Integrated Bilateral Agreement (for the Investing in Canada Infrastructure Program)
Canada - Quebec

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Table of Contents

This Agreement is made as of the date of last signature

BETWEEN:

HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the Minister of Infrastructure, Communities and Intergovernmental Affairs (“Canada”)

AND:

THE GOVERNMENT OF QUEBEC, as represented by the Minister of Finance and by the Minister Responsible for Canadian Relations and the Canadian Francophonie (“Quebec”)

individually referred to as a "Party" and collectively referred to as the "Parties".

WHEREAS the Government of Canada announced in Budget 2016 and Budget 2017 over $180 billion over twelve years for the Investing in Canada Plan to support sustainable and inclusive communities, while driving economic growth;

WHEREAS the Minister of Infrastructure, Communities and Intergovernmental Affairs is responsible for the Investing in Canada Infrastructure Program and wishes to provide financial support to Quebec for Projects under the Agreement;

WHEREAS the Government of Canada proposes to deliver up to a maximum of $7,535,937,919 to Quebec in four key areas: public transit; green infrastructure; community, culture and recreation infrastructure; and rural and northern communities infrastructure;

WHEREAS Quebec has announced the Plan québécois des infrastructures (PQI) 2018‑2028 with investments totalling $100.4 billion over 10 years to maintain, improve and modernize Quebec’s infrastructure;

WHEREAS federal infrastructure funding will support the delivery of Government of Quebec projects under the PQI;

AND WHEREAS Quebec, under order-in-council number 680-2018 of June 1st, 2018 has approved the terms and conditions of the Agreement;

1 INTERPRETATION

1.1 DEFINITIONS

In addition to the terms defined in the provisions of the preamble and elsewhere in the Agreement, a capitalized term has the meaning given to it in this section.

“Administrative Expenses” means costs incurred by Quebec related to implementing the Agreement, including costs for staff needed to deliver the Program, conduct Program intakes, review project applications, prepare claims, announce Projects, install signage, develop the infrastructure plan (section 8), develop information technology systems and complete progress reports.

“Agreement” means this integrated bilateral agreement and all its schedules, as may be amended from time to time.

“Agreement End Date” means March 31st, 2028.

“Asset(s)” means any real or personal property or immovable or movable asset(s), acquired, purchased, constructed, renovated or improved, in whole or in part, with a financial contribution paid by Canada under the terms and conditions of the Agreement.

“Asset Disposal Period” means the period of five (5) years after the Substantial Completion of a Project.

“Communication Activity(ies)” means,among other things, public or media events or ceremonies, including key milestone events, news releases, reports, web and social media products or postings, blogs, news conferences, public notices, physical and digital signs, publications, success stories and vignettes, photos, videos, multi-media content, advertising campaigns, awareness campaigns, editorials, multi-media products and all related communication materials under this Agreement.

“Contract(s)” means an agreement between an Ultimate Recipient and a Third Party whereby the latter agrees to supply a product or service to a Project in return for financial consideration.

"Declaration of Conformity" means a mechanism introduced in the Québec Environmental Quality Act to simplify the carrying out of activities that pose a low risk to the environment.

“Effective Date” means the date when the last signature is signed on the Agreement.

“Eligible Expenditures” mean the costs incurred for a project that are eligible for reimbursement from the Government of Canada under section A.1 c) (Eligible Expenditures) of Schedule A (Program Details).

“Fiscal Year” means the period beginning April 1st of a calendar year and ending on March 31st of the following calendar year.

“Incurred” means an event or transaction has taken place for which an obligation to pay exists, even if an invoice has not been received, such that the underlying evidence indicates there is little or no discretion to avoid the obligation. The value of the obligation is to be calculated in accordance with recognized Canadian accounting standards.

“Infrastructure Recipient Information System” (“IRIS”) meansan online portal and case management tool developed by Canada that could support section 14 (Information Management).

“Joint Communications” means events, news releases and signage that relate to the Agreement and are collaboratively developed and approved by the Parties and are not operational in nature.

“Oversight Committee(s)” mean the committee(s) established in accordance with section 7 (Oversight Committee).

“Program” means the Investing in Canada Infrastructure Program as set out in the Agreement.

“Project(s)” means the Project(s) approved under the Agreement and which are an integral part of the Agreement.

“Rural Households” means individual dwellings located in communities with a population of under 30,000 people as defined by the 2016 Census.

“Sole Source Contract” means a contract entered into by an Ultimate Recipient with a Third Party that has not been preceded by a call for tenders.

“Substantial Completion” or “Substantially Completed” means that the Project can be used for the purpose for which it is intended.

“Third Party” meansany person or legal entity, other than a Party or Ultimate Recipient, who participates in the implementation of a Project by means of a Contract.

“Total Financial Assistance” means total Project funding from all sources including, but not limited to, funding from federal, provincial, municipal, regional; private sources and in-kind contributions.

“Ultimate Recipient” or “Ultimate Recipients” meansan entity identified in paragraph A.1 a) (Ultimate Recipients) of Schedule A (Program Details) that is eligible to receive contribution funding for a Project under the Agreement.

“Ultimate Recipient Agreement(s)” means an agreement between Quebec and the Ultimate Recipient that provides the terms and conditions for the payment of a government contribution to a Project approved under the Agreement.

1.2 ENTIRE AGREEMENT

All documents, negotiations, provisions, undertakings or agreements concerning the subject of this Agreement become null and void from the Effective Date of this Agreement. No representation or warranty express, implied or otherwise, is made by Canada to Quebec, except as expressly set out in this Agreement.

1.3 DURATION OF AGREEMENT

The Agreement will be effective as of the Agreement Effective Date and will terminate on the Agreement End Date.

1.4 SCHEDULES

The following schedules are attached to and form part of this Agreement:

2 PURPOSE OF THE AGREEMENT

The purpose of the Agreement is to implement the Program in Quebec and to establish the terms and conditions, obligations and commitments of the Parties.

3 COMMITMENTS BY CANADA

  1. Canada agrees to provide contribution funding to Quebec under the public transit stream of the Program in a total amount not to exceed $5,182,392,771 to be paid in accordance with sections A.1 (General Program Requirements) and A.2 (Public Transit). Canada will add to this amount any residual amounts from the Public Transit Infrastructure Fund, if applicable.
  2. Canada agrees to provide contribution funding to Quebec under the green infrastructure stream of the Program in a total amount not to exceed $1,808,076,797, to be paid in accordance with sections A.1 (General Program Requirements) and A.3 (Green Infrastructure). Canada will add to this amount any residual amounts from the Clean Water and Wastewater Fund that are to be used for projects under environmental quality sub-stream, where applicable.
  3. Canada agrees to provide contribution funding to Quebec under the community, culture and recreation infrastructure stream of the Program in a total amount not to exceed $257,003,028, to be paid in accordance with sections  A.1 (General Program Requirements) and A.4 (Community, Culture and Recreation Infrastructure).
  4. Canada agrees to provide contribution funding to Quebec under the rural and northern communities infrastructure stream of the Program in a total amount not to exceed $288,465,324, to be paid in accordance with sections A.1 (General Program Requirements) and A.5 (Rural and Northern Communities Infrastructure).
  5. Canada agrees to review requests from Quebec to transfer part of the contribution funding indicated in sections 3 a), b), c) and d) between Program streams, including, but without being limited to, three years after the date of the last signature and again five years after the date of the last signature in order to reflect Quebec's needs. Any request must be justified and assessed by the Oversight Committee, subject to section 21.9 (Amendments).
  6. Canada agrees to provide up to a maximum of $75,359,300 of the total contribution funding identified in paragraphs a) through d) of this section to Quebec for Administrative Expenses to be paid in accordance with section 13 (Administrative Expenses).
  7. The Parties acknowledge that Canada's role in any Project is limited to making a financial contribution, and that it will have no involvement in the implementation of any Project or its operation. Canada is neither a decision-maker nor an administrator of a Project.

