ARCHIVED - RPP 2007-2008
Infrastructure Canada

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The Honourable Lawrence Cannon
Minister of Transport, Infrastructure and Communities

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Section I: Overview

• Minister’s Message
• Management Representation Statement
• Summary Information
  • Raison d’être
  • Background
  • Strategic Outcome
  • Resource Summary
  • Reporting Framework
  • Plans and Priorities
    • Priority 1: Delivering Approved Program Funding
    • Priority 2: Developing Policy, Knowledge and Partnerships
  • Operating Environment, Challenges and Opportunities

Section II: Analysis of Program Activities by Strategic Outcome

• Infrastructure Investments
• Policy, Knowledge and Partnership Development

Section III: Supplementary Information

• Organizational Information
• Departmental Partners
• Supplementary Tables

Section IV: Other Items of Interest

• Departmental Administration
• Contacts

 

Section I: Overview

Minister’s Message

As Canada’s Minister of Transport, Infrastructure and Communities, I am pleased to present Infrastructure Canada’s 2007-2008 Report on Plans and Priorities, which outlines the organization’s corporate direction for the next three fiscal years.

For the past year, Infrastructure Canada has been part of the Transport, Infrastructure and Communities (TIC) portfolio. The portfolio is discussed in greater detail on page 5 of this report.

On November 23rd, 2006, the Government of Canada presented Advantage Canada, a forward-looking plan, which reinforces its Budget 2006 commitment to infrastructure funding. That commitment will help fund the modern infrastructure Canada needs. Building on consultations held with the provinces and territories, municipalities and stakeholders during the summer and fall 2006, the Government is developing a comprehensive long-term infrastructure plan. The plan will incorporate the unprecedented $16.5 billion funding for infrastructure, including $6.6 billion of new funding, announced in Budget 2006.

Through the infrastructure plan, we will cooperate with partners to build a stronger economy, a cleaner environment and stronger communities for all Canadians. We know that modern, world-class infrastructure can help ensure the seamless flow of people, goods and services across our roads and bridges, and through our ports and gateways. The plan will support: improvements to the core national highway system; large-scale provincial, territorial and municipal projects, such as public transit and wastewater management; and small-scale municipal projects.

The Government is committed to exploring new and innovative approaches to fund public infrastructure, while at the same time maximizing benefits to Canadians. We can do this, in part, by engaging more private sector involvement in public infrastructure. To this end, the Government will establish a public-private partnership (P3) office and set aside funds to support select P3 projects.

I am proud to report on the plans and priorities of Infrastructure Canada. These plans demonstrate the commitment of Canada’s new Government to a world-class infrastructure as part of Advantage Canada. Our infrastructure mission will also help achieve government priorities in the areas of environment and research and development. We are working in a spirit of cooperation with partners to ensure infrastructure investments work for Canadians.

The Honourable Lawrence Cannon, P.C., M.P.
Minister of Transport, Infrastructure and Communities

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Management Representation Statement

I submit for tabling in Parliament, the 2007-2008 Report on Plans and Priorities for Infrastructure Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007-2008 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
  
• It is based on Infrastructure Canada’s Strategic Outcome and Program Activity Architecture that were approved by the Treasury Board;
  
• It presents consistent, comprehensive, balanced and reliable information;
  
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
  
• It reports finances based on approved planned spending numbers from the Treasury Board Secretariat in the RPP.

Signed:	Louis Ranger
Title:	Deputy Head (Infrastructure and Communities)

Summary Information

This Report on Plans and Priorities (RPP) presents concise information on Infrastructure Canada’s plans and priorities and resources for fiscal year 2007-2008 that contribute to the achievement of its strategic outcome and expected results.

Raison d’être

Canada needs to remain competitive and productive while sustaining and improving the quality of life of Canadians. World-class public infrastructure, including safe and reliable water systems and efficient transportation systems that allow goods and people to move freely, are critical to meeting these objectives. As a nation whose exports are so critical to economic growth and prosperity, Canada’s infrastructure that provides gateways to foreign markets is particularly important.

The Government of Canada is committed to working in partnership with provinces, territories and municipalities to help them meet their infrastructure needs through predictable and reliable funding programs based on sound policies and programs. In doing so, the Government will maximize value for taxpayers’ money by supporting infrastructure projects that adhere to best practices, by not funding cost overruns and by requiring all funding recipients to be accountable.

The Government recognizes that cities and communities require predictable, strategic, long-term funding, as well as innovative relationships and partnerships to reach their full potential for the benefit of all Canadians. Each city and community has unique needs and challenges.

In carrying out this government priority, Infrastructure Canada manages several funding programs, and continues to build the policies, knowledge and partnerships to support them. As well, Infrastructure Canada will continue to play a strong role in facilitating governments and others to work together to support strong, vibrant and sustainable cities and communities.

Background

Infrastructure Canada was established in 2002 to lead the Government of Canada’s effort to address the infrastructure challenges of Canadian cities, communities and regions, through research, policies and funding programs. Since then, the organization has evolved to become a centre of expertise for infrastructure management and the federal focal point for cities and communities issues.

In February 2006, Infrastructure Canada and Transport Canada became part of a new portfolio, Transport, Infrastructure and Communities (TIC), which includes sixteen Crown corporations. The TIC portfolio responsibilities are displayed in the diagram on the following page. Transport Canada, the Canadian Transportation Agency and the Transportation Appeal Tribunal of Canada produce their own Reports on Plans and Priorities. The Crown corporations prepare their own annual corporate plans.

