2015-2016 Departmental Performance Report (DPR)

Canada Strategic Infrastructure Fund. (Payments under this program are voted).

2003-2004

2019-2020^{Footnote 2}

2011-2012^{Footnote 3}

Public Infrastructure for a More Prosperous Canada

Program 1.4: Large-Scale Infrastructure Investments

This program supports projects that sustain economic growth and enhance the quality of life of Canadians. Investments are made in cooperation with the provinces, territories, municipalities, and the private sector, and contribute to the construction, renewal and/or enhancement of public infrastructure. The Canada Strategic Infrastructure Fund leverages additional contributions from other partners by providing up to 50 percent funding for eligible projects.^{Footnote 4}

In 2015-2016, the Department continued to monitor and deliver the program with provincial and territorial partners and Transport Canada for the Canada Strategic Infrastructure Fund:

• 3 projects with a federal contribution of $28.1 Million and total value of $80.4  Million were completed; and,
• 18 projects with a federal contribution of $1.5 billion and total value of $3.96 billion are still underway.

A total of 90 projects with a federal contribution of $4.62 billion and total value of $12.4 billion have been approved  under the program. Collaboration with federal delivery partners and stakeholders is effectively supporting program delivery. Over 80 percent of projects are completed.

The largest categories of investment under the Canada Strategic Infrastructure Fund are the following: Highways and Major Roads infrastructure, with a total federal investment of over $1.55 billion, and Public Transit infrastructure, with a total federal investment of close to $1.52 billion.

Infrastructure Canada has largely met its targets under the program and intends to continue the monitoring and due diligence of ongoing projects to ensure their completion as part of the closeout activities of the program.

Actual Spending in 2015-2016 was lower than originally projected, given that CSIF projects are large-scale and complex in nature, many unknowns may arise during the course of the fiscal year. These factors include  project delays resulting from inclement weather and from technical and other construction-related complexities that also cause construction delays, which explain deviations of actual expenditures from the original forecast.

It is also important to note that actual disbursement of federal contributions lag behind the actual construction of projects as recipients are reimbursed for expenditures only once they submit claims. The CSIF program was extended in 2011-2012, to allow recipients that have encountered construction delays to access the remainder of their federal contribution in order to complete their projects as expected.

Internal audits of the Canada Strategic Infrastructure Fund program were conducted in 2007-2008 and in 2012-2013.

The close-out phase of the Canada Strategic Infrastructure Fund will likely be examined during the upcoming Internal Audit of Closing Programs scheduled to be completed in June 2019.

A joint evaluation of the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund was completed in 2014-2015.

The upcoming evaluation of infrastructure funding in one of the top 3 largest cities in Canada is scheduled for completion in September 2018 and will likely take into consideration the Canada Strategic Infrastructure Fund.

All funding available for projects under this program has been committed. The Department continues to work with recipients to flow funding, including final payments and ensure that projects are closed.

Total grants

Total contributions

196,634,325

233,373,467

143,090,980

143,090,980

141,733,441

(1,357,539)

Total other types of transfer payments

Total program

196,634,325

233,373,467

143,090,980

143,090,980

141,733,441

(1,357,539)

Border Infrastructure Fund. (Payments under this program are voted).

2003-2004

2019-2020^{Footnote 5}

2011-2012^{Footnote 6}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

This program provides funding for investments in physical infrastructure, transportation system infrastructure and improved analytical capacity at the largest surface border crossings between Canada and the United States, as well as several other crossing points in Canada. Announced in Budget 2001, the fund provides up to 50 percent federal funding to support eligible projects at Canada's border crossings. Transport Canada is the federal delivery partner for this program.

In 2015-2016, the Department continued to monitor and deliver the program with Transport Canada for the Border Infrastructure Fund:

• 4 projects with a federal contribution of $273 Million and total value of $711  Million are still underway.

A total of 12 projects with a federal contribution of $591 Million and total value of $1.35 billion have been approved  under the program. 67 percent of projects are completed.

Infrastructure Canada has largely met its targets under the program and intends to continue the monitoring and due diligence of ongoing projects to ensure their completion as part of the closeout activities of the program.

Transportation projects funded under the BIF are large and complex by nature which makes them at higher risk of experiencing unexpected delays during their implementation as was the case in previous years. Projects faced delays for various reasons including technical and other construction-related complexities. Those factors lead to delays in the disbursement of federal contributions which lags the actual construction of projects as recipients are reimbursed for incurred expenditures only once they submit claims.

An internal audit of the Management Control Framework of the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund was completed in 2007-2008.

The close-out phase of the Border Infrastructure Fund will likely be examined during the upcoming Internal Audit of Closing Programs scheduled to be completed in June 2019.

A joint evaluation of the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund was completed in July 2014.

All funding available for projects under this program has been committed. The Department continues to work with recipients to flow funding, including final payments and ensure that projects are closed.