4 COMMITMENTS BY QUEBEC

  1. Quebec agrees to ensure that the Ultimate Recipient complies with the relevant provisions of the Agreement and completes the Project within the expected timeframe and budget in the Agreement. Canada will not be financially responsible for any ineligible expenditures or cost overruns.
  2. Quebec will enter into an Ultimate Recipient Agreement with the Ultimate Recipient of a Project and will ensure that the Ultimate Recipient Agreement is consistent with, but is no less favourable to Canada than the relevant provisions of the Agreement. Where Quebec is an Ultimate Recipient, Quebec will be subject to all the terms and conditions set out in the Agreement.
  3. If Quebec acts as the Ultimate Recipient, Quebec will ensure that all Projects are Substantially Completed by October 31st, 2027. For Projects where the Ultimate Recipient is not Quebec, Quebec will ensure that the Ultimate Recipient Agreements with the Ultimate Recipients require that the Projects be Substantially Completed by October 31st, 2027.
  4. Quebec will ensure that the Ultimate Recipient assumes all costs associated with the withdrawal or cancellation of a Project, and Canada will be reimbursed for all of its contribution already made in connection with the withdrawn or cancelled Project. As a result, Quebec will be able to submit replacement projects in Canada by March 31, 2025 for an amount equal to the amount of the project canceled or withdrawn.
  5. Quebec will submit to Canada, no later than April 25th of each Fiscal Year, the total amount of Eligible Expenditures Incurred by Ultimate Recipients on Projects in the previous Fiscal Year.
  6. Quebec will promptly inform Canada of changes that affect the scope, location, timeframe as well as expected direct outcomes of the Project.
  7. In relation to the Program's objectives, Quebec will ensure that assessments of climate change consideration for projects are conducted in accordance with Quebec's climate change regulations, and submitted to Canada before Canada approves a project:
    1. An assessment of greenhouse gas emissions in accordance with Quebec's regulations and methodologies for all projects that seek funding under the climate change mitigation sub-stream in section A.3 (Green Infrastructure) which includes basic data on greenhouse gas emissions and a calculation of cost-per-tonne;
    2. A climate resilience assessment in accordance with Quebec regulations and methodologies for all projects that seek funding under the adaptation, resilience and disaster mitigation sub-stream of section A.3 (Green Infrastructure);
    3. A greenhouse gas emissions assessment and a climate resilience assessment in accordance with Quebec regulations and methodologies, including a mechanism of Declaration of conformity for projects that pose a low risk to the environment, for projects where the Eligible Expenditures total is estimated at ten million dollars ($10,000,000) or more, unless there is Canada approval.
  8. Projects with total estimated Eligible Expenditures of ten million dollars ($10,000,000) or more could be subject to a compilation by Quebec, which will be shared with Canada if applicable, of the community employment benefits to at least three (3) of the target groups (apprentices, Indigenous peoples, women, persons with disabilities, veterans, youth, new Canadians, or small-medium-sized enterprises and social enterprises). Canada will waive the community employment benefits reporting requirement at the discretion of Quebec. Quebec will provide Canada a rationale for not reporting on community employment benefits where applicable, which will be made public by Canada.
  9. For each stream, Quebec agrees to provide a total funding contribution of at least 33.33% of the total Eligible Expenditures for Projects where the Ultimate Recipient is a municipal or regional government as described in paragraph A.1 a) (Ultimate Recipients).
  10. Quebec will allocate a minimum of $14,563,512 from the community, culture and recreation infrastructure contribution funding allocation under paragraph c) of section 3 (Commitments by Canada) to one or more Projects for the benefit of Indigenous peoples not living on reserve that will be prioritized by Quebec according to its needs.
  11. Quebec agrees to use the federal funding under the Agreement in addition to the funding already planned as part of its PQI, to allow Quebec to carry out more infrastructure projects or to accelerate those that it had already planned. This use of funding will be based on the PQI asset classes funded under the four components.
  12. Quebec will ensure that the projects it will prioritize and submit under the Agreement represent a balance of municipal and Quebec projects that will be based on its needs.
  13. Quebec will submit for Canada's review and approval all projects to be considered for contribution funding under the Agreement by March 31st, 2025.
  14. Quebec reserves the right to pay its contribution over several years, in compliance with its programs already in force, and assuming all interest costs incurred during this period.

5 APPROPRIATIONS

  1. The Parties acknowledge that any contribution to Projects is subject to an appropriation voted on by the Parliament of Canada and the National Assembly of Quebec.
  2. The Parties undertake to make their best efforts to cause the Parliament of Canada and the National Assembly of Quebec to enact the appropriation legislation required to carry out the Agreement.

6 FISCAL YEAR BUDGETING

  1. The amount of contribution funding payable by Canada each Fiscal Year is set out in paragraphs A.2 b) i, A.3 b) i, A.4 b) i and A.5 b) i of Schedule A (Program Details).
  2. If amount payable by Canada in respect of any Fiscal Year is less than the estimated amount in paragraphs A.2 b) i, A.3 b) i, A.4 b) i and A.5 b) i of Schedule A (Program Details), Canada will re-allocate the difference between the two amounts to a subsequent Fiscal Year, subject to section 5 (Appropriations).

7 OVERSIGHT COMMITTEE

  1. Within sixty (60) business days of the Effective Date of the Agreement, the Parties will establish one or more Oversight Committees that will be co-chaired by representatives of the Parties. The Oversight Committee(s) will meet at least twice a year to:
    1. ensure administrative monitoring and the implementation of the Agreement according to its terms and conditions;
    2. act as a forum to resolve potential issues and address concerns;
    3. review and, as necessary, recommend to the Parties amendments to the Agreement;
    4. monitor the implementation of Schedule B (Communications Protocol);
    5. ensure that audits are conducted in accordance with section 15 (Audit);
    6. be able to discuss indicators as mentioned in Schedule D (Project Submission Information), the updating of the infrastructure plan as described in section 8 (Infrastructure Plan), Canada's targets as described in Schedule C (Contribution to Canada's Targets), and data related to the consideration of climate change in the context of paragraph g) of Section 4 (Commitments by Quebec);
    7. ensure that the reports, as defined in section 11 (Presentation of Project Progress Report) are efficient and effective without excessive administrative burden;
    8. fulfill any other function required by the Agreement or as mutually agreed upon by the Parties.
  2. Quebec will communicate to Ultimate Recipients any deficiencies and/or corrective actions identified by Canada or by the Oversight Committee.

8 INFRASTRUCTURE PLAN

  1. Quebec will send to Canada by November 30th, 2018 and will update and re-send to Canada annually by May 31st an infrastructure plan deriving from its PQI, to the satisfaction of the Parties, that includes:
    1. A section describing Quebec's approach and priorities based on its PQI;
    2. A summary description of the consultation process and the approach to achieve the direct and measurable outcomes and contribute to the targets, the objective sought in terms of community employment benefits, a confirmation of balance between municipal and provincial projects and a certification of the non-shifting of funds;
    3. A section identifying projects that Quebec could submit under the four streams of the Program for Canada's approval for contribution funding under the Agreement, including projects already submitted to Canada;
    4. For all updated infrastructure plans, information on previous Fiscal Year accomplishments.
  2. Quebec may update the information required under paragraph a) ii) of this section at any time.
  3. All infrastructure plans submitted to Canada will cover a minimum period of the current Fiscal Year and the next two (2) Fiscal Years, up to the Agreement End Date.
  4. The submission of any infrastructure plan does not constitute the project's approval by Canada under the Agreement and does not prevent Quebec from submitting projects for Canada's approval in accordance with paragraph 9.1 (Project Submission and Approval) that are not included in the infrastructure plan.
  5. Each infrastructure plan must include an attestation, in a format that is acceptable to the Parties, from a Quebec authorized official confirming Quebec's commitment as described in paragraph k) of section 4 (Commitments by Quebec) insofar as the Parties agree that these plans will evolve over time.

9 PROJECT SUBMISSION, APPROVAL AND CHANGES

9.1 PROJECT SUBMISSION AND APPROVAL

  1. Quebec will be responsible for identifying eligible projects, in consultation with the Ultimate Recipients referred to in paragraph A.1 a) (Ultimate Recipients) and in accordance with current practices in Quebec, prioritizing and submitting them to Canada for a review of their compliance with the Agreement for approval.
  2. Quebec will prioritize projects under the Green Infrastructure component of the Agreement that support the key principles set out in Quebec's commitments for the Pan-Canadian Framework on Clean Growth and Climate Change.
  3. Quebec will provide Canada with the information described in Schedule D (Information for Project Submission) for each Project.
  4. Canada reserves the right to request additional information in order to examine whether it complies with the Agreement.
  5. Canada will inform Quebec as soon as the Project is found to be compliant with the Agreement and approved, within a reasonable timeframe.
  6. For every Project, Canada will set its maximum contribution funding in dollars and as a percentage of total Eligible Expenditures.
  7. Quebec will promptly inform Canada of any cancelled or withdrawn Projects and provide Canada with replacement Projects until March 31, 2025, by sending the information required in paragraph 9.1 (Project Submission and Approval) for review of their compliance with the Agreement and for approval by Canada.

