Infrastructure Stimulus Fund Guidelines

1. Introduction
2. Funding Allocation
3. Program Management and Delivery
4. Eligible Recipients
5. Eligible Projects
6. Eligible Project Categories
7. Eligible & Ineligible Costs
8. Cost-sharing
9. Expiration of Infrastructure Stimulus Fund
10. Reporting and Public Information
11. Environmental Assessment
12. Contact Information

The purpose of this program guide is to provide as much relevant program information as possible to support applicants to the Infrastructure Stimulus Fund. Here you will find information on various topics, such as eligible project categories, mandatory criteria and other program documentation.

The Infrastructure Stimulus Fund is an important part of the Government of Canada's Economic Action Plan which provides a timely, targeted and temporary stimulus to the Canadian economy and protects Canadians during the global recession. To ensure the timeliness of funding, the management and delivery of this program is being tailored to the unique circumstances and priorities in each province and territory across the country. More detailed information on how the program is being delivered in each province and territory can be found on the Infrastructure Stimulus Fund provincial and territorial web pages.

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1. Introduction

Budget 2009 establishes a new $4-billion Infrastructure Stimulus Fund that provides funding towards the rehabilitation or construction of provincial, territorial, municipal and community infrastructure projects. Funding is available for two years for projects that can begin construction quickly and be built during the 2009 and 2010 construction seasons. This initiative is structured to flow funding and get shovels in the ground quickly.

The Infrastructure Stimulus Fund will focus on the rehabilitation of existing assets and new infrastructure that can begin and be completed by March 31, 2011. Given the time-sensitive nature of the stimulus funding, the Infrastructure Stimulus Fund has been designed to ensure maximum flexibility. Funding allocations, project identification, selection and approval, have all been developed to provide the Government of Canada with the necessary flexibility to ensure the most efficient and effective delivery of the program, thus enabling the funds to flow quickly to construction-ready projects across Canada.

2. Funding Allocation

The $4 billion is notionally allocated on a per capita basis for projects in each province and territory. However, should progress be slow, or provinces and territories be unable to match federal funding, funds may be reallocated to federal infrastructure in that province or to other regions of the country where they can be quickly injected into the economy.

3. Program Management and Delivery

Where possible, the Government of Canada will partner with provinces and territories for the management and delivery of the Infrastructure Stimulus Fund.

Funding for projects will generally flow through a single, streamlined Stimulus Fund agreement to be signed with provincial and territorial governments where they are contributing to projects.

To ensure that the program provides economic stimulus quickly, and to ensure partnership with the provinces and territories, the Stimulus Fund is being rolled out in a flexible manner to respond to the conditions and priorities in each jurisdiction. Proposals from municipal and non-governmental organizations will be considered through different selection processes depending on the funding available in each province and territory. To accelerate approvals and get funding flowing quickly, we will build on existing programs and avoid duplicative application processes.

Depending on the Province or Territory, municipal and community infrastructure projects could be identified through the following selection processes:

• From recent or current application intakes already closed or underway for the Communities Component of the Building Canada Fund;
• Projects already identified by the province or territory as construction ready;
• Unfunded applications from existing programs, provided they meet Stimulus Fund criteria;
• New calls for proposals under a new provincial or territorial program that meets Stimulus Fund objectives; and/or,
• A specific call for Stimulus Fund proposals using a streamlined and accelerated application process.

The specific process for selecting municipal/community projects will depend on the priorities and circumstances in each province and territory, including available matching funding, status of the Building Canada Communities Component and existing or planned provincial and territorial programs. Details on the Fund will be posted on the Building Canada website.

Provincial or territorial infrastructure projects will also be eligible under the Stimulus Fund and will be submitted directly to the federal government for consideration.

4. Eligible Recipients

Eligible Recipients under the Infrastructure Stimulus Fund include:

1. A province, territory or local or regional government established by or under provincial or territorial statue;
2. A public sector body that is established by or under provincial or territorial statute or by regulation or is wholly owned by a province, territory or local government;
3. A non-profit private sector entity; and
4. A for-profit private sector entity.

5. Eligible Projects

Eligible projects under the Infrastructure Stimulus Fund are for the rehabilitation or retrofit of existing infrastructure assets, or the construction of new infrastructure assets, in eligible categories, that can be substantially completed before March 31, 2011. For the purposes of the Infrastructure Stimulus Fund, a project is deemed to have been substantially completed once all major construction work has been completed and the infrastructure is ready to be used for its intended purpose. Upon completion of the project, and prior to the final payment by Canada, recipients will be required to provide a Solemn Declaration of Substantial Completion attested to by a registered professional.

To be eligible for funding under the Infrastructure Stimulus Fund, projects will be required to meet requirements with regards to the incrementality of the project, project readiness and merit.

1. Project incrementality - All eligible recipients will be required to attest, in conjunction with their project application, that the work to be undertaken is an incremental construction activity that would not otherwise have been constructed by March 31, 2011, were it not for funding from the Infrastructure Stimulus Fund. Federal funding could be used to provide missing funding that allows a project to proceed, or could be used to accelerate a project planned for future years to be built by March 2011.
2. Project readiness - All eligible recipients will be required to provide information necessary to determine if the project is construction-ready and likely to be substantially concluded by March 31, 2011.
3. Project merit - The project's merit will focus largely on the extent to which a project is construction-ready as well as the extent to which the proposed work is needed to maintain the safety and prolong the economic life of assets.
4. Financial leverage - The Government of Canada is seeking to leverage additional funds from either the province, municipality, not-for profit sector or the private sector to provide additional economic stimulus. The ability for a given project to leverage additional capital will be considered when making project decisions as well.

