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2008-09
Departmental Performance Report

Infrastructure Canada

Supplementary Information (Tables)

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Table of Contents

• Details on Transfer Payments Programs
• Horizontal Initiatives
• Green Procurement
• Response to Parliamentary Committees and External Audits
• Internal Audits and Evaluations

Table 5: Details of Transfer Payment Programs (TPP)

Infrastructure Canada manages the following transfer payment programs:

• Contributions under the Canada Strategic Infrastructure Fund (CSIF);
• Contributions under the Border Infrastructure Fund (BIF);
• Contributions under the Municipal Rural Infrastructure Fund (MRIF);
• Transfer Payments under the Gas Tax Fund (GTF);
• Contributions under the Research, Knowledge and Outreach Program (includes the Peer Review Research Studies and the Knowledge-Building, Outreach and Awareness Programs);
• Provincial-Territorial Base Funding Program (PT Base); and
• Building Canada Fund.

As prescribed by the Policy on Transfer Payments, as of June 30, 2009, the summary of the Three-Year Plan for Transfer Payment Programs is available at: http://www.infc.gc.ca/pd-dp/tpp-ppt/index-eng.html.

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Canada Strategic Infrastructure Fund (CSIF)

1) Name of Transfer Payment Program: Canada Strategic Infrastructure Fund (CSIF)

2) Start Date: 2003-2004

3) End Date: 2012-2013

4) Description: Directed to projects of major federal and regional significance in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians.

5) Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.

In May 2008 Strategic Outcome was changed to: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

6) Results Achieved: Safer and improved water quality in major communities, safer and faster movement of people and goods on Canada’s major land transportation routes, reduced production of greenhouse gases and airborne pollutants, more effective urban development and increased economic activity including tourism.

As of March 31, 2009, total CSIF funding amounted to $5.2 billion. No new projects were announced in 2008-2009. However, contribution agreements were signed for the following projects: Broadband Nunavut Phase 2, Broadband FNESS, Broadband NCSN, Ontario Wastewater Bundle Brockville and Sarnia and the Regional Rural Water Supply System Bundle Project – La Ronge, Water West and Sask Landing. The majority of CSIF funding has been committed, including the $750 million of top up funding announced in Budget 2006.

7) Program Activity: Infrastructure Investments.

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding.

(in $ thousands)

	8) Actual Spending 2006-2007	9) Actual Spending 2007-2008	10) Planned Spending 2008-2009	11) Total Authorities 2008-2009	12) Actual Spending 2008-2009	13) Variance(s) Between 10 and 12
14) Total Grants	$	$	$	$	$	$
15) Total Contributions	$681,218	$922,363	$689,238	$733,418	$505,429	$183,809
16) Total Other Types of Transfer Payments	$	$	$	$	$	$
17) Total Program Activity	$681,218	$922,363	$689,238	$733,418	$505,429	$183,809

18) Comment(s) on Variance(s): The variance is due to contribution agreements being signed later than anticipated, and for decreased cash-flow requirements for existing agreements.

19) Audit Completed or Planned: The Audit of the Management Control Framework of the Canada Strategic Infrastructure Fund was completed in was completed in 2007-2008. Please refer to this web site for details: http://www.infc.gc.ca/pd-dp/ia-vi/mcf-finrep-ccg-rapfin-eng.html.

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Border Infrastructure Fund: (BIF)

1) Name of Transfer Payment Program: Border Infrastructure Fund (BIF)

2) Start Date: 2003-2004

3) End Date: 2013-2014

4) Description: Targets Canada-United States border crossing points and activity funding for investments in physical infrastructure, intelligent transportation system infrastructure and improved analytical capacity.

5) Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.

In May 2008 Strategic Outcome was changed to: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

6) Results Achieved: In partnership with Infrastructure Canada, Transport Canada completed projects of over $125 Million dollars of federal contributions under the Border Infrastructure Fund to help improve the safety and efficiency of the transportation network leading to our international borders. During the course of the fiscal year, the following projects from provinces across Canada were completed:

• Construction of the Walker Road Rail Grade Separation in Windsor-Essex corridor in Ontario;
• Components of Route 1 improvements for new international bridge and truck route between New Brunswick and Maine completed. As well, improvements on St Croix to Church Street in New Brunswick, and Improvements on Route 3 to Route 127 in New Brunswick;
• Highway 15 Widening in British Columbia;
• Highway 10 Widening in British Columbia;
• Improvements to Queensborough Bridge in British Columbia;
• Highway 401/402 Interchange in Ontario; and
• Highway 402 reconstruction between Lambton Road 26 and Highway 21, Phase 1 in Ontario.

7) Program Activity: Infrastructure Investments.

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding.

(in $ thousands)

	8) Actual Spending 2006-2007	9) Actual Spending 2007-2008	10) Planned Spending 2008-2009	11) Total Authorities 2008-2009	12) Actual Spending 2008-2009	13) Variance(s) Between 10 and 12
14) Total Grants	$	$	$	$	$	$
15) Total Contributions	$53,060	$69,903	$69,301	$114,383	$81,111	$-11,810
16) Total Other Types of Transfer Payments	$	$	$	$	$	$
17) Total Program Activity	$53,060	$69,903	$69,301	$114,383	$81,111	$-11,810

18) Comment(s) on Variance(s): The variance is due to contribution agreements being signed later than anticipated, and for increased cash flow requirements for existing agreements.

19) Audit Completed or Planned: The Audit of the Management Control Framework of the Border Infrastructure Fund was completed in 2007-2008. Please refer to this web site for details: http://www.infc.gc.ca/pd-dp/ia-vi/mcf-finrep-ccg-rapfin-eng.html.

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Municipal Rural Infrastructure Fund (MRIF)

1) Name of Transfer Payment Program: Municipal Rural Infrastructure Fund (MRIF)

2) Start Date: 2004-2005

3) End Date: 2010-2011

4) Description: To support smaller-scale municipal infrastructure projects to improve the quality of life, sustainable development and economic opportunities, particularly of smaller communities.

5) Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.

In May 2008 Strategic Outcome was changed to: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

6) Results Achieved: Improved and increased stock of core public infrastructure in areas such as water, wastewater, culture and recreation, improved quality of life and economic opportunities for smaller communities.

During 2008-2009, 164 new MRIF projects were approved, with a total federal contribution of $116.6 Million. Since the MRIF was established in 2003, 1,973 projects have been approved, totalling just over $1 billion in federal contributions.

7) Program Activity: Infrastructure Investments.

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding.

(in $ thousands)

	8) Actual Spending 2006-2007	9) Actual Spending 2007-2008	10) Planned Spending 2008-2009	11) Total Authorities 2008-2009	12) Actual Spending 2008-2009	13) Variance(s) Between 10 and 12
14) Total Grants	$	$	$	$	$	$
15) Total Contributions	$81,566	$143,320	$399,885	$399,885	$220,324	$179,561
16) Total Other Types of Transfer Payments	$	$	$	$	$	$
17) Total Program Activity	$81,566	$143,320	$399,885	$399,885	$220,324	$179,561

18) Comment(s) on Variance(s): The variance is due to the decrease in cash-flow requirements for existing contribution agreements.

19) Audit Completed or Planned: Assurance Audit (In progress). Please refer to Table 11a: Internal Audits (Current Reporting Period).

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Gas Tax Fund (GTF)

1) Name of Transfer Payment Program: Gas Tax Fund (GTF)

2) Start Date: 2005-2006

3) End Date: Ongoing

4) Description: The Gas Tax Fund program strives to meet the core diverse infrastructure needs of all communities while contributing to national environmental outcomes by supporting capital investments in environmentally sustainable municipal infrastructure to improve water and air quality and reduce greenhouse gas emissions. It is designed to build competitive and sustainable communities by providing reliable, predictable up-front funding for eligible investments in water, wastewater, solid waste, public transit, community energy systems, local roads and bridges and capacity-building.

5) Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.

In May 2008 Strategic Outcome was changed to: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

6) Results Achieved: Supported environmentally sustainable infrastructure in support of shared national outcomes. These outcomes are cleaner air, cleaner water, and reduced greenhouse gas emissions.

The Gas Tax Fund is a unique program with an up-front funding mechanism. Jurisdictions report on an annual basis, providing expenditure details for the previous fiscal year. Therefore, for 2008-2009, the results for 2007-2008 years were submitted to Infrastructure Canada.

• To date, over 3,400 Canadian municipalities have received funding through the Gas Tax Fund, giving it the largest scope of any infrastructure program of its kind.
• Since inception, almost $2B in GTF has flowed from Canada for municipal infrastructure project.
• Of the funds transferred, municipalities have spent more than $1.4B on over 3,900 projects by the end of 2007-2008.
• Provinces, territories and municipalities have, together banked $515M and earned approximately $34.7M in interest.
• Interest earned in tandem with marginal administration costs has meant additional dollars for projects over and above municipal allocations.
• In addition, all provinces and territories, with the exception of Newfoundland, have signed the amendment agreements for the extension of the GTF to 2014 (announced in Budget 2007 at $8 billion), with confirmation of municipal allocations.
• The performance management framework for outcomes reporting was shared and developed for national reporting.
• Joint evaluations of the GTF for each province and territory were completed with oversight committee reviews of the evaluation. A national evaluation was initiated.

7) Program Activity: Infrastructure Investments.

In 2008 Program Activity was changed to: Gas Tax Fund.

(in $ thousands)

	8) Actual Spending 2006-2007	9) Actual Spending 2007-2008	10) Planned Spending 2008-2009	11) Total Authorities 2008-2009	12) Actual Spending 2008-2009	13) Variance(s) Between 10 and 12
14) Total Grants	$	$	$	$	$	$
15) Total Contributions	$	$	$	$	$	$
16) Total Other Types of Transfer Payments	$590,204	$778,203	$987,490	$1,012,134	$984,812	$2,678
17) Total Program Activity	$590,204	$778,203	$987,490	$1,012,134	$984,812	$2,678

18) Comment(s) on Variance(s): Some conditions for payment in 2007-08 for three provinces/territories were only met in 2008-2009. Funding was carried forward to 2008-2009. Some funding will be carried forward to 2009-2010 because the conditions for payment for 2008-2009 for two provinces/territories were not met.

19) Audit Completed or Planned: Assurance Audit (Completed). Please refer to Table 11a: Internal Audits (Current Reporting Period).

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Research, Knowledge and Outreach Program

1) Name of Transfer Payment Program: Research, Knowledge and Outreach Program

2) Start Date: 2004-2005

3) End Date: 2009-2010

4) Description: To enhance implementation of Infrastructure Canada’s Research Strategy, which focuses on three components: Knowledge generation, community-building and knowledge transfer.

5) Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.

In May 2008 Strategic Outcome was changed to: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

6) Results Achieved: As stated in the Departmental Performance Report, Infrastructure Canada has re-oriented its research and analysis efforts to help deliver key elements of the Building Canada plan. These changes include:

a) A shift from primarily high-level and exploratory research to more applied internal and external research with partners and end-users:

The Research, Knowledge and Outreach initiative announced in 2005, will finish in March 2010. The following research projects were completed during the 2008-2009 fiscal year. Topics include infrastructure research and analysis related to water, transportation, energy, climate change and impacts on the north.

