ARCHIVED - RPP 2006-2007
Infrastructure Canada

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Section I: Overview

Minister’s Message

I am pleased to present Infrastructure Canada’s 2006-2007 Report on Plans and Priorities, which outlines the organization’s corporate direction for the next three fiscal years.

On February 6, 2006, the Prime Minister appointed me as Minister of Transport, Infrastructure and Communities, responsible for a portfolio consisting of Infrastructure Canada, the subject of this report, Transport Canada, and 16 Crown Corporations. The broad scope and synergies of this new portfolio create a point of convergence for some of the most important opportunities and key challenges facing Canada today. Bringing the various tools and policy levers of this portfolio under the responsibility of a single Minister offers great potential for strategic and coherent policy development and actions aimed at enhancing Canada’s economic competitiveness and our quality of life in a streamlined manner that is transparent and accountable to Canadians.

Modern infrastructure is a cornerstone for strong and sustainable economic, environmental, social and cultural growth and development in Canada’s cities and communities. On this foundation, we can best deliver focused, accountable, and effective programs that benefit the places where we live and raise our families.

I believe that the alignment of Infrastructure Canada with Transport Canada and the Crown corporations will provide a tremendous opportunity to integrate federal efforts and address the pressing and long-term issues facing Canadians and our communities.

In the spirit of collaboration, Infrastructure Canada, on behalf of the Government of Canada, is committed to working with provinces, territories, and municipalities in a new era of open federalism that respects jurisdictions and will help to make our communities strong and healthy.

Among Canada’s strengths are its competitiveness and quality of life, which increasingly depend upon the strength of its municipalities – rural and urban. In the coming year, we plan to focus on advancing the Government of Canada’s cities and communities agenda, improving the state of Canada’s sustainable infrastructure, and moving forward to build capacity and generate knowledge on infrastructure and communities.

In support of Canadian cities and communities and their quest to be healthy, sustainable and dynamic centres of economic growth and development, I am proud to report on the plans and priorities of Infrastructure Canada. These plans will be pursued in light of the Government of Canada’s unprecedented commitment to infrastructure in Budget 2006. That document committed some $16 billion over four years to infrastructure for Canadians. It also committed the Government to develop a long-term framework for federal investments in infrastructure.

Lawrence Cannon
Minister, Transport, Infrastructure and Communities

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Deputy Head’s Message

As Deputy Head, I am pleased to present Infrastructure Canada’s plans for the coming years. The 2006-2007 Report on Plans and Priorities supports the Government of Canada’s key priorities, and contributes to meeting Canada’s modern infrastructure needs and to support its cities and communities.

I am proud of the accomplishments of Infrastructure Canada and continue to be excited about our future as we move forward within the new portfolio of Transport, Infrastructure and Communities.

Infrastructure Canada remains committed to contributing to the economic, social, cultural and environmental well-being of Canadian cities and communities, small and large, rural and urban.

At an operational level, it is through the innovative development and management of programs that Infrastructure Canada will continue to foster investment at the national, regional and local level that supports our environment, encourages economic growth, and contributes to healthy communities. These investments are in such areas as public transit, tourism and recreation and cultural development, local capacity building, water and wastewater treatment, research, telecommunications, and northern infrastructure.

Most important will be our efforts to continue to work as partners with federal, provincial, territorial, and municipal orders of government, along with First Nations, community partners, stakeholders and private and not-for-profit organizations. It is through the fostering and promotion of these relationships that we will ensure our efforts are collaborative and respond to local needs. Working in tandem as partners, we will provide a foundation for strong and sustainable cities and communities for all Canadians.

André Juneau
Deputy Head
(Infrastructure and Communities)

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Management Representation Statement

I submit for tabling in Parliament, the 2006-2007 Report on Plans and Priorities for Infrastructure Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2006-2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
• It is based on the 2007-2008 Program Activity Architecture approved by Treasury Board.
• It presents consistent, comprehensive, balanced and reliable information;
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved planned spending numbers from the Treasury Board Secretariat.

Name:	André Juneau
Title:	Deputy Head (Infrastructure and Communities)

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Overview of the Transport, Infrastructure and Communities Portfolio

The reports of Infrastructure Canada and Transport Canada are the first to be submitted to Parliament since the creation of the Transport, Infrastructure and Communities (TIC) portfolio in February 2006. The Minister of Transport, Infrastructure and Communities’ portfolio responsibilities include Infrastructure Canada, Transport Canada and sixteen Crown Corporations.

