2015-2016 Departmental Performance Report (DPR)

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Section III: Analysis of Programs and Internal Services

In 2015-16, INFC's Program Alignment Architecture included one Strategic Outcome, six Programs and Internal Services. The information presented in this section is organized according to INFC's PAA:

Strategic Outcome: Public Infrastructure for a More Prosperous Canada

Programs:

• Funding for Provincial-Territorial Priorities;
• Permanent and Flexible Public Infrastructure Funding;
• Investments in National Infrastructure Priorities;
• Large-Scale Infrastructure Investments;
• Infrastructure Investments in Small Communities and Rural Areas; and
• New Bridge for the St. Lawrence Corridor Project (commonly known as the New Champlain Bridge Corridor project).

Strategic Outcome

Public Infrastructure for a More Prosperous Canada

Good public infrastructure is needed for a high quality of life, prosperous communities and a resilient economy. Provincial, territorial, and municipal governments continue to make significant investments and to prioritize and address public infrastructure needs across the country. As a funding partner, INFC provides federal contributions to public infrastructure projects through long-term, stable, and predictable funding programs that leverage funding from partners and support local, regional and national priorities. Collectively, these investments are making a difference.

Performance indicators developed for INFC's Strategic Outcome offer insights into the Government of Canada's commitment to infrastructure in two ways: service levels in infrastructure expressed as the stock of infrastructure per capita, and sustained public investment levels in infrastructure. The two are highly interrelated and, ultimately, have an impact on Canada's long-term prosperity.

Performance Measurement

Performance Indicators	Targets	Actual Results
Rank among G7 countries for public investment in infrastructure as a percentage of GDP	Above G7 average (using 2013 data) by March 31, 2016	Ranked 2nd (using 2013 forecast data)
Core public infrastructure investments to depreciation*	Ratio: 1.7 (based on 2013 forecast data) by March 31, 2016	Ratio: 1.70 (based on 2013 forecast data)
Core public infrastructure stock per capita**	$12,200 (based on 2013 forecast data) by March 31, 2016	$15,204 (using 2013 forecast data)

Notes:
* "Core public infrastructure" comprises the following asset categories: bridges, roads, water, wastewater, public transit and, cultural and recreational facilities. "Depreciation" refers to the value of wear and tear on physical infrastructure resulting from use in the production of goods and services.
** "Stock" refers here to the value of all core public infrastructure still in use. The purchase of new capital, and thus investment increases the stock of capital. Depreciation decreases the stock of capital through wear and tear and the passage of time.
Sources for these indicators are Organization for Economic Co-operation and Development (OECD) and Statistics Canada data

The figures below contain the most up-to-date data available at the time of writing of this report. There is a time lag between the collection and publishing of infrastructure data.

Figure 1 shows all public sector infrastructure investments as a percentage of Canada's GDP. Since 2008, infrastructure investments represent over 5% of GDP. As previously noted, INFC is a funding partner working with other orders of government as well as the private and not-for-profit sectors, to provide funding support for public infrastructure projects.

Notes: *Federal/Provincial/Municipal Infrastructure investments include core public infrastructure assets (bridges, roads, water, wastewater, transit, culture, and recreation and sports), marine and air transportation, rail, brownfields, waste management, education, health and social assistance, energy, communication, oil and gas engineering, commercial and government and other institutional buildings, and other infrastructure. Investments from all levels of government including Crown corporations and departmental agencies. Constant dollars. Data for 2013 based on forecast.
Source: Statistics Canada, National Economic Accounts Division; Statistics Canada, CANSIM table 384-0038.
See text description of Figure 1

Over 95% of Canada's Core Public Infrastructure (CPI) is owned by provinces, territories and municipalities. Figure 2 illustrates that, since 2006, the Government of Canada has made increasing commitments to infrastructure investments, including $33 billion through the Building Canada Plan for provincial, territorial and municipal infrastructure priority projects. Over the course of the 7-year Building Canada Plan, federal spending increased from $3.2 billion in 2007-2008 to just over $5 billion in 2014-2015. Starting in 2014-2015, the New Building Canada Plan is providing funding of $53 billion over a 10-year period.