Total grants

Total contributions

28,196,496

20,863,226

21,874,942

21,874,942

17,699,761

(4,175,181)

Total other types of transfer payments

Total program

28,196,496

20,863,226

21,874,942

21,874,942

17,699,761

(4,175,181)

Gas Tax Fund. (Payments under this program are statutory).

2005-2006

Ongoing^{Footnote 7}

2013-2014^{Footnote 8}

Public Infrastructure for a More Prosperous Canada

Program 1.2: Permanent and Flexible Infrastructure Funding

This program provides municipalities with predictable long-term funding, enabling construction and rehabilitation of core public infrastructure. The federal government concluded Gas Tax Fund Agreements with provinces, territories, the Association of Municipalities of Ontario, the Union of British Columbia Municipalities and the City of Toronto, which were in effect from 2005-2006 to 2013-2014. Moreover, all Gas Tax Fund Agreements have been renewed and signed for the permanent Gas Tax Fund, starting in 2014-2015. Gas Tax Fund Agreements and funding letters establish an accountability framework allowing the Government of Canada to flow Gas Tax Fund money twice a year to signatories which, in turn, flow funds to municipalities based on an agreed-upon allocation formula. For their part, municipalities decide which projects to prioritize within established investment categories. In addition to supporting environmental objectives, the permanent Gas Tax Fund supports increased productivity and economic growth and strong cities and communities via an expanded list of eligible investment categories. Municipalities can pool, bank and borrow against this funding, providing significant additional financial flexibility. Eligible recipients are required to report annually on their use of funds and their compliance to terms and conditions of the Gas Tax Fund Agreements. The renewed Gas Tax Fund is now indexed at 2 percent per year which will provide municipalities with additional funding over the long term. It also provides  municipalities greater flexibility to spend federal funding as a result of expanded investment categories.

During 2015-2016, annual funding letters were issued to each jurisdictions and just under $2 billion flowed to municipalities across the country.

Funding letters issued to signatories are dependent on the submission and acceptance of an Annual Report (Financial Report Table, Project List) and an Independent Audit Opinion or Audit Based Attestation. In the absence of duly completed reports, Infrastructure Canada can withhold funding letters from recipients until such time that completed reports are accepted. In 2015-2016, all jurisdictions received their payments.

An internal audit of the Management Control Framework for the Gas Tax Fund was completed in 2009-2010.

The Commissioner of the Environment and Sustainable Development completed a performance audit of Federal Support for Sustainable Municipal Infrastructure in May 2016, which included the Gas Tax Fund in its scope.

Evaluations of the Gas Tax Fund were conducted in 2009 and in 2015.

The evaluation of infrastructure funding in one of the top 3 largest cities in Canada (scheduled for completion in September 2018) as well as the evaluation of infrastructure funding in small communities (scheduled for completion in September 2019) will likely consider the Gas Tax Fund.

An evaluation of the Renewed Gas Tax Fund is scheduled to be completed in June 2020.

INFC held a Gas Tax Fund (GTF) Workshop in the fall of 2015 with provincial, territorial and municipal counterparts to support the program's objectives of strengthening ongoing collaborations with partners through information sharing and discussions on various components of the agreements.

Total grants

Total contributions

Total other types of transfer payments

2,106,864,500

1,973,269,432

1,973,269,432

1,973,269,432

1,973,269,432

0

Total program

2,106,864,500

1,973,269,432

1,973,269,432

1,973,269,432

1,973,269,432

0

Provincial-Territorial Infrastructure Base Fund. (Payments under this program are voted).

2007-2008

2018-2019^{Footnote 9}

2013-2014^{Footnote 10}

Public Infrastructure for a More Prosperous Canada

Program 1.1: Funding for Provincial-Territorial Priorities

This program provides base funding to each province and territory for core infrastructure priorities. In addition, funding under the Building Canada Fund for the three territories is managed under this fund.  The Provincial-Territorial Infrastructure Base Fund was designed to help restore fiscal balance while enhancing Canada's public infrastructure system. It also supports economic growth and productivity, and promotes a cleaner environment and prosperous communities. While payments are made to provinces and territories, ultimate recipients can also include local and regional governments or private sector bodies. In order for federal funding to flow, provinces and territories submit a list of infrastructure initiatives through a capital plan which must be accepted by the Minister of Infrastructure and Communities. Payments are made in advance and cost-sharing provisions apply to a capital plan as a whole, and not individual initiatives. Provinces and territories may pool, bank, or cash-manage these funds to give them flexibility in implementation.

Following the acceleration of the Provincial-Territorial Infrastructure Base Fund (PT Base Fund), all funds available under the Provincial-Territorial Infrastructure Base Fund ($2.3 billion) have been committed as of March 31, 2014.

During the reporting period, two jurisdictions submitted Expenditure Reports, which were approved. For one of these jurisdictions, it was the last requirement under the program and resulted in a final payment to the jurisdiction.

