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Minister’s Message

As Minister of Transport, Infrastructure and Communities, I am pleased to present Infrastructure Canada’s Report on Plans and Priorities for 2009-10. It describes the department’s commitment to do its part in strengthening Canada’s economy and delivering more modern and greener public infrastructure.

In this time of economic uncertainty, Infrastructure Canada is well placed to help improve Canada’s economy. From major infrastructure projects such as the Evergreen transit line in Vancouver, to helping small communities of less than 100,000 residents undertake projects like upgrading their drinking water systems or building roads and bridges, Infrastructure Canada will play an important role to build a modern Canada. These important investments in infrastructure will help create jobs for Canadians as well as stimulate our economy, improve our quality of life, and contribute to a cleaner environment. This report outlines the initiatives Infrastructure Canada will undertake over the next three fiscal years with a particular emphasis on the next two years of action to stimulate the economy.

The Government of Canada is speeding up funding for much-needed projects through the Building Canada plan and the new funds announced in ‘Canada’s Economic Action Plan’ (Budget 2009); including the Infrastructure Stimulus Fund and the Green Infrastructure Fund. These funds will help provincial, territorial and municipal governments get shovels in the ground and create jobs sooner. We will stimulate the economy, create jobs, cut red tape, reduce duplication and streamline the approval process to speed up the start of necessary infrastructure projects. This will be done while protecting the environment.

Our government understands that a more modern and greener infrastructure is vital to a strong economy, creating jobs and thriving communities – now and over the long term. We remain committed to working with our partners in all levels of government and the private sector, and indeed, all Canadians, to achieve our goals for building a stronger Canada. Infrastructure Canada will get real results for Canadians. We will work to improve Canadians’ prosperity, safety and quality of life. These are our priorities; this is our plan.

I invite you to follow our progress as we implement this plan by visiting our Web site at http://www.buildingcanada-chantierscanada.gc.ca/index-eng.html.

The Honourable John Baird, P.C., M.P.
Minister of Transport, Infrastructure and Communities

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Section I: Overview

1.1 Summary Information

1.1.1 Raison d’être

1.1.2 Responsibilities

Infrastructure Canada was established in 2002 in order to lead the Government of Canada’s efforts in addressing the infrastructure challenges of the country. Since then, the organization has evolved to become a centre of expertise for issues related to infrastructure in cities, communities and regions across Canada.

Several Acts provide legislative authorities for Infrastructure Canada. These include the Canada Strategic Infrastructure Fund Act (2002, c. 9, s. 47) (CSIF), which establishes the Canada Strategic Infrastructure Fund program and contains the authorities for contributions to carry out some strategic infrastructure projects. All other programs are made after the Order in Council 2004-325, which provides authority for the Minister for Infrastructure Canada to enter into transfer payment agreements and contracts related to infrastructure initiatives in Canada. The Canada Strategic Infrastructure Fund specifies the eligible categories within which projects can be funded and eligible recipients, and provides the Minister with the authority to enter into contribution agreements. More recent programs such as the Building Canada Fund have their own criteria regarding eligible project categories and recipients.

Infrastructure Canada is part of the Transport, Infrastructure and Communities (http://www.infc.gc.ca/department/ticp-eng.html) portfolio¹. The portfolio addresses several key challenges facing Canada, in particular, those relating to our country’s economic growth, the state of the environment, and the safety and prosperity of our communities. These challenges are priorities for the Government of Canada and will continue to guide the activities of the portfolio.

By managing the $33-billion Building Canada plan and continuing to manage sunsetting funding programs, Infrastructure Canada coordinates several infrastructure initiatives and continues to build the policies, knowledge and partnerships that support them. It also continues to play a strong role in bringing all orders of government, and others, together to work in partnership to support a stronger Canada. The Government of Canada is working with provinces, territories, municipalities, the private sector and various stakeholders to implement the Building Canada plan and the new infrastructure funds announced in Budget 2009 as new infrastructure stimulus funding over two years for short-term infrastructure projects.

1. Transport Canada, the Canadian Transportation Agency and the Transportation Appeal Tribunal of Canada produce their own Reports on Plans and Priorities. Other bodies and Crown corporations within the portfolio prepare their own annual corporate plans.

1.1.3 Strategic Outcome and Program Activity Architecture

In support of its mandate, Infrastructure Canada has one Strategic Outcome:

Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

This strategic outcome reflects the long-term and enduring benefits to Canadians that stem from Infrastructure Canada’s mandate, vision and mission. It focuses on the area of direct influence on investments in quality and cost-effective public infrastructure, and represents a clear end-state for the department to strive towards.

