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Minister's Message

As Canada's Minister of Transport and Infrastructure, I am pleased to present Infrastructure Canada's Report on Plans and Priorities for 2010-2011. The report outlines the department's commitment to provide financial support for public infrastructure that strengthens the country's economy and creates jobs as we move towards a promising and prosperous future.

In Canada's Economic Action Plan announced in Budget 2009, this government acknowledged the important role infrastructure holds in stimulating and re-building the Canadian economy. As part of the plan, the $4 billion Infrastructure Stimulus Fund was established for construction-ready infrastructure projects, the Building Canada Fund-Communities Component was topped up, the Green Infrastructure Fund was created, and the Gas Tax Fund and our existing funds were accelerated to get projects started sooner than otherwise possible.

In the first year of the Economic Action Plan, extraordinary measures were taken to ensure that this new funding was committed to infrastructure projects that could be started during the 2009 and 2010 construction seasons. Projects across Canada are getting underway and jobs created as a result of the effective work of our partners – provinces, territories, municipalities, not-for-profit organizations and the private sector.

Throughout the upcoming fiscal year, this department will maintain its efforts to support the economy from coast to coast to coast, working with partners to ensure their Economic Action Plan projects move forward and deliver results. At the same time, we will also continue to make key investments to improve Canada's infrastructure across the country through long-term funding programs such as the Gas Tax Fund. Through both targeted shortterm investments and long-term stable funding, Infrastructure Canada is providing support for the backbone of the Canadian Economy. Our infrastructure investments will provide enduring benefits for Canadians.

I invite you to follow our progress as we move forward in implementing our infrastructure goals, at www.creatingjobs.gc.ca.

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

Section I: Departmental Overview

1.1 Summary Information

1.1.1 Raison d'être

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Strong, modern, world-class public infrastructure is a key factor in achieving the Government of Canada's priorities of a stronger economy, a cleaner environment and more prosperous, safer communities. Infrastructure Canada leads the Government of Canada's efforts in addressing the Canada's public infrastructure challenges

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1.1.2 Responsibilities

I. Overview

Infrastructure Canada is responsible for federal efforts to enhance Canada's public infrastructure through strategic investments, key partnerships, sound policies and practical research. The department exists to help ensure that Canadians benefit from world-class public infrastructure by supporting infrastructure initiatives from coast to coast to coast. As a focal point for infrastructure issues and programs, the department is also a centre of federal infrastructure expertise and key funding partner for cities, communities and regions across Canada.

Following the economic downturn, Infrastructure Canada also took a leading role in implementing Canada's Economic Action Plan. This is in addition to the department's responsibilities for Building Canada, the Government of Canada's $33 billion infrastructure plan.

II. Programs

Infrastructure Canada delivers a broad range of infrastructure programs which provide a flexible and effective means of support to provincial, territorial, municipal and private-sector infrastructure projects. The department's funding activities may be broadly grouped as follows:

1. The $33 billion Building Canada Plan (BCP) programs announced in Budget 2007;
2. The $5.5 billion in programs delivered by the department under the rubric of the Economic Action Plan (EAP); and
3. A suite of several long-term programs currently winding down.

Together these three groups of programs allow Infrastructure Canada to meaningfully contribute to the realization of the Government of Canada's outcomes. Details of the department's programs, links to government-wide objectives, 2010-2011 planning highlights, as well as financial and human resources information, are set out below.

1) The Building Canada Plan ($33 billion)

The Building Canada Plan announced in Budget 2007 represents the largest infrastructure investment by the federal government in over half a century. This seven-year $33 billion initiative provides targeted investments to help ensure that Canada and Canadians benefit from cost-effective and modern infrastructure. The Building Canada Plan provides for stable, flexible and predictable funding to our partners allowing them to plan for the longer-term and address their ongoing infrastructure needs. The plan also recognizes the realities of supporting infrastructure in the North, allowing Northern-specific investments and permitting federal cost sharing of up to 75% for the majority of territorial funding initiatives.