The portfolio is a point of convergence for some of the most important issues facing Canada today: the productivity of the economy; transportation safety and security; environmental sustainability; and the quality of life in cities and communities. It brings together a range of tools, including programs, legislation, policy frameworks and stakeholder networks to advance the Government’s priorities in a cohesive and coordinated manner. When the federal government can speak with one voice on complex issues and act in a focused manner, Canadians benefit from the results.

Budget 2006 made significant commitments for federal investments in transportation and other infrastructure. This includes a new Highways and Border Infrastructure Fund (HBIF); the Asia-Pacific Gateway Initiative; transportation security; a Public Transit Capital Trust; the renewal of the Canada Strategic Infrastructure Fund (CSIF) and the Municipal Rural Infrastructure Fund (MRIF); and the maintenance of the Gas Tax Fund and GST Rebate for cities and communities.

The TIC portfolio will permit the effective management of these investments to ensure maximum benefits for Canadians and their communities through greater coordination and integration of policies, programs, and investment decisions, under the accountability of a single Minister. It also positions the Government of Canada to work more closely and efficiently, through partnerships with the provinces, territories, municipalities and other groups, to support the development of communities, the planning of transportation systems, and the renewal of infrastructure.

Work is underway to maximize the potential and opportunities the portfolio offers. The aim is to improve Canadians’ health and quality of life and the competitiveness and sustainability of Canada’s economy, while achieving tangible improvements in the environment and ensuring transparency and accountability to Canadians. The focus is on national challenges and the federal role in meeting them.

The TIC portfolio will move forward on measures and actions in the areas of:

The TIC approach integrates and maximizes the synergies within the portfolio. The specific objectives and priorities of both Infrastructure Canada and Transport Canada are detailed in their respective Report on Plans and Priorities.

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Program Activity Architecture (PAA) Crosswalk

Each department must establish a Program Activity Architecture (PAA) identifying how it allocates and manages its resources to achieve its strategic outcomes. The PAA links related program activities to the strategic outcomes they support, and provides a framework by which expected results and performance measures are linked to each program activity.

Given the scope of changes to its responsibilities over the past several years, Infrastructure Canada sought and received approval from the Treasury Board in the Spring of 2006 to amend its PAA. Table 1 compares the new PAA with the previous one, in terms of strategic outcome, program activities and funding levels.

The new PAA better reflects how Infrastructure Canada allocates and manages the resources under its control to achieve its intended results. The amended Strategic Outcome (SO) is more directly linked to the Government’s current priorities, and better reflects the broader mandate of the organization since the addition of responsibilities for the cities and communities agenda.

Under the new PAA, Infrastrastructure Canada has three Program Activities: Infrastructure Investments; Policy, Knowledge and Partnership Development; and Departmental Administration.

The three Progam Activities reflect the reorganization recently undertaken by Infrastructure Canada to focus on its key responsibilities. For example, the new Infrastructure Investments Program Activity brings together all those functions related to managing infrastructure programming. The new Policy, Knowledge and Partnership Development Program Activity reflects the critical role that those functions play in helping the organization and the Government address challenges related to infrastructure, cities and communities.

The progam activities are briefly described below:

1. Infrastructure Investments
   
   This Program Activity consists of all infrastructure programming delivered through transfer payments as well as the related program management and monitoring functions. The Activity contributes to the construction, renewal and enhancement of public infrastructure in Canada and builds capacity for addressing infrastructure issues in partnership with others. More information on this Program Activity is provided in Section II.
   
   
2. Policy, Knowledge and Partnership Development
   
   This Program Activity consists of activities undertaken in policy development, knowledge, research and analysis, and partnership development. The Activity develops policies based on research and strong partnerships to address existing and emerging challenges and opportunities. More information on this Program Activity is provided in Section II.
   
   
3. Departmental Administration
   
   This Program Activity encompasses the Office of the Deputy Head, Communications, Corporate Services, and Legal Services. The Activity promotes excellence in program and corporate management in support of Infrastructure Canada’s priorities. Section IV provides information on this Activity and the key management initiatives.

The changes in Program Activities reflect the experience gained in implementing infrastructure programs, recent reorganization of functions, and developing departmental management accountability and reporting structures. The reorganization reflected in the new SO and PAA include the transfer out of the Crown Corporations Portfolio and the addition of the Cities and Communities Branch. The new PAA better reflects the organization’s achievement areas and sets the stage for strengthened reporting on performance.