Figure 2 illustrates the Program Activity Architecture of the department, which depicts the structure of Infrastructure Canada’s program activities, sub-activities and sub-sub-activities, whose aim is to clarify how the organization manages the diverse set of programs and activities under its control to move forward the achievement of its strategic outcome.

Figure 2: Program Activity Architecture

1.1.4 Program Activity Architecture Crosswalk

Building on the experience gained in implementing infrastructure programs and given the scope of changes to its responsibilities, Infrastructure Canada sought and received approval from the Treasury Board, in the spring of 2008, to amend its Program Activity Architecture.

Table 1.1 compares the revised Program Activity Architecture with the previous one, in terms of program activities and funding levels. Under the revised Program Activity Architecture, Infrastructure Canada has five program activities:

1. Targeted Project-Based Infrastructure Funding: This program activity includes a series of infrastructure contribution programs that reimburse recipients for project-specific costs based on pre-determined eligibility criteria. Project categories vary depending on the specific initiative, but they all contribute to the construction, renewal and/or enhancement of public infrastructure and build infrastructure capacity in partnership with recipients.
2. Provincial-Territorial Infrastructure Base Fund: This program activity provides a pre-determined level of base funding to assist provinces and territories with their core infrastructure priorities. An equal annual amount of funding flows in support of each jurisdiction’s annual capital plan once accepted by the Minister, except where provinces and territories have agreed to match accelerated federal funding. Payments are made in advance and provinces and territories may pool, bank, or cash-manage these funds in a manner that will afford them greater flexibility in implementing their annual capital plans.
3. Gas Tax Fund: This program activity provides municipalities with predictable and long-term funding, enabling them to invest in infrastructure projects that address local needs and help to produce the shared national outcomes of cleaner air, cleaner water and reduced greenhouse gas emissions. The Gas Tax Fund is administered through agreements between the federal government and provincial/territorial governments that set out eligible infrastructure investment categories, and provide recipients with a pre-determined annual allocation based on a per-capita distribution across jurisdictions. Funds are paid to a province or territory, a municipal association, and the City of Toronto. Provinces, territories or municipal associations in turn provide funding to municipalities.
4. Knowledge and Research: This program activity helps to ensure that Canada’s infrastructure investment priorities and activities include the building, connecting and sharing of applied knowledge and research on infrastructure issues, projects and programs. It targets key gaps in infrastructure knowledge and information, promotes the development of an enhanced evidence base for sound decision making among all orders of government, and contributes to improved measurement of the impacts of infrastructure policy and investment decisions. It supports strategic research capacity and knowledge generation and applications at the national level, as well as cooperation with other orders of government in addressing their unique research and capacity-building needs.
5. Internal Services: This program activity promotes excellence in program and corporate management in support of Infrastructure Canada’s priorities. Internal services consist of Governance and Management Support (e.g., management and oversight, communications, and legal), Resource Management Services (e.g., human resource management, financial management, information management and technology, and travel and other administrative services) and Asset Management Services (e.g., real property, materiel, and acquisition).

Table 1.1: Program Activity Architecture Crosswalk (in $ thousands)

2009-10	New Program Activity 1: Targeted Project-Based Infrastructure Funding	New Program Activity 2: Provincial-Territorial Infrastructure Base Fund	New Program Activity 3: Gas Tax Fund	New Program Activity 4: Knowledge and Research	New Program Activity 5: Internal Services	Total
Old Program Activity 1: Infrastructure Investments	4,293,578	823,563	1,976,488	–	–	7,093,629
Old Program Activity 2: Policy, Knowledge and Partnership Development	1,800	568	–	19,565	–	21,933
Old Program Activity 3: Internal Services	1,100	–	–	–	18,223	19,323
Total	4,296,478	824,131	1,976,488	19,565	18,223	7,134,885
Reason for Change	Better reflects that the sub-activities are no longer based on individual funding programs but on seven generic investment categories, three of which have sub- sub-activities.	New program activity tailored to its unique governance structures and significant resource levels.	Former sub-activity of Infrastructure Investments is being moved to the Program Activity level. Tailored to its unique governance structures and significant resource levels.	Recognizes that “Policy” and “Partnerships” were too broad to describe a specific component of a discrete program activity.	No change.

1.2 Planning Summary

1.2.1 Financial and Human Resources

Tables 1.2 and 1.3 summarize the financial and human resources for the organization over the planning period.