The water infrastructure-related projects included Design and Management Approaches for Sustainable Water Well Infrastructure, which assessed the state of water well infrastructure in Canada; Water Connections, which created a national portal providing information about Canada’s water infrastructure; Municipal Water Supply Infrastructure Governance in Canada: Uptake of Water Conservation Technologies in the Context of Utility Restructuring, which examined the use of innovative technologies in water and wastewater management in Canada; and Community Infrastructure Technology and Innovation Education Symposia (CITIES), which developed training and professional development courses on innovative techniques for constructing and rehabilitating civil infrastructure.

Some transportation-related infrastructure projects included:

• Best Practices for the Technical Delivery of Transportation Planning Studies, which developed a guide to assist small and medium-sized Canadian communities in performing transportation planning studies;
• Efficient Planning of Infrastructure for Freight Transportation: Improving Understanding of the Behavioural Underpinnings of Freight Transport Choices, which linked the behavioural underpinnings of shippers and carriers to freight transportation flows and disseminated this information to regional, provincial and federal transportation planners;
• A Study on the Canadian Status of High Occupancy Vehicles (HOV) Lanes - Efficiencies, Enforcement and Innovations, which investigated the overall status of high occupancy vehicle lane utilization in Canada and the efficiencies these lanes have achieved; and
• Training Program for Winter Road Maintenance, which developed a training program to build capacity for standards and management of winter road maintenance.

An energy-related research project entitled “Toward Energy Sustainability of Community Infrastructure” supported innovative infrastructure planning at the local level, and a research project related to northern issues entitled “Things Change, We Change: Community Planning for Resilience in Tuktoyaktuk (NWT)” developed a framework to guide integrated collaboration for planning.

In addition to these projects, the Research, Knowledge and Outreach initiative established new partnerships. One partnership was with Natural Resources Canada and Engineers Canada to conduct an engineering assessment of the vulnerability of Canada’s public infrastructure to the impacts of climate change, with a particular focus on water infrastructure. Another partnership was developed with the Canadian Society for Civil Engineering to prepare a guideline for asset condition reports for municipal governments, to align these technical aspects with the new Public Sector Accounting Board’s accounting process for municipalities.

b) Increased economic analysis of infrastructure issues:

In May 2008, Infrastructure Canada established the Economic Analysis and Research Directorate under its Policy and Communications Branch. This new section established in-house research and analysis expertise on priority economic issues relating to Infrastructure Canada’s program delivery. Over the reporting period, the new Economic Analysis section analyzed and briefed senior management on the economic benefits of investing in infrastructure, including as a counter-cyclical measure and its longer term impacts on productivity and competitiveness.

The Research, Knowledge and Outreach Program also supported and funded projects that studied the socio-economic impacts of investing in various infrastructure assets, including the following:

• The Local Economic Infrastructure of Business Improvement Areas in the City of Toronto, Dr. Rafael Gomez, ThinkTankToronto;
• Social Dynamics of Economic Performance: Innovation, Infrastructure and Creativity in City-Regions, Dr. David Wolfe, Centre for International Studies, University of Toronto;
• Metropolitan Review of Toronto, Organisation for Economic Co-Operation and Development (OECD);
• Examining the Social Elements of Public Infrastructure Impacts on Competitiveness and Implications for Governance, City of Ottawa, Housing Branch.

c) Better transfer of knowledge and research to external practitioners and internal decision-makers:

Although the Research, Knowledge and Outreach initiative is still in progress, several key outcomes can already be identified. A preliminary review revealed that a large body of knowledge has been created resulting in a substantial increase in understanding of infrastructure issues, in many cases accompanied by recommendations and advice. Some significant accomplishments include projects demonstrating best practices for infrastructure research and evidence of international community linkages which have the potential to increase the profile of Canadian infrastructure and Canadian infrastructure research capabilities. A few projects have developed multi-disciplinary research communities and are maintaining them beyond the life of the project and individual projects have been effective in channelling their generated knowledge within their own communities of interest.

d) Strengthened partnerships to better exchange information and knowledge, better advise on infrastructure priorities, leverage resources to produce higher quality research and address knowledge gaps:

A large number of partnerships have been developed through Research, Knowledge and Outreach funded projects, and have significantly improved the transfer of knowledge and expertise between government departments, academic institutions and other organizations. Some of the organizations within which partnerships have been developed or strengthened include Engineers Canada, the Canadian Society for Civil Engineering, the Federation of Canadian Municipalities, the National Round Table on Sustainable Infrastructure, the Canadian Institute of Planners, the Canadian Home Builders Association, the Canadian Urban Transit Association, the Canadian Public Works Association, the Canadian Standards Association, the Canadian Water Resources Association, as well as McGill University, Queen’s University, University of Waterloo, University of British Columbia, the British Columbia Institute of Technology and the Centre d’expertise et de recherche en infrastructures urbaines.

Of particular focus in 2008-2009 was Infrastructure Canada’s support of a joint project with the National Research Council and the National Round Table on Sustainable Infrastructure to develop a model framework for the assessment of the state, performance and management of Canada’s core public infrastructure. Core public infrastructure was defined as roads, bridges, public transit, water and wastewater systems. The National Round Table on Sustainable Infrastructure taps expertise from more than 45 infrastructure-related organizations across Canada including many of the above organizations. This model framework is a first step towards providing infrastructure owners and managers with a unified approach to assessing the condition and performance of the infrastructure for which they are responsible and to maximize the return on investment.

7) Program Activity: Policy, Knowledge and Partnership Development.

In 2008 Program Activity was changed to: Knowledge and Research.

(in $ thousands)

	8) Actual Spending 2006-2007	9) Actual Spending 2007-2008	10) Planned Spending 2008-2009	11) Total Authorities 2008-2009	12) Actual Spending 2008-2009	13) Variance(s) Between 10 and 12
14) Total Grants	$	$	$	$	$	$
15) Total Contributions	$2,972	$3,220	$5,000	$1,693	$1,693	$1,715
16) Total Other Types of Transfer Payments	$	$	$	$	$	$
17) Total Program Activity	$2,972	$3,220	$5,000	$1,693	$1,693	$1,715

18) Comment(s) on Variance(s): The initial budget projection was established in 2004, and was not based on the current year’s projections. Last call for Research, Knowledge and Outreach Program was prepared, as well as targeted funding to address key knowledge gaps, e.g., State and Performance Project, Asset Management, Urban Form and Sustainability, but due to unforeseen circumstances none were approved by the end of the fiscal year.

19) Audit Completed or Planned: Assurance Audit (Re-Focused). Please refer to Table 11a: Internal Audits (Current Reporting Period).

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Provincial-Territorial Base Funding Program

1) Name of Transfer Payment Program: Provincial-Territorial Base Funding Program

2) Start Date: 2007-2008

3) End Date: 2013-2014

4) Description: These funds will provide greater flexibility to address infrastructure needs, particularly for the benefit of smaller jurisdictions which need to respond to basic needs regardless of the size of their population.

5) Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.

In May 2008 Strategic Outcome was changed to: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

6) Results Achieved: In fiscal year 2008-2009, Infrastructure Canada concluded PT Base Funding Agreements with the following eleven jurisdictions: Alberta, British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Nunavut, Northwest Territories and Yukon. While negotiations with the provinces of Ontario and Quebec started, these were not completed before the end of fiscal year 2008-2009.

In fiscal year 2008-2009, Infrastructure Canada approved 16 Capital Plans from nine different provinces and territories. Collectively, these Capital Plans resulted in federal funding commitments of more than $578 Million for 122 initiatives. Of this amount, $390.6 Million was transferred to provinces and territories. The remaining funds will flow once provinces and territories have satisfied the remaining conditions for payment in accordance with their funding agreement.

Due to the unique up-front funding mechanism of the Provincial-Territorial Base Fund, jurisdictions do not report on progress on an approved Capital Plan until a year after the expenditures take place. Since most jurisdictions only received their first instalment of PT Base Funds in fiscal year 2008-09, the majority have not yet submitted an expenditure report in respect of these expenditures. Therefore it is not possible at this time to report accurately on expenditures incurred or number of initiatives completed for fiscal year 2008-2009.

In terms of funds committed during fiscal year 2008-2009 for approved initiatives, by far the category for which the most federal funds were accessed was national highway system infrastructure followed by water and wastewater infrastructure. While these types of infrastructure investments remain a key priority for jurisdictions during 2008-2009, a number of provinces and territories submitted Capital Plans that also included priority initiatives in other infrastructure categories including sport, culture and tourism as well as solid waste management and disaster mitigation.

The following section highlights some of the key infrastructure commitments that were made by Infrastructure Canada during fiscal year 2008-2009:

• In British Columbia, the province is combining $25 Million worth of its PT Base Funding envelope with its own funding to implement improvements to Highway 97. The approved initiatives involve expanding a 5-kilometre section of Highway 97 from two lanes to four, and relocating a commercial vehicle inspection station near Red Rock Road. These improvements will increase safety and reduce congestion in the highway and will reduce waiting times at the inspection station, experienced by commercial vehicles.
• The Province of Newfoundland and Labrador is investing the first $25 Million it received through the PT Base Fund into a series of initiatives including the widening and hard-surfacing of the Trans Labrador Highway, a new bypass Road at Daniel’s Harbour as well as rehabilitation of several routes throughout the province, including Route 2, Route 430 and sections of the Trans Canada Highway. These initiatives will have a tangible impact on the quality of life for people in these communities and will keep people and goods moving safely and on time.
• The Government of Nunavut is utilizing some of its PT Base Funding to construct the Piqqusilirivvik Cultural Facility in Clyde River. This facility will be used by Elders to provide youth with the opportunity to maintain their cultural values. In doing so, this cultural centre will play a vital role in the preservation of Inuit culture, language, and heritage for future generation.

In summary, excellent progress was made during fiscal year 2008-2009 in regards to the PT Base Fund. The program is meeting the needs of provinces and territories and the Government of Canada by providing funding that is, and will continue to support core infrastructure investments across the country.

7) Program Activity: Infrastructure Investments.

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding.

(in $ thousands)

	8) Actual Spending 2006-2007	9) Actual Spending 2007-2008	10) Planned Spending 2008-2009	11) Total Authorities 2008-2009	12) Actual Spending 2008-2009	13) Variance(s) Between 10 and 12
14) Total Grants	$	$	$	$	$	$
15) Total Contributions	$	$	$	$	$	$
16) Total Other Types of Transfer Payments	$	$	$327,771	$654,486	$390,602	$-62,831
17) Total Program Activity	$	$	$327,771	$654,486	$390,602	$-62,831

18) Comment(s) on Variance(s): Contribution agreements were not signed on time for 2007-2008, so spending only took place in 2008-2009. However, as the planned spending for 2008-2009 was not large enough to the cover projects that had been carried over from 2007-2008, this resulted in over-spending.

19) Audit Completed or Planned: An Assurance Engagement Internal Audit is planned for 2010-2011.