Sources: Infrastructure Canada; Department of Finance.
Note – Only includes federal spending from Infrastructure Canada, Transport Canada, Finance Canada, Aboriginal Affairs and Northern Development, Atlantic Canada Opportunities Agency, Economic Development for the Regions of Quebec, Federal Economic Development Agency for Southen Ontario, Western Economic Diversification Canada and the Royal Canadian Mounted Police.
See text description of Figure 2

As illustrated in figure 3, Provincial/Territorial (P/T) and Municipal investments in CPI have doubled between 2003 and 2013, increasing from $14.5 billion to $29.5 billion. Within the 10-year time frame of 1992 to 2002, P/T and Municipal investments had only increased by $3 billion, from $11 billion in 1992 to $14 billion in 2002. Transfers made by the federal government to other levels of government under various infrastructure programs have remained consistently over $3 billion since 2012-2013. These transfers are included in the P/T and Municipal investments.

Notes: Core Public Infrastructure includes roads, bridges, transit, water, wastewater, culture, and recreational and sports infrastructure. Includes investments made from Crown corporations and departmental agencies and transfers from other levels of government. Constant dollars. Data for 2013 based on forecast.
Source: Statistics Canada, National Economic Accounts Division.
See text description of Figure 3

Figure 4 shows a 10-year snapshot of CPI investments compared to its depreciation. It illustrates that while both investments and depreciation have increased over time, in 2003 investments barely exceeded the annual depreciation, just maintaining existing infrastructure capital, and by 2013 new investments exceeded the annual depreciation by $13 billion. This trend on the renewal of CPI in Canada is partly a result of INFC's policies and investments.

Notes: Billions, constant dollars, using a hyperbolic function for depreciation. Core public infrastructure includes roads, bridges, transit, water, wastewater, culture, and recreation and sports infrastructure. Nationally, this infrastructure is owned by all levels of government including Crown corporations and departmental agencies. Data for 2013 based on forecast.
Source: Statistics Canada, National Economic Accounts Division.
See text description of Figure 4

Increases in infrastructure investments have resulted in a decline in the computed average age of core public infrastructure. In 2003, the average age of core public infrastructure was 17.5. In 2013 this number had decreased to 14.7 years. The average age as a percentage of useful life has also declined. Figure 5 illustrates that the age of CPI as a percent of useful life has decreased from 65% in 2003, to 52.5% in 2013 due to infrastructure investments.

Notes: Core Public Infrastructure (roads, bridges, transit, water, wastewater, culture, and sports and recreation infrastructure) owned by all levels of government including crown corporations and provincial agencies. Data for 2013 based on forecast.
Source: Statistics Canada, National Economic Accounts Division. Chart and data calculation: Infrastructure Canada.
See text description of Figure 5

Increased investments in infrastructure have caused the net stock of CPI per capita to rise. Figure 6 illustrates that stock of CPI per capita increased from $10,600 in 2003 to $12,200 in 2013.

Notes: Net stock using a hyperbolic function for depreciation from all levels of government including crown corporations and departmental agencies. Core public infrastructure includes roads, bridges, transit, water, wastewater, culture, and sports and recreation. Constant dollars. Data for 2013 based on forecast.
Source: Statistics Canada, National Economic Accounts Division. Statistics Canada, CANSIM table 051-0001.
See text description of Figure 6

Program 1.1: Funding for Provincial-Territorial Priorities

Description

This program provides predictable funding to each province and territory to enhance Canada's public infrastructure. Federal payments to provinces and territories are made according to the terms and conditions of signed funding agreements, including federal approval of Capital Plans and Expenditure Reports. Funding through this program leverages additional contributions from other funding partners to increase overall investment in public infrastructure for Canadians. Payments are made up-front and cost-sharing provisions apply to a Capital Plan as a whole, and not the individual initiatives within a Capital Plan. Funding for this program is provided through transfer payments to provinces and territories from the Provincial-Territorial Base Fund.

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2015-16 Difference (actual minus planned)
91,061,247	91,061,247	90,885,828	50,036,481	(41,024,766)

Human Resources (Full-Time Equivalents [FTEs])

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
3	3	0

Performance Results

Expected Results	Performance Indicators	Targets*	Actual Results
Funding for provincial-territorial priorities leverages investments in infrastructure by other partners to increase overall investment in public infrastructure for Canadians	Funding leveraged from partners as a percentage of federal funding for provinces	100% by March 31, 2016	156%
	Funding leveraged from partners as a percentage of federal funding for territories	33% by March 31, 2016	51%

* Cumulative targets over the life of the program, estimated up to March 31, 2018.

Performance Analysis and Lessons Learned

During the reporting period, Expenditure Reports for two jurisdictions were approved; one of which resulted in a final payment to the jurisdiction. For the majority of jurisdictions, the final Expenditure Report must show the completion of all initiatives before final payment can be issued, meaning that a delay to a single initiative holds back the final payment. Overall, jurisdictions continued to complete initiatives included in their approved Capital Plans. However, only a few have completed all initiatives, including the final audited Expenditure Report, and received final payment. Although the PT Base Fund provided important flexibility to jurisdictions in prioritizing core infrastructure projects, extensions to the program timeframe have been requested by several jurisdictions in order to ensure that funding agreements include sufficient time to complete all initiatives.