Figure 1: Transport, Infrastructure and Communities Portfolio

Since the creation of the portfolio, measures were taken to maximize synergies and increase the coordination of activities. As a result, in August 2006, the management of the Transport, Infrastructure and Communities portfolio became the responsibility of a single deputy minister. Following this decision, a joint committee of the two departments was formed to explore options regarding the design of new infrastructure programs resulting from the Budget 2006 announcements, and to put forward recommendations to the Minister. This committee is a key component for the coordination of portfolio activities and will continue to monitor programs over the next year. Other measures will be undertaken over the following year to ensure a knowledge management that supports even greater coordination.

The new portfolio addresses several of the challenges facing Canada, particularly the modernization of public infrastructure, and the sustainability of both the environment and economic growth. These challenges are priorities for the Government of Canada and will continue to guide the activities of the portfolio.

Budget 2006 committed $16.5 billion in new and existing infrastructure funding, including $6.6 billion in new infrastructure funding to support large and small community infrastructure, highways and transit, and borders and gateway infrastructure. The total for infrastructure funding also included $1.3 billion of funding for public transit; the maintenance of the Gas Tax funding agreements worth $5 billion over five years to support sustainable municipal infrastructure; and support for the Asia-Pacific Gateway and Corridor Initiative.

The Transport, Infrastructure and Communities portfolio will continue its work, with provinces, territories, municipalities and other groups, to build capacity, increase the efficiencies of transportation systems, and to renew our public infrastructure, all of which are key to the growth of communities.

Strategic Outcome

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

This Strategic Outcome will be achieved by:

• Strategically investing and leveraging other investments in sustainable public infrastructure;
  
• Fostering effective and new, innovative types of partnerships;
  
• Providing federal leadership for infrastructure and cities and communities issues; and
  
• Advancing policies and building, connecting and sharing knowledge.

The Strategic Outcome is long-term and enduring in nature. It identifies the areas of influence of Infrastructure Canada, and demonstrates how the organization’s efforts benefit Canadians.

Alignment with Government of Canada Outcomes

The Government of Canada’s performance reporting framework consists of thirteen outcomes grouped under three policy themes: economic, social and international. Figure 2 illustrates how Infrastructure Canada’s funding programs are linked to Canada’s performance. (For more information on Government of Canada Outcomes, refer to http://www.tbs-sct.gc.ca/rma/krc/cp-rc-1-05-eng.asp).

Figure 2: Infrastructure Canada’s Funding Programs and Links to Canada’s Performance

Infrastructure Canada Program Objective 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 Municipal Rural Infrastructure Fund Objective Support smaller-scale municipal infrastructure projects that improve the quality of life, sustainable development and economic opportunities, particularly for smaller communities Canada Strategic Infrastructure Fund Objective Support large-scale strategic infrastructure projects that contribute to economic growth and quality of life in Canada Border Infrastructure Fund Objective Through reductions in congestion and enhancements to capacity, security and safety at border crossings, support Canada’s growing economic and trade relationship with the US
Canada’s Performance – Horizontal Outcomes
Sustainable Economy	Social Foundations	Canada’s Place in the World
Sustainable economic growth An innovative and knowledge-based economy Income security and employment for Canadians A secure and fair marketplace A clean and healthy environment	Inclusive society that promotes linguistic duality and diversity A vibrant Canadian culture and heritage Safe and secure communities	A strong and mutually beneficial North American partnership
Gas Tax Fund Objective Support environmentally sustainable municipal infrastructure that contributes to the shared national outcomes of cleaner air, cleaner water, and reduced greenhouse gas (GHG) emissions Public Transit Fund Objective Support public transit infrastructure in Canadian communities that contribute to the Government of Canada’s environmental outcomes Research, Knowledge and Outreach Program Objective To create and disseminate knowledge important to the sustainability of infrastructure and communities

Resource Summary

Financial and human resources for the organization over the planning period are summarized in Tables 1 and 2.

Table 1: Total Financial Resources, 2007-2008 to 2009-2010

(Net Cost of Program in $ thousands)

2007-2008	2008-2009	2009-2010
2,879,200	2,662,971	3,476,343

Table 2: Total Human Resources, 2007-2008 to 2009-2010

(Full Time Equivalents)

2007-2008	2008-2009	2009-2010
237	01	01

1. The operating budget for Infrastructure Canada was allocated from program funds and sunsets at the end of 2006-2007. The organization has found an interim solution for part of 2007-2008 and is working with central agencies on options for a long-term source of funds.

Table 3: Infrastructure Canada Priorities

Priority Name	Type
Delivering Approved Program Funding	Ongoing
Developing Policy, Knowledge, and Partnerships	Ongoing

Reporting Framework

Consistent with guidance provided by the Treasury Board of Canada Secretariat, this 2007-2008 Report on Plans and Priorities and the accompanying financial tables are presented using the Government’s Program Activity Architecture (PAA) Framework. The PAA structure, as it existed in 2006-2007, is being used by Infrastructure Canada to present information on its plans and priorities.

Under the PAA, Infrastructure Canada has three program activity areas:

• Infrastructure Investments;
  
• Policy, Knowledge and Partnership Development; and
  
• Departmental Administration.

Section II provides details on departmental performance under the first two of these program activity areas. Background information on the third activity area, departmental administration, is presented in Section IV of the report, Other Items of Interest.

Plans and Priorities

Infrastructure Canada has established two priorities in support of its Strategic Outcome:

1. Deliver approved program funding; and
   
2. Develop policy, knowledge and partnerships.

These priorities remain unchanged from last year’s RPP.