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Building Canada Fund (BCF)

1) Name of Transfer Payment Program: Building Canada Fund (BCF)

2) Start Date: 2008-2009

3) End Date: 2016-2017

4) Description: To invest in provincial and community infrastructure to address both national, provincial/territorial and community priorities.

5) Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.

In May 2008 Strategic Outcome was changed to: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

6) Results Achieved: In light of the commitment to accelerate funding under the Building Canada Plan, the department streamlined the federal review and approval of projects, simplifying criteria and reducing the amount of information required in the project assessment process. Complementary to the work that Infrastructure Canada led, changes to the Navigable Waters Protection Act were passed with the Budget Implementation Act, which received Royal Assent on March 16, 2009. A series of regulations under the Canadian Environmental Assessment Act were also introduced and came into force in March 2009 to further streamline approvals, minimize duplication, and reduce the number of separate federal environmental assessments for infrastructure projects funded under the Building Canada Plan. This is expected to greatly reduce the number of projects that will be subject to a separate federal environmental assessment in the upcoming construction season.

In 2008-2009, the Government of Canada announced funding for 37 major infrastructure projects with a total federal commitment of approximately $1.38 billion. As a result of the streamlining measures that were quickly implemented by the department, 26 of these projects, with a total federal commitment of just over $1 billion, were announced between January 27, 2009 and March 31, 2009.

All provinces have signed an agreement with Canada regarding the management of the Communities Component part of the Building Canada Plan. Up to March 31, 2009, 486 projects have been approved, totalling $505.6 Million in federal contribution since the beginning of the program. As a result of streamlining measures quickly implemented by the department, 421 of these projects, with a federal contribution totalling $452.6 Million were approved between Budget 2009 and March 31, 2009.

7) Program Activity: Infrastructure Investments.

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding.

(in $ thousands)

	8) Actual Spending 2006-2007	9) Actual Spending 2007-2008	10) Planned Spending 2008-2009	11) Total Authorities 2008-2009	12) Actual Spending 2008-2009	13) Variance(s) Between 10 and 12
14) Total Grants	$	$	$	$	$	$
15) Total Contributions	$	$	$390,676	$390,676	$56,233	$334,443
16) Total Other Types of Transfer Payments	$	$	$	$	$	$
17) Total Program Activity	$	$	$390,676	$390,676	$56,233	$334,443

18) Comment(s) on Variance(s): The variance is due to contribution agreements being signed later than anticipated.

19) Audit Completed or Planned: Review of the File Management and Documentation Requirements for the Building Canada Fund (BCF) project files, completed in March 10, 2009.

Table 7: Horizontal Initiatives

• Canada Strategic Infrastructure Fund (CSIF)
• Border Infrastructure Fund (BIF)
• Municipal Rural Infrastructure Fund (MRIF)
• Infrastructure Canada Program (ICP)
• Building Canada Fund (BCF)

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Canada Strategic Infrastructure Fund (CSIF)

1. Name of Horizontal Initiative: Canada Strategic Infrastructure Fund (CSIF)

2. Name of Lead Department(s): Infrastructure Canada

3. Lead Department Program Activity: Infrastructure Investments

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding

4. Start Date of the Horizontal Initiative: 2003-2004

5. End Date of the Horizontal Initiative: 2012-2013

6. Total Federal Funding Allocation (start to end date): $4.8 Billion

7. Description of the Horizontal Initiative (including funding agreement):

The Canada Strategic Infrastructure Fund, which received funding in the 2001 and 2003 federal budgets, is a cost-shared contribution program for strategic infrastructure projects. To date, the fund provided federal support to 71 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 fund 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.

More information on the Canada Strategic Infrastructure Fund can be found at: http://www.infc.gc.ca/ip-pi/csif-fcis/csif-fcis-eng.html.

8. Shared Outcome(s):

The overall planned results Infrastructure Canada expects to achieve through the Canada Strategic Infrastructure Fund 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.

9. Governance Structure(s):

Canada Strategic Infrastructure Fund projects are selected under the authority of the Minister of Transport, Infrastructure and Communities. Prior to selecting projects, the Minister consults other Ministers who have an interest in the region or in the substantive project area. After the project’s 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.

CSIF is delivered in partnerships, 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. It also develops, in coordination with the implementing department/agency, the submission to Treasury Board for the approval of funds. To monitor activities and milestones throughout the project life cycle, an Infrastructure Canada representative will sit on the project’s Agreement Steering Committee usually as the federal co-chair, except for transportation projects where Transport Canada is the lead.

1. An implementing department/agency: Infrastructure Canada’s relationship with each implementing department or agency varies with their capacity and the complexity of the project. Responsibilities are also negotiated specifically for each project. The implementing department/agency 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. The implementing department/agency will support implementation of the Canada Strategic Infrastructure Fund 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 implementing department/agency would normally be represented on the project’s Agreement Steering Committee. The implementing department/agency will also ensure 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 implementing department/agency also provides communication support.
2. The funding recipient: The recipient may be provincial, territorial or local government, a private partner, a non-government organization or a combination thereof. Once the project has been selected, Infrastructure 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.

($ millions)

10. Federal Partners	11. Federal Partner Program Activity (PA)	12. Names of Programs for Federal Partners	13. Total Allocation (from Start to End Date)	14. Planned Spending for 2008-2009	15. Actual Spending for 2008-2009	16. Expected Results for 2008-2009	17. Results Achieved in 2008-2009
1. Atlantic Canada Opportunities Agency (ACOA)	PA 1	a.	$152.8 Million	$68.5 Million	$3.9 Million	The Halifax Harbour Project will result in the construction of sewer treatment plants at Darthmouth and Herring Cove which will provide advanced primary treatment of wastewater with ultraviolet disinfection. The treated effluent will meet or exceed effluent quality requirements identified by the Nova Scotia Department of Environment and Labour. In addition to the aesthetics improvements, the enhanced primary treatment and the associated UV disinfection of wastewater will greatly reduce the introduction of sewage-related human pathogens into the harbour. The health risks to swimmers and boaters will be greatly reduced and there could be additional opportunities for safe recreational activities. The harbour’s water quality and the benthic habitat will be improved leading to an overall positive impact on the fisheries. Wastewater treatment will remove 75 percent of the sewage-related particles.	An amendment to extend the Halifax Harbour Project’s contribution agreement end date to March 31, 2011, has been approved in 2009. During 2008-2009, Infrastructure Canada, with its partner ACOA completed three projects which represented a total federal contribution of over $15.5 Million. The completion of these projects contributed towards meeting various strategic outcomes by ensuring that drinking water is safe, clean and reliable at drinking water facilities and ensuring sustainable treatment of wastewater and expanding broadband networks in Canada. Completed projects were: Summerside Wastewater Treatment Upgrade and Potable Water Standpipe in PEI, Broadband Access to Rural and Remote Schools and Communities in NFL, and Charlottetown Wastewater Treatment Plant and System Upgrade in PEI. Significant advancements on three other projects were also achieved during 2008-2009 on the following projects: St. John’s Harbour Clean-Up Project in NFL, Stratford Water and Wastewater System Expansion in PEI and Halifax Harbour Solutions in Nova Scotia.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
2. Canada Economic Development for Quebec Regions (CEDQR)	PA 1	a.	$144.5 Million	$59.3 Million	$7.2 Million	The Rivière Saint Charles Wastewater Project in Quebec City will aid in the protection of the river environment by minimizing the quantity of contaminated wastewater that overflows into it and re-establishing the riverbanks natural habitat, making them more suitable for recreational purposes. Nearby residents and tourists will be drawn to the waterway for recreational purposes, while the project also creates natural habitats for both land-based and aquatic flora and fauna, further expanding the potential for tourism.	The re-naturalization of both riverbanks, as well as all reservoirs and associated landscaping of the Rivière Saint Charles Wastewater Project are completed. Only the implementation of certain internal mechanical components is remaining, e.g., pumps and valves, etc. During 2008-2009, Infrastructure Canada, with its partner CEDQR, worked closely on the Atwater/Des Ballets Water Project in Montréal. A contribution agreement for this project was signed on August 2008, which represents a total federal contribution of $58.5 Million. This project consists of repairs and the modernizing of three facilities to ensure the reliability and safety of the drinking water supply.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
3. Western Economic Diversification (WED)	PA 1	a.	$655.5 Million	$189.2 Million	$80.5 Million		During 2008-2009, Infrastructure Canada with its partner, the Western Economic Diversification (WED), worked closely on the Saskatchewan Regional Rural Water Supply System (bundled project). Three out of four contribution agreements were signed during the fiscal year with the La Ronge, Water West and Sask Landing components. Once the fourth agreement is signed, this project will represent a total federal contribution of $27.3 Million. This project will contribute towards ensuring that water at drinking water facilities is safe, clean and reliable. Significant advancements on four other projects were also achieved during 2008-2009, such as: The Manitoba Floodway, Winnipeg Wastewater Treatment Plant, Saskatoon Downtown South, Vancouver Convention and Exhibition Centre.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
4. Industry Canada	PA 1	a.	$398.0 Million	$20.5 Million	$25.3 Million	The Toronto Soccer Stadium is scheduled for completion in the upcoming year. The seating capacity will be 20,000 and the stadium is expected to increase tourism, as well as the capacity to host soccer events of a world caliber.	The Toronto Soccer Stadium Project is expected to be completed in 2010. In 2008-2009, Infrastructure Canada and its partner, Industry Canada, signed the following three new contribution agreements for this project: The Niagara Convention and Civic Center’s signed in July 2008, the Ontario Wastewater Bundle-Brockville’s in December 2008, and the Ontario Wastewater Bundle-Sarnia’s in September 2008. These three projects represent a total federal contribution of $75.5 million. During 2008-2009 the National Soccer Stadium in Toronto was completed. This project represents a total federal contribution of $27 Million. The completion of this project contributes and promotes Canada as a leading destination for tourists. Significant advancements on the following three other projects were also achieved during 2008-2009: The Evergreen Brickworks, the Thunder Bay Wastewater Treatment Improvements and the Kingston Ravensview) Water Pollution Control Plant Upgrade.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
5. Indian and Northern Affairs Canada (INAC)	PA 1	a.	$41.0 Million	$24.3 Million	$12.2 Million	The Nunavut Social Housing Project constructed 182 new housing units with all 25 communities in Nunavut having at least one housing unit built. The project resulted in an increase in the supply of social housing and therefore shortened waiting lists, reduced over-crowding and improved housing quality. The project also resulted in opportunities for job creation and training in the area of residential construction as well as general improvements to quality of life for the residents such as disease prevention, and improved education and social outcomes.	This project is now completed. Infrastructure Canada worked closely with INAC in 2008-2009 especially on the Yukon Community Waterfronts. This $11 Million project will provide the critical infrastructure foundation, which is required for the Yukon’s to compete in the global tourism industry.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
6. Transport Canada	Transportation Policy Development and Infrastructure Programs	Canada Strategic Infrastructure Fund	$3,340.5 Million	$578.9 Million	$343.0 Million	In 2008-2009, the department will continue to manage and ensure the compliance of transportation infrastructure projects being constructed by our partners under the current funding programs. Transport Canada will continue to work with other federal departments and our provincial, territorial, municipal and private sector partners to develop and deliver these programs effectively and efficiently in order to meet federal objectives of cost-efficiency and ensure an acceptable level of return in the economic, social and environmental benefits in relation to the investment that is required (benefit-cost analysis). Examples include: -Studies and other preliminary work (phase 1) on Highway 30, to explore the potential for a public‑private partnership to complete this section of highway, spanning 42 kilometers southwest of Montreal, in Quebec ($10.5 Million federal; -Improvements to GO Transit's rail network in the extended Greater Toronto Area ($385 million federal); -Expansion and rehabilitation of Toronto’s transit system ($350 Million federal) in Ontario; -Completion of the twinning of Trans-Canada Highway 1 between Regina and Winnipeg (over $50 Million federal between Saskatchewan and Manitoba); -Twinning of Highway 63 to Fort McMurray in Alberta ($150 Million federal); -Construction of the Canada Line light rail transit system, linking central Richmond, Vancouver International Airport and downtown Vancouver in British Columbia ($450 Million federal); and -National corridors for Canada in the Northwest Territories ($65 Million federal). Transport Canada will work with stakeholders towards the signing of contribution agreements for transportation projects such as: -FLOW - public transit and highway infrastructure projects in the Greater Toronto Area ($962 Million federal); -Highway rehabilitation projects on Route 1 of the Trans‑Canada Highway in Newfoundland ($24 Million federal); -Construction of a four-lane divided highway (Route 175) between Quebec City and Saguenay ($262.5 Million federal); -Rehabilitation of the Dorval Interchange ($55 Million federal); and -The re-building of Highway 185 ($85 Million federal).	During the course of the year, Transport Canada with its partners, completed seven projects from provinces across Canada with federal funding from the Canadian Strategic Infrastructure Fund. Federal contribution for completed projects represented over $130 Million. The completion of these projects contributed towards increasing safety and efficiency, reducing traffic congestion, increasing access to major trade routes and ensuring the efficient movement of commercial traffic. Completed projects include: Phase 1 of Highway 30 in Quebec; Twinning of Trans-Canada Highway 1 between Regina and Winnipeg; Improvements to GO Transit at the Danforth, Scarborough, and Eglington Stations in Lakeshore, Ontario; and Improvements to GO Transit in Stouffville Rail Corridor in Ontario. Transport Canada with its stakeholders signed the following contribution agreement: $697 million for northerly extension of the Spadina Subway into York Region (FLOW). Other completed projects in 2008-2009: Twinning of Highway 1 in Saskatchewan; Improvements to Highway 16 in Saskatchewan; Municipal Bypass projects in the Greater Moncton Area in New Brunswick; Twinning of Highway 101 between Falmouth and Avonport in Nova Scotia; and Construction of the Brooklyn Intersection on Highway 101 in Nova Scotia.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
Total:			$4,732.3 Million	$940.7 Million	$472.2 Million