A close working relationship between INFC and provincial and territorial governments is still required to provide guidance on completing reporting requirements, and to ensure that cost-sharing program requirements are met as initiatives continue to be completed.

Program 1.2: Permanent and Flexible Public Infrastructure Funding

Description

This program provides long-term predictable funding for municipalities, and supports long-term municipal planning and asset management in order to address infrastructure priorities and help improve community infrastructure for Canadians. Funding is provided to build and rehabilitate public infrastructure based on overall compliance with the terms and conditions of administrative agreements. Federal funding is provided up-front and does not need to be used in the year it is provided. Funding for this program is provided through transfer payments to provinces and territories from the Gas Tax Fund (GTF).

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2015-16 Difference (actual minus planned)
1,976,213,928	1,976,213,928	1,975,090,837	1,974,079,201	(2,134,727)

Human Resources (FTEs)

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
24	22	(2)

Performance Results

Expected Results	Performance Indicators	Targets	Actual Results
Provinces, territories and municipal associations are accountable for funding provided to local governments through Permanent and Flexible Public Infrastructure Funding	Percentage of jurisdictions in compliance with agreement reporting requirements	100% by March 31, 2016	93% by March 31, 2016
Municipalities have access to Permanent and Flexible Infrastructure Funding to build and improve infrastructure	Percentage of Gas Tax Fund allocation flowed to agreement signatories	100% by March 31, 2016	100% by March 31, 2016

Performance Analysis and Lessons Learned

In 2015-16, annual funding letters were issued to each jurisdiction, resulting in a total of $1.97 billion flowed to all provinces and territories under the GTF by March 31, 2016.^{Footnote 8} In October 2015, the Department successfully hosted an intergovernmental GTF workshop, bringing together federal, provincial and territorial officials, as well as officials from two major municipal associations. The workshop focused on key areas, including reporting on outcomes and indicators and eligible categories of investment. Guidelines for Eligibility Assessments and a summary of Common Project Questions were shared with officials.The GTF workshop provided an opportunity for greater discussion and collaboration between participants on shared challenges and best practices.

GTF Agreement reporting requirements for signatories include the submission and acceptance of an Annual Report (Financial Report Table and Project List) and an Independent Audit Opinion or Audit-Based Attestation. In 2015, GTF signatories were provided with updated reporting guidelines on outcomes and indicators, and information on data requirements for the Annual Project List.

An evaluation of the GTF was completed in August 2015 and included a recommendation that INFC review its role with respect to national reporting, and seek to improve data quality and consistency for ongoing program monitoring and reporting of outcomes. INFC has taken concrete measure to improve data, including the development of new guidelines, tools and templates to improve data quality and consistency.

INFC will continue to focus on reporting and outcomes as part of its ongoing collaboration with signatories. Since the inception of the program in 2005, INFC has hosted annual workshops where program requirements are clarified and where provinces and territories share their best practices. Over the last few years, asset management and reporting requirements have been key themes. INFC intends to improve its own reporting of the GTF.

Program 1.3: Investments in National Infrastructure Priorities

Description

This program directs funding to infrastructure projects that help to advance national priorities that are important to all Canadians. Funding through this program typically leverages additional contributions from other funding partners for eligible infrastructure projects. Funding is merit-based and is provided on a competitive basis for most of these transfer payment programs. Payments are provided based on eligible costs incurred as approved under signed contribution agreements. Funding for this program is provided to recipients through transfer payments through the New Building Canada Fund-National Infrastructure Component (NBCF-NIC), Green Infrastructure Fund (GIF), Border Infrastructure Fund (BIF) and the Inuvik to Tuktoyaktuk Highway Fund.