Under the Provincial-Territorial Infrastructure Base Fund program parameters, the overall federal contribution to a provincial capital plan, which lists proposed eligible projects, can be up to a maximum of 50% of the capital plan's total eligible costs. In the territories, the federal contribution to a capital plan can be a maximum of 75%.  Actual results show that provinces and territories have contributed well beyond the program's cost sharing requirements.

Infrastructure Canada continues to work with provincial and territorial governments to ensure that the required reports are submitted, and the Department provides guidance on any issues that may arise during the provincial or territorial audit that would potentially delay their report submissions and related payments. By March 31, 2016, four of thirteen jurisdictions have completed all reporting obligations and have received their final payments under the PT Base Fund.

Under the PT Base Fund, the Government of Canada's flow of funding to the provinces and territories is subject to the submission and federal acceptance of Capital Plans and/or Expenditure Reports. As reporting is cumulative, any delay in the submission of a given report will result in delays to subsequent reports, and related payments. In addition, the final report must demonstrate that all PT Base Fund initiatives in a jurisdiction have been completed. Due to delays in completing a small number of initiatives, this requirement was not met by the end of 2015-2016 in several provinces and territories, thus delaying the submission of final reporting and resulting in re-profiling of funds for these remaining jurisdictions. As noted above, only four jurisdictions have completed all reporting obligations and received final payments.

An internal audit of the PT Base Fund was completed in 2011-2012.

The close-out phase of the PT Fund will likely be examined during the upcoming Audit of Closing Programs scheduled to be completed in June 2019.

An evaluation of the PT Base Fund was completed in 2012-2013.

The Department continues to work with jurisdictions to flow funding, including final payments, under the PT-Base Fund.

Total grants

Total contributions

Total other types of transfer payments

191,431,000

25,000,000

90,684,800

90,684,800

50,000,000

(40,684,800)

Total program

191,431,000

25,000,000

90,684,800

90,684,800

50,000,000

(40,684,800)

Building Canada Fund-Communities Component. (Payments under this program are voted).

2008-2009

2019-2020^{Footnote 11}

2013-2014^{Footnote 12}

Public Infrastructure for a More Prosperous Canada

Program 1.5: Infrastructure Investments in Small Communities and Rural Areas

This program supports infrastructure needs of smaller communities with populations of less than 100,000. Projects costs are shared with provincial, territorial and municipal governments, with each order of government generally contributing one-third of the eligible costs. The fund supports the construction, renewal, and enhancement of basic infrastructure such as potable water, wastewater treatment, local roads, and other infrastructure needs of small communities.^{Footnote 13}

In most jurisdictions, the BCF-CC project approval deadline was March 31, 2014 and the construction completion deadline March 31, 2016. In 2015-2016, Infrastructure Canada and its federal delivery partners made progress in implementing the Communities Component:

• 74 projects with a federal contribution of $104 million and a total value of $317 Million were completed;
• 33 projects with a federal contribution of $18.8 million and a total value of $61.1 Million began construction; and
• 129 projects with a federal contribution of $226 Million and a total value of $670 Million are still underway.

A total of 955 projects with a federal contribution of $1.02 billion and total value of $3.16 billion have been approved  under the program. By March 31, 2016, 824 projects were completed which represents over 86 percent of approved projects.

The largest categories of investment under the program are the following: Wastewater infrastructure with a total federal investment of over $346 Million, and Drinking Water infrastructure, with a total federal investment of close to $264 Million.

The Department continues to work in collaboration with its Federal Delivery Partners and provincial partners to monitor the status of all outstanding projects, and request monthly updates via the Shared Information Management System for Infrastructure (SIMSI) regarding status, and risk of non-completion for all ongoing projects.

Consequently, in order to support a timely and efficient program closure process, increased focus has been placed on monitoring the status of ongoing BCF-CC projects.

Program spending in 2015-2016 was lower than planned. This can be attributed to a number of factors beyond the control of funding recipients. These factors include project delays resulting from inclement weather and from technical and other construction-related complexities that can lead to construction delays, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note that the disbursement of federal contributions follows the actual construction of projects as recipients are reimbursed for incurred expenditures only once they submit claims.

An internal audit of the Building Canada Fund-Communities Component was completed in 2011-2012.

The close-out phase of the Building Canada Fund-Communities Component will likely be examined during the Internal Audit of Closing Programs scheduled to be completed in June 2019.

An evaluation of the Building Canada Fund-Communities Component was completed in July 2015.

INFC is working with partners and stakeholders to ensure timely completion of projects under the BCF-CC.

Total grants

Total contributions

120,382,787

76,338,704

154,956,816

154,956,816

69,630,098

(85,326,718)

Total other types of transfer payments

Total program

120,382,787

76,338,704

154,956,816

154,956,816

69,630,098

(85,326,718)

Building Canada Fund-Major Infrastructure Component. (Payments under this program are voted).