18. Comments on Variances:

19. Results to be achieved by non-federal partners (if applicable): n/a

20. Contact information:

Jocelyne St Jean
Director General of Intergovernmental Operations
Tel: (613) 948-8003

E-Mail: jocelyne.stjean@infc.gc.ca

---

Border Infrastructure Fund (BIF)

1. Name of Horizontal Initiative: Border Infrastructure Fund (BIF)

2. Name of Lead Department(s): Infrastructure Canada

3. Lead Department Program Activity: Infrastructure Investments

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding

4. Start Date of the Horizontal Initiative: 2003-2004

5. End Date of the Horizontal Initiative: 2013-2014

6. Total Federal Funding Allocation (start to end date): $600 Million

7. Description of the Horizontal Initiative (including funding agreement):

The Border Infrastructure Fund (BIF), which was announced in Budget 2001, is a $600 Million cost-shared contribution program. It complements some of the Government of Canada’s other infrastructure programs, such as the Canada Strategic Infrastructure Fund (CSIF), and the Strategic Highway Infrastructure Program (SHIP), a Transport Canada program (see http://www.tc.gc.ca/SHIP/faw.htm for more information).

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, the Border Infrastructure Fund contributions are directed at, or on routes leading to Canada’s border crossings, with a particular focus on the six largest crossings:

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

The Border Infrastructure Fund also directs some funding towards smaller and regionally important border crossings throughout Canada. Once completed, projects supported under the fund will help to alleviate traffic congestion, increase systems capacity and further the Smart Border Declaration, a Canada-US Declaration. For more information, please see http://www.dfait-maeci.gc.ca/anati-terrorism/declaration-en.asp.

More information on the Border Infrastructure Fund can be found at: http://www.infc.gc.ca/ip-pi/bif-fsif/bif-fsif-eng.html.

8. Shared Outcome(s):

The overall planned results that INFC expects to achieve through the BIF are to invest in projects that contribute to safe and efficient border crossings. Expected outcomes are to alleviate border congestion and increase border crossing capacity, increase security and safety at border crossings, leading to cross border trade efficiencies.

9. Governance Structure(s):

All Border Infrastructure Fund projects are selected under the authority of the Minister Transport, Infrastructure and Communities Portfolio. 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 Transport, Infrastructure and Communities. 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 Border Infrastructure Fund is delivered in partnerships, involving primarily three sets of key collaborators:

1. Infrastructure Canada: As the coordinating and funding agent for the contribution, INFC is responsible for project review and selection. It leads the negotiation of contribution agreements with each of the funding recipients and is responsible for the evaluation of the program. To monitor activities and milestones throughout the project life-cycle, an INFC representative will sit on the project’s Agreement Steering Committee (ASC).
2. Transport Canada: This department has the project specific technical knowledge with regard to each project and provides analysis and advice for the review and approval of projects. Transport Canada is responsible for implementing the BIF projects in a manner that upholds federal due diligence in such areas as: Environmental assessment, the eligibility and reasonability of project costs, the provision of information pertaining to cash flow and budget, the approval of invoices, making payments and the conducting of audits and evaluation of the projects. Transport Canada reviews the business case for the project, determining the costs and benefits to be realized, and works with INFC to jointly negotiate the project agreement and prepares the TB submission. The Minister responsible for the Transport, Infrastructure and Communities Portfolio, signs both documents. Transport Canada is the federal co-chair of the project’s Agreement Steering Committee, and it also ensures adherence to information management requirements to capture, monitor and report on project information.
3. The funding recipient: The recipient may be a provincial, territorial or local government, private partner or a combination thereof. Once the project has been selected, the funding recipient enters into negotiations with INFC 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.

($ millions)

10. Federal Partners	11. Federal Partner Program Activity (PA)	12. Names of Programs for Federal Partners	13. Total Allocation (from Start to End Date)	14. Planned Spending for 2008-2009	15. Actual Spending for 2008-2009	16. Expected Results for 2008-2009	17. Results Achieved in 2008-2009
1. Transport Canada	Transportation Policy Development and Infrastructure Program	a. Border Infrastructure Fund	$542 Million	$122.6 Million	$81.1 Million	In 2008-2009, the department will continue to manage and ensure the compliance of transportation infrastructure projects being constructed by our partners under the current funding programs. Transport Canada will continue to work with other federal departments and our provincial, territorial, municipal and private sector partners to develop and deliver these programs effectively and efficiently in order to meet federal objectives of cost-efficiency and ensure an acceptable level of return in the economic, social and environmental benefits in relation to the investment that is required (benefit-cost analysis). Examples include the construction of a new international bridge and truck route (Route 1) between New Brunswick and Maine ($30 Million federal. Transport Canada will work with stakeholders towards the signing of contribution agreements for transportation projects such as Let's Get Windsor Essex Moving Strategy, ($150 Million federal).	In partnership with Infrastructure Canada, Transport Canada completed projects of over $125 Million dollars of federal contributions under the Border Infrastructure Fund to help improve the safety and efficiency of the transportation network leading to our international borders. During the course of the fiscal year, these eight projects from provinces across Canada were completed: Construction of the Walker Road Rail Grade Separation in Windsor-Essex Corridor in Ontario; Components of Route 1 improvements for new international bridge and truck route between New Brunswick and Maine completed. As well, improvements on St Croix to Church Street in New Brunswick, and improvements on Route 3 to Route 127 in New Brunswick; Highway 15 Widening in British Columbia; Highway 10 Widening in British Columbia; Improvements to Queensborough Bridge in British Columbia; Highway 401/402 Interchange in Ontario; and Highway 402 and Highway 21, Phase 1 in Ontario.
		b.	$	$	$
	PA2	c.	$	$	$
		d.	$	$	$
	PA1	a.	$	$	$
		b.	$	$	$
	PA2	c.	$	$	$
		d.	$	$	$
Total:			$542 Million	$122.6 Million	$81.1 Million

18. Comments on Variances:

19. Results to be achieved by non-federal partners (if applicable): n/a

20. Contact information:

Jocelyne St Jean
Director General of Intergovernmental Operations
Tel: (613) 948-8003

E-Mail: jocelyne.stjean@infc.gc.ca

---

Municipal Rural Infrastructure Fund (MRIF)

1. Name of Horizontal Initiative: Municipal Rural Infrastructure Fund (MRIF)

2. Name of Lead Department(s): Infrastructure Canada

3. Lead Department Program Activity: Infrastructure Investments

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding

4. Start Date of the Horizontal Initiative: 2004-2005

5. End Date of the Horizontal Initiative: 2010-2011

6. Total Funding Allocation (Start to End Date): $1.2 Billion

7. Description of the Horizontal Initiative (Including Funding Agreement):

The $1.2 billion fund has been structured to provide a balanced response to local infrastructure needs in urban and rural Canada, and will ensure that all Canadians share in the benefits of infrastructure investments, whether they live in large, small or remote communities.

The Municipal Rural Infrastructure Fund (MRIF) improves and increases the stock of core public infrastructure in areas such as water, wastewater, cultural, recreation and those very things that make our communities vibrant and productive places to live and work and raise families. The Municipal Rural Infrastructure Fund targets communities of less than 250,000 residents. Like other infrastructure programs, the MRIF seeks to ensure that the projects it funds support the goals of the federal government, encourages new and innovative approaches and favours partnerships, including an emphasis on “green” projects which are sustainable and reduce greenhouse gases.

Through the MRIF, the Government of Canada continues to work in productive partnerships with provinces, territories, municipalities, as well as the private sector, to invest in local infrastructure projects. These projects will be vital to sustaining economic growth and supporting and enhancing the quality of life in Canadian communities.

The MRIF is cost-shared, with the Government of Canada contributing on average, one-third of total project eligible costs. Provinces and municipalities contribute the remainder. 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 more than one-third.

Additional information on the Municipal Rural Infrastructure Fund can be found at: http://www.infc.gc.ca/ip-pi/mrif-fimr/mrif-fimr-eng.html.

8. Shared Outcomes(s):

• The overall expected outcomes are: improved and increased stock of core public infrastructure in areas such as water, wastewater, cultural and recreation; and
• Improved quality of life and economic opportunities for smaller communities.