The Building Canada Plan, as administered¹ by Infrastructure Canada, consists of four programs, providing for a range of infrastructure support tools. These programs facilitate the funding of both national and local infrastructure priorities. The Gas Tax Fund (GTF), recently increased to $2 billion dollars a year, provides municipalities and First Nations communities with reliable, predictable and multi-year funding to enable them to make capital investments in environmentally sustainable municipal infrastructure projects. Municipalities can pool, bank and borrow against this funding, providing significant additional financial flexibility.

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GAS TAX FUND:

• $4.8 billion flowed since 2005
• $2 billion a year (2009-2010 to 2013-2014)

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At the provincial and territorial level, flexible and predictable funding is provided under the Provincial Territorial Base Fund (PT-Base). In contrast to traditional per capita funding, this $2.3 billion program provides a set amount of funding to each jurisdiction. As part of the Economic Action Plan, provinces and territories were given the opportunity to accelerate funding under this program. Where federal dollars can be matched, funding is being accelerated in support of infrastructure investments taking place in 2009-2010 and 2010-2011. Under this streamlined and flexible program, funding is matched by provinces (50% federal share) and territories (75% federal share) to maximize investment by all orders of government. Federal commitments of $1.4 billion for infrastructure investments have already been made. This represents nearly $3.4 billion in total infrastructure investments. Commitments under the Building Canada Fund-Communities Component are equally impressive, with the entire $1 billion in federal funding now committed to over 875 projects. This Building Canada fund provides funding to address the unique infrastructure pressures facing smaller communities, targeting investments exclusively to communities with populations of less than 100,000. Working in partnership with recipients the fund supports construction, renewal and enhancement of basic infrastructure needs such as potable water, wastewater treatment, local roads and other needs of small communities.

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Building Canada Fund- Major Infrastructure Component:

• 122 projects approved
• Worth over $16 billion

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The largest of the four Building Canada Plan funds, the $6.7 billion Building Canada Fund-Major Infrastructure Component, targets larger, strategic infrastructure projects at the national, regional, provincial and territorial levels. It increases overall investment in public infrastructure and contributes to broad federal objectives of economic growth, a cleaner environment, and strong and prosperous communities. Two-thirds of the funding is to be targeted to the national priority areas of water, wastewater, public transit, the core national highway system, and green energy. Funding under this program and the Communities Component were streamlined and accelerated under the Economic Action Plan. In addition, the Large Urban Centres Component of the Building Canada Fund provides funding for infrastructure projects in Quebec's nine big cities (Montreal, Quebec City, Laval, Gatineau, Longueil, Sherbrooke, Lévis and Trois-Rivières) to assist in meeting their urgent infrastructure needs.

2) Economic Action Plan (EAP) Funds ($5.5 billion)

In early 2009 the federal government took decisive action in response to the deepest global recession since the 1930s. The government introduced a plan that was one of the most comprehensive in the industrialized world. It was a $62 billion boost to create jobs, to support workers, to build consumer confidence and to get our economy moving once again.

Under the Economic Action Plan a number of federal departments are providing approximately $16 billion over two years to modernize a broad range of infrastructure including our roads, bridges, public transit, parks and water treatment facilities, and to support home ownership, to help stimulate the housing sector and improve housing across Canada. These investments will help ensure that the country emerges from the economic downturn with a more modern and greener infrastructure.

In early 2009, the department took on the responsibility of delivering $5.5 billion in new, short-term funding, primarily for construction-ready infrastructure projects that will be materially completed before March 31, 2011. As part of the Economic Action Plan funding was also be accelerated under some existing Building Canada Plan programs, including the Provincial-Territorial Base Fund, the Major Infrastructure Component and the Communities Component. The streamlining of approvals and acceleration of funding is another means to get more infrastructure projects started in the short-term.

In 2010-2011, as part of the second phase of the Economic Action Plan, Infrastructure Canada will focus on delivering the significant commitments made under its four EAP funds.