2008-2009

2019-2020^{Footnote 14}

2013-2014^{Footnote 15}

Public Infrastructure for a More Prosperous Canada

Program 1.4: Large-Scale Infrastructure Investments

This program targets larger infrastructure projects of national or regional significance. It increases overall investment in public infrastructure and contributes to broad federal objectives: economic growth, a cleaner environment and strong and prosperous communities. At least two-thirds of the funding is targeted to national priorities: water, wastewater, public transit, the core national highway system, and green energy. The Major Infrastructure Component has 12 eligible categories of investment, and priority projects are identified through discussions with provinces. By providing federal funding on a cost-shared basis, it leverages additional contributions from other partners to increase overall investment in infrastructure. Projects must be supported by a business case and undergo a federal review against key program criteria.^{Footnote 16}

In 2015-2016, Infrastructure Canada and its federal delivery partners made progress in the implementation of the Building Canada Fund-Major Infrastructure Component:

• 28 projects with a federal contribution of $428 Million and a total value of $1.41 billion were completed;
• 5 additional projects with a federal contribution of $30.2 Million and a total value of $59.2 Million began construction; and
• 72 projects with a federal contribution of $3.75 billion and a total value of $11.2 billion are still underway.

A total of 189 projects with a federal contribution of $6.03 billion and total value of $17.9 billion have been approved  under the program. By March 31, 2016, 115 projects were completed which represents 61 percent of approved projects.

The largest categories of investment under the program are the following: Public Transit infrastructure, with a total federal investment of nearly $2.62 billion, and Local Roads infrastructure, with a total federal investment of nearly $928 Million.

Program delivery policies and tools have been implemented to improve monitoring and reporting on the progress of the BCF-MIC. Monitoring of expenditures and forecasts has improved forecasting of expenditures under the program, which poses challenges due to the large scope of project investments and uncertainties around construction conditions. In addition, resources previously assigned to stimulus funding programs are now devoted to the delivery of the program in order to increase monitoring and due diligence capacity as Infrastructure Canada moves towards closure of the BCF-MIC in the next years.

The total number of projects completed by project proponents this fiscal year were lower than planned, as some of these large-scale and complex projects encountered delays and were not completed by year-end as forecast. Typically, project delays occur as a result of inclement weather and technical and other construction-related complexities that also cause construction delays. However, construction on these projects is ongoing and Infrastructure Canada will continue to monitor progress towards completion and reimburse recipients as claims are submitted.

This program provides significant funding for large, complex projects. It is typical for these projects to require a significant amount of upfront planning, design and procurement. These processes may occur, in whole or in part, after funding commitments are announced. As a result, there is often a period of time that will pass between project announcements and the start of construction. Even when construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred.

No audit has been conducted of this program.

An evaluation of infrastructure funding on one of the top 3 largest cities in Canada will likely consider the Building Canada Fund-Major Infrastructure Component program and is scheduled to be completed in September 2018.

Although most funding has been committed, Infrastructure Canada worked with provinces to identify priorities for remaining funding. The Department also continued to work with recipients to flow funding, including final payments, and ensure that projects are closed.

Total grants

Total contributions

692,803,945

538,025,504

909,927,997

909,927,997

701,208,530

(208,719,467)

Total other types of transfer payments

Total program

692,803,945

538,025,504

909,927,997

909,927,997

701,208,530

(208,719,467)

Green Infrastructure Fund. (Payments under this program are voted).

2009-2010

2022-2023^{Footnote 17}

2013-2014^{Footnote 18}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

This program supports environmental infrastructure projects that promote cleaner air, reduced greenhouse gas emissions and cleaner water. Targeted investments in green infrastructure can contribute to improving the quality of the environment and a more sustainable economy over the longer term. There are five eligible categories of investment: wastewater infrastructure, green energy generation infrastructure, green energy transmission infrastructure, solid waste infrastructure, and carbon transmission and storage infrastructure. By providing up to 50 percent federal funding on a cost-shared basis, the fund leverages additional investments from other partners.^{Footnote 19}

In 2015-2016, Infrastructure Canada made progress in the implementation of the Green Infrastructure Fund:

• 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.

A total of 18 projects with a federal contribution of $628 Million and total value of $1.95 billion have been approved under the program. By March 31, 2016, 3 projects were completed which represents 17 percent of approved projects.

The largest categories of investment under the program are the following: Wastewater infrastructure, with a total federal investment of $295 Million, and Green Energy infrastructure, with a total federal investment of $251 Million.

The implementation of the Green Infrastructure Fund has been slower than other programs. This is attributable to the nature of projects funded under this program which are innovative and often rely on newly developed technologies. Infrastructure Canada has met its targets under the program and will continue to oversee the implementation of project-specific agreements of the Green Infrastructure Fund, ensuring that the terms of agreements are respected and that claims for payment are processed efficiently.

This program provides significant funding for large, complex projects. It is typical for these projects to require a significant amount of planning, design and procurement. These processes may occur, in whole or in part, after funding commitments are announced. Once contribution agreements for projects are signed with project proponents, the Government of Canada has a legal obligation to provide the committed funding in accordance with the terms of those agreements.