9.2 CHANGES TO A PROJECT

  1. Quebec agrees that changes to a Project as defined in section 4 f) require Canada to review their compliance with the Agreement for approval. When Quebec or the Ultimate Recipient makes a change to a Project, Quebecwill promptly submit the updated Project information.
  2. Quebec will provide, at Canada's request, any additional information related to such changes to a Project.

10 AWARDING OF CONTRACTS

  1. In the event Quebec is the Ultimate Recipient, Quebec will ensure that the Contracts are awarded in accordance with the Act Respecting Contracting by Public Bodies (CQLR, chapter C65.1) and any other related Quebec laws in force, in accordance with existing trade agreements.
  2. In the event Quebec is not the Ultimate Recipient, Quebec will require the Ultimate Recipient to award any Contract in accordance with Quebec laws in force for that purpose. The Ultimate Recipient Agreement must include a clause incorporating the provisions of this paragraph.
  3. When a project is submitted, Quebec will inform Canada if an Ultimate Recipient intends to award a Sole Source Contract valued at more than $25,000 for construction work or more than $100,000 for engineering and architecture work as part of the Project. Canada will need to obtain the required authorizations to approve the project.
  4. In the event a Project has already been approved and the Ultimate Recipient is preparing to award a Sole Source Contract valued at more than $25,000 for construction work or more than $100,000 for engineering and architecture work as part of the Project, Quebec will inform Canada as soon as possible. Canada will need to obtain the required authorizations to allow the payment of Eligible Expenditures related to the Sole Source Contract.

11 PRESENTATION OF PROJECT PROGRESS REPORTS

  1. Quebecwill submit to Canada, no later than May 31st and November 30th each Fiscal Year, a Project progress report in a format acceptable to the Parties for all projects except:
    1. Projects where the Ultimate Recipient is a community with a population of less than five thousand (5,000) people, that will be included in the Project progress report submitted to Canada, no later than May 31st each Fiscal Year.
  2. Each Project progress report will include an attestation in a format acceptable to the Parties from an official duly authorized by Quebec to the effect that the information contained in the report is accurate based on the information received and available. The progress report will include the following updated information for each Project:
    1. Canada's contribution funding to the Project by Fiscal Year;
    2. Construction start and end dates (forecast/actual);
    3. Project status (e.g., percentage of progress);
    4. Risks and mitigation strategies, where required;
    5. Confirmation that the Project is aligned with the direct and measurable outcomes or, for Projects that are Substantially Completed, confirmation of the actual direct and measurable outcomes; and
    6. Confirmation of the Project's installed signage, if applicable.
  3. To the extent that Quebec decided to provide these results, Quebec will annually report annually, no later than November 30th, through the Project progress report, on expected and actual results related to community employment benefits for applicable Projects.
  4. Quebec will complete all project progress reports requirements set out in paragraphs a), b) and c), if applicable, of this section for all Projects to the satisfaction of the Parties no later than December 31st, 2027.
  5. Quebec agrees that Canada may use the information submitted by Quebec under this section in its public reports on the results of the Program.

12 CLAIMS AND PAYMENTS

12.1 CLAIMS AND PAYMENTS

  1. Quebec will submit a claim to Canada covering the Eligible Expenditures for all Projects, as and when required, in a form acceptable to the Parties. Each claim will include the following items:
    1. A certified and signed claim in a format acceptable to the Parties, by an official duly authorized by Quebec indicating that the Eligible Expenditures were incurred in accordance with the terms and conditions of the Agreement.
    2. Canada will not have the obligation to pay its contribution funding unless and until Canada has received and is satisfied with all relevant Project information, as specified in section 11. b), as well as all information mentioned in section 12.1 a) i.
  2. Quebec will submit a final claim to Canada for payment of Eligible Expenditures no later than December 31st, 2027.
  3. Canada will make a payment to Quebec promptly upon review and acceptance of a claim, subject to the terms and conditions of the Agreement.

12.2 PAYMENT CONDITIONS

Canada:

  1. will not pay interest for failing to make a payment for a Project;
  2. will pay a final claim for a Project once it has been received and accepted:
    1. The latest report required for this Project under the Agreement in section 11 (Presentation of Project Progress Reports);
    2. The audit reports planned in section 15 (Audit);
    3. An attestation from an official duly authorized by Quebec and in a format accepted by the Parties indicating  that the Project is Substantially Completed and that the federal contribution under the Agreement has been used for Eligible Expenditures;
    4. The Parties will have jointly completed final reconciliation of all claims and payments under the Project and make the required adjustments.

12.3 PAYMENT DEADLINE

  1. Canada will make a payment no later than March 31st of the year following the Fiscal Year in which the Eligible Expenditures were incurred;
  2. Canada will make the final payment no later than March 31st, 2028.

13 ADMINISTRATIVE EXPENSES

  1. Quebec may allocate up to a maximum of $75,359,300 to Administrative Expenses as defined in section 1.1 (Definitions) as set out in paragraph A.1 c) of Schedule A (Eligible Expenditures).
  2. The Administrative Costs will be established by Canada after Canada's evaluation and approval of the forecasted Administrative Expenses, or a revised forecast, if applicable, will be submitted by Quebec to Canada, in a format acceptable to Canada, no later than September 30, 2018, or a revised forecast, if applicable, before May 31 of all subsequent third Fiscal Years.
  3. Quebec will apply a percentage of the contribution funding, as approved by Canada to each stream as identified in paragraphs a) to d) of section 3 (Commitments by Canada) for the total Administrative Expenses referred to section 13 a).

14 INFORMATION MANAGEMENT

  1. Quebec will use IRIS, or another process agreed to by the Parties, to comply with Quebec's obligations under the Agreement, including the following:
    1. Section 8 (Infrastructure Plan);
    2. Section 9 (Project Submission, Approval and Changes);
    3. Section 11 (Presentation of Project progress reports); and
    4. Section 12 (Claims and Payments).

15 AGREEMENT AUDIT

  1. Quebec agrees to provide Canada with all relevant audit reports that it normally carries out. Quebec commits to promptly take any corrective actions, as agreed upon by the Parties, deemed necessary in response to the findings and recommendations of any audit conducted.
  2. Canada will develop an audit plan that will be approved by the Oversight Committee that will include, at minimum, two (2) audits conducted by Canada, at Canada's expense, over the term of the Agreement.
  3. Canada may, at any time, at its expense and within thirty (30) days after notifying Quebec, conduct any audit in relation to any element of the Agreement, for which Quebec agrees to provide the necessary data and information. Quebec will keep proper and accurate financial accounts and records, including its contracts, invoices, statements, receipts, and supporting documentation related to a Project, for at least six (6) years after the Agreement End Date and will provide Canada and its designated representatives, following a reasonable notice, access to documentation for the purposes of audit and to ensure compliance with the Agreement.
  4. Canada agrees to consult with Quebec on the findings of any audit that has taken place before they are made public

16 EVALUATION

  1. Quebec may be invited to participate in an evaluation of the Program, which is to be conducted by Canada at its own expense before March 31st, 2023, in order to assess the direct and measurable outcomes associated with the Projects. Quebec agrees to provide Canada with available information on Projects under the Agreement.
  2. In addition, Quebec agrees to provide Project-related information to Canada over the term of this Agreement and up to six (6) years after the Agreement End Date in order for Canada to conduct an evaluation of the performance of the Program. All evaluation results will be published.

17 ACCESS

Quebec will allow its designated representatives to, at any reasonable time and as they see fit, after reasonable notice, examine the worksite.

18 DISPUTE RESOLUTION

  1. The Parties will keep each other informed of any issue that could be contentious.
  2. If a contentious issue arises, the Management Committee will examine it and will, in good faith, attempt to resolve all potential disputes within the Management Committee as soon as possible and in any event within thirty (30) business days after receipt of such information. In the event the Management Committee cannot agree on a resolution, the matter will be referred to the Parties for resolution. The Parties will render a decision within ninety (90) business days from the date of referral to the Parties.
  3. If the Parties cannot agree on a resolution, the Parties may explore any alternative dispute resolution mechanisms available to them to resolve the issue.
  4. Any payments related to any contentious issue or dispute raised by either Party may be suspended by Canada together with the obligations related to such issue, pending resolution.

19 INDEMNIFICATION

Quebec will at all times indemnify and save harmless Canada, its officers, servants, employees, contractors, or agents, from and against all actions, whether in contract, tort or otherwise, claims and demands, losses, costs, damages, suits or other proceedings by whomsoever brought or prosecuted in any manner based upon or occasioned by any injury to persons, damage to or loss or destruction of Assets, economic loss or infringement of rights caused by, in connection with or arising directly or indirectly from this Agreement, a Recipient Agreement or a Project, except to the extent to which such actions, claims, demands, losses, costs, damages, suits or other proceedings relate to the negligence or breach of the Agreement by an agent, servant, employee of Canada in the performance of his or her duties.