Table 4: Program Activities by Strategic Outcome

(in $ thousands)

		Planned Spending			Contributes to the following priority
	Expected Results	2007-2008	2008-2009	2009-2010
Strategic Outcome: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.
Program Activity #1: Infrastructure Investments	Maximize economic, social, cultural and environmental benefits for Canadians through investments in public infrastructure in a coordinated manner with provincial, territorial and municipal governments, and First Nations	$2,861,043	$2,657,539	$3,476,343	Priority #1
Program Activity #2: Policy, Knowledge and Partnership Development	Develop policies to address existing and emerging challenges and opportunities that are based on research and input from strong partnerships	$18,157	$5,432	$0	Priority #2

Note: Program Activity #2 consists of the Research, Knowledge and Outreach Program. Since this program sunsets in 2008-2009, there is no planned spending in 2009-2010.

Priority 1: Deliver Approved Program Funding

Infrastructure Canada manages and levers investments in public infrastructure to improve the state of Canada’s public infrastructure and, in turn, enhance the economic, social, cultural and environ-mental quality of life of Canadians. To achieve this goal, Infrastructure Canada will continue to work in a coordinated manner with federal departments and regional development agencies, provincial, territorial and municipal governments, and First Nations.

In its Economic and Fiscal Update, Advantage Canada, released on November 23, 2006, the Government of Canada outlined three priorities: investing in R&D; the environment; and infrastructure (for more information on Advantage Canada, refer to http://www.fin.gc.ca/budtoce/2006/ec06-eng.html). High-quality, modern public infrastructure is essential to Canada’s long-term prosperity. Budget 2006 committed to infrastructure funding to help the provinces, territories and municipalities meet their infrastructure needs. In short, infrastructure matters. Its financing, construction and maintenance are important areas where the Government can and must play a leadership role. Infrastructure that provides gateways to foreign markets is especially important to Canada since exports are critical to its economic growth and prosperity.

Advantage Canada outlined the Government of Canada’s intention to develop a comprehensive plan for infrastructure. This plan will feature:

• Long-term, predictable funding;
  
• A fair and transparent provincial allocation to support: improvements to the core national highway system; large-scale provincial, territorial and municipal projects, such as public transit and wastewater management; and, small-scale municipal projects; and
  
• Separate national infrastructure funds, accessible on a merit basis, to support public-private partnership (P3) projects and gateways and border crossings, particularly projects that are consistent with a new national gateway and trade corridor policy.

The infrastructure plan will build on Budget 2006, which committed funding of $16.5 billion for infrastructure, including:

• New program funding of $6.6 billion to support large and small community infrastructure, highways, and borders and gateway infrastructure;
  
• $1.3 billion in funding for public transit;
  
• $591 million for the Asia-Pacific Gateway and Corridor Initiative; and
  
• $5 billion over 5 years in Gas Tax funding (which started in 2005-2006); and
  
• 100 per cent GST rebate providing predictable funding to municipalities.

During 2007-2008, Infrastructure Canada will continue to deliver a suite of existing infrastructure funds, each responding to distinct aspects of Canada’s priority infrastructure needs.

• Community-based Programs: This group includes the Infrastructure Canada Program (ICP), and its 2003 successor, the Municipal Rural Infrastructure Fund (MRIF), which invest particularly in the public infrastructure of medium to smaller communities;
  
• Large-Scale Strategic Programs: Both the Canada Strategic Infrastructure Fund (CSIF) and the Border Infrastructure Fund (BIF) focus primarily on large-scale strategic investments of regional and national scale in support of key federal objectives such as trade, security, productivity and sustainable development;
  
• The Gas Tax Fund (GTF): This program focuses on investments in environmentally sustainable municipal infrastructure that promote national objectives of cleaner air, cleaner water and reduced greenhouse gas emissions, as well as capacity building to support communities to undertake long-term planning; and
  
• The Public Transit Fund (PTF): This initiative focuses on investments in public transit infrastructure in support of key federal objectives such as protecting the environment by encouraging cleaner air and lowering greenhouse gas emissions.

Infrastructure Canada has two multidisciplinary research funding programs that are complementary tools for enhancing implemen-tation of this priority and helping to foster evidence-based policy and decision-making on infrastructure and communities issues: the Knowledge-building, Outreach and Awareness program, and the Peer Reviewed Research Studies program. These two funding programs support the goals of Infrastructure Canada’s Research Strategy. (For more information, see: http://www.infrastructure.gc.ca/research-recherche/index_e.shtml).

In summary, to support its funding delivery efforts, in 2007-2008, Infrastructure Canada will:

• Working with its portfolio partner, Transport Canada, develop a comprehensive infrastructure plan to enhance Canada’s infrastructure; 
  
• Design and implement programs resulting from new funding announced in Budget 2006, develop program terms and conditions, and begin negotiating agreements;
  
• Design and implement an appropriate program to deliver GTF and MRIF to First Nations;
  
• Conclude agreements under the various existing funding programs with those jurisdictions that have not yet finalized agreements. These include PTF Agreements with Newfoundland and Labrador, and the Northwest Territories;
  
• Continue to deliver existing infrastructure program funding (ICP, CSIF, BIF, MRIF); and
  
• Continue to carry out sound administration of the GTF and PTF programs.

Priority 2: Developing Policy, Knowledge and Partnerships

Infrastructure Canada works to support the infrastructure needs of provinces, territories, cities and communities through the development of strategic policies based on sound knowledge and strong partnerships to address existing and emerging challenges and opportunities.