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Infrastructure Canada's Economic Action Plan Funds:

• Building Canada Fund-Communities Component Top-Up ($500 million)
• Infrastructure Stimulus Fund ($4 billion)
• Green Infrastructure Fund ($1 billion)
• National Recreations Trails Fund ($25 million)

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The four EAP funds continue the department's support of world-class infrastructure for the benefit of Canadians, with the additional benefit of providing a short-term boost to the Canadian economy. The Communities Component Fund Top-Up of $500 million dollars provides additional support for infrastructure projects in communities with populations of less than 100,000. Funding has been fully committed to support over 530 projects with a total value of $1.5 billion.

The Infrastructure Stimulus Fund supports provincial, territorial and municipal infrastructure projects, as well as projects submitted by not-for-profit and for-profit entities. Funding has been approved for close to 4,000 projects under the following eligible investment categories: Water, wastewater, public transit, solid waste management, highways, roads, culture, community centers and services, temporary shelter infrastructure, parks and trails, and rail and port infrastructure. The total value of these projects is approximately $10 billion.

The Green Infrastructure Fund is a five-year fund which supports infrastructure projects that promote cleaner air, reduced greenhouse gas emissions and cleaner water. Over $500 million has been approved for 15 projects, representing a total project value of about $1.4 billion.

The smallest of the department's EAP funds is the National Recreational Trails Fund which provided $25 million in 2009-2010 to the National Trails Coalition to create, upgrade, and sustain nonmotorized, snowmobile and all-terrain-vehicle trails throughout Canada. The government's contribution to over 480 projects is being matched by the Coalition and its partners, leading to job creation and short-term economic activity in rural communities, and creating a lasting legacy of trail infrastructure that will benefit Canadians for many years to come.

3) Other Programs

During the 2010-2011 planning period Infrastructure Canada will also manage a number of infrastructure programs launched prior to the 2007 Building Canada Plan. These programs have been effectively fully committed for some time and are in the process of winding down. Specifically, these programs include: The Canada Strategic Infrastructure Fund, Border Infrastructure Fund, Municipal Rural Infrastructure Fund and the Infrastructure Canada Program, for which there is no planned spending in 2010-2011. For the first three funds, in total, the planned expenditures in 2010-2011 are approximately $700 million. Program highlights are as follows:

• Canada Strategic Infrastructure Fund ($4.9 Billion): This program supports construction, renewal and enhancement to projects in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians. Under this program 75 projects have been approved with a total project value of $14 billion.
• Border Infrastructure Fund ($675 Million): This program, established in 2002, invests in physical infrastructure, intelligence 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. The government has approved 10 projects with a total project value of $1.7 billion.
• Municipal Rural Infrastructure Fund ($1.1 Billion): This fund invests in small-scale municipal infrastructure projects designed to promote and improve quality of life in both urban and rural communities where population is less than 250,000. This 2004 program funds projects which help to promote sustainable economic growth, innovation and healthy communities. Approximately 2,000 projects worth $3.6 billion have been approved under this program.
• Infrastructure Canada Program ($2.05 Billion): This program is designed to enhance infrastructure in Canada's urban and rural communities and to improve quality of life through investments that protect the environment and support long-term community and economic growth. Since 2000, funding has been approved for over 3,700 projects.

In addition to more traditional support for infrastructure programs, Infrastructure Canada also plays a role in promoting and sharing research and studies with other levels of government and stakeholders. This helps to support a more informed infrastructure policy development environment and improves infrastructure knowledge and practices at all levels of government.

Federal Delivery Partners

As the lead federal department responsible for infrastructure policy development and program delivery, Infrastructure Canada collaborates with other federal departments and agencies to promote an integrated approach for the delivery of infrastructure programs. The Federal Delivery Partners (FDPs) are: Transport Canada, Indian and Northern Affairs Canada (INAC), Industry Canada, Western Economic Diversification, Canada Economic Development for Quebec Regions, and the Atlantic Canada Opportunities Agency (ACOA).