Table 1.2: Total Financial Resources (Net Cost of Program in $ thousands)

2009-10	2010-11	2011-12
7,134,885	6,972,268	4,122,670

Table 1.3: Total Human Resources (Full-Time Equivalents)

2009-10	2010-11	2011-12
256	–	–

1.2.2 Program Activities by Strategic Outcome and Planned Spending

Table 1.4 summarizes the expected results of the five main program activities, the planned spending under each activity as well as the alignment of these activities to the Government of Canada outcomes. The overall expected results for these program activities are improved and increased stock of core public infrastructure and improved quality of life and economic opportunities for Canadians. These include cleaner water, safer and faster movement of people and goods on Canada’s major land transportation routes and at its borders, reduced greenhouse gas emissions, cleaner air, stronger and healthier communities, greater understanding of the role and significance of infrastructure and infrastructure issues, and support for environmental sustainable infrastructure.

Table 1.5 provides a more detailed breakdown of planned spending over the next three years.

Table 1.4: Program Activities by Strategic Outcome (in $ thousands)

Strategic Outcome 1: Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities.

Program Activity	Forecast Spending 2008-09	Planned Spending			Alignment to Government of Canada Outcomes
		2009-10	2010-11	2011-12
Total Planned Spending	3,349,745	7,134,885	6,972,268	4,122,670
Targeted Project-Based Infrastructure Funding	1,649,240	4,296,478	4,161,494	2,138,578	Strong Economic Growth1
Provincial-Territorial Infrastructure Base Fund	655,054	824,131	824,196	0	Strong Economic Growth1
Gas Tax Fund	1,013,439	1,976,488	1,974,452	1,974,452	Strong Economic Growth1
Knowledge and Research	9,135	19,565	11,167	9,167	Innovative and Knowledge-based Economy1
Internal Services	22,877	18,223	959	473

1. For description of the Government of Canada Outcomes, please access the Treasury Board Secretariat web site at http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/mrrsp-psgrr/wgf-cp-eng.asp.

Table 1.5: Departmental Planned Spending (in $ thousands) and Full-time Equivalents

	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Infrastructure Investments (Old Program Activity Architecture)	2,439,825	–	–	–
Policy, Knowledge and Partnership Development (Old Program Activity Architecture)	15,715	–	–	–
Targeted Project-Based Infrastructure Funding		1,817,307	1,655,889	1,891,820
Provincial-Territorial Infrastructure Base Fund		329,131	329,196	329,275
Gas Tax Fund		1,976,488	1,974,452	1,974,452
Knowledge and Research		19,565	11,167	9,167
Internal Services		18,223	959	473
Total Main Estimates	2,455,537	4,160,714	3,971,662	4,205,187
Adjustments:
Budget 2009:
Green Infrastructure Fund		200,000	200,000	200,000
Communities Component of the Building Canada Fund		250,000	250,000
Accelerating payments under the Provincial-Territorial Base Funding Initiative		495,000	495,000	(329,275)
Infrastructure Stimulus Fund		2,000,000	2,000,000
Supplementary Estimates:
Building Canada Fund	390,676	–	–	–
Canada Strategic Infrastructure Fund	103,411	29,171	55,606	46,758
Provincial-Territorial Infrastructure Base Funding Program	326,715	–	–	–
Border Infrastructure Fund	45,082	–	–	–
Municipal Rural Infrastructure Fund	–	–	–	–
Gas Tax Fund	24,644	–	–	–
Research, Knowledge and Outreach	2,168	–	–	–
Other
Collective Bargaining Agreement TB Vote 15	120	–	–	–
Operating Budget Carry Forward TB Vote 22	1,368	–	–	–
Employee Benefit Plan (EBP)	24	–	–	–
Total Adjustments	894,208	2,974,171	3,000,606	(82,517)
Net Planned Spending	3,349,745	7,134,885	6,972,268	4,122,670
Plus: Cost of services received without charge	2,175	2,286	828	763
Total Departmental Spending	3,351,920	7,137,171	6,973,096	4,123,434
Approved Full-time Equivalents	256	256	–	–

1.3 Risk Analysis

1.3.1 Changing Economic Conditions and Government-wide Priorities

The Canadian economy currently faces extraordinary challenges as a result of global financial volatility. Given current economic circumstances, Infrastructure Canada will implement measures aimed at reducing duplication, streamlining federal processes, fast tracking project approvals and accelerating funding under the Building Canada plan and the new infrastructure funds announced in Budget 2009 in partnership with provincial, territorial and municipal governments. This effort includes the identification of specific projects in each jurisdiction that could be advanced to begin construction in the next two years.

The Government of Canada’s ability to accelerate infrastructure funding is largely dependent on the ability of provinces, territories and municipalities to identify projects that are ready for construction and can be fast-tracked and to match accelerated federal funding where cost-sharing is required. Successfully accelerating infrastructure funding also depends on the success of the proposed regulatory streamlining measures, particularly for federal environmental assessment requirements. Infrastructure Canada will work closely with its partners to overcome approval and implementation barriers on a sustained basis.