20 ASSETS

20.1 DISPOSAL OF ASSETS

  1. Unless otherwise agreed to by the Parties, Quebec will ensure that the Ultimate Recipient Agreements require the Ultimate Recipients to retain title to and ownership of an Asset for the Asset Disposal Period.
  2. In the event that Quebec is the Ultimate Recipient, unless otherwise agreed to by the Parties, Quebec will ensure to retain any titles and ownership of an Asset for the Asset Disposal Period.
  3. If at any time within the Asset Disposal Period, an Ultimate Recipient sells, leases, or otherwise disposes of, directly or indirectly, any Asset purchased, acquired, constructed, rehabilitated or renovated, in whole or in part, under this Agreement, other than to Canada, Quebec, a municipality or legal person established in the public interest, the Ultimate Recipient may be required to reimburse Canada, via Quebec, in whole or in part, any federal funds received for the Project.
  4. In the event Quebec is the Ultimate Recipient, if at any time within the Asset Disposal Period, Quebec sells, leases, or otherwise disposes of, directly or indirectly, any Asset purchased, acquired, constructed, rehabilitated or renovated, in whole or in part, under this Agreement, other than to Canada, a municipal or regional organization as outlined in section A.1 a) (Ultimate Recipients), or with Canada's consent, Quebec may be required to reimburse Canada, in whole or in part, any federal funding received for the Project.

20.2 REVENUE FROM ASSETS

The Parties acknowledge that Canada's contribution to a Project is meant to accrue to the public benefit. Quebec will notify Canada in writing within ninety (90) business days following the end date of a Fiscal Year if an Asset owned by a for-profit Ultimate Recipient as defined in subparagraph d) of paragraph ii) of section A.1 a) (Ultimate Recipients) in Schedule A is used in such a way that, in the Fiscal Year, revenues are generated from it that exceed its operating expenses. Canada may require Quebec to immediately pay to Canada a portion of the excess in the same proportion as the total cost of the Asset. This obligation will only apply during the Asset Disposal Period.

20.3 REPAYABLE CONTRIBUTIONS

At Canada's request, Quebec shall repay any contribution funding provided by Canada under the Agreement that is intended for an Ultimate Recipient that is a for-profit private sector body where such funding is for the purpose of that Ultimate Recipient generating profits or increasing the value of its business. Any repayment by Quebec will be made in accordance with terms and conditions of repayment as determined by Canada at the time Canada approves a Project. Any amount owed to Canada under this Agreement by Quebec will constitute a debt due to the federal Crown, which Quebec will reimburse Canada forthwith on demand.

21 GENERAL

21.1 ACCOUNTING PRINCIPLES

Unless the context dictates otherwise, all accounting and financial terms used in the Agreement are interpreted and applied in accordance with the accounting principles generally recognized for the public sector in Quebec.

21.2 SURVIVAL

The Parties' rights and obligations which, by their nature, extend beyond the termination of this Agreement, will survive the expiration of this Agreement.

21.3 NO BENEFITS

No member of the House of Commons, the Senate of Canada or the National Assembly of Quebec shall be allowed to participate, in whole or in part, in any Contract made in accordance with this Agreement or to any benefits arising therefrom.

21.4 NO AGENCY

No provision of this Agreement and no action by the Parties shall establish or be deemed to establish a partnership, joint venture, principal-agent relationship or employer-employee relationship in any way or for any purpose whatsoever between Canada and Quebec or between Canada, Quebec, the Ultimate Recipient and a Third Party.

21.5 NO REPRESENTATIVE

Nothing in this Agreement is to be construed as authorizing the Ultimate Recipient or a Third Party to contract for or to incur any obligation on behalf of a Party or to act as an agent for a Party.

21.6 LOBBYIEST AND AGENT FEES

The Parties guarantee that any person who makes or has made representations on their behalf in order to obtain the contributions set out in this Agreement, or any benefit hereunder, is duly registered under the legislation in effect, namely the Lobbying Act (R.S.C., (1985), c. 44 (4th Supp.) and the Lobbying Transparency and Ethics Act (R.S.Q. chapter T-1.1.011). Furthermore, Quebec guarantees that no compensation or benefit based on a percentage of Canada's contribution will be paid or granted to a lobbyist.

21.7 COUNTERPART SIGNATURE

This Agreement may be signed in counterpart, and the signed copies will, when attached, constitute an original Agreement.

21.8 SEVERABILITY

If for any reason a provision of this Agreement is found to be invalid or unenforceable, in whole or in part, and if both Parties agree, it will be deemed to be severable and will be deleted from this Agreement, but all the other terms and conditions of this Agreement will continue to be valid and enforceable.

21.9 AMENDMENTS

The Agreement may be amended, if applicable, with the written consent of the Parties, subject to the required authorizations.

21.10 WAIVER

Each Party may waive in writing any right under this Agreement. Any tolerance or indulgence demonstrated by the Party will not constitute a waiver.

21.11 NOTICE

Any notice provided for under this Agreement may be e-mailed, faxed or mailed to:

For Canada:

Assistant Deputy Minister
Program Operations Branch
Infrastructure Canada
180 Kent Street, Suite 1100
Ottawa, Ontario
K1P 0B6

or to any other address, e-mail or destination of any other person that Canada may, from time to time, provide in writing to Quebec;

For Quebec:

Associate Deputy Minister
Federal-Provincial Relations, Debt, Pension and Financial Operations Sector
Ministère des Finances
12 Saint-Louis Street
Quebec City, QC  G1R 5L3

or to any other address, e-mail or destination of any other person that Quebec may, from time to time, provide in writing to Canada.

This notice will be deemed to have been received, if sent by mail or e-mail, when receipt has been acknowledged by the other Party; by fax once it has been sent and receipt has been acknowledged, and in person at the time of delivery.

21.12 COMPLIANCE WITH APPLICABLE LAW

The Parties will comply with all applicable laws and regulations, including environmental laws and legal obligations to consult with Aboriginal groups.

The Projects must also comply with energy efficiency standards, accessibility standards, as well as the Quebec Building Code and municipal bylaws.

21.13 APPLICABLE STATUTES

The Agreement is governed by the applicable legislation and regulations in Quebec.

21.14 SUCCESSORS AND ASSIGNS

This Agreement is binding upon the Parties and their respective successors and assigns.

SIGNATURES

The Agreement is signed on behalf of Canada by the Minister of Infrastructure, Communities and Intergovernmental Affairs and on behalf of the Government of Quebec by the Minister of Finance and by the Minister responsible for Canadian Relations and the Canadian Francophonie.

HER MAJESTY THE QUEEN IN RIGHT OF CANADA
Original signed by:

The Honourable Amarjeet Sohi
Minister of Infrastructure, Communities and Intergovernmental Affairs

THE GOVERNMENT OF QUEBEC
Original signed by:

The Honourable Carlos J. Leitão
Minister of Finance

THE GOVERNMENT OF QUEBEC
Original signed by:

Jean-Marc Fournier
Minister responsible for Canadian Relations and the Canadian Francophonie

SCHEDULE A - PROGRAM DETAILS

A.1 General Program Requirements

  1. Ultimate Recipients
    1. Quebec may be an Ultimate Recipient and may distribute Canada's contribution funding to its own Projects, subject to the terms and conditions of the Agreement.
    2. Quebec may further distribute Canada's contribution funding to the following Ultimate Recipients for Projects, subject to the terms and conditions of the Agreement:
      1. A municipal or regional administration established by or under Quebec statute or regulations;
      2. A public sector body that is established by or under provincial statute or regulation or wholly owned by Quebec or a municipal or regional administration, including a corporation or transportation authority established by a provincial or municipal administration;
      3. When working in collaboration with a municipality, a public or not-for-profit institution that is directly or indirectly authorized, under the terms and conditions of provincial or federal statute, or royal charter, to deliver post-secondary courses or programs that lead to recognized and transferable post-secondary credentials;
      4. A private sector body, including for-profit organizations and not-for-profit organizations. For-profit organizations must work in collaboration with one or more of the above mentioned entities or an Aboriginal government identified below; and
      5. The following Indigenous Ultimate Recipients: :
        1. A First Nation, Inuit or Métis* government or authority established pursuant to a self-government agreement or a comprehensive land claim agreement that has been approved, given effect and declared valid by federal legislation;
        2. A First Nation, Inuit or Métis* government that is established by or under federal or provincial legislation that incorporates a governance structure, including the government of a First Nations band;
        3. A not-for-profit organization whose central mandate is to improve Indigenous outcomes, working in collaboration with one or more of the Indigenous entities referred to above, a municipality or the province of Quebec.
        4. *Canada's recognition of the Métis as Indigenous Ultimate Recipients under the Investing in Canada Program does not affect Quebec's position that the Métis are not recognized as an Aboriginal group by the Government of Quebec.

