Frequently Asked Questions (FAQs)

• What is the Infrastructure Stimulus Fund?
• When and how can municipal governments and other organizations submit proposals for funding under the Infrastructure Stimulus Fund?
• Will the Government of Canada extend the deadline for projects funded under the Infrastructure Stimulus Fund?
• What if my project won't be completed before the March 31, 2011, cut off date? Will I be responsible for paying for the entire project?
• How will stimulus funding benefit my Province/Territory?
• How have infrastructure investments helped the economy and Canadians?
• What is the Green Infrastructure Fund?
• How can I apply to the Green Infrastructure Fund?
• What is the Recreational Infrastructure Program?
• What is the National Recreational Trails initiative?
• What is the Building Canada plan?
• Which government department is responsible for creating and implementing Building Canada?
• How is Building Canada helping to strengthen Canada's economy?
• How is the Government of Canada helping to make our environment cleaner?
• How is Building Canada helping to make cities and communities better?
• What is Building Canada doing for small communities?
• How is Building Canada helping First Nations?
• How much funding will be allocated to my Province/Territory?
• Who decides what projects are funded?
• When and how can municipal governments and other organizations submit proposals for funding under the Building Canada Fund?
• Will provinces, territories and municipalities also be required to provide funding for their projects?
• Will the funding under Building Canada be used to cover cost overruns on existing projects?
• How can I apply to the Gas Tax Fund?
• Where can I learn more about public-private partnerships (P3s)?

What is the Infrastructure Stimulus Fund?

The Infrastructure Stimulus Fund complements existing federal infrastructure funding by focusing on short-term objectives for economic stimulus. To further this goal of rapid economic stimulus, the Infrastructure Stimulus Fund focuses on construction–readiness as important project selection criteria. The full $4 billion will be distributed in fiscal years 2009-2010 and 2010-2011. Projects focus largely on the rehabilitation of existing assets such as water, wastewater, public transit, highways, roads, culture, parks, and trails but will also include new construction projects, as well.

When and how can municipal governments and other organizations submit proposals for funding under the Infrastructure Stimulus Fund?

To ensure that projects funded under the Infrastructure Stimulus Fund are completed by the March 31, 2011, deadline, the Government of Canada required that funding be allocated by January 29, 2010.

No further proposals for funding under the Infrastructure Stimulus Fund are being accepted.

Will the Government of Canada extend the deadline for projects funded under the Infrastructure Stimulus Fund?

To be eligible under the Infrastructure Stimulus Fund, projects must be substantially completed by March 31, 2011. When applying, proponents were required to attest that their projects would be completed by this date.

The federal government will pay its share of costs incurred up to March 31, 2011, as provided for under the Infrastructure Stimulus Fund.

What if my project won't be completed before the March 31, 2011, cut off date? Will I be responsible for paying for the entire project?

The Government of Canada will not fund any costs incurred past March 31, 2011. The Government will not claw back contributions made up to March 31, 2011, even if the project is not completed, provided the proponent commits to completing the project at their expense as soon as possible.

How will stimulus funding benefit my Province/Territory?

Federal investments in the Infrastructure Stimulus Fund program provide timely economic stimulus by supporting shovel-ready projects that can be substantially completed by March 31, 2011. These investments allow communities to advance infrastructure priorities, create jobs, and help Canada develop a more modern and greener infrastructure.

How have infrastructure investments helped the economy and Canadians?

Investments in infrastructure have created jobs in construction, engineering and manufacturing, as well as generated significant economic spin-off activity. In addition, these investments are helping Canada develop a more modern and greener infrastructure, which is the foundation of sustainable long-term economic growth.

What is the Green Infrastructure Fund?

The Green Infrastructure Fund, announced in Canada's Economic Action Plan, provides $1 billion over five years (2009-2014) to support green priorities such as green energy generation and transmission infrastructure, building and upgrading wastewater treatment systems, and improving solid waste management. Sustainable energy infrastructure, such as modern energy transmission lines, will contribute to improved air quality and lower carbon emissions. Targeted investments in green infrastructure can improve the quality of the environment and will lead to a more sustainable economy over the longer term.

Eligible projects are those that promote cleaner air, reduced greenhouse gas emissions and cleaner water, and fall within any of the following categories: wastewater infrastructure; green energy generation infrastructure; green energy transmission infrastructure and solid waste infrastructure, and carbon transmission and storage infrastructure.

The Green Infrastructure Fund is allocated based on merit to support green infrastructure projects on a cost-shared basis. The fund focuses on a few, large scale, strategic infrastructure projects. The merit of the projects is based on assessment criteria such as eligibility, leveraging financial investments and project benefits.

