fund the TWRI. To this end, the Toronto Waterfront Revitalization Corporation (TWRC), which is a not-for-profit corporation publicly known as Waterfront Toronto, was established in 2001.

Enabling Instruments:

• Canada Strategic Infrastructure Fund Act^vi (2002, c. 9, s. 47) (CSIF);
• Order in Council PC 2004-0325; and
• The following pieces of legislation related to the Gas Tax Fund:
• Keeping Canada’s Economy and Jobs Growing Act^vii, S.C. 2011, c. 24.
• Economic Action Plan 2013 Act^viii, No. 1, S.C. 2013, c. 33, section 233.
• The following legislation and Order in Council related to the New Bridge for the St. Lawrence Corridor (NBSLC) Project:
• New Bridge for the St. Lawrence Act^ix.
• Order in Council PC 2014-0144.
• The following legislation, Order in Council and Canada-Michigan Crossing Agreement related to the Gordie Howe International Bridge Project:
• Bridge to Strengthen Trade Act^x, S.C. 2012, c. 31, s. 179.
• Order in Council PC 2015-1237.
• Crossing Agreement^xi.

Year of Incorporation/Commencement: The Office of Infrastructure Canada was established in 2002.

Other:

Infrastructure Canada works in collaboration with other federal departments and agencies to deliver some of its transfer payment programs. These departments and agencies share their knowledge of local needs and priorities. Infrastructure Canada’s Federal Delivery Partners for certain sunsetting programs are:

• Atlantic Canada Opportunities Agency (ACOA);
• Economic Development Agency of Canada for the Regions of Quebec (CEDQ-R);
• Canadian Northern Economic Development Agency (CanNor);
• Federal Economic Development Agency for Southern Ontario (FedDev Ontario);
• Transport Canada (TC); and
• Western Economic Diversification Canada (WEDC).

In addition, INFC works with PPP Canada (as public-private partnership (P3) advisors) for both the New Building Canada Fund (NBCF) and the NBSLC project which also works with Public Services and Procurement (as the contract authority).

1.2 Organizational Context

1.2.1 Raison d'être

1.2.2 Responsibilities

I. Overview

Public infrastructure provides a foundation for Canadians to maintain and improve their quality of life. The federal government’s interest originates from its direct jurisdictional responsibilities for trade, security, and Indigenous Peoples on reserves, and the role that public infrastructure plays in addressing Canada’s national priorities of growing the economy and protecting the environment. Strategic infrastructure investments are needed to create jobs, build sustainable communities and support economic growth for years to come. Infrastructure investments help address any number of complex challenges that face Canadians every day – ranging from the rapid growth of our cities, to climate change, and threats to our water and land.

Infrastructure Canada provides long-term predictable support that helps ensure that Canadians can benefit from world-class, modern public infrastructure. The Department achieves this by making investments, building partnerships, developing policies, delivering programs, and fostering knowledge about public infrastructure in Canada. Since it was established in 2002, the Department has been a key funding partner, working with provinces, territories, municipalities, the private sector and non-profit organizations, along with other federal departments and agencies to help build and revitalize infrastructure that supports modern, inclusive and diverse communities – and a strong Canada.

Going forward, the Government of Canada has committed to developing a 10-year plan that will deliver significant new funding to provinces, territories, and municipalities. The plan, which will be developed in collaboration with all levels of government, will ensure both immediate increased investments in infrastructure and long-term predictable funding to address the priorities of Canadians. Specifically, this will include:

• Doubling of current federal infrastructure investments to $10 billion over each of the next two fiscal years;
• Committing $20 billion in each of three priority areas: public transit infrastructure; green infrastructure, including local water and wastewater, clean energy, and infrastructure to protect against changing weather; and social infrastructure, including cultural and recreational infrastructure; and
• Making changes to the New Building Canada Fund to make it more responsive and transparent and to streamline the approval processes.

Infrastructure Canada is the project authority charged with delivering the New Champlain Bridge Corridor project in Montreal, Quebec.

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 and a vital link in Montreal's public transportation system, handling $20 billion of international trade and 11 million transit commuters per year.

To ensure safe and efficient transportation for commuters, public transit users and commercial vehicles, in 2011 the Government of Canada committed to build a new bridge to replace the existing Champlain Bridge, which is nearing the end of its useful life.

The new bridge, which is expected to be completed in 2018, will increase the capacity and efficiency of gateway and corridor infrastructure regionally and nationally. The project will also provide an efficient solution for the movement of goods and people by widening the federally-owned portion of the Autoroute 15 to six-lanes and replacing the Nuns' Island Bridge. These components are scheduled to be completed in 2019.

Furthermore, since November 4, 2015, the Minister of Infrastructure and Communities is responsible for the Gordie Howe International Bridge project (GHIB). The Windsor-Detroit Bridge Authority (WDBA), a crown corporation, is responsible to deliver a new border crossing between Windsor, Ontario and Detroit, Michigan, which is Canada's most important trade corridor with the United States, Canada's largest trading partner. Nearly 30% of Canada-U.S. trade by truck, or roughly $100 billion per year of merchandise trade, goes through Windsor-Detroit, which is far more than any other crossing.