1.1.3 Strategic Outcomes and Program Activity Architecture (PAA)

In accordance with Treasury Board's Management, Resources and Results Structures Policy Infrastructure Canada's Program Activity Architecture (PAA) provides a framework for all facets of departmental activities. It serves to organize resource allocation (both human and financial) against departmental activities and expected outcomes. It also provides a meaningful way to link activities at the departmental level to broader Government of Canada Outcomes.

In late 2009, Infrastructure Canada's Strategic Outcomes and Program Activity Architecture (PAA) structure were amended to better reflect all of its activities, including new responsibilities resulting from Canada's Economic Action Plan. The new PAA structure is set out in graphic form in Figure 1, and the new strategic outcomes are as follows:

1. Provinces, territories and municipalities have federal financial support for their infrastructure priorities;
2. Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment and liveable communities is provided; and
3. Construction-ready infrastructure projects are provided with federal funding support.

The strategic outcomes delineate the three major activity areas of the department. They not only speak to the long-term benefits which our infrastructure investments contribute to under such programs as the Building Canada Plan, but they also highlight the department's more temporary activities such as the significant funding being provided under the Economic Action Plan.

Figure 1: Program Activity Architecture (PAA)

* This is a temporary strategic outcome to accommodate short-term measures including the Economic Action Plan initiatives assigned to Infrastructure Canada. Funding in support of the G8 Summit and for the National Trails Coalition was provided in 2009-2010.

** These funds are not part of the Economic Action Plan.

Acronyms

1.1.4 Program Activity Architecture Crosswalk

Until 2009-2010, Infrastructure Canada had one strategic outcome "Quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a clean environment and liveable communities" and four program activities, which were:

• Targeted Provincial Project-Based Infrastructure Funding;
• Provincial-Territorial Infrastructure Base Fund;
• Gas Tax Fund; and
• Knowledge and Research.

As noted above, in late 2009 the department amended its Strategic Outcome and Program Activity Architecture (PAA) structure to better reflect all of its responsibilities, including new departmental programs under Canada's Economic Action Plan. Infrastructure Canada's PAA now includes:

• Activities which were previously under the Targeted Project-Based Infrastructure Funding program activity: The Building Canada Fund-Communities Component, Building Canada Fund-Major Infrastructure Component, Canada Strategic Infrastructure Fund, Municipal Rural Infrastructure Fund and the Border Infrastructure Fund. The former Targeted Project-Based Infrastructure Funding program activity has been dropped and these five funds have become program activities in their own right. (See Figure 1).
• Provincial-Territorial Infrastructure Base Fund (remains the same in the new PAA);
• Gas Tax Fund (remains the same in the new PAA); and
• Economic Analysis and Research (formerly Knowledge and Research program activity).

With respect to primary level of the PAA, changes made to the strategic outcomes are:

1. The PAA was expanded to reflect new short-term departmental responsibilities stemming from Canada's Economic Action Plan (e.g. Infrastructure Stimulus Fund, Building Canada Fund-Communities Component Top-Up and National Trails Coalition), which together have the common strategic objective of ensuring that "Construction-ready infrastructure projects are provided with federal funding support." As well, the G8 Fund is under this objective, but funding took place in 2009-2010.
2. The second strategic objective is that "Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment and liveable communities is provided" captures key Building Canada Plan and municipalities have federal financial support for their contribution programs, as well as those programs which are currently winding down (i.e. Canada Strategic Infrastructure Fund, Municipal Rural Infrastructure Fund and Border Infrastructure Fund). Even though the Green Infrastructure Fund was announced in Budget 2009 as a five-year program, it is also included under the second objective.
3. The third strategic objective to ensure that "Provinces, territories and municipalities have federal financial support for their infrastructure priorities" was created, and is shared by two program activities: The Gas Tax Fund and the Provincial- Territorial Infrastructure Base Fund.