Key federal or shared responsibilities, such as security, emergency preparedness, immigration, environment, labour market, infrastructure and transportation play out primarily in major urban areas that generate about two-thirds of Canada’s GDP. At the same time, rural and northern communities and regions, which are essential to Canada’s economic and social objectives, face distinct challenges to their long-term sustainability.

The Government of Canada can complement its national measures with place-based approaches that respond to specific needs and assets of communities. As many of these issues are cross-jurisdictional, the Government of Canada will work to develop strengthened gover-nance mechanisms for working in partnership with provincial and territorial governments, municipalities and municipal associations in ways that promote transparency, accountability and clarity of roles of all governments.

On behalf of the federal government, Infrastructure Canada works with its partners to identify and assess needs with respect to infrastructure, and cities and communities, and evaluates priorities and develops policy options. These activities require a high degree of collaboration with other federal departments and agencies, as well as with provinces, territories, municipalities, municipal associations, First Nations and the private sector.

Infrastructure Canada also seeks to build capacity and develop and share knowledge about infrastructure and cities and communities with its partners through research, communications and other partnership initiatives, both domestically and internationally.

In 2007-2008, Infrastructure Canada will continue to strengthen its capacity to develop strategic policies based on sound knowledge and strong partnerships. Specific planned initiatives include:

• As outlined in Advantage Canada, develop and implement a comprehensive plan for providing a long-term policy framework to support predictable and long-term infrastructure funding.
  
• Design infrastructure programs that enable provinces and territories as well as cities and communities to contribute to Canada’s competitiveness, environmental and quality of life objectives.
  
• Develop a policy framework and terms and conditions for infrastructure funding and programs announced in Budget 2006.
  
• Strengthen collaboration with provinces, territories and municipalities through initiatives such as the Gas Tax Oversight Committees responsible for monitoring the overall strategic implementation of the GTF and PTF and the provincial/territorial Intergovernmental Consultation Network.
  
• Support the building of municipal capacity to plan for and achieve sustainability objectives.
  
• Manage the two components of the Research, Knowledge, and Outreach Program (the Knowledge-building, Outreach and Awareness program and the Peer Reviewed Research funding program) and monitor the progress of funded research.
  
• Strengthen the understanding of the workings of cities and municipalities through outreach and partnership development.
  
• Strengthen the understanding of infrastructure investments through research into three aspects of built works (financing, engineering innovation, and environmental and risk management).
  
• Maintain and enhance strong partnerships with regional development agencies and other partners for the delivery of current and upcoming programs and projects.
  
• Continue working with international bodies (e.g., Organisation for Economic Co-operation and Development (OECD), World Bank, UN-HABITAT, Commonwealth Local Government Forum (CLGF)) and other national governments on cities and communities related policy, research and performance indicators.

Operating Environment, Challenges and Opportunities

Infrastructure Canada is subject to a variety of external and internal influences, which are described below.

Upgrading Canada’s Infrastructure: The Challenge

A vibrant economy, healthy environment, and strong communities are priorities for Canadians. These three priorities are interlinked, affecting one another through their actions and interactions, and all are supported through world-class infrastructure. As a result, ensuring the sufficiency and quality of Canada’s public infrastructure is key to achieving our objectives in these areas.

Canadians need world-class infrastructure to compete in a global economy, relying on effective transportation routes, gateways and borders to efficiently move goods and people. The Government of Canada will support the necessary infrastructure to encourage international trade and encourage domestic economic development, ensuring that Canada can participate in world markets. As a result, the Government of Canada funds key infrastructure to develop a vibrant economy. Through its funds, Infrastructure Canada provides financial support for trade corridors that increase the productivity, economic efficiency, and safety of Canada’s transportation system. For example, $62.5 million was provided to upgrade the Trans-Canada Highway at Kicking Horse Canyon to a modern four-lane standard, improving an important trade link between British Columbia and the rest of Canada. As well, the Border Infrastructure Fund supports the ability of Canadians and Canadian companies to participate in export markets. Infrastructure Canada is also supporting the development of broadband infrastructure, increasing innovation potential and economic development opportunities by connecting Canadians.

In addition to a vibrant economy, a healthy environment is a key contributor to quality of life. Canadians want to drink clean water, return wastewater to water bodies as clean as it came in, and to improve air quality and reduce greenhouse gases. Canadians also want access to green spaces. No one order of government can provide for all these needs alone. The Public Transit Funds, along with Gas Tax funding and other infrastructure funds provide substantial resources to municipalities to support effective public transit systems.

Canadians also want infrastructure that supports strong cities and communities. Canadian cities are highly ranked in international comparisons of quality of life, which consider infrastructure along with other factors. For example, the Economist Intelligence Unit’s 2005 “Liveability Ranking” rated Vancouver the highest ranked city of all 127 surveyed, and Calgary and Toronto were ranked in the top five. Public infrastructure, from roads and water, to recreation facilities and cultural centres, provides the foundation for quality of life in Canadian cities and communities. However, cities and communities continue to face many challenges in respect of infrastructure devel-opment and maintenance. Many of these relate to their ability to fund and finance infrastructure, in the face of many other competing pressures. Other challenges relate to ensuring that infrastructure is managed sustainably over the long-term and continues to meet the ongoing needs of our growing and changing cities and communities. Infrastructure Canada supports the development of strong communities through funding important municipal infrastructure like transit and urban redevelopment. Also, communities can use the Gas Tax Fund to support capacity building – developing skills and knowledge to plan for their communities in a sustainable manner – leading to Integrated Community Sustainability Plans that provide for a long-term vision of the community.