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2015-16 Difference (actual minus planned)
148,607,942	148,607,942	146,771,469	84,854,656	(63,753,286)

Human Resources (Full-Time Equivalents [FTEs])

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
31	27	(4)

Performance Results

Expected Results	Performance Indicators	Targets*	Actual Results
Infrastructure Canada's funding leverages investments in infrastructure by other partners to increase overall investment in public infrastructure for Canadians	Funding leveraged from partners as a percentage of federal funding (committed)	100% by March 31, 2016	154%
National priority infrastructure projects that promote economic growth, livable communities and a cleaner environment are delivered using traditional procurement	Number of national infrastructure priority projects completed	16 projects by March 31, 2016	13
	Value of national infrastructure priority projects completed	$1.7 billion by March 31, 2016	$1.6 billion
National priority infrastructure projects that promote economic growth, livable communities and a cleaner environment are delivered as public-private partnerships (P3)	Number of national infrastructure priority projects delivered as P3s	0 by March 31, 2016	0
	Value of national infrastructure priority projects delivered as P3s	$0 by March 31, 2016	$0

*Cumulative targets over the life of the Program, estimated up to March 31, 2016. Rolled-up targets for this Program are based on the following transfer payment programs: the New Building Canada Fund-National Infrastructure Component, the Green Infrastructure Fund, the Border Infrastructure Fund, and the Inuvik to Tuktoyaktuk Highway Fund.

Performance Analysis and Lessons Learned

Funding for this program is delivered through the NBCF-NIC, the GIF, the BIF, and the Inuvik to Tuktoyaktuk Highway Fund.

As of March 31, 2016, two projects have been approved for federal funding under NIC, totalling over $68 million, with a total investment of over $205 million. These projects are of national significance, and will contribute to Canada's long-term prosperity. INFC continues to implement and monitor project-specific agreements, and to ensure that claims are processed efficiently, in compliance with internal program control frameworks.

In 2015-16, INFC made further progress to implement the GIF:

• 1 additional project with a federal contribution of $27.7 million and a total value of $83.2 million began construction; and
• 15 projects with a federal contribution of $418 million and a total value of $1.18 billion are still underway.

As of March 31, 2016, a total of 18 projects have been approved under the program, and over $628 million in federal funding has been committed to these projects. The largest categories of investments, in terms of total eligible costs, are green energy infrastructure and wastewater management infrastructure.

As of March 31, 2016, the federal government has announced support for 12 border improvement infrastructure projects, with a combined total investment of $1.35 billion for transportation systems that promote improved efficiency and capacity at border crossings.

Transport Canada continued to monitor the final four projects still underway under the BIF on behalf of INFC, with a federal contribution of $272 million and total value of $711 million. 

As of March 31, 2016, over $159 million was paid to the Inuvik to Tuktoyaktuk Highway Fund to cover the federal share of costs for 117 kilometres of completed highway and 97 percent of completed embankment construction. The 2015-16 construction season saw the project's peak employment of 470 people; 74 percent of employees were local workers, there were six apprenticeships, and training of 22 heavy equipment operators. After years of work on the north and south sections of the highway, the historic joining of the two construction spreads linking the north and the south sections took place on April 7, 2016.

Program 1.4: Large-Scale Infrastructure Investments

Description

This program invests in infrastructure projects of national, regional and/or local significance. Funding through this program leverages additional contributions from other funding partners for eligible infrastructure projects. Funding may be jurisdictionally allocated. Actual payments are provided as work progresses under the terms of signed contribution agreements. Funding for this program is delivered through the following transfer payment programs: the New Building Canada Fund-Provincial-Territorial Infrastructure Component-National and Regional projects, Building Canada Fund-Major Infrastructure Component and the Canada Strategic Infrastructure Fund.

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2015-16 Difference (actual minus planned)
1,174,990,518	1,174,990,518	1,172,413,053	887,432,689	(287,557,829)

Human Resources (FTEs)

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
49	68	19

Performance Results

Expected Results	Performance Indicators	Targets*	Actual Results
Infrastructure Canada's funding leverages investments in infrastructure by other partners to increase overall investment in public infrastructure for Canadians	Funding leveraged from partners as a percentage of federal funding (committed)	100% by March 31, 2016	191%
Large-scale infrastructure projects that promote a stronger economy, livable communities and a cleaner environment are delivered using traditional procurement	Number of large-scale infrastructure projects completed	216 projects by March 31, 2016	176
	Value of large-scale infrastructure projects completed	$16.6 billion by March 31, 2016	$9.9 billion
Large-scale projects that promote economic growth are delivered as public-private partnerships (P3)	Number of large-scale projects delivered as P3s	8** by March 31, 2016	8
	Value of large-scale projects delivered as P3s	$5.6 billion** by March 31, 2016	$4.9 billion

* Cumulative targets over the life of the program, estimated up to March 31, 2016. Rolled-up targets for this Program are based on the following transfer payment programs: the New Building Canada Fund-Provincial-Territorial Infrastructure Component-National and Regional projects, the Building Canada Fund-Major Infrastructure Component and the Canada Strategic Infrastructure Fund.
** P3 projects funded through the Canada Strategic Infrastructure Fund and the Building Canada Fund-Major Infrastructure Component.