At the secondary level, there are 13 program activities which fall under the strategic objectives. The program activity level is the lowest operational level in the department's PAA. As such, funding, human resources and performance indicators are organized against these 13 activities. Additionally, each program activity is linked to specific Government of Canada outcomes. Specific details of all program activities are provided in Section II of the RPP.

The Program Activity Architecture (PAA) and the Performance Measurement Framework (PMF)

A department's Performance Measurement Framework is a formal structure which assigns performance indicators and targets to program activities. As the department's PAA was significantly changed in the fall of 2009, a matching PMF has not yet been fully developed or approved. As such, this document's performance indicators and targets may be subject to change in the coming months. The department is committed to developing a holistic and horizontal approach to performance measurement which will tell a meaningful story to Parliamentarians and Canadians alike.

1.2 Planning Summary

Infrastructure Canada's accomplishments to date have had a very real impact on our country. Cities, towns and other regions across Canada have benefited from new investments in infrastructure, such as improved transit systems, water facilities, roads and highways, community centres and the like. These tangible investments have contributed to better communities and a stronger economy. While recognizing that much has been achieved, much remains to be done. In 2010-2011, Infrastructure Canada will focus on commitments made under Canada's Economic Action Plan and will work with its partners who are responsible to ensure stimulus projects are substantially completed before March 31, 2011.

Infrastructure Canada works in partnership with municipal, provincial, territorial governments, along with the private sector, to fund infrastructure projects. Our project partners are responsible for the planning and construction of public infrastructure. As the majority of program funding is given out on a reimbursement basis, the rate of project funding will depend upon the pace of our partners' construction and billing. Infrastructure Canada will work closely with its partners to monitor projects, reimburse claims in a timely manner, and encourage project completion over the coming year.

During the planning period, Infrastructure Canada will also continue its progress under the Building Canada Plan, including measures to accelerate existing programs. These efforts will also include assessing, recommending and funding infrastructure projects and plans over the medium-term. Additionally, the department will continue to deliver the Gas Tax Fund, and will work with its respective federal and provincial partners to fulfill its ongoing role in relation to the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Infrastructure Canada Program.

In all of these efforts, Infrastructure Canada will maintain sound principles of risk management, financial stewardship, fairness and accountability, while ensuring that program funding is provided efficiently for sound infrastructure initiatives.

1.2.1 Financial and Human Resources

Infrastructure Canada's financial and human resources information over the planning period are summarized in Tables 1 and 2.

Table 1: Total Financial Resources (Net Cost of Programs in $ thousands)

2010-2011	2011-2012	2012-2013
8,182,658	4,516,785	3,944,467

 

Table 2: Total Human Resources (Full-Time Equivalents - FTE)

2010-2011	2011-2012	2012-2013
428.0	To be confirmed	To be confirmed

It is important to note that Infrastructure Canada does not have an ongoing base-funding level for administration costs. To date, its operating requirements have been based on administrative costs of departmental programs and funded from specific major infrastructure programs. For 2011-2012 and future years, the department has not yet confirmed its operating budget requirements or approved FTE levels.

As highlighted throughout this document, Infrastructure Canada is responsible and accountable, in whole and in part, for 13 separate and distinct infrastructure programs, all linked directly to the three strategic outcomes of the department. As a smaller department, Infrastructure Canada's FTEs are not necessarily directly linked to a specific program and in fact, in most instances, Infrastructure Canada's analysts and officers work on multiple programs. This flexibility has allowed the department to re-allocate and use resources on more than one single funding program and has been one of its key success factors in moving quickly to develop, implement and manage the multiple new programs arising out of the Government of Canada's Economic Action Plan. Where applicable and appropriate, throughout the document FTEs and planned spending are aligned with specific programs. In reality, the FTEs are managed in a holistic fashion and aligned to reflect the stage of the funding program and other government priorities.

1.2.2 Program Activities by Strategic Outcome and Planned Spending

Table 3 summarizes the planned spending and strategic outcomes for each departmental program activity. Table 3 also outlines how Infrastructure Canada's planned outcomes are linked to and support Government of Canada outcome areas relating to overall government spending. (See footnote 3).