How can I apply to the Green Infrastructure Fund?

Proponents can summarize their project in a letter to:

Infrastructure Canada - Green Infrastructure Fund
6th Floor, 90 Sparks Street
Ottawa, ON K1P 5B4

If the project appears to be a good candidate for further funding consideration, proponents will be invited to submit a more detailed proposal that describes the project and its components, cost estimates, expected results and benefits. For all projects selected for funding, eligible recipients will enter into contribution agreements with Canada. These agreements will outline eligible and ineligible costs as well as federal cost sharing and limits.

Eligible recipients include provinces, territories, local or regional governments; public sector bodies, non-profit organizations and private companies, either alone or in partnership with a province, territory or a government.

What is the Recreational Infrastructure Program?

Canada's Economic Action Plan provides $500 million over two years (2009-2010 and 2010-2011) for the Recreational Infrastructure Canada program to support upgrading and renewal of recreational facilities in communities.

The initiative is delivered nationally through:

• Atlantic Canada Opportunities Agency for all Atlantic provinces,
• Economic Development Agency of Canada for the Regions of Quebec,
• Western Economic Diversification for all western provinces,
• Industry Canada in Ontario, and
• Indian and Northern Affairs Canada for all territories.

For information on applying to the Recreational Infrastructure Program, please contact the appropriate delivery organization.

What is the National Recreational Trails initiative?

Through Canada's Economic Action Plan, the federal government has committed $25 million to the National Trails Coalition in 2009-2010. Funding will be used by the National Trails Coalition to build and renew multi-purpose trails for walking, running, cross-country skiing, biking, all-terrain vehicles and snowmobiles.

For more information, please consult the National Trails Coalition website.

What is the Building Canada plan?

Building Canada was announced in 2007, and is the Government of Canada's infrastructure plan that commits an unprecedented $33 billion in funding, from 2007 to 2014, to infrastructure projects that deliver results in three areas of national importance: a growing economy, a cleaner environment, and more prosperous communities.

Building Canada was developed following extensive consultations with provinces, territories, and stakeholders. It outlines a streamlined set of programs designed to simplify the funding process and provide greater flexibility for governments to address national priorities and to respond to local needs.

Which government department is responsible for creating and implementing Building Canada?

Infrastructure Canada in responsible for the Building Canada plan as a whole, but the department works closely with other departments including, the Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions, Federal Economic Development Agency for Southern Ontario (FedDev Ontario) , Federal Economic Development Initiative for Northern Ontario (FedNor), Western Economic Diversification, and Transport Canada.

Please contact Infrastructure Canada for all Building Canada Fund and Base Funding program inquiries.

Please contact Transport Canada for all questions relating to the Gateways and Border Crossings Fund and the Asia-Pacific Gateway Initiative, and PPP Canada Inc. for all inquiries regarding the P3 fund.

How is Building Canada helping to strengthen Canada's economy?

Building Canada is helping build a stronger Canadian economy by investing in infrastructure projects that contribute to increased trade, efficient movement of goods and people, and economic growth such as:

• Gateways and Border Crossings
• Highways
• Short-line Rail and Short-sea Shipping
• Regional and Local Airports
• Canadian Ports
• Connectivity and Broadband
• Tourism and Convention Centres

How is the Government of Canada helping to make our environment cleaner?

Maintaining a healthy and sustainable environment is directly related to the health and prosperity of Canadians. The federal government has set the protection and promotion of the environment as a national objective.

Building Canada places a strong focus on infrastructure investments that contribute to cleaner air, water and land and encourages investments in:

• Wastewater Infrastructure
• Public Transit
• Green Energy
• Solid Waste Management

In addition, through the 2009 Economic Action Plan, the Government of Canada has maintained these priorities through the $4 billion Infrastructure Stimulus Fund, whicih includes these and other investment categories, as well as the $1-billion Green Infrastructure Fund, which specifically targets projects that improve the quality of the environment and will lead to a more sustainable economy over the longer term.

How is Building Canada helping to make cities and communities better?

Building Canada contributes funding for local projects that help improve the economic vitality and quality of life in our communities, ensuring that Canadians have access to safer and well-maintained roads and bridges, shorter commutes, improved cultural infrastructure, and cleaner air and water.

Talented professionals and investors are attracted to healthy, prosperous, vibrant and safe communities supported by quality public infrastructure such as public transit, sports facilities, green spaces, and arts and cultural institutions.