Performance Analysis and Lessons Learned

This program uses funding from the following transfer payment programs: the New Building Canada Fund-Provincial-Territorial Infrastructure Component-National and Regional projects (PTIC-NRP), Building Canada Fund-Major Infrastructure Component (BCF-MIC) and the Canada Strategic Infrastructure Fund (CSIF).

During the reporting period, under the PTIC-NRP, 40 projects were approved, $807 million of the $9 billion federal share was committed for this program, and 11 contribution agreements were signed.

For the BCF-MIC, INFC and its federal delivery partners also made progress:

• 22 projects with a federal contribution of $366 million and a total value of over $1.2  billion were completed;
• 6 additional projects with a federal contribution of $41.9 million and a total value of $85 million began construction; and
• 59 projects with a federal contribution of $3.5 billion and a total value of $10.7 billion are still underway.

As of March 31, 2016, $5.9 billion in federal funding for the BCF-MIC has been approved for 178 projects with a total value of $17.8 billion. The largest categories of investment, in terms of total eligible costs, are public transit and national highway system infrastructure.

During the reporting period, INFC and its federal delivery partners made progress to implement the CSIF:

• 3 projects with a federal contribution of $28.1 million and a total value of $80.4 million were completed; and
• 18 projects with a federal contribution of $1.5 billion and total value of $4 billion are still underway.

As of March 31, 2016, $4.6 billion in federal funding for the CSIF has been committed and approved for 90 projects with a total value of $12.3 billion. The largest categories of investment, in terms of total eligible costs, are local transportation infrastructure and highway and rail infrastructure.

INFC continues to implement and monitor project-specific agreements through agreement oversight committees and ensure that claims are processed efficiently and in compliance with INFC's program control frameworks. INFC also continues to collaborate with partners to complete amendments to individual project funding agreements as required.

An audit of the Management Control Framework of the NBCF completed in October 2015 found some areas for improvement, in particular under programs that provide funding for large scale projects. INFC has taken action on these recommendations, which include improving the information available to project proponents and recipients regarding project approval and claims processes. INFC has also provided additional information and clarification through its website as well as materials provided to proponents and recipients.

Furthermore, internal project approvals under the long-term, large-scale infrastructure programs have traditionally been lengthy, due to the need to assess projects and gather information. INFC has reviewed existing processes and is committed to streamlining approvals under existing programs to ensure that projects are moving forward with federal support in a more timely fashion. Streamlining approvals will ensure that low-risk projects, such as highways and roads, get approved faster, and that contribution agreements can be signed to help projects advance.

In addition to the new funding announced in Budget 2016, the Government will support the infrastructure priorities of communities across Canada by transferring, through the GTF in 2016-17, funds not prioritized for projects by provinces and territories as of March 31, 2016 under the Municipal Rural Infrastructure Fund (MRIF), BIF, the Building Canada Fund-Communities Component (BCF-CC), BCF-MIC, and the GIF. This will help ensure that funds are directed towards municipal infrastructure priorities in the near term.

Program 1.5: Infrastructure Investments in Small Communities and Rural Areas

Description

This program invests in infrastructure projects in small communities and rural areas to support local and/or regional priorities and economies. Funding through this program leverages additional contributions from other funding partners for eligible infrastructure projects. Funding may be jurisdictionally allocated. Payments are provided based on eligible costs incurred as approved under signed contribution agreements. Funding for this program is delivered through the following transfer payment programs: the New Building Canada Fund-Provincial-Territorial Infrastructure Component-Small Communities Fund (PTIC-SCF), the Building Canada Fund-Communities Component (BCF-CC), which also includes the Building Canada Fund-Large Urban Centres Component (BCF-LUCC),and the National Recreational Trails Program (NRTP)^{Footnote 9}.

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2015-16 Difference (actual minus planned)
171,319,905	171,319,905	170,100,556	88,141,483	(83,178,422)

Human Resources (FTEs)

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
25	32	7

Performance Results

Expected Results	Performance Indicators	Targets*	Actual Results
Infrastructure Canada's funding leverages investments in infrastructure by other partners to increase overall investment in public infrastructure for Canadians	Funding leveraged from partners as a percentage of federal funding (committed)	200% by March 31, 2016	216%
Infrastructure projects that promote a cleaner environment for small communities and rural areas are implemented	Number of small communities/rural areas infrastructure projects completed	323 projects by March 31, 2016*	266
	Value of small community/rural area infrastructure projects completed	$1.3 billion by March 31, 2016	$842 million
Infrastructure projects that promote livable small communities and rural areas are implemented	Number of small community/rural area infrastructure projects completed	645 by March 31, 2016	598
	Value of small community/rural area infrastructure projects completed	$1.8 billion by March 31, 2016	$1.25 billion
Infrastructure projects that promote stronger small and rural economies are implemented	Number of small community/rural area infrastructure projects completed	239 by March 31, 2016	228
	Value of small community/rural area infrastructure projects completed	$0.6 billion by March 31, 2016	$553 million