 

Table 3: Program Activities by Strategic Outcome

Strategic Outcome 1: Provinces, territories and municipalities have federal financial support for their infrastructure priorities.
Performance Indicators	Targets
Amount of funding provided for eligible categories of infrastructure investments.	Funding will flow expeditiously to program recipients in accordance with program authorities.2

 

Program Activity	Forecast Spending 2009-10 ($000)	Planned Spending			Alignment to Government of Canada Outcomes3
		2010-11	2011-12	2012-13
Provincial-Territorial Infrastructure Base Fund (PT Base)	848,016	590,526	326,675	136,949	Strong Economic Growth
Gas Tax Fund (GTF)	1,976,488	2,003,983	1,974,452	1,974,452	Strong Economic Growth
Total Planned Spending	3,648,634	2,594,509	2,301,127	2,111,401

 

Strategic Outcome 2: Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment and liveable communities is provided.
Performance Indicators	Targets
Amount of funding provided for eligible categories of infrastructure investments.	Funding will flow expeditiously to program recipients in accordance with program authorities.2

 

Program Activity	Forecast Spending 2009-10 ($000)	Planned Spending			Alignment to Government of Canada Outcomes4
		2010-11	2011-12	2012-13
Building Canada Fund-Communities Component (BCF-CC)5	See footnote 5 below	265,064	279,375	275,635	Strong Economic Growth
Building Canada Fund-Major Infrastructure Component (BCF-MIC)5	See footnote 5 below.	959,100	1,321,081	1,079,003	Strong Economic Growth
Green Infrastructure Fund (GIF)	13,666	388,183	200,000	200,000	Clean and Healthy Environment
Canada Strategic Infrastructure Fund (CSIF)5	See footnote 5 below.	528,278	345,389	203,707	Strong Economic Growth
Municipal Rural Infrastructure Fund (MRIF)5	See footnote 5 below.	123,657	7,263	0	Strong Economic Growth
Border Infrastructure Fund (BIF)5	See footnote 5 below.	50,504	51,638	68,445	Strong Economic Growth
Economic Analysis and Research (EAR)	19,565	15,498	9,117	4,500	Innovative and Knowledge-Based Economy
Targeted Project-Based Funding (Old PAA)	2,060,762	0	0	0	Strong Economic Growth
Internal Services	26,907	29,092	1,796	1,776
Total Planned Spending	2,120,900	2,359,376	2,215,659	1,833,066

 

Strategic Outcome 3: Construction-ready infrastructure projects are provided with federal funding support.
Performance Indicators	Targets
Amount of funding authority provided for eligible construction-ready infrastructure investments.	All funds are committed, project contribution agreements are signed, claims are received, reviewed and approved, funds are paid out and projects are completed.6

 

Program Activity	Forecast Spending 2009-10 ($000)	Planned Spending			Alignment to Government of Canada Outcomes7
		2010-11	2011-12	2012-13
Infrastructure Stimulus Fund (ISF)	1,117,307	2,866,060	0	0	Strong Economic Growth
Building Canada Fund-Communities Component (BCF-CC) Top-Up	114,755	387,557	0	0	Strong Economic Growth
Support for the G8 Summit (2010)	50,000	0	0	0	Strong Economic Growth
National Trails Coalition	25,000	0	0	0	Strong Economic Growth
Total Planned Spending	1,307,062	3,253,617	0	0

1.3 Contribution of Priorities to Strategic Outcomes

Infrastructure Canada's priorities for 2010-2011 include two operational priorities and three management priorities that are either ongoing or previous commitments:

Operational Priorities

• Effective and efficient stewardship of program expenditures
• Expedite investments in provincial, territorial and municipal infrastructure projects

Management Priorities

• Respond to opportunities for improvement identified in Management Accountability Assessments
• Support Public Service Renewal and improve People Management
• Development of a Performance Management Framework to support the department's new Program Activity Architecture (PAA)

For 2010-2011, Infrastructure Canada has added one new management priority - Enhance departmental capacity for financial monitoring and analysis. This priority reflects both initiatives related to Canada's Economic Action Plan programs announced in Budget 2009, as well as previous initiatives.