6. Eligible Project Categories

Projects must fall within the following eligible project categories to be eligible for the Infrastructure Stimulus Fund:

Provincial/Territorial Assets

The following are eligible project categories for provincial/territorial assets:

1. Highway Infrastructure
2. Local Road Infrastructure
3. Regional Transit Infrastructure
4. Disaster Mitigation Infrastructure
5. Brownfield Redevelopment Infrastructure
6. Cultural Infrastructure
7. Port and Cruiseship Infrastructure
8. Parks and Trails

Provincial / Territorial Asset means an asset that is owned, or will be owned, by a province or territory or by a public sector body that is established by or under provincial or territorial statute or by regulation or is wholly owned by a province, territory or local government.

Local Government Asset

The following are eligible project categories for local government assets:

1. Water and Waste Water Infrastructure
2. Public Transit Infrastructure
3. Local Road Infrastructure
4. Disaster Mitigation Infrastructure
5. Solid Waste Management Infrastructure
6. Brownfield Redevelopment Infrastructure
7. Cultural Infrastructure
8. Airport Infrastructure
9. Port and Cruiseship Infrastructure
10. Municipal Buildings
11. Parks and Trails

A Local Government Asset means an asset that is owned, or will be owned, by local or regional government established by or under provincial or territorial statute.

Not-For-Profit Sector Assets

The following are eligible project categories for not-for-profit sector assets:

1. Temporary Housing Shelters
2. Community Centers and Community Services Infrastructure
3. Brownfield Redevelopment Infrastructure
4. Cultural Infrastructure
5. Port and Cruiseship Infrastructure

Not-for-profit Sector Asset means an asset that is owned, or will be owned, by an incorporated, not-for-profit, private sector entity.

Private Sector Assets

The following are eligible project categories for private sector assets:

1. Short-line Rail Infrastructure
2. Port and Cruiseship Infrastructure

Private Sector Asset means an asset that is owned, or will be owned, by an incorporated, for-profit, private sector entity.

7. Eligible Costs

Eligible Costs

The Infrastructure Stimulus Fund will share in the capital, construction costs of eligible, approved infrastructure projects.

Eligible costs are costs considered to be direct and necessary for the successful implementation of an eligible project, excluding those explicitly identified in Ineligible Costs.

All eligible costs outlined above can only be reimbursed to the recipient following the signing of a contribution agreement.

Ineligible Costs

Ineligible costs associated with a project will not be reimbursed under the Infrastructure Stimulus Fund and include the following:

1. costs incurred prior to the date established by the Minister in a letter to the recipient for eligibility consideration;
2. costs incurred for projects that are intended to be substantially completed after March 31, 2011;
3. land acquisition, leasing land, buildings, equipment and other facilities, real estate fees and related costs;
4. financing charges, legal fees and loan interest payments (including those related to easements (e.g. surveys);
5. any goods and services costs which are received through donations or in-kind;
6. employee wages and benefits, overhead costs as well as other direct or indirect operating, maintenance and administrative costs incurred by the ultimate recipient for the eligible project(s), and more specifically costs relating to services delivered directly by permanent employees of the ultimate recipient, or a Crown corporation or corporation owned and controlled by the ultimate recipient; and
7. provincial sales tax and Goods and Services tax, for which the ultimate recipient is eligible for a rebate, and any other costs eligible for rebates.

8. Cost-sharing

The federal government will provide a share of the eligible costs of an infrastructure project, under the Infrastructure Stimulus Fund as follows:

Cost Sharing for Provincial/Territorial Assets

Federal funding for provincial or territorial assets, from all federal sources, will not exceed a maximum of 50 percent (50%) of the total eligible costs of the project.

Cost Sharing for Local Government or Non-Profit Sector Assets

Federal funding from the Infrastructure Stimulus Fund for local government and non-profit sector assets will be one-third (33.3%) of total eligible project costs. On an exceptional basis, the federal share of funding may be up to 50 percent (50%) of total eligible project costs. The federal share of the project, from all federal sources (for example, Gas Tax) cannot exceed 50 percent (50%) of total eligible project costs.

Cost Sharing for Private Sector Assets

The maximum share of funding for private sector assets, from all federal sources, will be 25 percent (25%) of total eligible costs.

9. Expiration of Infrastructure Stimulus Fund

All projects are required to begin and materially end construction prior to March 31, 2011. Should this condition of funding not be met, Canada shall have the right to cancel funding in whole or in part, and further, Canada shall have the right to be repaid any funding advanced, in whole or in part, for any project that is not completed by the end of the program.

The Minister of Transport, Infrastructure and Communities may cancel funding for any project that has not begun construction within sixty (60) days of its start date.

10. Reporting and Public Information

All recipients of funding for a project, funded under the Infrastructure Stimulus Fund, will be required to submit quarterly progress reports, detailing progress on the implementation of the project, amounts received from Canada broken down by class of asset and project, and an overall update on the project status. Payments will be conditional upon receipt of these reports.

11. Environmental Assessment

Projects receiving federal funding may require an environmental assessment under the Canadian Environmental Assessment Act. The information requested in the project will help to determine whether an assessment is required. Construction should not begin on the project pending this review.

12. Contact Information

All correspondence, queries and notices to the Government of Canada regarding the Infrastructure Stimulus Fund can be sent to:

Infrastructure Stimulus Fund Office
90-606 Sparks Street
Ottawa, Ontario
K1P 5B4

Telephone: 613-948-1148
Telephone Toll free: 1 800 O-Canada (1 800 622-6232)
TTY: 1 800 465-7735

Email: info@creatingjobs.gc.ca

Note: Prospective applicants for the Stimulus Fund in Ontario must contact the Canada-Ontario Infrastructure Secretariat at 1-866 306-7827 with questions about how to access the online application system in Ontario. This number is not for Not-for-profit entity applicants, who should email Infrastructure Canada directly with any questions.