Actual spending in 2015-2016 was lower than planned. A number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors include project delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays, which in turn cause claims to lag and be submitted for reduced amounts.

No audit has been conducted of this program nor is planned.

An evaluation of the Green Infrastructure Fund was completed in June 2016.

Although most funding has been committed, Infrastructure Canada worked with provinces to identify priorities for remaining funding. The Department also continued to work with recipients to flow funding, including final payments, and ensure that projects are closed.

Total grants

Total contributions

84,567,663

36,862,072

50,784,093

50,784,093

11,378,170

(39,405,923)

Total other types of transfer payments

Total program

84,567,663

36,862,072

50,784,093

50,784,093

11,378,170

(39,405,923)

Inuvik to Tuktoyaktuk Highway Program. (Payments under this program are voted).

2013-2014

2017-2018^{Footnote 20}

2013-2014^{Footnote 21}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

The objective of the Inuvik to Tuktoyaktuk Highway Program is to construct a 137 kilometre all-season road between Inuvik and Tuktoyaktuk. This includes upgrading a 19 kilometre access road to highway standards, as well as new embankment construction and related structures with final surface topping and additional work to return the land to its original state.

During the last winter construction season, over 600 individuals were employed to work on this project, the majority of which were from the northern region.

A total of 117 km of highway has been completed representing over $130 Million in milestone payments to the Government of the Northwest Territories.

N/A

An internal audit of the Inuvik to Tuktoyaktuk Highway Control Framework was completed in January 2015.

No evaluation of this program has been completed nor is planned.

INFC is working with partners and stakeholders to ensure timely completion of the Tuktoyaktuk Highway projects.

Total grants

Total contributions

0^{Footnote 22}

79,275,000

51,375,000

51,375,000

51,375,000

o

Total other types of transfer payments

Total program

0^{Footnote 21b}

79,275,000

51,375,000

51,375,000

51,375,000

0

New Building Canada Fund-Provincial-Territorial Infrastructure Component-National and Regional Projects (PTIC-NRP). (Payments under this program are voted).

2014-2015

2023-2024

2016-2017^{Footnote 23}

Public Infrastructure for a More Prosperous Canada

Program 1.4: Large-Scale Infrastructure Investments

This program provides funding to support infrastructure projects of national and regional significance that contribute to economic growth, a clean environment and stronger communities. The PTIC-NRP is an allocation-based program that recognizes and supports the important role that provinces, territories, and municipalities play in helping to build Canada's public infrastructure.

In 2015-2016, Infrastructure Canada and its partners made progress in the implementation of the Provincial-Territorial Infrastructure Component-National and Regional Projects:

• 3 projects with a federal contribution of $8.74 Million and a total value of $18.4 Million were completed;
• 12 additional projects with a federal contribution of $231 Million and a total value of $438 Million began construction; and
• 73 projects with a federal contribution of $1.54 billion and a total value of $4.92 billion are still underway.

A total of 76 projects with a federal contribution of $1.55 billion and total value of $4.93 billion have been approved  under the program. By March 31, 2016, 3 projects were completed which represents 4 percent of approved projects.

The largest categories of investment under the program are the following: Highways and Major Roads infrastructure, with a total federal investment of nearly $654 Million, and Wastewater infrastructure, with a total federal investment of nearly $352 Million.

This program provides significant funding for large, complex projects. It is typical for these projects to require a significant amount of upfront planning, design and procurement. These processes may occur, in whole or in part, after funding commitments are announced. As a result, there is often a period of time that will pass between project announcements and the start of construction. Even when construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors includeproject delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred.

An internal audit of the New Building Canada Fund - Management Control Framework was completed in October 2015.

An audit of the New Building Canada Fund is planned for completion in March 2018.

An Evaluation of the New Building Canada Fund - PTIC-NRP is planned for completion in September 2017.

An evaluation of infrastructure funding on one of the top 3 largest cities in Canada will likely include the New Building Canada Fund- PTIC-NRP and is planned to be completed in September 2017.

Provinces and Territories are responsible for identifying and bringing forward their project priorities for federal consideration. INFC's website encourages eligible recipients interested in seeking funds under the PTIC-NRP to contact their provincial or territorial ministry responsible for infrastructure in order to determine the process for submitting project proposals. INFC engages with applicants and recipients on a regular basis as part of the implementation of the program.

Total grants

Total contributions

0^{Footnote 24}

11,066,545

114,480,000

114,480,000

41,528,898

(72,951,102)

Total other types of transfer payments

Total program

0^{Footnote 23b}

11,066,545

114,480,000

114,480,000

41,528,898

(72,951,102)

New Building Canada Fund-Provincial-Territorial Infrastructure Component-Small Communities Fund (PTIC-SCF). (Payments under this program are voted).