  2. Eligible Projects
  3. Eligible Projects support public infrastructure, defined as tangible capital assets primarily for public use and/or benefit.

  4. Eligible Expenditures
  5. Eligible Expenditures will include the following:

    1. All costs considered by the Parties to be direct and necessary for the successful implementation of an Eligible Project, which can include the capital costs, design and planning, and costs related to  compiling the direct and measurable outcomes, except for expenses that are explicitly mentioned in paragraph A. 1 e) (Ineligible expenses);
    2. Quebec's Administrative expenses as approved by Canada under section 13 (Administrative Expenses);
    3. The costs of work undertaken by an Ultimate Recipient may be included as Eligible Expenditures for a Project, subject to Canada's prior approval. The Ultimate Recipient will provide Quebec, who will in turn provide to Canada, with a summary rationale developed in accordance with Quebec's current practices, for the use of work undertaken by the Ultimate Recipient for a Project;
    4. The costs will only be eligible as of Project approval, except for costs associated with completing climate change assessments as outlined in paragraph g) of section 4 (Commitments by Quebec), which are eligible before Project approval, but can only be paid if and when a Project is approved by Canada for contribution funding under this Agreement;
    5. Other costs which, according to the Oversight Committee(s), are direct and necessary costs for the proper implementation of Projects and which were approved in writing prior to being incurred;
  6. Ineligible Projects
  7. Investments in health care and education facilities are not eligible for contribution funding according to the terms of this Agreement, except if they are submitted as per Schedule A.4 (Community, Cultural and Recreational Infrastructure) or Schedule A.5 (Rural and Northern Community Infrastructure) and respond to the needs of Indigenous Ultimate Recipients to support the Truth and Reconciliation Commission's Calls to Action.

  8. Ineligible Expenditures
  9. Ineligible expenditures for Projects include:

    1. Costs Incurred before Project approval and any and all expenditures related to contracts signed prior to Project approval, except for expenditures associated with completing climate changes assessments as required under paragraph g) of section 4 (Commitments by Quebec);
    2. Costs Incurred for cancelled Projects;
    3. Costs Incurred for relocating entire communities;
    4. Land acquisition;
    5. Costs related to leasing lands, buildings and other facilities; leasing equipment other than the equipment directly related to the construction of the Project; real estate fees and related costs;
    6. Any overhead costs, including salaries and other employment benefits of any employees of the Ultimate Recipient, any direct or indirect operating or administrative costs of Ultimate Recipients, and more specifically any costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by the Ultimate Recipient's staff, except in accordance with paragraph iii. of article A.1 c) (Eligible Expenditures);
    7. Financing charges, legal fees and loan interest payments, including those related to easements (e.g. surveys);
    8. Any goods and services costs which are received through donations or in kind;
    9. Provincial sales tax, goods and services tax, or harmonized sales tax for which the Ultimate Recipient is eligible for a rebate, and any other costs eligible for rebates;
    10. Costs associated with operating expenses and regularly scheduled maintenance work;
    11. Cost related to furnishings and non-fixed assets which are not essential for the operation of the Asset/Project;
    12. All capital costs, including site preparation and construction costs, until Canada confirms that environmental assessment and Aboriginal consultation obligations are respected.

A.2 Public Transit

  1. Objective:
  2. The public transit stream aims to rehabilitate and develop new public transit networks that will transform the way Canadians live, move and work.

  3. Canada's Contribution
    1. Estimated Breakdown by Fiscal Year
    2. Canada's total contribution funding for all Projects under the public transit stream will be allocated in accordance with the approximate amounts estimated in the following table, as may be updated by the Oversight Committee:

      Public Transit Fiscal Year Breakdown Table

      N/A

      Canada ($M)

      2018-2019

      $300,000,000

      2019-2020

      $800,000,000

      2020-2021

      $400,000,000

      2021-2022

      $239,000,000

      2022-2023

      $290,000,000

      2023-2024

      $391,000,000

      2024-2025

      $473,000,000

      2025-2026

      $701,000,000

      2026-2027

      $718,000,000

      2027-2028

      $870,392,771

      TOTAL

      $5,182,392,771

    3. Allocation to Ultimate Recipient
      1. Quebec agrees to allocate Canada’s public transit stream contribution funding to each Ultimate Recipient based solely on ridership as set out in the Public Transit Ridership Table:
      2. Public Transit Ridership Table

        Ultimate Recipient

        Ridership

        Société de transport de Montréal

        416,954,328

        Réseau de transport de Longueuil

        33,655,775

        Société de transport de Laval

        22,032,829

        Réseau de transport de la Capitale

        45,983,186

        Société de transport de l’Outaouais

        19,291,282

        Société de transport de Sherbrooke

        7,645,200

        Société de transport de Saguenay

        4,302,272

        Société de transport de Lévis

        3,970,849

        Société de transport de Trois-Rivières

        3,450,263

        Autorité régionale de transport métropolitain et Réseau de transport métropolitain

        20,350,100

      3. Recognizing that public transit needs change over time, Quebec, in agreement with affected public transit authorities, will be authorized to make adjustments within the Public Transit stream allocation after five (5) years, following the evaluation of the Program in paragraph a) of section 16 (Evaluation). Canada must approve reallocations before they take place.
      4. Quebec agrees that a maximum of fifteen percent (15%) of Canada’s contribution pursuant to paragraph a) of section 3 (Commitments by Canada) may be paid to public transit rehabilitation Projects, unless otherwise approved by Canada, it being understood that the purchase of new vehicles, even to replace existing vehicles, is considered a new project rather than a rehabilitation project. This limit of fifteen percent (15%) may be revised by the Parties, including, but not limited to, three years after the date of the last signature and again five years after the last signature to reflect Quebec’s needs. Any requests must be justified and assessed by the Oversight Committee, subject to section 21.9 (Amendments).
      5. Subject to approval by Canada and Quebec’s confirmation to Canada regarding the Ultimate Recipient Agreements reached with the affected Ultimate Recipients, Quebec may combine the allocations of Ultimate Recipients based on the Public Transit Ridership Table to facilitate the integration of these Ultimate Recipients’ public transit systems.
  4. Direct and Measurable Outcomes of Eligible Projects
  5. Projects eligible for public transit stream contribution funding under the Agreement must meet one of the direct and measurable outcomes described in the following table.

    Public Transit Direct and Measurable Outcomes Table

    Improved capacity of public transit infrastructure

    Improved quality and/or safety of existing or future transit systems

    Improved access to a public transit system

  6. Ineligible Projects
  7. A Project is not eligible for contribution funding under the Agreement if it involves inter-city transportation by bus, train, port or ferry that is not part of a public transit system. Public transit is considered to be a distinct mode of transportation conveyance that generally refers only to the movement of passengers within an urban or municipal setting.

  8. Stacking and Cost Sharing
    1. The maximum funding from all federal sources to a Project that is approved for public transit stream contribution funding under the Agreement cannot exceed the following:
      1. Forty percent (40%) of Eligible Expenditures for new construction and expansion of public transit and active transportation that connects citizens to public transit systems;
      2. Fifty percent (50%) of the Eligible Expenditures for public transit rehabilitation Projects; or
      3. Twenty-five percent (25%) of the Eligible Expenditures for any for-profit private sector Ultimate Recipient, notwithstanding the provisions of subparagraph a) or b) of this paragraph.
    2. If total funding towards a project under the public transit stream exceeds the federal funding limits set out in paragraph "i" of this paragraph or if the Total Financial Assistance received or due in respect of the total Project costs exceeds one hundred percent (100%) thereof, Canada may recover the excess from Quebec or reduce its contribution by an amount equal to the excess.
    3. Canada’s contribution to all Projects under the public transit stream will not exceed the amount as set out in paragraph a) of section 3 (Commitments by Canada).
  9. Stream Specific Requirements
  10. Projects that meet a direct and measurable outcome of Table A.2 c) must meet the following stream specific requirement

    1. The Ultimate Recipient must confirm to Quebec, who will in turn confirm to Canada, that public transit Projects and active transportation Projects that connect citizens to a public transit system are foreseen in an investment plan or in an urban planning and development plan.