All orders of government must work together to address these challenges and harness the opportunities provided by these challenges. The Government of Canada needs to work closely and cooperatively with all orders of government, First Nations and the private and not-for-profit sectors, to ensure that efforts are complementary, responsive to local needs, and respectful of jurisdiction.

Expansion of Infrastructure Canada’s Responsibilities

Infrastructure Canada was established in 2002. It has overseen the relatively rapid development and implementation of a suite of infrastructure funds. It has since evolved into an ongoing entity with growing responsibilities far beyond delivering investment programs. In 2004, it assumed responsibility for leading the cities and communities agenda, and became a federal focal point for infrastructure and communities issues. As discussed elsewhere in the RPP, Budget 2006 reaffirmed the importance of modern infrastructure for Canada’s continued growth and prosperity and provided for additional funding for various infrastructure initiatives.

This evolution of Infrastructure Canada’s responsibilities over the past several years has resulted in a period of continuous change in its organizational structure and scope, impacting demands for resources not anticipated at the time the organization was originally established. It has had to develop the capacity and operational infrastructure to support new and expanded programs and provide an increasingly higher level of discipline and rigour to the policy development, project selection, and program implementation processes.

Restoring Canada’s Fiscal Balance: Commitments to Long-Term Funding Support for Infrastructure

Budget 2006 outlined several actions that the Government of Canada is taking to restore the fiscal balance, including substantial investment in infrastructure. In total, Budget 2006 referred to $16.5 billion in federal support for provincial, territorial and municipal infrastructure. Budget 2006 also committed to consultations on a long-term funding framework for infrastructure.

During the summer of 2006, the Transport, Infrastructure and Communities portfolio held consultations with provincial and territorial governments, the municipal sector, and other key stakeholders on the development of a predictable, long-term funding and accountability framework for the Government’s infrastructure investments. These consultations were part of a broader Government initiative to ensure widespread discussions on the issue of fiscal balance.

The results of these consultations, now available at http://www.fin.gc.ca/activty/consult/fiscbal_2e.html, will inform the development of the comprehensive infrastructure plan outlined in Advantage Canada.

The Importance of Public-Private Partnerships

Experience around the world has shown that properly designed public-private partnerships (P3s) can deliver public infrastructure more efficiently, i.e., lower cost, faster completion, and better of management of project risks. At the same time, appropriate public control can be preserved. Canada has been less active in pursuing P3s compared to other countries, such as the United Kingdom. Some provinces are implementing P3 projects and have already started to put in place the structures that will allow them to harness the opportunities provided by P3s in helping to renew public infra-structure and improving the delivery of related public services. For example, in recent years public agencies, such as Partnerships British Columbia, Infrastructure Ontario and L’Agence des partenariats public-privé du Québec, were set up to provide expert services to public bodies in evaluating the feasibility of P3 projects and to facilitate the negotiation, conclusion and management of partnership contracts. The federal government is now formulating measures to encourage their use in Canada.

To support these efforts, the federal government will establish a P3 office to facilitate the increased use of P3s in infrastructure projects across Canada.

Gaps in the Knowledge Base

On the research side, there are three important issues. First, important knowledge gaps exist regarding both infrastructure and its impacts on communities, including: the state of infrastructure in communities across Canada; the economic, social, cultural and environmental impacts of infrastructure at the community level; and, the kind of infra-structure Canada requires to meet its objectives in the 21^st century.

Second, there is a need to foster a stronger, more multi-disciplinary community of researchers interested in infrastructure and communities issues and willing and able to generate policy-relevant research.

A third challenge concerns knowledge dissemination and transfer – how to ensure that those who need the available knowledge and data have access to it on a timely basis.

Challenges also arise with respect to improving public awareness and understanding of infrastructure and communities issues. In a survey published in March 2005, 91 per cent of Canadians rated modern infrastructure as very important or important in making a community “a desirable location in which to live or work”². However, research showed there was little desire among respondents for more compact communities, and a limited understanding of issues relating to urban sprawl. This snapshot of opinion from 2005 suggests there may be a difference between what Canadians say they value in terms of sustainable development and public infrastructure, and what they are willing to accept or do to achieve this value. While Canadians clearly view investment in infrastructure as a priority, they are some-times unclear on what the term “infrastructure” encompasses, often equating it strictly with roads, rather than public transit, or water treatment, for example. Challenges remain in increasing the understanding of infrastructure issues among Canadians, generating awareness of the federal contribution to infrastructure in Canada, and in raising awareness of how sustainable development and infrastructure choices are linked.

2. A Report to Infrastructure Canada, National Overview of Findings from a National Survey on the Quality of Life in Canadian Communities, prepared by The Strategic Counsel, March 2005, is available at: http://www.infrastructure.gc.ca/communities-collectivites/alt_formats/pdf/cities_survey-eng.pdf.

 

Section II: Analysis of Program Activities by Strategic Outcome

The planning information presented in this section is organized by Infrastructure Canada’s Program Activity Architecture (PAA) for 2007-2008, which consists of the following three Program Activity areas:

• Infrastructure Investments – Consists of all infrastructure programming delivered through transfer payments as well as the related program management and monitoring functions. The activity contributes to the construction, renewal and enhancement of public infrastructure in Canada and builds capacity for addressing infrastructure issues in partnership with others.
  
• Policy, Knowledge and Partnership Development – Consists of activities undertaken in policy development, knowledge, research and analysis, and partnership development. The Activity develops policies based on research and strong partnerships to address existing and emerging challenges and opportunities.
  