2014-2015

2023-2024

2016-2017^{Footnote 25}

Public Infrastructure for a More Prosperous Canada

Program 1.5: Infrastructure Investments in Smaller Communities and Rural Areas

The SCF represents 10 percent (10%) of the overall Provincial-Territorial Infrastructure Component funding envelope, and will make $964,240,000 in contribution funding available to provinces and territories for local infrastructure. This Sub-Program will provide contribution funding for infrastructure projects in small communities with populations of 100,000 or less. Infrastructure Canada will enter into funding agreements with the provinces and territories for the implementation of the SCF. In turn, provinces and territories will manage the project identification process in keeping with SCF program parameters.  SCF is designed to leverage the resources and existing processes of provinces and territories in managing local projects, while ensuring federal accountability and oversight for the funding envelope.

In 2015-2016, Infrastructure Canada and its partners made progress in the implementation of the Provincial-Territorial Infrastructure Component-Small Communities Fund:

• 6 projects with a federal contribution of $3 Million and a total value of $9  Million were completed;
• 62 additional projects with a federal contribution of $75.6 Million and a total value of $250 Million began construction; and
• 465 projects with a federal contribution of $697 Million and a total value of $2.04 billion are still underway.

A total of 476 projects with a federal contribution of $699 Million and total value of $2.05 billion have been approved  under the program. By March 31, 2016, 6 projects were completed which represents 1 percent of approved projects.

The largest categories of investment under the program are the following: Wastewater infrastructure, with a total federal investment of nearly $188 Million, and Drinking Water infrastructure, with a total federal investment of nearly $140 Million.

Negotiations of the funding agreements with Newfoundland, Saskatchewan and Quebec are finalized and agreements were signed.

An internal audit of the New Building Canada Fund - Management Control Framework was completed in October 2015.

An internal audit of the New Building Canada Fund is planned for completion in March 2018.

An evaluation of the New Building Canada Fund - PTIC-SCF is planned for completion in September 2017.

An evaluation of infrastructure funding in the North is planned to be completed in March 2019.

An evaluation of infrastructure funding of small communities is planned to be completed in September 2019.

INFC continues to collaborate with Provinces and Territories to ensure timely project approval.

The provincial and territorial governments have been accepting project proposals through consultation and engagement with municipalities to identify priorities.

Total grants

Total contributions

0^{Footnote 26}

0^{Footnote 25b}

12,720,000

12,720,000

12,093,038

(626,962)

Total other types of transfer payments

Total program

0^{Footnote 25c}

0^{Footnote 25d}

12,720,000

12,720,000

12,093,038

(626,962)

New Building Canada Fund-National Infrastructure Component (NBCF-NIC). (Payments under this program are voted).

2014-2015

2023-2024

2016-2017^{Footnote 27}

Public Infrastructure for a More Prosperous Canada

Program 1.3: Investments in National Infrastructure Priorities

This program supports projects of national significance, that have broad public benefits, and that contribute to Canada's long-term economic growth and prosperity. The NIC is a merit-based application-driven program, and as such there are no pre-determined provincial or territorial allocations.

In 2015-2016, Infrastructure Canada and its partners made progress in the implementation of the National Infrastructure Component:

• 1 project with a federal contribution of $43.7 Million and a total value of $131 Million began construction; and
• 4 projects with a federal contribution of $1.04 billion and a total value of $3.32 billion are still underway.

The largest categories of investment under the program are the following: Highways and Major Roads infrastructure, with a total federal investment of nearly $973 Million, and Marine infrastructure, with a total federal investment of nearly $43.7  Million.

This program provides significant funding for large, complex projects. It is typical for these projects to require a significant amount of upfront planning, and design. These processes may occur, in whole or in part, after funding commitments are announced. As a result, there is often a period of time that will pass between project announcements and the start of construction. Even when construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors includeproject delays resulting from inclement weather and from technical and other construction- related complexities that also cause construction delays, which in turn cause claims to lag and be submitted for reduced amounts. It is also important to note that actual spending lags behind the actual rate of construction of projects since recipients are reimbursed only once claims are submitted, even though eligible costs may have already been incurred.

An internal audit of the New Building Canada Fund - Management Control Framework was completed in October 2015.

An internal audit of the NBCF is planned for completion in March 2018.

An evaluation of the New Building Canada Fund - NIC is planned for completion in September 2017.

At this time, Infrastructure Canada is no longer accepting additional applications under the NBCF -National Infrastructure Component.

The Government is currently engaging provinces, territories, municipal and Indigenous leaders, as well as global institutional investors and other stakeholders to identify the right mix of infrastructure funding programs to meet Canadians' needs and to position Canada's economy for the future.

Total contributions

0^{Footnote 28}

0^{Footnote 27b}

15,000,000

15,000,000

3,069,122

(11,930,878)

Total other types of transfer payments

Total program

0^{Footnote 27c}

0^{Footnote 27d}

15,000,000

15,000,000

3,069,122

(11,930,878)

National Recreational Trails Program. (Payments under this program are voted).