* Cumulative targets over the life of the program, estimated up to March 31, 2016. Targets for this program are based on the following transfer payment programs: the New Building Canada Fund-Provincial-Territorial Infrastructure Component-Small Communities Fund, Building Canada Fund-Communities Component (including the Building Canada Fund - Large Urban Centres Component) and the National Recreational Trails Program.

Performance Analysis and Lessons Learned

During 2015-16, there were 350 projects approved under PTIC-SCF and $413.1 million of the $1 billion federal share was committed for this program. Funding agreements were signed by Newfoundland and Labrador, Saskatchewan, and Quebec.

Provincial and territorial governments have been accepting project proposals and consulting with municipalities to identify priorities. Based on the PTIC-SCF requirements, INFC continues to receive project lists from jurisdictions as part of the ongoing prioritization process.

In 2015-16, INFC and its Federal delivery partners made progress to implement the BCF-CC:

• 69 projects with a federal contribution of $95.6 million and a total value of $297.1 million were completed;
• 33 projects with a federal contribution of $19.5 million and a total value of $63 million began construction; and
• 98 projects with a federal contribution of $177.9 million and a total value of $534.3 million are currently underway.

As of March 31, 2016, a total of 955 projects have been approved under the program, and $1 billion in federal funding has been committed for these projects.

Specific to Quebec, the BCF-LUCC supports projects in municipalities with populations of 100,000 or more. The Government of Canada set aside $200 million for Quebec's larger centres through this fund as part of the almost $2 billion allocation for Quebec through the BCF. In 2015-16, INFC and its federal delivery partner made progress to implement the BCF-LUCC:

• 3 projects with a federal contribution of $43.8 million and a total value of $140.9 million are still underway.
• As of March 31, 2016, a total of 24 projects have been approved under the BCF-LUCC with over $174 million in federal funding committed for these projects.

INFC continues to implement and monitor project-specific agreements, through agreement oversight committees and in compliance with INFC's program control frameworks.

The NRTP was completed by March 31, 2016. The Program created over 700 kilometres of recreational trails and upgraded over 6000 kilometres of existing trail systems. The 258 projects completed under the program represent tangible investments in snowmobile, off-road vehicle, non-motorized and multi-use trails across the country.

An evaluation of the BCF-CC completed in August 2015 noted some areas for improvement for programs aimed at smaller and rural communities. One recommendation focused on improving ongoing relationships and collaboration with provinces and territories to increase information sharing. INFC is currently exploring the opportunities for multilateral discussions and workshops that could facilitate improved collaboration and information sharing.

The evaluation also noted the need for INFC to refine its approach to program reporting and performance outcomes. Through the evaluation as well as feedback from program partners and stakeholders, INFC has been informed that reporting requirements need to be more clearly articulated in order to allow them to provide INFC with relevant information in a timely manner. INFC now includes specific reporting requirements in contribution agreements to ensure they are agreed upon with the recipient, and that data provided is used for departmental level program reporting.

Program 1.6: New Bridge for the St. Lawrence Corridor Project

Description

To support the Government of Canada's economic and safety priorities, this program ensures the delivery of the New Bridge for the St. Lawrence Corridor Project in Montreal, Quebec. INFC is the project authority charged with overseeing the delivery of this project, which will provide a safe, secure and efficient crossing for local residents, commuters and commercial traffic. The new bridge will help increase the capacity and efficiency of gateway and corridor infrastructure regionally and nationally. The project is being carried out as a public-private partnership.

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2015-16 Difference (actual minus planned)
42,661,977	42,661,977	167,474,282	66,281,311	23,619,334

Human Resources (FTEs)

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
61	44	(17)

Performance Results

Expected Results	Performance Indicators	Targets	Actual ResultsFootnote 10
NCBC infrastructure projects that promote a safe and efficient transportation system that supports trade and a more prosperous Canada are implemented	Number of project milestones achieved	3 (New Bridge for the St. Lawrence, New Île-des-S?urs/Nun's Island Bridge, Reconstruction of A-15) December 1, 2018 for NCBC project and October 31, 2019 for other components	The procurement process for the overall corridor project proceeded as planned with the reach of financial close and the start of construction.
P3 procurements for corridor projects that promote value for money for Canadian taxpayers, through on-time and on-budget delivery of projects, are implemented	Construction is completed on time	Official opening to the public Main span: December 1, 2018; Rest of corridor: October 31, 2019	The procurement process for the overall corridor project proceeded as planned with the reach of financial close and the start of construction
	Construction is completed on budget	Construction cost target: $2.246 billion October 31, 2019	Budget for the Contract is $3.977 billion, including $2.246 billion for construction.