Building Canada provides flexible, predictable and stable funding for municipalities through several initiatives:

• The $8.8 billion Building Canada Fund;
• The $1.25 billion Public-Private Partnerships (P3) Fund;
• The $2 billion a year Gas Tax Fund;
• A 100% Goods and Services Tax (GST) Rebate;
• Plus, improvements to border crossings and gateways (e.g. better roads and road-rail grade crossing) will also benefit border communities such as Windsor, Vancouver and others.

What is Building Canada doing for small communities?

The Government of Canada recognizes that smaller communities have unique infrastructure needs and adopted a balanced approach to meet the needs of both rural and urban communities with populations of less than 100,000.

The Building Canada Fund includes a Communities Component, which supports projects that contribute to the ongoing development of safe and strong communities. This significantly helps smaller communities address their infrastructure pressures and serves as a complementary instrument to Gas Tax Fund funding.

Budget 2009 provided up to $500 million in top-up funding for projects under the Communities Component. To access top-up funding, projects needed to be construction-ready and completed by March 31, 2011. All Communities Component top-up funding has been allocated. All funding for projects under the Communities Component is cost-shared with provinces and municipalities.

How is Building Canada helping First Nations?

Through First Nation allocations from the Gas Tax Fund and the Building Canada Fund, Building Canada has committed $209 million toward First Nations. Of the $209 million, the $102 million from the Gas Tax Fund has been transferred directly to Indian and Northern Affairs Canada (INAC) for targeted investments into schools. The $107 million from the Building Canada Fund was used to augment the existing First Nations Infrastructure Fund (FNIF). This Fund was announced on October 3, 2007 and combines pooled funding from Infrastructure Canada's existing programming along with funding from the INAC Capital Facilities and Maintenance Program.

In total, funding to FNIF amounts to over $235 million which is available for projects aimed at improving solid waste management, connectivity, energy systems, roads and bridges, and planning and skills development. The FNIF, along with the $102 million transferred to INAC for schools, builds upon existing INAC infrastructure programs that directly target water and wastewater projects, schools, housing and other infrastructure on reserves within each of the ten provinces.

How much funding will be allocated to my Province/Territory?

For fund allocation by province and territory, please click the following region of your choice for more details:

• Alberta
• British Columbia
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Northwest Territories
• Nova Scotia
• Nunavut
• Ontario
• Prince Edward Island
• Quebec
• Saskatchewan
• Yukon

Who decides which projects are funded?

For large-scale projects, a negotiated process between the different levels of government is undertaken to determine funding priorities. For community-based initiatives a formal application process takes place.

Municipalities continue to receive funding under the Gas Tax Fund in support of their infrastructure needs. In addition, Building Canada also provides municipalities the flexibility to deal with their priorities through the GST rebate.

When and how can municipal governments and other organizations submit proposals for funding under the Building Canada Fund?

The Communities Component of the Building Canada Fund is fully allocated. Those looking to apply to the Major Infrastructure Component are encouraged to contact their province/territory to discuss funding priorities.

Will provinces, territories and municipalities also be required to provide funding for their projects?

Yes, most of the funding programs introduced through Building Canada require investments by funding partners, as no single level of government can address the country's infrastructure needs alone.

Historically, most of the Government of Canada's infrastructure programs have been matched by partners, thereby generating further investments. Other programs, such as the Gas Tax Fund for example, do not require matching funding but do require that federal funding be incremental to existing provincial/territorial and municipal infrastructure spending.

Will the funding under Building Canada be used to cover cost overruns on existing projects?

No. The Government of Canada is maximizing value for taxpayers' money by supporting infrastructure projects that adhere to best practices and by requiring that recipients be accountable to Canadian taxpayers.

The Government of Canada encourages sound financial management and solid project planning processes, which include preparing cost estimates that each project contribution amount is based on.

How can I apply to the Gas Tax Fund?

Gas tax funding is provided through negotiated bilateral agreements, between the Government of Canada and each province and territory, as well as the City of Toronto in Ontario. The money is allocated based on population, with set amounts for Prince Edward Island and the territories to ensure they have access to sufficient funds for significant projects. The Association of Municipalities of Ontario and the Union of British Columbia Municipalities are the delivery partners in their two provinces.

On April 1st, 2009, the Gas Tax Fund payments to the provinces and territories for municipal infrastructure doubled to $2 billion annually. The Gas Tax Fund will remain at that level beyond 2014, when the Government makes it a permanent measure, providing municipalities with stable funding for their long-term infrastructure priorities.

Where can I learn more about public-private partnerships (P3s)?

PPP Canada is a Crown Corporation established under Budget 2007 to support the development of public-private partnerships (P3) and facilitate the development of the Canadian P3 market.

For more information, please consult the PPP Canada site.