2014-2015

2015-2016^{Footnote 29}

2014-2015^{Footnote 30}

Public Infrastructure for a More Prosperous Canada

Program 1.5: Infrastructure Investments in Smaller Communities and Rural Areas

The Government of Canada has an agreement with the National Trails Coalition (NTC) to improve and expand snowmobile and recreational trails across the country. Funding is divided between the three major forms of trail work (snowmobile; all-terrain vehicle; and non-motorized) with notional allocations for each province and territory. Infrastructure Canada has no role in the project selection process. The NTC is an umbrella organization composed of three national-level not-for-profit organizations: the Canadian Trails Federation, the Canadian Off-Highway Vehicle Distributors Council and the Canadian Council of Snowmobile Organizations.

The NTC has approved 258 projects since the program inception, resulting in the commitment of $9.9 Million in federal funding to projects representing over $29.4 Million in total project cost.

The National Recreational Trails Program was concluded by March 31, 2016.

The National Trails Coalition (NTC), responsible for program delivery was able to use interest earned on federal funding towards its administrative costs. This allowed the final payment to be reduced accordingly.

An internal audit of the Funding for National Recreational Trails was completed in April 2011.

An internal audit on Alternative Program Administration, which will look at unique programs such as the National Recreational Trails, is expected to be completed by March 2017.

No evaluation of the program has been completed nor is planned.

The program has been successful in leveraging federal funding to over 250 projects across the country. The program provided opportunities for employment in small and rural communities and resulted in a lasting legacy of recreational trails that benefits Canadians for many years to come.

Total grants

Total contributions

0^{Footnote 31}

5,000,000

5,000,000

5,000,000

4,990,154

(9,846)

Total other types of transfer payments

Total program

0^{Footnote 30b}

5,000,000

5,000,000

5,000,000

4,990,154

(9,846)

Departmental approach to further the implementation of the Policy on Green Procurement in place as of April 1, 2014.

• Standard and generic environmental clauses have continued to be included in the terms and conditions of Infrastructure Canada's service contracts.

Ongoing

• Standing offers from Public Services and Procurement Canada have continued to be considered, including those with green procurement clauses.

Ongoing

• Office supplies and goods have continued to be purchased taking into account green procurement principles and objectives such as ensuring that printing paper is recycled paper (30 percent recycled or higher), instead of regular paper, and that business cards and employee name plates are printed on recycled paper, and used the Eco Logo symbol.

Ongoing

• Employees have continued to organize meetings and make conference arrangements according to green procurement principles, reduce the use of disposable dishes that go into landfills, and purchase goods from companies that offer green catering.

Ongoing

• Video conferences and teleconferences have continued to be promoted as an alternative to travel, and government travel services will continue to be used to promote sustainable methods of transportation, and green hotels.

Ongoing

Number and percentage of procurement and/or materiel management specialists who completed the Canada School of Public Service Green Procurement course (C215) or equivalent, in fiscal year 2015-2016.

None (0%). Employees had taken this training prior to 2015-16.

Number and percentage of managers and functional heads of procurement and materiel whose performance evaluation includes support and contribution toward green procurement, in fiscal year 2015-2016.

Three Positions (100%)

Percentage of procurement decisions with regards to computers and related equipment, printers and photocopiers that will continue to take into account green procurement principles, considerations and objectives of the Policy on Green Procurement.

100%

Percentage of procurement decisions with regards to furniture, office supplies and goods that take into account green procurement principles, considerations and objectives of the Policy on Green Procurement.

100%

Percentage of contracting services transactions that include green procurement information, i.e. that meet green procurement principles, considerations and objectives of the Policy on Green Procurement. Number of contracting services transactions that incorporate green procurement information, relative to the total number of contracting services transactions made by the Department.

75%

7.2.1.5. Leverage common-use procurement instruments where available and feasible.

Achieved

7.2.2. Incorporate environmental considerations into procurement instruments. [Applies only to Public Services and Procurement Canada]

N/A. (Applies only to Public Services and Procurement Canada).

Best Practice

Achieved

Best Practice

Achieved

Infrastructure Canada has continued to work with Public Services and Procurement Canada to analyze its spending patterns and to identify opportunities for improvement in its procurement practices.

100%

The Department has continued to use multi-functional printers in common areas to reduce the overall number of print, fax and scanner devices needed. Since 2012-2013, usage-based audits were used to guide a reduction in the number of multi-function printers, shifting printers to address departmental needs and increasing the number of employees sharing each device. Energy Star certified computers, monitors and standalone printers were purchased when available, and empty toner cartridges were returned to vendors for recycling.

100%

The Department has continued to purchase and lease energy-efficient equipment from companies that support environmental programs, and that have recycled content and recycling programs. The equipment uses multi-function photocopiers and printer machines to reduce energy consumption, uses recycled toner cartridges, implements a policy on standard shared printers versus personal printers, and ensures that default settings on printers and photocopiers are set to print double-sided, and on black and white.