Performance Analysis and Lessons Learned

The Request for Proposals process for the NCBC project began on July 21, 2014. Three consortia submitted technical proposals on February 11, 2015, followed by financial proposals on April 1, 2015. Signature on the Saint-Laurent Group (SSL) was selected as the preferred proponent on April 15, 2015, following completion ofthe evaluation process.

An early work agreement was signed and implemented on May 6, 2015, in advance of the Project Agreement signing, which allowed work to begin immediately and ensured that the accelerated project schedule would stay on track. The New Champlain Bridge Corridor Project Agreement was signed by the Government of Canada and SSL on June 19, 2015 for the design, construction, financing, operation, maintenance and rehabilitation of the corridor over 35 years.

The NCBC project continues to be successfully implemented as a public-private partnership, which is relatively new for federal infrastructure projects, but which has proven to be very successful. The project team is working closely with SSL to ensure the timely delivery of the project.

The Government of Canada, the Government of Quebec, and municipal entities continued to work in close collaboration to conclude the agreements needed to implement the project. With the exception of one agreement expected to be signed in 2016, all agreements are in place for the construction phase of the project. In addition, INFC has been successful in acquiring all of the immovable assets needed for the project and expects to acquire the remaining lands in 2016. Environmental Site Assessments on properties to be acquired on a temporary basis were completed successfully in September 2015 and the final report was published on December 8, 2015.

The NCBC project team continued to work with stakeholders, public and private organizations and Canadians to promote the safety and efficiency of the St. Lawrence Corridor. The project team worked diligently with SSL to coordinate construction work on the main section of the bridge, Autoroute 15, and to coordinate marine excavation work for the bridge piers. Negotiations are ongoing with SSL to move forward on a toll-free bridge.

All major milestones for 2015-16 were achieved on time and on budget.

Internal Services

Description

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are Management and Oversight Services, Communications Services, Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, Information Technology Services, Real Property Services, Material Services, Acquisition Services, and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not those provided to a specific program.

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2015-16 Difference (actual minus planned)
28,407,231	28,407,231	39,615,936	39,615,936Footnote 11	11,208,705

Human Resources (FTEs)

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
177	161Footnote 12	(16)

Performance Analysis and Lessons Learned

Management and Oversight Services include internal audit, evaluation, oversight of Crown corporations and integrated business planning.

During 2015-16, the Department proactively monitored the audit and evaluation universe and identified emerging risks based on the Department's major activities. The approved commitments in the amended Risk-Based Audit Plan and the Departmental Evaluation Plan (see supplementary tables for details) were delivered successfully. As well, the Department provided an evidence-based follow-up process to monitor the implementation of management action plans for all outstanding audit and evaluation recommendations. Management implemented 75 percent of the outstanding audit recommendations, and only 7 evaluation recommendations remain outstanding. The remaining audit and evaluation action plans are on track to address the recommendations. Further, the Audit & Evaluation Branch also provided advisory services to support management requests and guidance on the development of Performance Measurement Strategies and Frameworks.

INFC continued to support and oversee JCCBI by ensuring that it had access to the parliamentary appropriations and approvals needed to carry out its priorities, and by overseeing the interface between JCCBI and the NCBC project to ensure that JCCBI and NCBC project commitments were fulfilled.

Responsibility for the GHIB project was transferred from the Minister of Transport to the Minister of Infrastructure and Communities effective, November 4, 2015. The GHIB team at INFC is responsible for acquiring real property in Canada, overseeing the Crossing Agreement and other acknowledgements and arrangements with the U.S. In addition, the team supports the Minister with his accountability to Parliament as it relates to the oversight of the Windsor Detroit Bridge Authority, the Crown corporation responsible for entering into and carrying out the obligations of the Crossing Authority as a party to the Crossing Agreement and for any purpose relating to the construction or operation of the Crossing.