9. Governance Structure(s):

The Municipal Rural Infrastructure Fund is based on a federal partnership arrangement between Infrastructure Canada and five federal departments: The Western Economic Diversification, Industry Canada (for Ontario projects), the Canada Economic Development Agency (for Quebec), the Atlantic Canada Opportunities Agency and Indian and Northern Affairs Canada (INAC). The MRIF involves 13 sub-programs, one joint sub-program for each province and territory. Each of the 13 MRIF sub-programs follows the same general conditions, priorities and approaches, but recognizing the individual nature of each sub-program, the agreements encompass the nuances pertaining to the partnering order of government.

To stimulate expected outcomes, MRIF 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 and partnerships of various types, including public-private partnerships are encouraged in the formulation and delivery of MRIF 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.

($ millions)

10. Federal Partners		11. Federal Partner Program Activity (PA)	12. Names of Programs for Federal Partners	13. Total Allocation (from Start to End Date)	14. Planned Spending for 2008-09	15. Actual Spending for 2008-09	16. Expected Results for 2008-09	17. Results Achieved in 2008-09
1. Atlantic Canada Opportunities Agency (ACOA)		PA 1	a.	$143.4 Million	$51.1 Million	$32.4 Million	The City of Bathurst’s New Brunswick’s Water and Wastewater System Expansion is scheduled to complete, which will connect approximately 450 new households to municipal water service.	The City of Bathurst’s New Brunswick’s Water and Wastewater System Expansion Project is now completed. During 2008-2009, two new projects were approved in New Brunswick totalling nearly $1 Million in total federal contributions. These bring the total number of MRIF projects to 59 since the program’s inception, for a total federal contribution of $38.8M.
			b.	$	$	$	Nova Scotia’s Cape Breton Regional Municipality is scheduled to complete its Dominion Sanitary Sewer and Treatment which will treat approximately 1,100 households to a higher quality of water and increase the capacity to treat wastewater by approximately 1,360,000 M3 per annum.	Significant advancements on this project were achieved during 2008-2009. There are currently 83 projects ongoing in the province of Nova Scotia, totalling a federal contribution of $43.5M.
		PA 2	c.	$	$	$	The Mealy Mountain Auditorium should be completed in Newfoundland and Labrador during the 2008-2009 year. This cultural facility should attract approximately 5,000 visitors per annum.	Significant advancements on this project were achieved during 2008-2009. In 2008-2009, 18 new projects were approved representing a federal contribution of $4.2M. Since the first year of MRIF, 88 projects were approved, totalling $19.3M in federal contribution. From this total, 15 projects have been completed.
			d.	$	$	$	The Montague Wellness Centre in Prince Edward Island should attract approximately 15,000 visitors per annum. As well, this recreational facility will be used by approximately 25,000 people per annum.	Significant advancements on this project were achieved during 2008-2009. During the course of 2008-2009, 11 new projects were approved in Prince Edward Island, totalling $6.2 Million in federal contribution. Since the beginning, 97 projects were approved under the MRIF program for a total federal contribution of $21.2M.
2. Canada Economic Development for Quebec Regions (CEDQR)		PA 1	a.	$241.8 Million	$79.5 Million	$32.0 Million	An industrial park will be completed in the City of New Richmond. It is expected that approximately seven new businesses will be established in the new park, and the potential for investment of these businesses should be approximately $9 Million. Two hundred permanent jobs will be created as a direct result of this project.	Significant advancements on this project were achieved during 2008-2009.
			b.	$	$	$	The Maison des jeunes Kekpart will support users by offering workshops and practical training in the arts and multimedia. Once the project has been completed, the building will benefit at least 6,000 young people.	Significant advancements on this project were achieved during 2008-2009.
		PA 2	c.	$	$	$	The Patro de Lévis Community Centre will be able to better respond to the increasing demand for activities and services for the growing population of Lévis.	This project is now completed.
			d.	$	$	$	The repairs to Royal Avenue between the bridge at the Montmorency River and la Côte de l’Église are replacing 1,000 meters of sewer underneath Royal Avenue and will result in 4,500 people having access to a higher standard of drinking water.	This project is now completed.
3. Western Economic Diversification (WED)		PA 1	a.	$286.3 Million	$45.1 Million	$53.3 Million	The Drayton Valley Wastewater Treatment Facility Upgrade will connect approximately 300 new households to municipal wastewater treatment systems and increase the number of industries, commercial establishments and institutions connected to these systems. It will meet the future capacity for the Town of Drayton Valley and surrounding rural areas of Brazeau County with higher effluent quality release to the environment.	Significant advancements on this project were achieved during 2008-2009. Since the beginning of the MRIF program, Alberta had 85 projects approved for a total federal contribution of $106M. From these results, one project was approved during 2008-2009, with a federal contribution of $1.1M.
			b.	$	$	$	Manitoba’s Grand Rapids Sewer and Water Project will connect 140 new households to municipal water service and improve the quality of water to 30 more. The facility should reduce the number of health related water incidents by approximately 20 incidents per annum.	Since the inception of the MRIF program, Manitoba had 85 projects approved for a total federal contribution of $46.6M. From these results, one project was approved in 2008-2009, with a federal contribution of $3.3M.
		PA 2	c.	$	$	$	The Water System Improvements for the City of Yorkton in Saskatchewan will improve the quality of potable water to 6,800 new households.	This project is now completed. In 2008-2009, three new projects were approved in Saskatchewan under the MRIF program. These three projects represent a federal contribution totalling $604,000. Since the inception of the MRIF program, 300 projects were approved in this province, for a total federal contribution totalling $44.2M.
			d.	$	$	$	The Chilliwack-Evans Road Connector in British Columbia will decrease traffic accidents by approximately 20 per annum. It will also reduce congestion, estimated at saving 1.1 Million vehicle-hours per year, and save approximately 6,553 tons of carbon dioxide equivalent emissions per year.	Significant advancements on this project were achieved during 2008-2009. Since the inception of the MRIF program, 103 projects were approved in British Columbia for a total federal contribution of $73.2M.
4. Industry Canada		PA 1	a.	$373.3 Million	$74.0 Million	$86.6 Million	In Ontario, the North Bay Water Filtration Plant will improve the quality of potable water to 22,500 houses while improving the quality of 230,000 meters of pipe within the wastewater distribution system. The upgrading of the Renfrew Wastewater Treatment Plant will connect 395 new houses to municipal wastewater collection and treatment systems while improving quality to 3,460 more.	Significant advancements on this project were achieved during 2008-2009.
			b.	$	$	$	The upgrading of the Renfrew Wastewater Treatment Plant will connect 395 new houses to municipal wastewater collection and treatment systems while improving quality to 3,460 more.	Significant advancements were achieved on this project during 2008-2009. During the course of 2008-2009, 23 new projects were approved in Ontario totalling $31.8 million in federal contributions. Since the beginning, 739 projects were approved under the MRIF program, for a total federal contribution totalling $354.7M.
		PA 2	c.	$	$	$
			d.	$	$	$
5. Indian and Northern Affairs Canada (INAC)	PA1		a.	$59.1 Million	$30.2 Million	$16.0 Million	The Wood Box Utilidor Replacement Program in Inuvik, Northwest Territories, will improve service reliability of wastewater treatment facilities and collection systems. It will also reduce Operations and Management costs and minimize service interruptions.	Significant advancements were achieved on this project during 2008-2009.
			b.	$	$	$	The Pond Inlet Community Centre will provide residents with a new location for meetings and social interactions as well as increasing programming of activities, both educational and recreational for youth and children of the community.	This project is now completed.
	PA2		c.	$	$	$
			d.	$	$	$
Total				$1,103.9 Million	$279.9 Million	$220.3 Million

18. Comments on Variances:

19. Results to be achieved by non-federal partners (if applicable): n/a.

20. Contact Information:

Jocelyne St Jean
Director General of Intergovernmental Operations
Tel: (613) 948-8003

E-Mail: jocelyne.stjean@infc.gc.ca

---

Infrastructure Canada Program (ICP)

1. Name of Horizontal Initiative: Infrastructure Canada Program (ICP)

2. Name of Lead Department: Infrastructure Canada

3. Lead Department Program Activity: Infrastructure Investments

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding

4. Start Date of the Horizontal Initiative: 2000-2001

5. End Date of the Horizontal Initiative: 2010-2011

6. Total Federal Funding Allocation (start to end date): $2.05 Billion

7. Description of the Horizontal Initiative (including funding agreement):

The Infrastructure Canada Program (ICP) is a contribution program introduced in 2000 for local municipal infrastructure projects. The Government of Canada matches the provincial/territorial governments’ contribution, providing up to one-third of the cost of each municipal infrastructure project. The ICP is a $2.05 billion program in effect over seven fiscal years. The ICP is well underway and projects are ongoing across the country. Most of the funding has either been committed for approved projects, or notionally allocated to those that are under review.

As of March 31, 2009, virtually all ICP funding was committed, and 3,871 projects across Canada had been approved, totalling nearly $2 billion in federal contributions. The ICP, with the exception of the First Nations component, was extended to March 31, 2011 to allow all projects to be completed, though no additional funding will be provided.

The ICP’s first priority for funding is green municipal projects, i.e., projects with environmental benefits that enhance the quality of the environment or health benefits that enhance the quality of human life. Other priorities include affordable housing, culture, tourism and recreation, rural and remote telecommunication, high-speed access for local public institutions and local transportation. Recognizing that individual communities know their needs best, the program operates in a "bottom-up" fashion, with the flexibility for municipalities and First Nations to identify their own infrastructure priorities. It also includes provisions to ensure an equitable balance of funding between urban and rural communities.

Further information may be obtained from the following web sites:

• http://www.infc.gc.ca/ip-pi/icp-pic/icp-pic-eng.html
• http://www.acoa.ca/English/Pages/home.aspx
• http://www.dec-ced.gc.ca/eng/programs/infrastructure/infrastructure.html
• http://www.ainc-inac.gc.ca/ih/ci/index-eng.asp
• http://www.ic.gc.ca/coip-pico/coip-pico.nsf/main!OpenPage
• http://sustainablecommunities.fcm.ca/infraguide/

8. Shared Outcome(s):

The overall planned results are that urban and rural municipal infrastructure in Canada is enhanced and Canadians’ quality of life is improved through investments that protect the environment and support long-term community and economic growth.

9. Governance Structure(s):

The key roles and responsibilities of partners are as follows:

• Minister of Transport, Infrastructure and Communities: Overall program management and accountability to Parliament, including media relations, appointment of Management Committee members, project approval for projects where the federal share is between $1M - $10M;
• Infrastructure Canada: Oversight and monitoring of the program ensuring effective management and a coordinated approach to communications and provision of services including operational services, information management and communications services;
• Ministers or Secretaries of State responsible for delivery (Industry Canada, the Western Economic Diversification, the Canada Economic Development for Quebec Regions, Atlantic Canada Opportunities Agency, Indian and Northern Affairs Canada) with the Minister of Transport, Infrastructure and Communities, joint authority to enter into contribution agreements with provinces/territories, and project approval where federal share is less than $1M;
• Federal-Provincial/Territorial Management Committees (one per jurisdiction): Administration and management of ICP in accordance with terms and conditions of the applicable federal-provincial/territorial agreement;
• Provinces/Territories: Signatories to the negotiated agreements with the federal government;
• Local governments: Main applicants for ICP projects, and also responsible for sponsoring projects with NGOs and/or private sector;
• NGOs and private sector: Eligible to propose projects that are sponsored either by a municipality, a province/territory or the federal government; and
• Other government departments: Provide key expertise for all or some types of ICP projects (e.g., Transport Canada, National Research Council (e.g., InfraGuide), Department of Fisheries and Oceans, Canadian Environmental Assessment Agency, Federation of Canadian Municipalities).