• Departmental Administration – Encompasses the Office of the Deputy Head, Corporate Services, Communications, and Legal Services. Section IV provides information on this Activity.

Infrastructure Investments

This Program Activity consists of three types of infrastructure programming delivered through transfer payments as well as the related program management and monitoring functions.

Table 5: Financial and Human Resource Requirements, Infrastructure Investments, 2007-2008 to 2009-2010

Financial Resources (in $ thousands)

2007-2008	2008-2009	2009-2010
2,861,043	2,657,539	3,476,343

Human Resources (full-time equivalents)

2007-2008	2008-2009	2009-2010
144	03	03

3. The operating budget for Infrastructure Canada was allocated from program funds and sunsets at the end of 2006-2007. The organization has found an interim solution for part of 2007-2008 and is working with central agencies on options for a long-term source of funds.

The expected result of this Program Activity is to maximize economic, social, cultural and environmental benefits for Canadians through investments in public infrastructure in a coordinated manner with provincial, territorial and municipal governments, and First Nations.

Infrastructure Canada manages three types of programs, each tailored to distinct needs and requirements, providing investments in Canada’s priority infrastructure needs. The three categories of programs are:

1. Community-based investments;
   
2. Large-scale strategic programs; and
   
3. Gas Tax and Public Transit funds.

The following pages provide a brief description of plans for Budget 2006 infrastructure commitments and of each existing investment program and the plans for 2007-2008.

Budget 2006 Infrastructure Funding and Advantage Canada

Budget 2006 provided $16.5 billion for infrastructure including: $6.6 billion in new infrastructure funding to support both small and larger scale municipal infrastructure projects in communities across Canada and improvements to land border crossings and highways; support for the Asia-Pacific Gateway and Corridor Initiative ($591 million); new funding of $900 million to complement $400 million for public transit ($1.3 billion total); and the maintenance of the Gas Tax funding agreements worth $5 billion over five years to support sustainable municipal infrastructure.

Planned activities in this area will include working with portfolio partner Transport Canada to establish programs related to the $6.6 billion of new funding announced in Budget 2006, including the development of program terms and conditions and the negotiation of agreements.

1. Community-based Investments

Community-based investments address community undertakings of a smaller scale. The two funds are the Infrastructure Canada Program and its 2003 successor, the Municipal Rural Infrastructure Fund. Both funds emphasize investments in municipal infrastructure that enhance environmental quality and quality of life.

i) Infrastructure Canada Program (ICP)

The $2.05-billion ICP was created in 2000 to enhance infra-structure 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.

As of March 31, 2006, all ICP funding has been committed to 3,879 projects across Canada. This program is scheduled to conclude March 31, 2009 (March 31, 2007 for the First Nations component).

The ICP’s priority has been to support “green” municipal infrastructure, consistent with the federal government’s sustainable development objective. A minimum of 50 per cent of federal expenditures are to be devoted to such projects as water and wastewater systems, solid waste management and recycling, and capital expenditures to retrofit or improve the energy efficiency of buildings and facilities owned by local governments. Other priorities include local transportation infrastructure, cultural and recreational facilities, rural and remote telecommunications and affordable housing.

Funding for the ICP was transferred to the five federal delivery partners responsible for program delivery: Western Economic Diversification Canada (for projects in the Western provinces); Industry Canada (for Ontario projects); Canada Economic Development – Quebec (for Quebec projects); Atlantic Canada Opportunities Agency (for projects in the Atlantic provinces); and, Indian and Northern Affairs Canada (for First Nations and the three territories). Detailed reporting on ICP expenditures is the responsibility of these organizations.

ii) Municipal Rural Infrastructure Fund (MRIF)

MRIF focuses on projects that support sustainable development and quality of life, with a minimum 50 per cent of its nation-wide expenditures devoted to projects addressing environmental quality objectives. The fund was allocated $1 billion for smaller-scale municipal infrastructure projects designed to improve the quality of life and economic opportunities in smaller centres, including a component addressing the infrastructure needs of First Nations communities.

The fund is cost-shared, with the Government of Canada contributing, generally, one-third of a project’s eligible costs. MRIF agreements have been signed with all provinces and territories. MRIF funds identified for First Nations communities in the provinces will be made available in 2007-2008.

Pending the full implementation of the Budget 2006 infrastructure plan and program funds, approval was given to provide an additional $200 million to MRIF in late 2006. This reflects the Budget 2006 funding forecast and brings the total program funding to date to $1.2 billion. 

As part of its infrastructure programming activities, Infrastructure Canada also works to build capacity and foster knowledge acquisition on infrastructure and communities issues among municipalities and other partners. A Municipal Capacity Building component under MRIF seeks to encourage the use of integrated asset management by small-scale Canadian municipalities.

The major planned activities under the MRIF program for 2007-2008 are the following:

• Put into effect the allocation of an additional $200 million in MRIF funding to specific projects; 
  
• Implement program to deliver MRIF funds identified for First Nations communities in the provinces; and
  
• Continue with the sound administration of the MRIF program in cooperation with federal delivery partners.