During 2015-16, INFC's Communications Services communicated up-to-date information relating to existing infrastructure programming and departmental priorities as well as the results of infrastructure investments to Canadians through social media, presence at events, and enhanced website content. Communications also provided effective communications support for the NCBC, including supporting communications around the RFP process and the finalization of the project agreement. It also made key information readily available to local and national media through announcements, improved and updated INFC's public website, and supported the Web Renewal project by the Treasury Board Secretariat. Finally, effective communications were provided to support the Minister's Office, senior management, and employee engagement.

INFC's Financial Management Services continued to implement the Policy on Internal Control and as such, it continued to assess and monitor its Internal Control over Financial Reporting (ICFR), which began at the end of 2013-14. Since then, the Department has assessed and monitored its ICFR on an annual basis. The results for 2015-16 are provided in the Annex to the Statement of Management Responsibility, including Internal Control over Financial Reporting for the Fiscal Year ending March 31, 2016. Finance also continued to engage with Central Agencies in a variety of government-wide initiatives such as the Shared Travel System (STS), the Phoenix Pay System roll-out as part of the Pay Modernization Initiative, and the completion of the Payment by Direct Deposit initiative (on March 31, 2016). Finance also monitored and published transfer payment service standards performance results under the Transfer Payment Policy, and participated in the renewal and realignment of the Policy on Transfer Payment Re-Set. Finally, Finance reviewed and streamlined the departmental financial management policy suite to strengthen stewardship and accountabilities.

The PIMS underwent several enhancements that helped with program delivery for the PTIC-SCF, and the NIC. Open Government was also supported through the public release of the majority of INFC's program data, from 2002 to present. This data helps to promote transparency in infrastructure programs. The Department also migrated to the centralized My GCHR and enhanced its reporting capabilities as a result. To support the Government of Canada's priority of leveraging whole-of-government solutions, IM/IT coordinated the Department's migration to the centralized email system managed by Shared Services Canada. In the area of policy renewal, IM/IT performed a strategic review of internal policies to reduce duplication and help streamline processes. In the area of Information Management, INFC conducted a large-scale information clean-up to prepare for the migration to the centralized email system. In addition, a clean-up of stored corporate information was conducted to prepare the Department for a future migration to a centralized records management system. INFC completed its Record Keeping Implementation Plan (RKIP), including the submission to Treasury Board. Ongoing support to Major Bridge projects remains a priority.

As noted under Priority 4, a number of initiatives were launched to support people management. This included streamlining appointment processes, modifying sub-delegation authorities, establishing people management strategies, implementing mandatory harassment training, and investing in language training for all employees and management. A key initiative was the engagement of staff in the Public Service Employee Survey (PSES) action plans, Blueprint 2020 initiatives and supporting the Talent Management Network. All INFC employees were engaged in fall 2015 to develop an action plan to respond to the PSES survey and identify Blueprint 2020 initiatives that truly reflected employee and employer needs. In response to the PSES, the Infrastructure Wellness Fair targeted the need for dialogue on mental and physical health. Under Blueprint 2020, there was frequent dialogue to engage employees and managers on people management initiatives. Other initiatives included the joint Transport Canada-Infrastructure Canada (TC-INFC) Leadership Development Program, which offers stretch development assignments to executive positions, as well as coaching, mentoring, and leadership workshops. Through this program, INFC and TC can effectively plan and manage succession to executive positions. On June 4, 2015, more than 200 employees attended the first TC-INFC Networking Fair in Ottawa. The Fair allowed participants to expand their professional networks, meet new colleagues, and learn about different functions in both departments.

A number of Lean events on departmental processes were undertaken this year to reduce waste and increase value for our organization, including employee on/off boarding processes and contribution agreement negotiations. INFC also participated in the TBS-led Red Tape Reduction Initiative in two areas: low dollar value procurement and internal processes for grants and contribution approvals.

Footnotes

Footnote 8

This amount includes contributions only, and does not include operating costs.

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Footnote 9

The National Recreational Trails Program was completed in 2015-16.

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Footnote 10

Performance Indicators were extracted from the approved 2015-16 Performance Measurement Framework (PMF).

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Footnote 11

The 2015-16 Actual Spending under Internal Services does not include expenses for the Gordie Howe International Bridge team, as the team was transferred from Transport Canada to Infrastructure Canada effective April 1, 2016. Any expenditures for the team in 2015-16 will be reported by Transport Canada.

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Footnote 12

The 2015-16 Actual Full-Time Equivalent (FTE) under Internal Services does not include FTE usage for the Gordie Howe International Bridge team, as the team was transferred from Transport Canada to Infrastructure Canada effective April 1, 2016. Any FTE usage for the team in 2015-16 will be reported by Transport Canada.

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