The GHIB project is the largest bi-national infrastructure project along the Canada-United States border. Once complete, it will provide additional capacity to accommodate future traffic growth, increased trade, and it will encourage investment between Canada and the United States. In addition, the GHIB will help create thousands of construction jobs and long-term employment opportunities on both sides of the border. The GHIB will also provide system redundancy, improved border processing and capacity, and a highway-to-highway connection between Highway 401 in Ontario and the Interstate system in Michigan.

In summary, for the 2016-2017 planning period, Infrastructure Canada will focus on meeting these commitments. The Department will work to ensure that the federal government's investments in public infrastructure will build communities that are livable, sustainable, and prosperous for all Canadians. The Department will continue to advance the construction of the New Champlain Bridge Corridor project and the Gordie Howe International Bridge project through public-private partnerships.

1.3 Strategic Outcome and Program Alignment Architecture (PAA)

In 2016-2017, Infrastructure Canada’s Program Alignment Architecture (PAA) includes one Strategic Outcome and six Programs, as well as Internal Services^Footnote2 in support of its activities. The Programs are discussed in detail in Section II of this report.

Strategic Outcome:  Public Infrastructure for a More Prosperous Canada

1.1 Program: Funding for Provincial-Territorial Priorities

1.2 Program: Permanent and Flexible Infrastructure Funding

1.3 Program: Investments in National Infrastructure Priorities

1.4 Program: Large-Scale Infrastructure Investments^Footnote3

1.5 Program: Infrastructure Investments in Small Communities and Rural Areas

1.6 Program:  New Bridge for the St. Lawrence Corridor Project (commonly known as the New Champlain Bridge Corridor project)

Program:  Internal Services

Together, the six Programs outline the Department's key business lines and initiatives for 2016-2017. Infrastructure Canada has two distinct core business lines. It provides flexible funding support for municipal, provincial and territorial infrastructure priorities that are in the broader national interest and it leverages funding for infrastructure projects by partnering with and providing funding to provinces, territories, municipalities, municipal associations, not-for-profit organizations and private sector partners. Secondly, it is responsible for completing the New Bridge for the St. Lawrence Corridor project, commonly known as the New Champlain Bridge Corridor project.

Infrastructure Canada is also responsible for overseeing the Jacques Cartier and Champlain Bridges Incorporated, a crown corporation whose mandate is to ensure users' safe passage on its structures located in the Greater Montreal Area, as well as for overseeing the Windsor-Detroit Bridge Authority, a crown corporation responsible for the procurement, construction and operation of the Gordie Howe International Bridge project.

All Programs of the PAA result in the construction and enhancement of public infrastructure, contributing to the Department's Strategic Outcome for a more prosperous Canada. These Programs also provide the framework under which our transfer payment programs are grouped (as described in Section II).

1.4 Organizational Priorities

Priority 1: Develop and begin to implement a 10-year plan to deliver significant new infrastructure funding to provinces, territories and municipalities, and optimize the delivery of the New Building Canada Fund

Description:

Infrastructure Canada funding programs directly fulfill the Department's responsibility to provide financial support for public infrastructure that meets the needs of Canadians for a stronger economy, a cleaner environment and more prosperous communities. The Minister of Infrastructure and Communities' overarching goal is to rebuild Canada for the 21^st Century. This will require significant new investments in public transit, green infrastructure and social infrastructure, as well as key strategic infrastructure that will increase trade and economic growth. A 10-year plan will ensure immediate increased investments in infrastructure and long-term, predictable funding to support provincial, territorial and municipal priorities. The Plan will also include improved access to and governance of existing infrastructure programs. Infrastructure Canada will continue to implement the New Building Canada Fund (NBCF), while identifying opportunities to streamline and enhance transparency. As the Department moves towards implementation, there will be a focus on enhancing partnerships with provinces, territories and municipalities. Improved data collection and management and enhanced policy capacity will also support ongoing program implementation.

Priority Type^Footnote4: New

Priority 2: Advance construction of the New Champlain Bridge Corridor project and support Jacques Cartier and Champlain Bridges Incorporated in its role of keeping the Champlain Bridge safe

Description:

The safety of Canadians is a priority for the Government of Canada. As such, maintaining the safety of the Champlain Bridge for the over 40 million annual users is key. Furthermore, the New Champlain Bridge Corridor project will increase capacity and efficiency of gateway and corridor infrastructure in the Montreal region and nationally, which in turn will support Canada’s economic growth. In June 2015, Infrastructure Canada, with the assistance of its partners, successfully completed the procurement phase for the project and construction started in Summer 2015. The Department will continue to focus on the construction phase of the project, while maintaining the integrity of the existing bridge.