A.3 Green Infrastructure

  1. Objective
  2. The green infrastructure stream will support greenhouse gas emissions (GHG) reductions, enable greater adaptation and resilience to the impacts of climate change and climate-related disasters mitigation. It also ensures the maintenance of water and sewer assets. This component includes the following three subsections:

    1. climate change mitigation;
    2. adaptation, resilience, disaster mitigation; and
    3. environmental quality.
  3. Canada's Contribution
    1. Estimated Breakdown by Fiscal Year
    2. Canada’s total contribution funding for all Projects under the green infrastructure stream will be allocated in accordance with the approximate amounts estimated in the following table, as may be updated by the Oversight Committee:

      Estimated Green Infrastructure Fiscal Year Breakdown Table

      N/A

      Canada

      2018-2019

      $32,000,000

      2019-2020

      $28,000,000

      2020-2021

      $109,000,000

      2021-2022

      $93,000,000

      2022-2023

      $147,000,000

      2023-2024

      $184,000,000

      2024-2025

      $223,000,000

      2025-2026

      $292,000,000

      2026-2027

      $319,000,000

      2027-2028

      $381,076,797

      TOTAL

      $1,808,076,797

    3. Allocation to Sub-Streams
      1. Quebec agrees to allocate a minimum of $813,634,559 of Canada’s allocation amount under paragraph b) of section 3 (Commitments by Canada) to Projects under the climate change mitigation sub-stream, subject to the provisions of section 13 (Administrative Expenses). This threshold of $813,634,559 may be revised by the Parties, including, but not limited to, three years after the date of the last signature, and again five years after the date of the last signature to reflect the needs of Quebec. Any request must be justified and assessed by the Oversight Committee, subject to section 21.9 (Amendments).
  4. Direct and measurable outcomes of Eligible Projects
  5. Projects eligible for federal contribution funding under the green infrastructure stream of this Agreement must meet one of the direct and measurable outcomes described in the following table.

    Green Infrastructure Direct and Measurable Outcomes Table

    Climate Change Mitigation Sub-Stream Outcomes:

    Increased capacity to manage more renewable energy sources

    Improving access to clean energy transportation

    Better energy efficiency of buildings

    Improving clean energy production

    Adaptation, Resilience and Disaster Mitigation Sub-Stream Outcomes:

    Increased structural capacity and/or increased natural capacity to adapt to climate change impacts, natural disasters and extreme weather events

    Environmental Quality Sub-Stream Outcomes:

    Asset maintenance and upgrading of wastewater treatment and collection infrastructure

    Asset maintenance and upgrading of drinking water treatment and distribution infrastructure

    Increased capacity to reduce or eliminate pollutants from soil and/or the atmosphere

  6. Ineligible Projects
    1. Under the climate change mitigation sub-stream, a project is not eligible for a financial contribution under the Agreement if it:
      1. involves inter-city bus, rail, port and ferry infrastructure that are not part of a public transit system. Public transit is considered to be a distinct mode of transportation conveyance that generally refers to the movement of passengers only within an urban or municipal setting;
      2. is eligible under the Low Carbon Economy Leadership Fund’s three priority areas, unless and until Quebec’s envelope under the Low Carbon Economy Leadership Fund is fully committed;
      3. is an energy retrofit project, unless the Project involves an asset that is considered eligible for funding under the Agreement or the National Housing Strategy; or
      4. involves an emergency services infrastructure.
    2. Under the Adaptation, Resilience and Disaster Mitigation sub-stream, a project is not eligible for a financial contribution under the Agreement if it:
      1. relocates a whole community;
      2. involves an emergency services infrastructure; or
      3. addresses seismic risks.
  7. Stacking and Cost-Sharing
    1. The maximum funding from all federal sources to a Project that is approved for green infrastructure stream contribution funding under this Agreement will not exceed:
      1. Fifty percent (50%) of Eligible Expenditures for Quebec;
      2. Forty percent (40%) of Eligible Expenditures for municipalities, regional governments and not-for-profit organizations;
      3. Seventy-five percent (75%) of Eligible Expenditures for Indigenous Ultimate Recipients; or
      4. Twenty-five percent (25%) of Eligible Expenditures for any for-profit, private sector Ultimate Recipients, notwithstanding paragraphs a), b) or c) in this section.
    2. The maximum funding to a Project under the green infrastructure stream from all federal sources will not exceed the limits set out in paragraph i) of this section, except for Indigenous Ultimate Recipients, which may access additional funding for a Project up to a maximum of one hundred percent (100%) of Eligible Expenditures from all federal sources, subject to approval by Canada.
    3. If the federal Crown's total funding towards a Project under the green infrastructure stream exceeds the federal funding limits set out in paragraphs i) and ii) of this section, or if the Total Financial Assistance received or due in respect of the total Project costs exceeds one hundred percent (100%) thereof, Canada may recover the excess from Quebec or reduce its contribution by an amount equal to the excess.
    4. Canada's contribution to all Projects under the green infrastructure stream will not exceed the amount as set out in paragraph b) of section 3 (Commitments by Canada).
  8. Stream Specific Requirements
    1. Projects that meet one of the direct and measurable outcomes of the climate change mitigation sub-stream in Table A.3 c) must meet the following specific requirement, where applicable:
      1. For Projects involving higher order rapid transit, the adoption of vehicles that use a renewable fuel source in a public transit fleet, or active transportation Projects, Quebec will confirm that such Projects are consistent with a land-use or transportation plan or strategy, and where applicable, that Projects are consistent with the approved plans of regional transportation bodies.
    2. Projects that meet one of the direct and measurable outcomes of the environmental quality sub-stream of Table A.3 c) must, where applicable, meet the following specific requirements:
      1. Wastewater Projects must result in wastewater effluent that, where applicable, meets Regulation respecting municipal wastewater treatment works requirements;
      2. Drinking water quality following completion of a drinking water Project must meet or exceed Quebec’s standards;
      3. Solid Waste Diversion Projects must result in a measurable increase in the quantity of materials diverted from disposal as measured against a baseline using the generally accepted principles in Quebec to calculate the flow rate of the municipal solid waste management systems;
      4. Projects that reduce or mitigate soil pollutants must be carried out on properties that are contaminated, as confirmed by a characterization study as per Land Characterization Guide under the Regulation on the Protection and Rehabilitation of Lands (chapter Q-2, r. 37). Projects that reduce or mitigate soil pollutants that are located on federal land must be carried out properties that are contaminated, as confirmed by a Phase II Environmental Site Assessment.

A.4 Community, Culture and Recreation Infrastructure

  1. Objective
  2. The community, culture and recreation infrastructure stream will build stronger communities and improve social inclusion. A community infrastructure is defined as a meeting and community activity center. These are publicly accessible, multi-purpose spaces that bring together a variety of different services, programs and/or social and cultural activities to reflect local community needs.

  3. Canada's Contribution
    1. Estimated Breakdown by Fiscal Year
    2. Canada's total contribution funding for all Projects under the community, culture and recreation infrastructure stream will be allocated in accordance with the estimated maximum amounts in the Community, Culture and Recreation Infrastructure Fiscal Year Breakdown Table, as amended through administrative processes:

    Estimated Community, Culture and Recreation Infrastructure Fiscal Year Breakdown Table

    N/A

    Canada

    2018-2019

    $2,000,000

    2019-2020

    $3,000,000

    2020-2021

    $8,000,000

    2021-2022

    $13,000,000

    2022-2023

    $18,000,000

    2023-2024

    $25,000,000

    2024-2025

    $31,000,000

    2025-2026

    $55,000,000

    2026-2027

    $44,000,000

    2027-2028

    $58,003,028

    TOTAL

    $257,003,028

  4. Direct and Measurable Outcomes of Eligible Projects
  5. Projects eligible for community, culture and recreation infrastructure stream contribution funding under the Agreement must meet the direct and measurable outcome described in the following table.

    Community, Culture and Recreation Infrastructure Direct and Measurable Outcomes Table

    Improved access to and/or increased quality of cultural, recreational and/or community infrastructure for Canadians.