100%

The Department has continued to implement material recycling bins in all locations, and to ensure that all defective and end-of-life telecommunications devices and accessories are sent to vendors for recycling where they are re-used as telecommunications devices, and employees have continued to use USB memory sticks which provide more storage capacity, instead of CDs and DVDs.

100%

The Department has continued to update its contracting systems to identify and track the number of contracting service transactions that include green procurement information.

100%

New Champlain Bridge Corridor Project

The existing Champlain Bridge is one of the busiest bridges in Canada with traffic estimated at over 40 Million vehicles per year. It is a major Canada-United States trade corridor, handling $20 billion of international trade and 11 Million transit commuters per year.

The New Champlain Bridge Corridor (NCBC) Project addresses the need to replace the Champlain Bridge and the temporary causeway (which was built as a temporary replacement to the Nuns' Island Bridge), both having reached the end of their useful lives. The Project also offers an efficient solution to the movement of goods and people by widening the federally owned A15 Highway to a six-lane capacity. The NCBC project continues to be successfully implemented as a Public Private Partnership (P3) procurement model, which is relatively new for federal assets, but which has proven to be very successful.

• Improving the Safety of Users;
• Maintain the Safety and Efficiency of the Saint-Lawrence Corridor;
• Designing a Bridge with a 125 Year Life Expectancy; and
• Improving the Flow of People and Goods in the Montreal Area.

Replacing the existing infrastructures, as well as widening the A15 Highway will mitigate any risk of disrupting the trade corridor and will improve the flow of traffic.

The project provides significant opportunities for local business to participate, notably in construction related aspect of the project's implementation.

Infrastructure of Canada

Public Services and Procurement Canada

Public Services and Procurement Canada, Justice Canada, Fisheries and Oceans Canada, Environment Canada

Project Financial and Business Advisor
Price Waterhouse Coopers
18 York St., Suite 2600
Toronto, ON M5J 0B2

None

The New Champlain Bridge Corridor Project Agreement was signed between the Government of Canada and Signature on the Saint-Laurent Group (SSL) on June 19, 2015 for the design, construction, financing, operation, maintenance and rehabilitation of the corridor over 35 years. The acquisition of properties required for the project has been successful. The remaining lands required for the project are expected to be acquired in 2016. Negotiations are ongoing with SSL to move forward on a toll-free bridge.

• Environmental assessment is completed: October 2013
• Launch of the procurement process - Request for Qualifications: March 2014
• Beginning of acquisition of land: June 2014
• Announcement of the design specifications for the New Bridge for the St. Lawrence: June 2014
• Announcement of the three consortia invited to participate in the Request for Proposals process: July 2014
• Negotiation of agreements with external entities: Ongoing  
• Announcement of the Preferred Proponent and beginning of the Early Work Agreement: April 2015
• Signature of Project Agreement: June 2015
• Environmental site assessment on properties to be acquired: September 2015
• Negotiations begin to move forward on toll-free bridge: November 2015

• On June 19, 2015, a Project Agreement between the Government of Canada and Signature on the Saint-Laurent Group (SSL) came into effect. This agreement covers the design, construction, financing, operation, maintenance and rehabilitation of the Project over a 34-year period (2015- 2049) at a cost of $3.977 B (excluding taxes). The overall project cost is $4.239 billion.
• Necessary authorities were provided in December 2013, April 2014, and June 2015 to carry out the NCBC project.  All necessary project funding was provided through Budget 2014.
• The NCBC project has been identified as a Transformational project, as the total value is beyond the $100 Million threshold, as set out in the Treasury Board's Policy on the Management of Projects.
• The acquisition of immovables required for the project has been successful. The remaining lands required for the project are expected to be acquired in 2016.
• Environmental Site Assessments on properties to be acquired on a temporary basis were completed successfully in September 2015. The final report was published on December 8, 2015.
• The P3 procurement model has been successfully implemented.
• In November 2015, SSL was advised to stop work related to implementation of tolling. Changes to the Project Agreement will take place to reflect the toll-free bridge approach. Negotiations are underway with SSL to move forward on a toll-free bridge.

Audit of Delegated Human Resources Authorities

Financial Management and Control

January 2016

Audit of Delegated Financial Authorities

Financial Management and Control

January 2016

Audit of the New Building Canada Fund - Management Control Framework

Financial Management and Control

October 2015

Audit of the Procurement Phase of the New Bridge for the St. Lawrence Corridor Project - Contract Management

Project Management

April 2015

Audit of the Procurement Phase of the New Bridge for the St. Lawrence Corridor Project - Governance and Risk Management

Project Management

April 2015

Internal Services

Evaluation of the EC Development Program

Completed

December 2015

Infrastructure Investments in Small Communities and Rural Areas

Evaluation of the Building Canada Fund - Communities Component

Completed

August 2015

Permanent and Flexible Infrastructure Funding: Gas Tax Fund

Evaluation of the Gas Tax Fund

Completed

August 2015