($ millions)

10. Federal Partners	11. Federal Partner Program Activity (PA)	12. Names of Programs for Federal Partners	13. Total Allocation (from Start to End Date)	14. Planned Spending for 2008-2009	15. Actual Spending for 2008-2009	16. Expected Results for 2008-2009	17. Results Achieved in 2008-2009
1. Atlantic Canada Opportunities Agency (ACOA)	PA 1	a.	$188.2 Million	$1.6 Million	$0.7 Million	In Nova Scotia, the Municipality of the County of Victoria –Baddeck should complete the upgrades to its wastewater treatment system which will treat 287 houses to a higher quality of wastewater while connecting 80 more to wastewater treatment systems; in addition, this upgrade will protect the Bras d’Or Lakes.	This project has been completed.
		b.	$	$	$	The Village of Dorchester in New Brunswick should complete the upgrades to its water system which will allow it to provide potable water to the residences there.	This project has been completed.
	PA 2	c.	$	$	$	The Glenwood-Appleton Sewage Treatment Plant in Newfoundland and Labrador should be completed in the 2008-09 year and will increase the quality of potable water to 540 houses.	Significant advancements were achieved on this project during 2008-2009. Since the inception of the ICP fund, ACOA has managed over 690 projects in the Atlantic provinces, for a total federal contribution of $180.9 Million.
		d.	$	$	$
2. Canada Economic Development for Quebec Regions (CEDQR)	PA 1	a.	$524.7 Million	$60.0 Million	$50.0 Million		Since the beginning of the program, the Canada Economic Development for Quebec Regions administrated more than 890 projects, which represents a total federal contribution of $503.3 Million.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
3. Western Economic Diversification (WED)	PA 1	a.	$567.8 Million	$12.7 Million	$13.0 Million		The Western Economic Diversification managed over 1,600 projects funded under the Infrastructure Canada Program (ICP) since the inception of the program. These projects represent a total federal contribution of more than $540 Million.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
4. Industry Canada	PA 1	a.	$693.4 Million	$24.2 Million	$11.8 Million	The expansion to the Art Gallery of Ontario should be completed in the 2008-09 year. This expansion will directly create 139 permanent jobs and indirectly create 106 more. It is expected that 348,000 more tourists will visit the Gallery as a result of this project. Furthermore an increase of $72,000,000 in investment or economic activity has been generated from the private sector as a result of this project.	This project has been completed. Since the beginning of the Infrastructure Canada Program, Industry Canada managed over 530 projects for a total federal contribution of nearly $671 Million.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
5. Indian and Northern Affairs Canada (INAC)	PA 1	a.	$40.0 Million	$	$		Indian and Northern Affairs Canada (INAC) managed over 100 projects under the Infrastructure Canada Program fund. These projects represented a total federal contribution of more than $38 Million.
		b.	$	$	$
	PA 2	c.	$	$	$
		d.	$	$	$
Total :			$2,014.1 Million	$98.5 Million	$75.5 Million

18. Comments on Variances:

19. Results to be achieved by non-federal partners (if applicable): n/a

20. Contact information:

Jocelyne St Jean
Director General of Intergovernmental Operations
Tel: (613) 948-8003

E-Mail: jocelyne.stjean@infc.gc.ca

---

Building Canada Fund (BCF)

1. Name of Horizontal Initiative: Building Canada Fund (BCF)

2. Name of Lead Department(s): Infrastructure Canada

3. Lead Department Program Activity: Infrastructure Investments

In 2008 Program Activity was changed to: Targeted Project-Based Infrastructure Funding

4. Start Date of the Horizontal Initiative: 2007-2008

5. End Date of the Horizontal Initiative: 2016-2017

6. Total Federal Funding Allocation (start to end date): $8.8 Billion

7. Description of the Horizontal Initiative (including funding agreement):

The Building Canada Fund focuses on projects that deliver economic, environmental and social benefits to all Canadians.

The national priorities for funding are core national highway system routes, 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), as well as projects that contribute to the ongoing development of safe and strong communities (disaster mitigation, culture, sport, recreation, local roads and bridges, and brownfield re-development). Funding is used to support public infrastructure owned by provincial, territorial and municipal governments and entities, as well as 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, the Building Canada funding 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 (MIC) targets larger, strategic projects of national and regional significance. Under this component, two-thirds of national funding is directed to the above-mentioned national priorities. Projects under the Major Infrastructure Component are selected jointly through a federal-provincial negotiation process, and all projects are required to meet criteria that outline basic eligibility, financial and legal requirements, expected project benefits, risk mitigation and minimum federal requirements..

More information on the Building Canada Fund can be found at: http://www.buildingcanada-chantierscanada.gc.ca/funprog-progfin/target-viser/bcf-fcc/bcf-fcc-eng.html.

8. Shared Outcome(s):

When the program was launced, the overall expected outcomes were to deliver results that matter to Canadians, such as cleaner air and water, safer roads, shorter commutes and prosperous, liveable communities while supporting the Canada’s priorities of a stronger economy, cleaner environment and better communities. Howerver, in recognition of the current economic crisis, the Government of Canada committed as part of the 2009 Economic Stimulus Plan to use new investment in infrastructure to inject immediate stimulus into the economy while promoting long-term growth. In March 2009, the program’s terms and conditions were amended to reflect this new objective, which required a different approach to BCF.

9. Governance Structure(s):

1. Major Infrastructure Component of the Building Canada Fund:

All Major Infrastructure Component (MIC) projects are selected under the authority of the Minister of Transport, Infrastructure and Communities Portfolio. 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 federal project review, Treasury Board approval is required for contributions to any projects above the delegated threshold (e.g. $100 Million federal contribution) and certain other types of projects. 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 Major Infrastructure Component is delivered in partnership involving primarily three sets of key collaborators:

• Infrastructure Canada: As the coordinating and funding agent for the contribution, Infrastructure Canada is responsible for identifying priorities, recommending approval of all Major Infrastructure Component projects to the Minister, public announcements, environmental assessment in some cases, and program evaluation. In the case of non-transportation projects, Infrastructure Canada is also responsible for project review and the negotiation of contribution agreements with each of the funding recipients. Where necessary, Infrastructure Canada develops, in coordination with the implementing department/agency, the submission to Treasury Board for the approval of funds. For transport-related projects, Transport Canada completes a project review for Infrastructure Canada, negotiates the contribution agreements and any required Treasury Board submissions. To monitor activities and milestones throughout the project life cycle, an Infrastructure Canada representative will sit on the project’s Agreement Steering Committee. Infrastructure Canada is responsible for general oversight of all projects in this program.
• An implementing department/agency: Infrastructure Canada’s relationship with each implementing department or agency varies with their capacity and the complexity of the project. Responsibilities are also negotiated specifically for each project. The implementing department/agency 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. The implementing department/agency will support Infrastructure Canada in the implementation of the Major Infrastructure Component 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 evaluations of the projects. The implementing department/agency would normally be represented on the project’s Agreement Steering Committee. The implementing department/agency will also ensure adherence to Infrastructure Canada’s information management requirements, including the use of Infrastructure Canada’s Shared Information Management System for Infrastructure (SIMSI), which captures, monitors and reports projects information. The implementing department/agency also provides communication support to Infrastructure Canada.
• The funding recipient: The recipient may be provincial, territorial or local government, a private partner, a non-government organization or a combination thereof. Once the project has been selected, Infrastructure Canada leads the negotiations to develop a contribution agreement, except for any project that falls into a transportation category, in which case Transport Canada negotiates the agreement with the recipient on behalf of Infrastructure Canada. The funding recipient is responsible for ensuring that the project is completed as per the terms and conditions of the contribution agreement.

2. Communities Component of the Building Canada Fund

The Communities Component 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 with the exception of Quebec, has a federal-provincial Joint Secretariat staffed by Federal Delivery Partners and provincial officials.

All project applications under the Communities Component are subject to a competitive, application-based process. Except in Quebec, 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 materials for the Oversight Committees. The Oversight Committees reviews and ranks the application against the mandatory and additional leveraging criteria established in the project review criteria of the Building Canada Fund. The Oversight Committee also presents the recommended list of projects to the federal Minister or the Minister of the Federal Delivery Partner 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 provides feedback on the list of projects to the Oversight Committee, who 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 stipulates 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 and is appointed by the Minister responsible for the Transport, Infrastructure and Communities Portfolio.

($ millions)