  6. Ineligible Projects
    1. Under the community, culture and recreation infrastructure stream, a project is not eligible for contribution funding under the Agreement if it:
      1. is carried out by a private sector, for-profit Ultimate Recipient;
      2. is a stand-alone daycare facility, for-profit daycare facility, daycare facility associated with a school board, or a daycare facility funded under Canada’s Early Learning and Child Care initiative;
      3. is a religious site that serves as a place of assembly for religious purposes, which includes among others, a site, church, mosque, synagogue, temple, chapel (e.g., within a convent or seminary), shrine or meeting house; or
      4. is a professional or semi-professional sport facility that is primarily a commercial operation, such as those that serve major junior hockey leagues.
    2. For community infrastructure Projects that meet a direct and measurable outcome in the Community, Culture and Recreation Infrastructure Stream Table, elements of the Project that would not be considered eligible for funding under the Agreement include dedicated spaces for healthcare, education or tourism purposes, provincial or municipal services; or for-profit uses, except for dedicated healthcare and education spaces that benefit Indigenous people by advancing the Truth and Reconciliation Commission’s Calls to Action as approved by Canada.
  7. Stacking and Cost-Sharing
    1. The maximum funding from all federal sources, to a Project approved for funding under the Agreement, under the community, culture and recreation infrastructure stream will  not exceed:
      1. Fifty percent (50%) of the Eligible Expenditures for Projects carried out by Quebec,
      2. Forty percent (40%) of Eligible Expenditures for regional and municipal administrations and not-for-profit organizations;
      3. Seventy-five percent (75%) of the Eligible Expenditures for Indigenous Ultimate Recipients notwithstanding a) and b) in this section.               
    2. The maximum funding to a Project under the community, culture and recreation infrastructure stream from all federal sources, cannot exceed the limits set out in paragraph "i" of this paragraph, except for Indigenous Ultimate Recipients, which may access a maximum of one hundred percent (100%) of Eligible Expenditures from all federal sources subject to approval by Canada.
    3. If Canada’s total funding towards a Project under the community, culture and recreation infrastructure stream exceeds the federal funding limits set out in paragraphs "i" and "ii" of this paragraph, or if the Total Financial Assistance received or due with respect to a Project exceeds one hundred percent (100%) of the total Project costs, Canada may recover the excess from Quebec or reduce its contribution by an amount equal to the excess.
    4. Canada’s contribution to all Projects under the community, culture and recreation infrastructure stream cannot exceed the amount as set out in paragraph c) of section 3 (Commitments by Canada).
  8. Stream Specific Requirements
  9. All Projects that meet the direct and measurable outcome of Table A.4 c) must meet, where applicable, the following specific requirements:

    1. Community, culture and recreation Projects must be community-oriented, non-commercial in nature, open for use to the public and not limited to an organization’s private membership.
    2. Quebec will prioritize assets that serve vulnerable populations.
    3. Quebec must confirm that the primary rationale for undertaking a sport infrastructure Project is not to serve as a home facility for professional or semi-professional sports teams;
    4. Health and educational facilities must benefit Indigenous people by advancing the Truth and Reconciliation Commission’s Calls to Action.

A.5 Rural and Northern Communities Infrastructure

  1. Objective
  2. The rural and northern communities infrastructure stream will support Projects that improve the quality of life in rural and northern communities.

  3. Canada's Contribution
    1. Estimated Breakdown by Fiscal Year
      1. Canada’s total contribution funding under the rural and northern communities Infrastructure stream will be allocated in accordance with the approximate amounts estimated in the following table, as may be updated by the Oversight Committee:
      2. Estimated Rural and Northern Communities Infrastructure Fiscal Year Breakdown Table

        N/A

        Canada

        2018-2019

        $2,000,000

        2019-2020

        $3,000,000

        2020-2021

        $9,000,000

        2021-2022

        $14,000,000

        2022-2023

        $20,000,000

        2023-2024

        $28,000,000

        2024-2025

        $34,000,000

        2025-2026

        $63,000,000

        2026-2027

        $50,000,000

        2027-2028

        $65,465,324

        TOTAL

        $288,465,324

  4. Direct and Measurable Outcomes of Eligible Projects
    1. Projects eligible for federal contribution funding under the rural and northern infrastructure stream under the Agreement:
      1. must meet one of the direct and measurable outcomes of the following table; or
      2. Rural and Northern Communities Infrastructure Direct and Measurable Outcomes Table

        Improved food security as defined by the United Nations Committee on World Food Security

        Improved and/or more reliable road, air and/or marine infrastructures as compared with their initial state

        Improved broadband connectivity

        Access to more efficient (example: replacing a diesel system) and/or reliable energy sources

        Improved education and/or health facilities (specific to the Truth and Reconciliation Commission’s Calls to Action)

      3. may, subject to approval by Canada, meat at least one of the Project direct and measurable outcomes in the Table of  Direct and Measurable Outcomes within the Public Transit, Green Infrastructure and Community, Culture and Recreation Infrastructure streams.
  5. Ineligible Projects
  6. A Project is not eligible for a contribution funding under the Agreement if it:

    1. is housing;
    2. is an early learning and childcare facility;
    3. is a health facility, or education facility, except to benefit Indigenous peoples by advancing the Truth and Reconciliation Commission’s Calls to Action as approved by Canada;
    4. is a highway or trade corridor infrastructure, except for portions that connect communities that do not already have year round road access; or
    5. is resource development infrastructure, notably industrial resource development access roads.
  7. Stacking and Cost-Sharing
    1. The maximum funding from all federal sources, to a Project that is approved for funding under the Agreement, rural and northern communities infrastructure stream contribution funding under the Agreement will not exceed the following:
      1. Fifty percent (50%) of Eligible Expenditures for Projects carried out by Quebec, municipal and regional administrations with a population of five thousand (5,000) or more and not-for-profit Ultimate Recipients;
      2. Sixty percent (60%) of Eligible Expenditures for Projects carried out by municipal and regional administrations with a population of less than five thousand (5,000);
      3. Seventy-five percent (75%) of Eligible Expenditures for Indigenous Ultimate Recipients; or
      4. Twenty-five percent (25%) of Eligible Expenditures for for-profit, private sector Ultimate Recipients, notwithstanding a) or b) of this paragraph.
    2. The maximum funding to a Project under the rural and northern communities infrastructure stream from all federal sources, cannot exceed the limits set out in paragraph "i" of this paragraph, except for Indigenous Ultimate Recipients, which may access a maximum of one hundred percent (100%) of Eligible Expenditures from all federal sources.
    3. If Canada’s total funding towards a Project under the rural and northern communities infrastructure stream exceeds the federal funding limits set out in paragraphs "i" and "ii" of this paragraph, or if the Total Financial Assistance received or due with respect to a Project exceeds one hundred percent (100%) of the total Project costs, Canada may recover the excess from Quebec or reduce its contribution by an amount equal to the excess.
    4. Canada’s contribution to all Projects rural and northern communities infrastructure stream cannot exceed the amount as set out in paragraph c) of section 3 (Commitments by Canada).
  8. Stream Specific Requirements:
    1. Projects that meet one of a direct and measurable outcomes of table A.5 c) i. a) must meet, where applicable, the following specific requirements:
      1. All Projects must be carried out in rural or northern communities and must directly benefit the aforementioned communities with a population of one hundred thousand (100,000) or less based on 2016 Statistics Canada Census data;
      2. Projects must encourage reconciliation with Indigenous Peoples as per the Truth and Reconciliation Commission’s Calls to Action and the United Nations’ Declaration on the Rights of Indigenous Peoples, as well as capacity building needs of rural and northern communities.

SCHEDULE B – COMMUNICATIONS PROTOCOL

B.1 Objective

  1. This Communications Protocol outlines the roles and responsibilities of each of the Parties to this Agreement for communications activities related to the Agreement and the Projects funded through it.
  2. This Communications Protocol will guide the planning, development and implementation of all communications activities to ensure clear, consistent and coordinated communications to the Canadian public.
  3. The provisions of this Communications Protocol apply to all Communications Activities related to the Agreement and the Projects funded under it. These communications activities can include, among others: public or media events, social media, news releases, reports, products or messages destined for the web, project signage, digital signage, publications, videos, advertising campaigns, editorials, recognition programs and multimedia products.

B.2 Guiding Principles

  1. The Parties agree to highlight the funding allocated by the Parties and the Ultimate Recipient.
  2. The Parties recognize the importance of managing the delivery of coherent communications activities based on the principle of collaboration and transparent open discussion.
  3. Communications activities undertaken through this Protocol must ensure that Canadians are informed of infrastructure investments made to help improve their quality of life and that they receive consistent information about funded Projects and their benefits from each Party.
  4. Quebec will communicate the requirements and responsibilities outlined in this communication protocol to the Ultimate Recipient.

B.3 Governance

  1. The Agreement Management Committee will be responsible for monitoring the implementation of this Communications Protocol.