Table 4: Contribution of Priorities to Strategic Outcomes

Operational Priorities	Type8	Links to Strategic Outcome(s)	Description
Priority 1: Effective and efficient stewardship and monitoring of program expenditures.	Previously committed to.	Strategic Outcomes 1, 2 and 3.	Ensure that program management control frameworks, documentation, monitoring and reporting tools, and internal audit regimes are in place and working effectively to ensure sound stewardship of all program expenditures.
Priority 2: Expedite investments in provincial, territorial and municipal infrastructure projects.	Previously committed to.	Strategic Outcomes 1, 2 and 3.	Continue to 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 Priorities	Type8	Links to Strategic Outcome(s)	Description
1. Respond to opportunities for improvement identified in the Management Accountability Framework (MAF) assessments.	Ongoing.	Strategic Outcomes 1, 2 and 3.	Expand and enhance business planning processes, and continue to improve the quality and effectiveness of the internal audit and evaluation function.
2. Support Public Service Renewal and improve People Management.	Ongoing.	Strategic Outcomes 1, 2 and 3.	Continue to implement Infrastructure Canada's Integrated Business and Human Resources Plan (IBHRP).
3. Development of a Performance Measurement Framework (PMF) to support the department's new Program Activity Architecture (PAA).	Previously committed to.	Strategic Outcomes 1, 2 and 3.	Develop a Performance Measurement Framework (PMF) for the department's new Program Activity Architecture (PAA) structure, in compliance with the Treasury Board Secretariat's Management, Resources and Results Structures (MRRS) Policy.
4. Enhance departmental capacity for financial monitoring and analysis.	New	Strategic Outcomes 1, 2 and 3.	Development of automated system(s) and improvements to the Shared Information Management System for Infrastructure (SIMSI) database, to support improved financial monitoring and analysis.

1.4 Risk Analysis

The Canadian economy continues to face significant challenges as a result of the ongoing global economic downturn. Given these challenges and ongoing priorities, Infrastructure Canada will continue its focus and work with partners on the implementation and effective delivery of key infrastructure initiatives under the Economic Action Plan. The department will also maintain the measures it implemented in 2009-2010, aimed at streamlining federal processes, fast-tracking project approvals, and accelerating funding under the Building Canada Plan and the Economic Action Plan.

When the government announced infrastructure measures under the Economic Action Plan, the department conducted a detailed risk assessment of its ability to deliver on its strategic outcomes and identified critical risks as part of the 2009 Corporate Risk Profile. The department continues to implement and monitor the effectiveness of its mitigation measures. This section addresses some of the current high-risk areas.

a) Providing Infrastructure Funds from the Economic Action Plan within Established Timeframes

The Government of Canada's ability to accelerate infrastructure programs is dependent on the actions of the provinces, territories and municipalities. They must agree to identify and fast-track construction-ready projects to effectively manage delays, match accelerated federal funding where cost-sharing is required, and to promptly submit claims for expenses incurred. Successfully accelerating infrastructure funding also depends on the success of regulatory streamlining measures, particularly for federal environmental assessment requirements. Infrastructure Canada will continue to work closely with its partners to streamline approval and implementation barriers, and to monitor the ongoing implementation of its mitigation measures outlined in the 2009 Corporate Risk Profile.

b) Ensuring Sufficient Capacity and Capability to Administer the Increased Number of Programs and the Acceleration of Funding, and in the Delivery of Other Priority Initiatives