1.3.2 Oversight of Infrastructure Projects

Fast tracking project approvals and accelerating funding under the Building Canada plan in partnership with provincial, territorial and municipal governments will place additional pressures on the department’s ability to provide adequate oversight of projects. As part of the update of the Corporate Risk Profile in 2008, oversight of infrastructure projects was assessed as the second highest risk to Infrastructure Canada’s achievement of its mandate. Existing mitigation measures such as the establishment of accountability mechanisms; e.g., contribution agreements, memoranda of understanding, legal agreements, the creation of oversight or management committees and enhancements to reporting systems (e.g., Shared Information Management System for Infrastructure) have all contributed to reducing the likelihood and impact of this risk.

1.3.3 Organizational Effectiveness

In 2008, the re-assessment of key corporate risks identified human resources challenges as the most significant risk to the department’s ability to deliver on its mandate. Although the implemented mitigation measures identified in the 2007 Corporate Risk Profile effectively reduced the likelihood of this risk occurring, the assessment of its potential impact on the department remained high. As such, continued vigilance will be required in mitigating this risk including ongoing implementation of actions outlined in Infrastructure Canada’s Integrated Human Resources Plan, providing early support to new employees by offering orientation sessions and distributing the Departmental Orientation Guide to new employees as well as developing procedures and tools to accomplish their tasks.

1.4 Contribution of Priorities to Strategic Outcome

Operational Priority	Type	Links to Strategic Outcome	Description
1. Expedite investments in provincial, territorial and municipal infrastructure projects.	New	SO 1	Infrastructure Canada will implement measures aimed at reducing duplication, streamlining federal processes, fast tracking project approvals and accelerating funding under the Building Canada plan and the new infrastructure funds announced in Budget 2009 in partnership with provincial, territorial and municipal governments.

Management Priority	Type	Links to Strategic Outcome	Description
1. Respond to the opportunities for improvement in the Management Accountability Framework assessment of 2008.	New	SO 1	Improve the department’s Management Accountability Framework results in support of its Program Activity Architecture.
2. Supporting public service renewal and improving people management.	Ongoing	SO 1	Continue implementing Infrastructure Canada’s Integrated Human Resources Plan.

1.5 Expenditure Profile

1.5.1 Allocation of Funding by Program Activity

For the 2009-10 fiscal year, Infrastructure Canada plans to spend $7.1 billion to meet the expected results of its program activities and contribute to its strategic outcome. Figure 3 displays the 2009-10 allocation by program activity.

Figure 3: 2009-10 Allocation by Program Activity

1.5.2 Departmental Spending Trend

The figures 4 to 6 present Infrastructure Canada’s spending trends from 2005-06 to 2011-12.

Figure 4: Spending Trend for Infrastructure Canada

For the 2005-06 to 2007-08 periods, total spending includes all Parliamentary appropriation sources: Main Estimates, Supplementary Estimates, Treasury Board Vote 10, 15 and 22. It also includes carry-forward adjustments. For the 2009-10 to 2011-12 periods, the total spending corresponds to the planned spending including the new infrastructure funds announced in Budget 2009.

Figure 5: Spending Trend for the Contribution Vote

From 2005-06 to 2009-10, the major increases in the Contribution Vote are due to the increase to the Gas Tax Fund and the establishment of two new contribution programs, namely, the Building Canada Fund and the Provincial-Territorial Infrastructure Base Fund as well as the new infrastructure funds announced in Budget 2009.

Figure 6: Spending Trend for the Operating Vote

Infrastructure Canada does not have permanent A-base operating funding. In the past, its operating requirements have been funded from resources earmarked for the administrative costs of major infrastructure programs. For the two largest programs, Gas Tax Fund and other funds under the Building Canada plan, no such provision was made. As such, the drop between 2009-10 and 2010-11, displayed in figure 6, reflects that Infrastructure Canada has not yet been provided with operating funds for 2010-11 and future years.

1.5.3 Voted and Statutory Items

Table 1.7: Voted and Statutory Items Listed in Main Estimates (in $ thousands)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2008-09 Main Estimates1	2009-10 Main Estimates1
	TOTAL	2,455,537	4,160,714
50	Operating expenditures	37,530	40,283
55	Contributions	2,414,778	4,117,074
(S)	Contributions to employee benefit plans	3,229	3,357

1. Infrastructure Canada’s budget for contributions has increased significantly from 2008-09 to 2009-10. This is due primarily to new funding received for the Building Canada Fund and the Gas Tax Fund.

Main Estimates can be accessed at http://www.tbs-sct.gc.ca/est-pre/20092010/p2-eng.asp.

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