Table 1: Infrastructure Canada New Program Activity Architecture

(in $ thousands)

Previous Strategic Outcome	New Strategic Outcome	Reason for Change
To meet the priorities of Canadians for infrastructure in order to con-tribute to quality of like, healthy environment, economic growth, rural and urban development, innovation and international trade.	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.	The new Strategic Outcome better reflects Infrastructure Canada’s mandate and vision and is linked to the Government’s priorities.
Previous Program Activity	New Program Activity	Reason for Change
1. Infrastructure and Communities $2,470,278	1. Infrastructure Investments $2,453,936	Development of better organizational accountability and reporting functions.
	2. Policy, Knowledge and Partnership Development $16,342
2. Crown Corporations Portfolio Management $20,497	Deleted $20,497	Responsibility transferred to Transport Canada.
3. Departmental Administration $1	3. Departmental Administration $1	Moved Communications activities from the Infrastructure and Communities activity (since they support and apply to all corporate activities.

¹ Since this Program Activity supports Program Activities 1 and 2, funding is pro-rated to those Activities.

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Summary Information

Reason for Existence: Infrastructure Canada seeks to help build sustainable cities and communities where Canadians benefit from world-class public infrastructure.²

Financial Resources (in $ thousands)

2006-2007	2007-2008	2008-2009
2,470,278	2,491,449	2,631,365

Human Resources (full-time equivalents)

2006-2007	2007-2008	2008-2009
220	230	240

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Mission of Infrastructure Canada

Canada needs to remain competitive and productive while sustaining the quality of life of Canadians. Strong and healthy cities and communities and world-class public infrastructure, such as safe and reliable water systems, are key to meeting these objectives.

The Government is committed to working in partnership with provinces, territories and municipalities to help them meet their infrastructure needs through stable and reliable funding programs based on sound policies and knowledge. In doing so, the Government will maximize value for taxpayers’ money by supporting infrastructure projects that adhere to best practices, ensuring complementarity with investments by other orders of government and sectors, by not funding cost overruns and by requiring all funding recipients to be accountable.

In carrying out this government priority, Infrastructure Canada manages funding programs, and works to build the policies, knowledge and partnerships to support them.

The Government recognizes that cities and communities require stable, strategic, long-term funding, as well as innovative relationships and partnerships to reach their full potential for the benefit of all Canadians. Each city and community has unique needs and challenges. Infrastructure Canada will continue to play a focal role in facilitating governments and others to work together to support strong, vibrant and sustainable cities and communities.

² Public infrastructure is defined as the core physical assets instrumental to supporting the delivery of public services.

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Strategic Outcome

In support of its mission, Infrastructure Canada has established one Strategic Outcome:

This Strategic Outcome will be achieved by:

• Strategically investing and leveraging other investments in sustainable public infrastructure;
• Fostering effective and new, innovative types of partnerships;
• Providing federal leadership for cities and communities and infrastructure issues; and
• Advancing policies and building, connecting and sharing knowledge.

The Strategic Outcome is long-term and enduring in nature. It identifies the areas of influence of Infrastructure Canada, and demonstrates how the organization’s efforts benefit Canadians and contribute to Government priorities.

Mission: To help build sustainable cities and communities.

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Plans and Priorities

Infrastructure Canada has established two priorities in support of its Strategic Outcome:

1. Delivering approved program funding
2. Developing policy, knowledge and partnerships

These priorities reflect changes in Infrastructure Canada’s new Strategic Outcome and PAA. Table 2 summarizes the changes in priorities.

Table 2: Infrastructure Canada New Priorities

Priority		Previous Priority	Reason for Change
1. Delivering approved program funding	Ongoing (re-phrased from the 2005-2006 RPP)	1. Managing and leveraging investments to improve the state of sustainable infrastructure	Reworded to better reflect new responsibilities
2. Developing Policy, Knowledge and Partnerships	Ongoing (re-phrased from the 2005-2006 RPP)	2. Building, connecting and sharing knowledge	Reworded to reflect new responsibilities, focus on partnerships and to emphasize the importance of these activities
		3. Advancing the new deal for Cities and Communities	Reorganization of cities and communities initiatives under priorities 1 and 2

Priority 1: Delivering Approved Program Funding

Infrastructure Canada manages and levers investments in public infrastructure to improve the state of Canada’s public infrastructure and, in turn, enhance the economic, social, cultural and environmental quality of life of Canadians. It works in a coordinated manner with federal departments and regional development agencies, provincial, territorial and municipal governments, and First Nations.