Infrastructure Canada relies on a dedicated team of professionals to manage and deliver its programs. However, as a relatively small organization, the 2009 Corporate Risk Profile ranked capacity and capability as an important risk in delivering on the department's mandate. By implementing a series of mitigation measures including actions outlined in the department's Integrated Business and Human Resources Plan (IBHRP) to recruit, develop and retain employees, the department is reducing risks in this area. Infrastructure Canada has also made significant progress in ensuring that sufficient capacity is in place to process the influx of the Economic Action Plan-related project applications, and that staff have the necessary business models and risk assessment tools (e.g. business models, risk assessment) needed to oversee the management of its programs.

c) Oversight of Infrastructure Projects

Given the department's focus on implementing and approving projects under the EAP and Building Canada programs, there is an ongoing need to maintain sufficient departmental capacity for project oversight. The department is mitigating this risk by using accountability mechanisms such as contribution agreements, memoranda of understanding, legal agreements, oversight or management committees and enhancements to reporting systems (e.g. the Shared Information Management System for Infrastructure (SIMSI) database system). These measures plus those related to the department's Integrated Business and Human Resources Plan are aimed specifically at addressing these key project administration risks.

1.5 Expenditure Profile

1.5.1 Spending Trends and the Economic Action Plan (EAP)

Infrastructure Canada's spending is projected to increase significantly as the department implements programs under the Economic Action Plan (EAP). By 2011-2012, departmental spending is planned to decrease as stimulus programs wind down. Figure 2 presents the department's actual, forecast and planned spending profile from 2006-2007 to 2012-2013. Over the 2006-2007 to 2007-2008 periods, total spending includes all Parliamentary appropriation sources: Main Estimates, Supplementary Estimates, Treasury Board Votes 10, 15 and 22, as well as carry-forward adjustments. For the 2009-2010 to 2012-2013 period, the total spending corresponds to previously planned spending plus spending related to new infrastructure funds announced in Budget 2009. As indicated in Figure 2, spending related to Canada's Economic Action Plan started in 2009-2010, and is planned to continue through 2011-2012 (except for the Green Infrastructure Fund which is planned to continue until 2013-2014).

Figure 2: Departmental Spending Trend and the Economic Action Plan

1.5.2 Voted and Statutory Items

Table 4: Voted and Statutory Items Listed in Main Estimates (in $ thousands)

Vote Number or Statutory Item (s)	Truncated Vote or Statutory Wording	2009-10 Main Estimates9	2010-11 Main Estimates
50	Operating Expenditures	40,283	56,131
55	Contributions	4,117,074	6,685,292
(S)	Contributions	--	1,436,078
(S)	Contributions to Employee Benefit Plans	3,357	5,157
TOTAL		4,160,714	8,182,658

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¹ The Government of Canada's 2007 Building Canada Plan includes programs administered by other federal departments (e.g. the Gateways and Borders Fund is the responsibility of Transport Canada). For the purposes of this report, Building Canada will refer to programs under the responsibility of Infrastructure Canada.

² The Performance Measurement Framework for the new Program Activity Architecture will be completed during 2010-2011 with targets based on the financial support provided.

³ For description of the Government of Canada Outcomes, please access the Treasury Board Secretariat web site at: http://www.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx.

⁴ 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.

⁵ These programs became new program activities in November 2009. Previously, their forecast spending was under the former Targeted Project-Based Infrastructure Funding Program Activity, which had a total for 2009-2010 of $2,060,762,000.

⁶ The Performance Measurement Framework for the new Program Activity Architecture will be completed during 2010-2011 with targets based on the financial support provided.

⁷ For description of the Government of Canada Outcomes, please access the Treasury Board Secretariat web site at: http://www.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx.

⁸ Type is defined as follows: previously committed to - committed to in the first or second fiscal year prior to the subject year of the report; ongoing - committed to at least three fiscal years prior to the subject year of the report; and new - newly committed to in the reporting year of the RPP or DPR.

⁹ Infrastructure Canada's budget for contributions has increased significantly from 2009-2010 to 2010-2011. This is primarily due to increased funding for the implementation of the Economic Action Plan. Main Estimates can be accessed at http://www.tbs-sct.gc.ca/est-pre/20092010/p2-eng.asp.

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