10. Federal Partners	11. Federal Partner Program Activity (PA)	12. Names of Programs for Federal Partners	13. Total Allocation (from Start to End Date)	14. Planned Spending for 2008-2009	15. Actual Spending for 2008-2009	16. Expected Results for 2008-2009	17. Results Achieved in 2008-2009
1. Atlantic Canada Opportunities Agency (ACOA)	PA 1	a. BCF and MIC	$12.4 Million	$	$0.1 Million	Nova Scotia – Mainland Commons in Halifax. The design and construction of a 176,000 square-foot multi-purpose athletic facility and space for the Canadian Sports Centre Atlantic, to provide services to the community and to host the 2011 Canada Winter Games.	This project was announced on August 6, 2008, a contribution agreement was signed on September 4, 2008, and the project began in December 2008.
		b. CSIF	$26.6 Million	$	$0.2 Million	New Brunswick-St. John’s Harbour Clean-Up Project. The project consists of the construction of a new Wastewater Treatment Facility and the installation of a number of pumping stations and sewer collectors in the City of Saint John, New Brunswick. The project will eliminate the outfall of raw sewage from a number of locations into the Saint John’s harbour.	A contribution agreement was signed on September 4, 2008.
	PA 2	c. BCF and CC	$148.3 Million	$	$0.8 Million	New Brunswick, Nova Scotia, Prince Edward Island and Newfound and Labrador.	Newfoundland and Labrador: A Communities Component agreement was signed on May 20, 2008, allocating $37M in federal contribution towards the Communities Component (CC) projects. Nova Scotia: 33 Communities Component (CC) projects were approved in 2008-2009, for a total federal contribution of $17.5M. Prince Edward Island: A Communities Agreement was signed on June 24, 2008, allocating $22M in federal contribution towards the Communities Component (CC) projects., and 17 Communities Component projects were approved during 2008-2009 for a total federal contribution of $7.1M. New Brunswick: 32 Communities Component (CC) projects were approved during 2008-2009 for a total federal contribution of $19.1M.
		d. MRIF	$23.2 Million	$	$4.6 Million		Funds from the Building Canada Fund (BCF) were moved towards the Municipal Rural Infrastructure Fund (MRIF) Top-Up allocation, in order to fund more projects where needed.
2. Canada Economic Development for Quebec Regions (CEDQR)	PA 1	a. BCF and MIC	$40.0 Million	$	$5.9 Million	Quebec Project: Quartier des spectacles in Montreal. The project consists of infrastructure work in five new permanent public spaces located between the arteries of City Councillors and Berri, as well as Sherbrooke and René-Levesque Boulevard. It includes: The addition of bicycle paths, widening of walkways, re-surfacing and extension of streets, the installation of street lighting fixtures and showcases, the installation of new water and wastewater infrastructure.	A contribution agreement was signed on March 24, 2009.
		b. BCF and CC	$210.0 Million	$	$	Quebec.	A Communities Component (CC) agreement was signed on March 26, 2009, allocating $210M in federal contribution towards CC projects.
	PA 2	c. MRIF	$39.8 Million	$	$		Funds from the Building Canada Fund (BCF) were moved towards the Municipal Rural Infrastructure Fund (MRIF) Top-Up allocation, in order to fund more projects where needed.
		d.	$	$	$
3. Transport Canada	PA 1	a. BCF and MIC	$1,493.9 Million	$	$1.9 Million	Transport Canada will work closely with Infrastructure Canada on implementing the transportation projects under the Building Canada Fund (BCF). Six categories of eligible projects under the BCF are within the transportation domain: National Highway System, Public Transit, Local Roads, Regional/Local Airports, Shortline Rail and Shortsea Shipping.	In partnership with Infrastructure Canada, Transport Canada analyzed over $1 billion dollars in federal funding for various projects under the Building Canada Fund in British Columbia, Alberta, Saskatchewan, Ontario, Quebec and Nova Scotia. Announced projects included: $250M for GO Transit Projects; $350M for the Evergreen Rapid Transit; $62M to accelerate the Twinning of Highway 11 between Saskatoon and Prince Albert, Saskatchewan; $6.75M for improvements to Nova Scotia’s Highway 101; $88.3M in funding for British Columbia Transit projects; $75M Twinning of Autoroute 73/173 in Quebec; $16M for construction of an interchange at Lewvan Drive in Saskatchewan; $100M for five interchanges on the Southwest Ring Road in Edmonton, Alberta; Core National Highway System Projects, including the following: $16.7M Upgrading of Highway 1 from Monte Creek to Pritchard in British Columbia; $33.58M Upgrading of Highway 97 from Winfield to Oyama in British Columbia; $26.9M Upgrading of Highway 1 from Pritchard to Hoffman’s Bluff in British Columbia; $30.44M Upgrading of Highway 1 Donald Bridge in British Columbia; $14M Upgrading of Highway 1 Clanwilliam Bridge in British Columbia; and $30M Phase 2 of Highway 104 in Antigonish, Nova Scotia.
		b. CSIF	$100.0 Million	$	$11.9 Million	New Brunswick Highways.	In 2008-2009, Transport Canada continued to manage the contribution with New Brunswick for $100 Million in BCF funding that was transferred to the Canada Strategic Infrastructure Fund (CSIF) in 2007.
	PA 2	c.	$	$	$
		d.	$	$	$
4. Western Economic Diversification (WED)	PA 1	a. BCF and MIC	$100.0 Million	$	$32.0 Million	Northlands Exhibition Facility, Edmonton, Alberta. Will assist in meeting current and forecasted demand for exhibits, conferences and catering space, enhance ability to attract international conventions, as well as to compete for regional and national events. Kinnear Centre (Banff Centre) for Creativity and Innovation at Banff, Alberta. Increased number of professional development opportunities in all arts and disciplines. Expected result is in higher enrolment numbers in these areas. Calgary Olympic Development Association (CODA). To provides long-term training and competition opportunities for Canadian athletes. By centralizing coaching and supporting excellence, it enhances opportunities for Canadian athletes to compete for and to win Olympic and Paralympics medals. IPSCO Place (Formerly Regina Exhibition Park). To enhances capacity for Saskatchewan’s largest events facility to retain long standing clients and to attract new, large scale events.	A contribution agreement was signed on December 23, 2008, and construction work for this project had already begun in July 2008. A contribution agreement was signed on December 22, 2008, and construction work this project had already begun in June 2008. A contribution agreement was signed on December 4, 2008, and construction work for this project began in December 2008. A contribution agreement was signed on June 9, 2008, and this project began in June 2008.
		b. CSIF	$170.5 Million	$	$48.3 Million	Red River Floodway.	Over the period of 2008-2009, the Red River Floodway Expansion Project continued to progress.  The replacement of the CP Emerson Railway Bridge began in the summer of 2008, and late in 2008, two additional bridge replacement projects were approved for inclusion in the scheduled project. The Floodway gained international recognition as one of the world's greatest engineering achievements on July 4, 2008, by the International Association of Macro Engineering Studies.
	PA 2	c. BCF and CC	$359.5 Million	$	$	Alberta, British Columbia, Manitoba and Saskatchewan.	Manitoba: A Communities Component (CC) agreement was signed on December 18, 2008, allocating $41M towards Communities Component projects. Saskatchewan: A Communities Component (CC) agreement was signed on April 11, 2008, allocating $94.5M towards Communities Component projects. 47 Communities Component projects were approved during 2008-2009 for a total federal contribution of $31.6M. Alberta: A Communities Component agreement was signed on December 4, 2008, allocating $88M towards Communities Component projects. 22 Communities Component project agreements were approved during 2008-2009, for a total federal contribution of $24.4M. British Columbia: 42 Communities Component projects agreements were approved during 2008-2009, for a total federal contribution of $58.5M.
		d. MRIF	$58.5 Million	$	$5.5 Million		Funds from the Building Canada Fund (BCF) were moved towards the Municipal Rural Infrastructure Fund (MRIF) Top-Up allocation, in order to fund more projects where needed.
5. Industry Canada	PA 1	a. BCF and MIC	$50.0 Million	$	$15.4 Million	The Ottawa Convention Centre. The new convention facility will be better able to accommodate large events and attract larger number of visitors to the region.	A contribution agreement was signed on September 4, 2008, and the project’s demolition and construction work also began in 2008.
		b. BCF and CC	$362.0 Million	$	$	Ontario.	A Communities Component (CC) agreement was signed on August 26, 2008, allocating $362M towards CC projects. 290 Communities Component projects were approved during the fiscal year 2008-2009 for a total federal contribution of $343.4M.
	PA 2	c. MRIF	$64.0 Million	$	$		Funds from the Building Canada Fund (BCF) were moved towards the Municipal Rural Infrastructure Fund (MRIF) Top-Up allocation, in order to fund more projects where needed.
		d.	$	$	$
6. Indian and Northern Affairs Canada (INAC)	PA 1	a. MRIF	$9.5 Million	$	$0.5 Million		Funds from the Building Canada Fund (BCF) were moved towards the Municipal Rural Infrastructure Fund (MRIF) Top-Up allocation, in order to fund more projects where needed.
		b.	$	$	$
	PA 2	d.	$	$	$
		d.	$	$	$
Total:			$3,268.2 Million	$ Million	$127.1 Million

18. Comments on Variances:

19. Results to be achieved by non-federal partners (if applicable): n/a

20. Contact information:

Jocelyne St Jean
Director General of Intergovernmental Operations
Tel: (613) 948-8003

E-Mail: jocelyne.stjean@infc.gc.ca

Table 9: Green Procurement

Meeting Policy Requirements

1.  Has the department incorporated environmental performance considerations in its procurement decision-making processes?

Yes. Environmental performance consideration has been incorporated in the department’s procurement decision-making processes.

2.  Summary of initiatives to incorporate environmental performance considerations in procurement decision-making processes:

Infrastructure Canada recently repatriated certain key contracting and procurement functions from its shared services providers, giving the department more control of its procurement practices and facilitating implementation of the Policy on Green Procurement. During the reporting period of 2008-2009, Infrastructure Canada worked with Public Works and Government Services Canada’s Client Engagement Sector to analyze its spending patterns, and to identify opportunities for improved procurement practices. In 2009-2010, Infrastructure Canada’s Contracting and Procurement Unit is exploring options for updating its contracting systems to identify and track all green procurement.  This will allow the department to set targets based on spending from past years. In the meantime, the department continues to consider green procurement objectives when purchasing the following commodities:

Computers, printers and photocopiers:

• Purchasing or leasing energy-efficient equipment from companies with environmental programs that have recycled content and a recycling program;
• Using multi-function machines to reduce energy consumption;
• Using recycled toner cartridges;
• Developing a standard policy on personal, versus shared printers; and
• Ensuring default settings on the printers and photocopiers are to print double-sided, and print in black ink only.

Furniture:

• Using products that meet or exceed environmental norms established by Public Works and Government Services Canada; and
• Re-using and recycling old furniture.

 Office Supplies:

• Using paper that is 30% recycled or higher;
• Ensuring business cards are printed on recycled paper and bear the Eco Logo symbol; and
• Ensuring nameplates are printed on 100% recycled paper and placed in re-usable plastic holders.

Travel and Meetings:

• Using government travel services and encouraging travelers to use sustainable methods of transportation and to select Green hotels;
• Promoting Green meetings within the department;
• Participating in the EcoPass Public-Transit Program;
• Encouraging staff to use other modes of transportation such as cycling and walking, by making showers available at the 90 Sparks Street, Ottawa office location.

Recycling:

• Implementing material recycling in all locations;
• Implementing a program in place at 90 Sparks where the employees can drop off used batteries; and
• All defective and end-of-life telecommunications devices and accessories are sent to the vendors for recycling, where about 20% are re-used as telecommunication devices. 

Contracting:

• Using green clauses for service contracts.

3.  Results achieved:

Infrastructure Canada’s contracting and procurement team has received analysis reports on amounts spent, and has met with Public Works and Government Services Canada’s Client Engagement Team to investigate areas of procurement that could be “greener”. The IM/IT division at Infrastructure Canada has developed a standard criteria for the use of personal printers versus shared printers. Templates for letterhead were created electronically, to allow letterhead logo to be used with standard recycled paper stock.  

4.  Contributions to facilitate government-wide implementation of green procurement:

Infrastructure Canada’s Contracting Manager is a member of the Green Procurement Forum, and participated in the “From Strategy to Practice – Focusing Our Efforts” forum on April 23, 2009, where departments shared challenges and focused on new procurement strategies that will continue to incorporate green procurement requirements into our business processes and tools.

Infrastructure Canada continues to use Standing Offers and other procurement tools that have green procurement imbedded in them.

Green Procurement Targets

5.  Has the department established green procurement targets?

In progress. To identify specific targets, Infrastructure Canada is in the process of implementing a contract management system that allows tracking and reporting on green procurement.

6.  Are these green procurement targets the same as those identified in your Sustainable Development Strategy (Table 8)?

Not applicable.

7.  Summary of green procurement targets:

Not applicable.

8.  Results achieved:

Not applicable.

Table 10: Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees

There were no recommendations to Infrastructure Canada from Parliamentary Committees in 2008-2009.