Infrastructure Canada delivers a suite of infrastructure funds, each responding to distinct aspects of Canada’s priority infrastructure needs:

• Community Based Programs: This group includes the Infrastructure Canada Program (ICP), and its 2003 successor, the Municipal Rural Infrastructure Fund (MRIF), which invest particularly in the public infrastructure of medium to smaller communities;
• Large-Scale Strategic Programs: Both the Canada Strategic Infrastructure Fund (CSIF) and the Border Infrastructure Fund (BIF) focus on large-scale strategic investments of regional and national scale in support of key federal objectives such as trade, security, productivity and sustainable development;
• The Gas Tax Fund (GTF): This program involves transfers from the federal gas tax to benefit Canada’s communities by investing in environmentally sustainable municipal infrastructure; and
• The Public Transit Fund (PTF): This fund focuses on investments in public transit infrastructure in support of key federal objectives such as protecting the environment by encouraging cleaner air and lowering greenhouse gas emissions.

In Budget 2006, the Government committed to renewing both the CSIF (with an additional $2.3 billion in funding) and the MRIF (with an additional $2.2 billion over five years), and confirmed the gas tax funding commitment for the remaining four years. (For more details on Budget 2006, refer to http://www.fin.gc.ca/budget06/bp/bpc3ce.htm#infrastructure.)

Infrastructure Canada has two multidisciplinary research funding programs that are complementary tools for enhancing implementation of this priority and helping to foster evidence-based policy and decision-making on infrastructure and communities issues: the Knowledge-building, Outreach and Awareness program, and the Peer Reviewed Research Studies program. These two funding programs support the goals of Infrastructure Canada’s Research Strategy. (Refer to http://www.infrastructure.gc.ca/research-recherche/strat/research-strategy_e.shtml.)

In 2006-2007, Infrastructure Canada will support this priority through the following planned activities:

• Concluding agreements under the various existing funding programs with those jurisdictions that had not yet finalized agreements by March 31, 2006;
• Continuing to work with the provinces and territories to determine the projects to receive the remaining uncommitted funds under the CSIF and BIF, and developing and seeking approval for contribution agreements for CSIF and BIF projects;
• Completing Memoranda of Understanding with federal partners to deliver CSIF and MRIF funds;
• Delivering existing infrastructure program funding (ICP, CSIF, BIF, MRIF);
• Designing and implementing an appropriate program to deliver GTF and MRIF to First Nations;
• Sound administration of the GTF and PTF programs;
• Sound administration of the research funding programs;
• Reporting on results of all programs;
• Developing a horizontal approach for reporting that encompasses all infrastructure programs; and
• Seeking approval for, negotiating agreements, and delivering program funding arising from Budget 2006.

Priority 2: Developing Policy, Knowledge and Partnerships

Infrastructure Canada works to support the needs of cities and communities through the development of strategic policies based on sound knowledge and strong partnerships to address existing and emerging challenges and opportunities.

Key federal or shared responsibilities, such as security, emergency preparedness, immigration, environment, labour-market, infrastructure and transportation play out primarily in urban areas that generate almost half of Canada’s GDP and where 80% of Canadians live. At the same time, rural and northern communities and regions, which are essential to Canada’s economic and social objectives, face distinct challenges to their long-term sustainability.

The Government of Canada can complement its national measures with place-based approaches that respond to specific needs and assets of communities. As many place-based issues are cross-jurisdictional, the Government of Canada will work to develop strengthened governance mechanisms for working in partnership with provincial and municipal governments, in ways that promote transparency, accountability and clarity of roles of all governments.

Infrastructure Canada works with its partners to identify and assess the unique needs of communities.

On behalf of the federal government, Infrastructure Canada works with its partners to identify and assess needs with respect to infrastructure, and cities and communities, and evaluates priorities and develops policy options. These activities require a high degree of collaboration with other federal departments and agencies, as well as with provinces, territories, municipalities, municipal associations, First Nations and the private sector.

Infrastructure Canada also seeks to build capacity and develop and share knowledge about infrastructure and cities and communities with its partners through research, communications and other partnership initiatives.