Priority Type: Previously committed to

Priority 3: Support the Windsor-Detroit Bridge Authority to advance the Gordie Howe International Bridge project

Description:

A new Windsor-Detroit crossing remains a top infrastructure priority for Canada. The Government of Canada is committed to completing the new crossing as early as possible and continues to work very closely with the State of Michigan and the U.S. Government. A new Windsor-Detroit crossing will ensure that there will be sufficient and competitive infrastructure in place at Canada’s most important trade artery. It will also create jobs and provide for the economic security and future prosperity of Canada and the United States.

Priority Type: New

Priority 4: Implement government-wide and departmental transformation initiatives that contribute to efficiencies

Description:

Infrastructure Canada and the Public Service are undergoing continuous change. Continuing to identify operational efficiencies and improve processes will provide ongoing value for Canadians. Better data collection will help Infrastructure Canada make better decisions and improve service delivery. The Department is also on track to deliver on its open government agenda and is making considerable progress in adopting government-wide transformation initiatives through Blueprint 2020 and by embracing Lean. Continuous improvement through transformation initiatives and by identifying efficiencies is an ongoing priority for Infrastructure Canada.

Priority Type: Ongoing

Priority 5: Maintain a healthy, respectful and supportive work environment

Description:

A healthy, respectful and supportive work environment is a priority area for action for the public service at large. It also builds on feedback received in the context of Blueprint 2020 and the results of the 2014 Public Service Employee Survey (PSES). This type of work environment creates the conditions for a more engaged, productive and innovative workforce. Infrastructure Canada will undertake concrete actions to support this priority.

Priority Type: New

For more information on organizational priorities, see the Minister’s mandate letter on the Prime Minister of Canada’s website.^xii

1.5 Risk Analysis

Infrastructure Canada applies a comprehensive approach to identify, assess and manage risks at the strategic, operational, program and project levels. This approach includes conducting regular environmental scans with direct participation of Senior Management. The table below provides an overview of three key corporate risks related to the achievement of the Department’s Strategic Outcome.

The first organizational risk relates to the timely delivery of the New Champlain Bridge Corridor project, one of the largest infrastructure projects in North America. Decades of heavy traffic, climate exposure, and corrosion from road salts have significantly affected the current Champlain Bridge, which is one of the busiest crossings in Canada and a crucial corridor for the regional economy and for Canada as a whole. In 2011, the Government of Canada announced that the Champlain Bridge would be replaced by a new crossing by the end of 2018.

The second organizational risk highlights the Department's need to maintain effective capacity, despite constrained operating budgets, to develop programs under a new 10-year plan and deliver the enhanced New Building Canada Fund. The focus of the risk response is to ensure that the Department has strategies, plans and resources in place to effectively deliver its funding programs.

The third risk refers to the large portion of INFC's corporate priorities that are being set by the government's change agenda. The number of current and future large-scale, whole-of-government initiatives may impact the Department's ability to react quickly and nimbly to other internal business pressures that require timely services and solutions, and ongoing service availability. The focus of the risk responses will be to ensure that the Department is ready for new infrastructure programs as it continues to deliver timely IMIT, HR, Finance and other enabling services.

The fourth risk is associated with receiving the necessary Government authorities to ensure the Windsor-Detroit Bridge Authority can advance the Gordie Howe International Bridge Project as set out in the Minister's mandate letter. The focus of the risk response is to ensure that the Department has strategies, plans and resources in place to seek the necessary authorities for the timely completion of the project.

In 2016-2017, the Department will monitor and report on its risk responses, and will review and update risks in the context of emerging environmental risk factors and progress made by implementing risk responses.

1.6 Planned Expenitures

1.6.1 Alignment of Spending with the Whole-of-Government Framework

*Note: The Total Planned Spending number provided in this table does not include expenses made by the Department under its Internal Services.

1.7 Departmental Spending Trend

1.7.1 Spending Trends

In 2016-2017, Infrastructure Canada plans to spend over $3.3 billion on infrastructure investments to meet expected program results and contribute to its Strategic Outcome. Planned spending figures for 2017-2018 and 2018-2019 are close to $4.2 billion and $4.7 billion respectively.

Figure 1: Departmental Spending Trend

Description of Graph 1

1.7.2 Variations in Program Spending Trends

Overall, Figure 1 shows an increase of Infrastructure Canada's spending for the period of 2013-2014 to 2018-2019, with annual spending recorded and planned going from $3.5 billion to close to $4.7 billion.

The graph also highlights the stability of infrastructure funding provided through the Gas Tax Fund (GTF) with spending at around $2 billion a year, as Statutory Funding in 2014-2015 and beyond. The GTF is the only transfer payment program reflected in this graph not being considered as a "Sunset Program".

As previously mentioned, the expected spending increases coming from the new funding programs, as well as from upcoming policy changes that will enable any unallocated infrastructure funds to be made available to our funding partners, are not yet reflected in Figure 1. Any future spending increases will be captured under the corresponding (2016-2017) Departmental Performance Report (DPR) and future reports.

1.8 Estimates by Vote

For information on Infrastructure Canada’s organizational appropriations, please see the 2016-2017 Main Estimates^xiv publication.