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

• Response to the Auditor General: Nothing to report for the period of 2008-2009.
• Response to the Commissioner of the Environment and Sustainable Development (CESD):
  1. Chapter 03 - Sustainable Development Strategies Case Studies, October 2003:
     • Update to Recommendation 3.42 - The Infrastructure Canada Program (ICP) is nearing completion and operates under a Federal Governance and Accountability Framework that identifies roles and responsibilities. The ICP funds are more the 95% committed.
       
       With respect to reporting on the environmental performance of the Infrastructure Canada Program, Infrastructure Canada will identify benefits by category of project activity.
       
       A summative evaluation will take place within twelve months of the completion of the program in March of 2011. The summative evaluation will assess the full range of results from outputs through immediate and intermediate outcomes and ultimately, where possible, the ultimate outcomes. The summative evaluation will provide thorough reporting on the environmental benefits and will assess the full range of results. The framework for the ICP evaluation is currently under development. Taking into account the timeline of March 2011, the results of this summative evaluation will also be taken into consideration in the context of future programming.
     • Update to Recommendation 3.44 - Project selection processes administered by Infrastructure Canada ensure that the project review criteria are fully considered in the identification of projects that contribute to environmental sustainability.
       
       The Framework Agreements signed with provinces and territories provide for the development of a framework for reporting to the public on results of infrastructure investments made under the Building Canada Fund.
       
       Infrastructure Canada will be able to report on specific positive contributions made by the BCF and, to a very limited degree, the Provincial-Territorial Base Fund (PT Base), to infrastructure objectives which are of particular interest to the Government of Canada, namely economic growth, a healthy and sustainable environment, and stronger and healthier communities.
       
       The Accountability, Risk and Audit Framework (ARAF) for the Building Canada Fund currently indicates that reporting will be done. Examples of Key performance issues include:
       • The extent to which BCF funded projects will advance Canada’s priorities as defined in the project review criteria; and
       • The extent to which BCF approved projects support environmental priorities.
     • Examples of Key Indicators corresponding to the above issues include:
       • Number and reach of BCF funded projects that set targets to meet the criteria defined in the program terms and conditions and agreed to provide a report on Project Outcome Results;
       • Number and reach of approved projects that have received environmental approvals;
       • Number and reach of approved projects that will result in environmental enhancements;
       • Number of initiatives under accepted PT Base Annual Capital Plans that are in categories that normally result in environmental enhancements; and
       • INFC is continuing to work with federal delivery partners to review and refine business processes that capture reporting of benefits for ICP, MRIF and CSIF. It must be recognized, however, that these programs are distinct in need, scope, approach and implementation. Measures that are developed must reflect the needs and capacities of federal partners, and particularly the unique needs and capacities of municipalities.
     • Program Operations is planning to develop an initiative that can draw on lessons learned from the ICP projects and program, as well as other infrastructure programs. This initiative will be used to ‘harvest’ knowledge gained, and support future decision-making on infrastructure projects.
  2. Climate Change Audit:
     Advised January 22, 2009, that the Commissioner of the Environment and Sustainable Development (CESD) would be starting a horizontal performance audit on Climate Change Adaptation and Governance, for reporting by the CESD in spring 2010.
     
     Representatives from Infrastructure Canada’s Internal Audit and Program areas met with the CESD audit team on May 11, 2009 to commence the audit and exchange information and documentation required to assist the CESD audit team in their planning work and development of an Entity Plan Summary.

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages)

An external audit was conducted by the Public Service Commission (PSC), titled Audit of Infrastructure Canada. The audit was a human resources (HR) audit that examined the HR staffing practices at Infrastructure Canada.

Infrastructure Canada’s People Management Committee has reviewed and validated the draft audit findings on May 22, 2009, and is awaiting the draft audit report from the Public Service Commission. The Management Response to the draft audit report will follow.

Table 11: Internal Audits and Evaluations

Table 11a: Internal Audits (Current Reporting Period)

1. Name of Internal Audit	2. Audit Type	3. Status	4. Completion Date
Assurance Audit of Human Resources Staffing and Classification. http://www.infc.gc.ca/pd-dp/ia-vi/staffing-personnel-2008-eng.html	Human Resources	Completed	June 19, 2008
Audit of the Financial Management Accountability Framework, with regard to: "Financial Coding", "Monitoring of the Operating Budget", and "Implementation of Action Plan for Delegation of Signing Authority (DOA) Policy and Procedures". http://www.infc.gc.ca/pd-dp/ia-vi/fma-gf-2008-eng.html	Finance	Completed	June 19, 2008
Assurance Audit of Contracting and Procurement.	Finance	Consulting Engagement was completed instead	February 2009
Review of the File Management and Documentation Requirements for the Building Canada Fund (BCF) project files. http://www.infc.gc.ca/pd-dp/ia-vi/index-eng.html	Transfer Payment	Completed	March 10, 2009
Assurance Audit of selected components of Infrastructure Canada’s Financial Management and Accountability Framework.	Finance	Follow-up Engagement was completed with respect to recommendations made under the Audit of the Financial Management Accountability Framework	April 2009
Assurance Audit of the SIMSI (Shared Information Management System for Infrastructure) Management Control Framework. http://www.infc.gc.ca/pd-dp/ia-vi/index-eng.html	Information Management	Completed	Approved by Departmental Audit Committee June 11, 2009
Assurance Audit of the Gas Tax Fund (GTF) Management Control Framework. http://www.infc.gc.ca/pd-dp/ia-vi/index-eng.html	Transfer Payment	Completed	Approved by Departmental Audit Committee June 11, 2009
Assurance Audit of the Public Transit Fund (PTF) Management Control Framework. http://www.infc.gc.ca/pd-dp/ia-vi/index-eng.html	Transfer Payment	Completed	Approved by Departmental Audit Committee June 11, 2009
Assurance Audit of the contribution management control framework of Infrastructure Canada Program (ICP).	Transfer Payment	Cancelled as per Legal Services. Infrastructure Canada has no authority to audit the Infrastructure Canada Program (ICP).	Not Applicable
Assurance Audit of contribution management control framework of the Municipal Rural Infrastructure Fund (MRIF).	Transfer Payment	Planning phase completed and ready to start examination phase. Engagement delayed due to Economic Action Plan.	Expected December 2009
Follow-up Assurance Audit of Travel, Hospitality and Acquisition Cards.	Finance	In progress	Expected September 2009
Assurance Audit of the Contribution Management Control Framework of the Research, Knowledge and Outreach (RKO) Program.	Transfer Payment	Audit Engagement re-focused under the approved 2009-2010 Risk-Based Audit Plan1, 2	Not Applicable
Assurance Audit of IT Security.	Information Technology	Audit Engagement refocused under the approved 2009-10 Risk-Based Audit Plan1, 2	Not Applicable
Assurance Audit of the controls in place over Human Resources data.	Human Resources	Audit Engagement refocused under the approved 2009-10 Risk-Based Audit Plan1, 2	Not Applicable
Assurance Audit of Contracting and Procurement.	Finance	Consulting Engagement was completed instead	February 2009
Assurance Audit of Infrastructure Canada’s governance and organizational structure.	Governance	Audit Engagement refocused under the approved 2009-10 Risk-Based Audit Plan1, 2	Not Applicable
Assurance Audit of Infrastructure Canada’s strategic and operational planning process and practices.	Management	Audit Engagement refocused under the approved 2009-10 Risk-Based Audit Plan1, 2	Not Applicable
Assurance Audit of the Infrastructure Policy Framework and strategic policy capacity.	Policy	Planned 2	2011-2012
Assurance Audit of the Information Management (IM) function.	Information Management	Planned 2	2011-2012

Table 11b: Evaluations (Current Reporting Period)

1. Name of Evaluation	2. Program Activity	3. Evaluation Type	4. Status	5. Completion Date
Formative Evaluation of the Municipal Rural Infrastructure Fund (MRIF). Formative Evaluation of the Municipal Rural Infrastructure Fund (MRIF)	Targeted Project-Based Infrastructure Funding	Formative	Completed	March 5, 2008
Implementation Evaluation of the Gas Tax Fund (GTF). Process Evaluation of the Gas Tax Fund (GTF)	Targeted Project-Based Infrastructure Funding	Implementation	Completed	March 17, 2008
Formative Evaluation of the Canada Strategic Infrastructure Fund (CSIF). Formative Evaluation of the Canada Strategic Infrastructure Fund (CSIF)	Targeted Project-Based Infrastructure Funding	Formative	Completed	February 5, 2009
Formative Evaluation of the Border Infrastructure Fund (BIF). Formative Evaluation of the Border Infrastructure Fund (BIF)	Targeted Project-Based Infrastructure Funding	Formative	Completed	February 5, 2009
Summative Evaluation of the Infrastructure Canada Program (ICP) First Nations.	Targeted Project-Based Infrastructure Funding	Summative	Completed	To be approved by Departmental Evaluation Committee on June 17, 2009
Summative Evaluation of the Gas Tax Fund (GTF) and Public Transit Fund (PTF).	Targeted Project-Based Infrastructure Funding	Summative	Completed	To be approved by Departmental Evaluation Committee on June 17, 2009
Summative Evaluation of the Infrastructure Canada Program (ICP).	Targeted Project-Based Infrastructure Funding	Summative	Ongoing	October 2009
Formal Evaluations of all infrastructure programs under Infrastructure Canada’s responsibility:  Infrastructure Canada Program (ICP), Municipal Rural Infrastructure Fund (MRIF), Canada Strategic Infrastructure Fund (CSIF), Border Infrastructure Fund (BIF), Gas Tax Fund (GTF) and the Public Transit Fund (PTF).	Knowledge and Research	Water Cluster Evaluation	Ongoing	March 2010
Summative Evaluation of the Research Knowledge and Outreach (RKO) Program.	Knowledge and Research	Summative	Ongoing	March 2010
Formative Evaluation of the Provincial-Territorial Base Funding Program (PT Base).	Provincial-Territorial Infrastructure Base Fund	Formative	Planned	September 2011

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1. 2008-2009 Report on Plans and Priorities was prepared under the assumption that there would be a full internal audit team as of April 1, 2008. As a result of staffing delays, however, the full internal audit team was not in place until November 2008, at which time 5 internal audits were initiated.
2. Infrastructure Canada’s Internal Audit division undertook a complete review and assessment of the department’s audit universe during the period of January 2009 to March 31, 2009 as part of its work to develop the department’s three year Risk-Based Audit Plan. The audit universe represents all aspects of the department as defined major auditable entities (MAEs) that may be subjected to audits and provides an analytical framework for risk assessment. Internal Audit worked with INFC Finance to ensure the audit universe is comprehensive. It resulted in having a universe based on (1) the budget structure of fund centers; (2) the MAF elements and (3) the PAA. MAEs were chosen with the objective of ensuring that each one would be of manageable size, nature and scope, and if audited, would produce significant and meaningful information for management. When selecting audit engagements for the April 2009 to March 2012 period the objective was to ensure sufficient coverage of the high risk and priority areas within the Department, as well as contributing to the preparation of a comprehensive overall (holistic) opinion on risk management, internal controls and governance processes.