In 2006-2007, Infrastructure Canada will continue to strengthen its capacity to develop strategic policies based on sound knowledge and strong partnerships. Specific planned initiatives include:

• Developing a policy framework for ensuring the economic, social, cultural and environmental sustainability of Canada’s cities and communities;
• Leading the formulation of a framework to assist communities in securing stable, predictable and long-term infrastructure funding;
• Strengthening collaboration with provinces, territories and municipalities through such initiatives as trilateral tables and the gas tax Oversight Committees responsible for monitoring the overall strategic implementation of GTF and PTF;
• Working with partners at all levels to ensure communities have a stronger voice in decisions that affect them;
• Providing policy support to the Minister through the development of, and consultations on, a long-term policy framework to meet Canada’s infrastructure needs;
• Developing a policy framework for Cabinet approval, and terms and conditions for Treasury Board approval, for the renewal of CSIF and MRIF, as per Budget 2006;
• Supporting the building of municipal capacity to plan for and achieve sustainability objectives, including sustainable infrastructure;
• Providing lead policy input to the development of Canada’s principles for community sustainability;
• Providing administrative and research assistance to the External Advisory Committee on Cities and Communities for the production of its final report;
• Providing support to the UN-HABITAT World Urban Forum III in June 2006 in Vancouver;
• Managing the third call for proposals under the Knowledge-building, Outreach and Awareness program and second call for proposals under the Peer Reviewed Research funding program, and monitoring the progress of funded research;
• Strengthening understanding of the workings of cities and municipalities through research of three aspects of built works (financing, engineering innovation, and environmental and risk management);
• Maintaining and enhancing strong partnerships with regional development agencies; and
• Continuing work with international bodies (e.g., Organization for Economic Co-operation and Development (OECD), World Bank, UN-HABITAT) on cities and communities related issues and performance indicators.

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Operating Environment and Challenges

Ensuring an Effective and Efficient Organization

Infrastructure Canada was established in 2002. It has overseen the relatively rapid development and implementation of three generations of infrastructure and communities programming. It has evolved into an entity with growing responsibilities far beyond delivering investment programs. In 2004, it assumed responsibility for leading the cities and communities agenda, and became a federal focal point for infrastructure and cities and communities issues.

In February 2006, Infrastructure Canada and Transport Canada became part of a new portfolio, Transport, Infrastructure and Communities. The portfolio includes a number of Crown corporations that had reported to Parliament through a different minister up until the appointment of the Minister of Transport, Infrastructure and Communities.³

³ The Canada Lands Company Limited, the Old Port of Montreal Corporation Inc., Parc Downsview Park Inc., and the Queens Quay West Land Corporation.

This evolution of Infrastructure Canada’s responsibilities over the past several years has resulted in a period of continuous change in its organizational structure and scope, impacting demands for resources not anticipated at the time the organization was originally established. It has had to develop the capacity and operational infrastructure to support new and expanded programs and provide an increasingly higher level of discipline and rigour to the policy development, project selection, and program management and implementation processes.

Ensuring Accountability

Infrastructure Canada retains responsibility within the federal government for the use of contributions under its infrastructure funds and exercises due diligence and rigorous oversight. However, several factors may impair the availability of information on program results in turn affecting Infrastructure Canada’s ability to demonstrate tangible progress and results in the short term. For example, the long-term benefits of many of the infrastructure funding programs, such as economic and environmental benefits, may only become clear after several years, given the life cycle of major infrastructure projects. In addition, building sustained relationships based on shared values, open communications and accountability is a long-term proposition.

Coordination, Partnerships and Capacity Building

Coordination, partnerships and capacity building are at the core of Infrastructure Canada’s mandate, operations and organizational culture.

At the operating level, Infrastructure Canada collaborates extensively with other federal departments and agencies to deliver infrastructure programs, through both formal memoranda of understanding and informal working relationships. Infrastructure Canada has assumed a lead role in developing and maintaining new partnerships with provinces, territories, municipalities and municipal associations across the country, as well as with First Nations and international organizations.

Partnerships are also an important tool in Infrastructure Canada’s focus on knowledge generation, community building and knowledge transfer. Infrastructure Canada collaborates with other governments, universities, research institutes, civil society organizations, the private sector and other experts domestically and internationally to generate and communicate knowledge about infrastructure and communities in support of sound policy making.

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Alignment with Government of Canada Outcomes

Infrastructure Canada’s two program activities align with the following Government of Canada outcomes:

Program Activity	Government of Canada Outcome
Infrastructure Investments	Strong Economic Growth
Policy, Knowledge and Partnership Development	An Innovative and Knowledge-based Economy

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