Table 6: Allocation of Community-based Infrastructure Investments, by Jurisdiction

(Total Federal Funding Allocation ($ millions))

Jurisdiction	ICP	MRIF4
Western Economic Diversification Canada
British Columbia5	$268.5	$134.6
Alberta	171.0	107.1
Saskatchewan	56.7	45.5
Manitoba	60.9	49.3
Industry Canada/Ontario	680.7	362.1
Canada Economic Development/Quebec	515.5	234.8
Atlantic Canada Opportunities Agency
New Brunswick	54.5	39.6
Nova Scotia	65.3	44.5
Prince Edward Island	12.8	21.7
Newfoundland & Labrador	51.3	33.5
Indian and Northern Affairs Canada
Yukon	2.5	19.1
Northwest Territories	3.1	19.2
Nunavut	2.1	19.1
First Nations	31.1	29.9
Subtotal	1,976.0	1,160.0
InfraGuide6	12.5	-
Federal Coordination	61.5	40.0
Total	2,050.0	1,200.0

2. Large-Scale Strategic Programs

The second category of funding programs provides large-scale, strategic investments in support of key federal objectives of trade, security, productivity and sustainable development. The two funds under this category are the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund.

i) Canada Strategic Infrastructure Fund (CSIF)

CSIF is directed to projects of major federal and regional significance in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians. These investments are made in cooperation with the provinces and territories, munici-palities, and the private sector. Maximum federal funding is set at 50 per cent of total eligible project costs, except for broadband and northern infrastructure projects where funding can go up to a maximum of 75 per cent.

CSIF provided a $200-million allocation for projects identified as national priority projects: the Red River Floodway project in Manitoba; transportation infrastructure improvements under the “Corridors for Canada” in the Northwest Territories; the National Satellite Initiative to provide broadband access to Northern and remote communities; and the twinning of the Trans-Canada Highway in Banff National Park in Alberta7.

7. Details of these and other announced projects can be found at: http://www.infrastructure.gc.ca/ip-pi/index_e.shtml.

Some of the recently announced CSIF projects include: public infrastructure at Mont Tremblant, Quebec; support for the creation of an innovative urban green space called the Evergreen at the Brick Works in Toronto, Ontario; upgrading the wastewater treatment facilities and collection systems in the City of Dawson and the Village of Carmack in Yukon; and, improved access to Fort McMurray by twinning a 146-km section of Highway 63.

CSIF’s delivery model is based on a partnership arrangement between Infrastructure Canada and other federal departments that have a direct mandate in a given field or departments and agencies that have a regional development mandate. In the case of transport-related projects, Transport Canada provides the project lead. Interdepartmental Memoranda of Understanding are negotiated to clarify accountabilities. To date, Memoranda of Understanding have been developed with all jurisdictions, except for Canada Economic Development for Quebec Regions.

Budget 2006 provided an incremental top-up of $300 million for CSIF projects in Ontario. The bulk of this project funding has now been committed to projects in Ontario.

Most CSIF funding has been committed, with the exceptions of Ontario, Newfoundland & Labrador, Nova Scotia and Yukon.

Planned activities under the CSIF for 2007-2008 include the following:

• Continue to work with the provinces and territories to determine the projects to receive the remaining uncommitted funds; seek Treasury Board approval for these projects; and develop the related contribution agreements;
  
• Complete a Memorandum of Understanding with Canada Economic Development for Quebec Regions; and
  
• Continue with the sound administration of the CSIF program.

ii) Border Infrastructure Fund (BIF)

The BIF was established in 2002 as a $600-million fund to target the six largest surface border crossings between Canada and the United States, as well as several other crossings. It has provided funding for investments in physical infrastructure, intelligent transportation system infrastructure, and improved analytical capacity. The fund reflects the importance of Canada’s border crossings, ports and highway approaches to economic growth, trade and security both nationally and internationally. Infrastructure Canada manages the BIF program in partnership with Transport Canada under the terms of a Memorandum of Understanding.

Most of the BIF funds have been committed.

3. Gas Tax and Public Transit Funds

The third type of infrastructure programming consists of agreements with provincial and territorial governments, municipal associations and the City of Toronto for investments in environmentally sustainable municipal infrastructure that benefit Canada’s communities. This support represents $5 billion in federal gas tax revenues, as well as $400 million of federal contributions to public transit. The various agreements are available on Infrastructure Canada’s website: www.infrastructure.gc.ca/communities-collectivites/index_e.shtml.

i) Gas Tax Fund

The Gas Tax Fund (GTF) is a five-year $5-billion transfer payment program established in 2005-2006 to enable municipalities to make long-term financial investments in environmentally-sustainable infrastructure projects in such areas as transit, water and sewers, solid waste and community energy systems. The investments are intended to lead to the three environmental goals of the Gas Tax Fund: cleaner air, cleaner water and reduced greenhouse gas emissions.

The GTF is managed through agreements entered into by the Minister with each provincial/territorial government, the City of Toronto, in some cases a municipal association. Through these agreements, each order of government has responsibilities for the implementation of the Gas Tax Fund. Infrastructure Canada is responsible for the overall administration, coordination, communications, and national reporting and evaluation related to this initiative and for the federal/provincial/territorial nego-tiations. Provinces, territories, the Association of Municipalities of Ontario, the Union of British Columbia Municipalities and the City of Toronto are responsible for the management of the agreement within their jurisdictions. Local governments are responsible for determining project priorities, project implementation and project level reporting.

The Gas Tax Fund was also created to increase collaboration between orders of government on issues facing cities and communities. Each signed agreement calls for the establishment of an Oversight Committee to monitor the overall strategic implementation of the agreement and to examine broader issues facing cities and communities.

Eligible investments include capital expenditures for environ-mentally sustainable municipal infrastructure. Project categories are:

• Water;
  
• Wastewater;
  
• Solid waste;
  
• Public transit;
  
• Community energy systems; and
  
• Local roads and bridges.