B.4 Joint Communications

  1. Canada and Quebec will participate in joint communications activities about the funding and progress of the Projects.
  2. Joint communications related to Projects funded under this Agreement should not occur without the prior knowledge and agreement of all Parties and the Ultimate Recipient.
  3. All Joint Communications material must be approved by Canada and Quebec prior to release and recognize the financial contribution of all Parties and the Ultimate Recipient, as applicable.
  4. Each Party may request a Joint Communications activity. The requestor will provide at least 15 business days’ notice to the other Party. If the communications activity is an event, it will take place at a date and location mutually agreed upon by the Parties.
  5. The requestor of the Joint Communications activity will provide the opportunity for the other Party to choose to participate and designate their own representative.
  6. Quebec will be responsible for logistics for joint events. All costs associated with these joint events are eligible in accordance with section B.9 (a).
  7. All Joint Communications activities will follow the Table of Precedence for Canada.

B.5 Individual Communications

  1. Notwithstanding section B.4 of this Communications Protocol (Joint Communications), Canada and Quebec retain the right to meet their obligations to communicate information to the public about the Agreement and the use of funds through their own Communications Activities.
  2. Canada will publish a copy of the Agreement on its website in addition to information on Projects funded through it.
  3. Canada and Quebec may also include messages related to the Program in general and examples of Projects funded under the agreement in their own communications activities. The responsible Party will not unreasonably prevent the other Party from using the products or messages or hyperlinking to them if they are on the web or social media.
  4. Canada or Quebec may use digital communications to promote the Project(s) or announce progress under the Agreement.
  5. When a web page or website is created to promote a funded Project, the Parties’ funding must be highlighted through digital signage. To recognize the federal contribution, the Canada Wordmark and the following sentence must be added: "This project is funded in part by the Government of Canada.” The Canada Wordmark or digital signage must link to the Infrastructure Canada website.
  6. Quebec should ask the Ultimate Recipient to send them at least one photo of construction work currently under way, or of the final Project. Quebec will then forward this to Canada so the Parties can use these images for social media or other digital communications. Sending the photos will constitute permission to use and the transfer of copyright. Québec will send photos to INFC.photos.INFC @canada.ca with the Project’s name and location.

B.6 Operational Communications

  1. Quebec is solely responsible for operational communications related to Projects, including but not limited to: calls for tender, or construction and public safety notices. 
  2. There is no need to inform Canada about operational communications. However, the products should include, to the extent possible, the following statement: “This project is funded in part by the Government of Canada.”

B.7 Media Relations

  1. Canada and Quebec will share information promptly with the other Parties should significant media inquiries be received or emerging media or stakeholder issues arise relating to the Project.

B.8 Signage

  1. At Canada’s request, fixed signs or billboards will be installed on the sites of Projects funded under this Agreement acknowledging the contributions of each Party where circumstances permit and:
    -The Parties have agreed to it; and/or
    -The Project represents a particular interest for one of the Parties.
  2. Quebec will require the Ultimate Recipient to install signage highlighting the funding allocated to the Project.
  3. For funded public transit Projects, the Parties agree that no signage will be installed on vehicles or rolling stock.
  4. Federal signage will be produced and installed in accordance with current federal signage installation guidelines.
  5. Canada and Quebec may each have signage recognizing their Project funding contributions.
  6. Digital signage may also be used in addition to, or instead of, physical signage where physical signage is not appropriate due to the type, scope, location or duration of the Project.
  7. Where the Ultimate Recipient decides to install a permanent plaque or other suitable Project marker, Quebec requires that this marker reflect the contribution of, and is approved by, the Parties.
  8. When possible, signage must be installed on the Project’s site(s) 30 days before construction begins, be visible for the duration of the project, and remain in place for at least 30 days after the project is finished and the infrastructure is fully operational or open for public use.
  9. Signage should be installed in an easily visible location that takes into consideration pedestrian and driver safety and visibility. Canada Signage will be of the same size and prominence as any signage produced by Quebec and, as applicable, Ultimate Recipients.

B.9 Communications Cost

  1. Communications activities are eligible costs as they are directly associated with the Project, as set out in Schedule A (Eligible and Non-Eligible Expenses).

B.10 Advertising Campaigns

  1. Recognizing that advertising can be an effective means of communicating with the public, Canada and the Recipient may, at their own cost, organize advertising or a public information campaign related to the Agreement or the Project. However, such a campaign must respect the provisions of this Agreement. In the event of such a campaign, the sponsoring Party agrees to inform the other Party of its intention no less than twenty-one (21) business days prior to the campaign launch.

SCHEDULE C – CONTRIBUTION TO CANADA'S TARGETS

  1. Quebec will identify, compile and provide Canada with data, if applicable, to contribute to the targets that Canada wishes to achieve with the Program’s investments in Quebec. Canada will not suspend or terminate its obligations to contribute to one or more Projects or Administrative Expenses in the event that the data provided by Quebec do not allow Canada to meet these targets:
    1. Contribute to increase the modal share for public transit and active transportation. The targeted contribution contributes to the achievement of Canada's target, which is an increase of 25%.
    2. Contribute to maintain the proportion of people in a municipality with a public transit system live within the service area of their transit system. The targeted contribution contributes to the achievement of Canada’s target, which is to maintain this proportion at 98%.
    3. Contribute to a national ten mega-tonne (10mT) reduction of greenhouse gas emissions.
    4. Help reduce the number of long-term advisories concerning the quality of drinking water in non-reserve communities. The targeted contribution contributes to the achievement of Canada’s target, which is a 35% reduction.
    5. Contribute to increase the number of wastewater treatment systems identified by Quebec with are in compliance with the Municipal Wastewater Systems Regulation (chapter Q‑ 2, r. 34-1). The targeted contribution contributes to the achievement of Canada’s target, which is to increase the number of compliant systems by ninety-eight percent (98%) for high-risk treatment systems and eighty-five percent (85%) for medium-risk wastewater systems.
    6. Ensure that Projects meet the highest published applicable accessibility standard in Quebec.
    7. Contribute to increase the number of Rural Households that have access to the highest broadband speed range available in Quebec based on 2015 Canadian Radio-television and Telecommunications Commission data. The targeted contribution contributes to Canada’s target, which is a 5% increase in the number of Rural Households.
  2. The Parties agree that Canada’s targets may be adjusted or that new targets may be agreed to by the Oversight Committee following the evaluation of the Program that will be conducted before March 31st, 2023, and in accordance with section 21.9 (Amendments).

SCHEDULE D – PROJECT SUBMISSION INFORMATION

The following information must be provided for each project. The transmission of this information will attest to an official duly authorized by Quebec that the projects meet the provisions of the Agreement:

  1. Unique Project Identifier;
  2. Eligible investment stream(s);
  3. The type and name of the Ultimate Recipient;
  4. Project title;
  5. The description of the project, including the characteristics of the project and an explanation of the relationship between the project and the direct and measurable outcome(s) that apply to the project;
  6. Project financial information;
    1. Total Project Costs
    2. Total Eligible Expenditures
    3. Program Contribution – Stream 1 (specify)
    4. Program Contribution – Stream 2 (specify)
    5. Quebec Contribution
    6. Ultimate Recipient Contribution
    7. Other contribution(s) – identify each of the sources and their respective contributions, including other federal sources
    8. Breakdown by Fiscal Year (April 1 to March 31) – the amount Quebec plans to claim from Canada for the Program contribution
  7. The nature of the project (new construction, rehabilitation, expansion or other – provide the percentage for each);
  8. Asset ownership and operator – Indicate whether the Ultimate Recipient will be the owner and operator of the Property. Otherwise specify the arrangement;
  9. The project location (provide KML file with project location details);
  10. Expected project start and end dates;
  11. Procurement and Delivery – Indicate whether a sole source contract over $25,000 will be awarded for construction and whether a sole source contract over $100,000 will be awarded for engineering and architectural work.
  12. the expected direct and measurable outcomes, as defined in the tables of Schedule A.2 (Public Transit), A.3 (Green Infrastructure), A.4 (Community, Culture and Recreational Infrastructure) and A.5 (Rural and northern Communities Infrastructure);
  13. the indicators, as defined by the Oversight Committee, that apply to the project and that will be used to measure the expected direct and measurable outcomes, and, for Substantially completed Projects, the actual direct and measurable outcomes;
  14. Estimated targets, if any;
  15. Climate change assessment or the Declaration of conformity for projects that pose a low risk to the environment, in accordance with section 4. g);
  16. Community employment benefits, in accordance with section 4. h);
  17. Risks and mitigation strategies, where applicable, considering the complexity of the project, the project’s readiness, public awareness, and Ultimate Recipient capacity.

For all projects requiring a Treasury Board submission, Quebec agrees to provide additional information in accordance with 9.1 d).

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