A stronger economy, cleaner environment and liveable communities

Une économie plus forte, un environnement plus propre, des collectivités habitables

Over 10 years of excellence Plus de 10 ans d’excellence

New Building Canada Plan

April 2014

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The New Building Canada Plan: Context

• Budgets 2011 and 2012 committed the Government of Canada to develop a new long-term infrastructure plan prior to the expiry of the 2007 Building Canada Plan on March 31, 2014

• To meet these commitments, INFC undertook extensive engagement activities to receive feedback from partners and stakeholders on what a future plan should look like

• Budget 2013 announced a New Building Canada Plan (NBCP) that provides over $53 billion in funding, including more than $47 billion in new funding, over 10 years

• Budget 2014 reiterated the NBCP announcement and committed to having the new plan launched before the expiry of the 2007 Building Canada Plan - the NBCP was fully launched on March 28, 2014

NBCP Framework

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Gas Tax Fund $21.8B

COMMUNITY IMPROVEMENT FUND $32.2B

GST Rebate $10.4B

New Building Canada Plan $53B - 2014-2024

Provincial-Territorial Infrastructure

Component $10B (allocated)

P3 CANADA FUND $1.25B(merit-based)

NEW BUILDING CANADA FUND $14B

National Infrastructure Component $4B

(merit-based)

Funding for National/Regional Projects

$9B

Small Communities Fund $1B

Legislated Funding:$32.2B/10 years

Program Funding:$15.25B/10 years

Existing Infrastructure Funding $6B

Existing Infrastructure Funding $6B

Community Improvement Fund

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Gas Tax Fund $21.8B

COMMUNITY IMPROVEMENT FUND $32.2B

GST Rebate $10.4B

The Gas Tax Fund (GTF)

•Key program features :◦ Municipalities select projects

◦ Canada pays in two instalments per year

• Budget 2013 announced some changes to the GTF:◦ Indexation at 2% per year, beginning in 2014-15, increases in $100M increments

◦ Added 11 eligible categories, for a total of 18:

The GST Rebate (managed by Canada Revenue Agency)•Municipalities submit an application to CRA to claim the GST paid on purchases to support municipal services

Public transit Drinking water Wastewater Solid waste Green energy Capacity building

Local roads and bridges+ Short-line rail+ Short-sea shipping+ Regional and local airports+ Highways+ Connectivity and broadband

+ Disaster mitigation+ Tourism+ Sport+ Recreation+ Culture+ Brownfield redevelopment

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Provincial-Territorial Infrastructure Component

$10B (allocated)

Provincial-Territorial Infrastructure Component

$10B (allocated)

NEW BUILDING CANADA FUND $14B

National Infrastructure Component $4B

(merit-based)

Funding for National/Regional Projects

$9B

Funding for National/Regional Projects

$9B

Small Communities

Fund $1B

Small Communities

Fund $1B

National Infrastructure Component (NIC)

• $4-billion fund for large, strategic infrastructure projects of national significance that support job creation, economic growth and productivity

• Projects are determined by merit and guided by federal priorities

New Building Canada Fund – NIC

• Eligible categories are limited to those that provide the greatest economic impact:

◦ Highways and major roads◦ Public transit◦ Rail infrastructure◦ Local and regional airports

• Funding of $155 million over 10 years will be allocated from the NIC to the First Nations Infrastructure Fund managed by AANDC

◦ Port infrastructure◦ Intelligent transportation systems (ITS)◦ Disaster mitigation infrastructure

New Building Canada Fund – PTIC

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Provincial-Territorial Infrastructure Component

$10B (allocated)

NEW BUILDING CANADA FUND $14B

National Infrastructure Component $4B

(merit-based)

National Infrastructure Component $4B

(merit-based)

Funding for National/Regional Projects

$9B

Small Communities

Fund $1B

Provincial-Territorial Infrastructure Component (PTIC)

•$10-billion in allocated funding:

◦ $9 billion for national and regional projects

• Each PT will receive a base amount of $250 million with the remainder of funding allocated on a per capita basis

◦ $1 billion through the Small Communities Fund for local projects in communities with populations under 100,000

• Eligible categories have been realigned to focus on those with strong economic benefits while contributing to a cleaner environment, and stronger communities:

◦ Highways and major roads◦ Public Transit◦ Drinking water◦ Wastewater◦ Solid waste◦ Green energy

◦ Short-line rail◦ Short-sea shipping◦ Regional and local airports◦ Connectivity and broadband◦ Disaster mitigation◦ Brownfield redevelopment

◦ Innovation ◦ Northern infrastructure

(territories only)

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NBCP – Support for P3s

• Binding P3 Screen

◦ For NBCF projects with total eligible costs above $100 million

◦ If the Screen determines that a project could be successfully procured through a P3 and a P3 procurement would generate better value for money, NBCF funding will be conditional on the project being delivered as a P3

◦ P3 Screen administered by PPP Canada in consultation with INFC

• Renewed P3 Canada Fund (managed by PPP Canada)

◦ $1.25 billion over five years to support innovative P3 projects

◦ Includes $10 million to support procurement option analysis undertaken by Provinces, Territories, and Municipalities for the P3 Screen under NBCF

- Would cover up to 50 percent of costs incurred to a limit of $200,000 per project

◦ Eligible project categories would be consistent with existing program

Through the NBCP, the Government demonstrated its continued support for P3s and its commitment to further develop the Canadian P3 market

Through the NBCP, the Government demonstrated its continued support for P3s and its commitment to further develop the Canadian P3 market

NBCF Cost-sharing

Provinces•The maximum federal contribution from all sources will be one-third (33.3%) of the total eligible costs of a project, with the following exceptions:

◦ Provincially-owned highways and major roads will be cost-shared up to 50%

◦ Public transit projects will be cost-shared up to 50%

◦ Projects where the recipient is from the for-profit private sector will be cost-shared up to 25%

◦ All projects delivered as P3s will be cost-shared at 25%

Territories•The maximum federal contribution from all sources will be three-quarters (75%) of the total eligible costs of a project, with the following exception:

◦ Projects where the recipient is from the for-profit private sector will be cost-shared up to 25%

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Three levels of government, and the private sector, can contribute to infrastructure projects

Three levels of government, and the private sector, can contribute to infrastructure projects

NBCP – Open for Business

• On March 28th Minister Lebel launched the New Building Canada Fund

• The official launch of the New Building Canada Fund, means that the entire NBCP is now "open for business," ensuring a seamless transition to the new program

◦ $6 billion in old funding will continue to flow to projects in 2014-15

◦ INFC and PTs are signing new GTF Agreements

◦ Federal government is ready to review project proposal submissions

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