Funding is also available for Capacity Building initiatives to enable communities to design and implement integrated community sustainability plans – integrated plans that outline how a community will achieve its long-term vision.

ii) Public Transit Fund

The Public Transit Fund (PTF) is a $400-million transfer payment program, established in 2005-2006, designed to provide funding to improve public transit services to Canadians. The PTF offers the potential to reduce greenhouse gas emissions and smog in urban areas by improving services and offering Canadians greater flexibility in their transportation options.

The PTF was designed to build on the GTF agreements, and its terms and conditions mirror those of the latter. Like the GTF, PTF funding is governed by agreements that set out an allocation formula, delivery mechanism and a rigorous accountability regime that will enable the Minister to report to Parliament on how this funding is being spent.

The Government of Canada’s role in the day-to-day delivery and administration of the fund is limited, but funding is governed by agreements that set out a rigorous accountability regime that will enable the Minister to report to Parliament on how this funding is being spent.

Eligible investments include capital expenditures for public transit infrastructure, defined as local infrastructure projects falling in one of the following categories:

• Rapid transit infrastructure;
  
• Rolling stock;
  
• Intelligent transport system;
  
• Related capital infrastructure;
  
• Active transportation infrastructure; and
  
• Para transit.

Examples of some of the announced GTF and PTF projects include: expansion of the Edmonton South Light Transit (LRT) system ($108 million); purchase of an additional 225 new buses to modernize and expand transit services in the Greater Vancouver Regional District ($307 million); and, funding for various municipal infrastructure priorities (including drinking water, sewage, and wastewater treatment) in the Montréal region ($38 million). Information on these and other PTF and GTF projects is available at http://www.infrastructure.gc.ca/communities-collectivites/news-nouvelles/2006/index_e.shtml.

Planned activities under the GTF and PTF for 2007-2008 include the following:

• Continue with the sound administration of the two programs;
  
• Conclude agreements under the various existing funding programs with those jurisdictions that have not yet finalized agreements. These include PTF Agreements with Newfoundland and Labrador, and the Northwest Territories;
  
• Using Oversight Committees to monitor the strategic implementation of the GTF and PTF agreements, discuss issues regarding infrastructure coordination, and enhance the collaboration with provinces, territories and municipalities. In 2007-2008, Infrastructure Canada will focus its efforts on working with each jurisdiction on outcomes reporting as well as leading a multilateral process on national GTF reporting; and
  
• Flow funds to First Nations throught a funding mechanism identified jointly with Indian and Northern Affairs Canada and the Assembly of First Nations.

Table 7: Allocation of Gas Tax Fund and Public Transit Fund Investments, by Jurisdiction

(Total Federal Funding Allocation (in $ millions))

Jurisdiction	GTF	PTF
British Columbia	635.6	52.5
Alberta	476.9	40.1
Saskatchewan	147.7	12.5
Manitoba	167.3	14.7
Ontario	1,865.5	155.2
Quebec	1,151.0	94.4
New Brunswick	116.1	9.4
Nova Scotia	145.2	11.7
Prince Edward Island	37.5	1.7
Newfoundland & Labrador	82.3	6.5
Yukon	37.5	0.4
Northwest Territories	37.5	0.5
Nunavut	37.5	0.4
First Nations	62.5	0.0
Total	5,000.0	400.0

Policy, Knowledge and Partnership Development

This Program Activity consists of activities undertaken in policy development; knowledge, research and analysis; and partnership development. The outcomes of this Activity is the development of policies that are based on research and the input from strong partnerships to address infrastructure challenges and opportunities.

Table 8: Financial and Human Resource Requirements, Policy, Knowledge and Partnership Development, 2007-2008 to 2009-2010

Financial Resources (in $ thousands)

2007-2008	2008-2009	2009-2010
18,157	5,432	08

Human Resources (full-time equivalents)

2007-2008	2008-2009	2009-2010
93	08	08

8. The operating budget for Infrastructure Canada was allocated from program funds and sunsets at the end of 2006-2007. The organization has found an interim solution for part of 2007-2008 and is working with central agencies on options for a long-term source of funds.

Policy

The policy development activity requires a high degree of collaboration with other federal departments and agencies, as well as with provinces, territories, municipalities, municipal associations, First Nations, international organizations, and the private sector.

In the context of a rapidly changing global economy and society, the critical role of cities and communities in Canada’s competitiveness and quality of life is increasingly recognized. They play the role of key trade gateways, attract and retain skilled labour and foreign investment, encourage research and innovation, build critical, sustainable infrastructure, ensure public safety, protect environmental quality, support social inclusion and cultural diversity, and deliver key municipal services.

For all these reasons, the Government has an interest in supporting strong, healthy and sustainable cities and communities and making more effective use of intergovernmental relationships to advance core and shared responsibilities and interests. The policy framework for communities will focus on bringing greater clarity to government roles and responsibilities, enhancing intergovernmental collaboration, and integrating “place” and spatial considerations into the design and implementation of Government of Canada policies, programs and investments.

Infrastructure Canada maintains a policy function that: identifies and assesses needs with respect to infrastructure; evaluates priorities and funding pressures; and, develops policy options for Ministerial consideration.

The planned policy-related activities in 2007-2008 will include the following:

• As outlined in Advantage Canada, develop and implement a comprehensive plan for infrastructure, providing a long-term policy framework to support predictable and long-term infrastructure funding;
  
• Develop a policy framework and prepare program terms and conditions for Budget 2006 infrastructure funding;
  
• Continue identification and assessment of infrastructure pressures in collaboration with other federal departments;
  
• Provide support to the Government of Canada’s Private Public Partnership (P3) approach as outline in Advantage Canada; and
  
• Design infrastructure programs that enable provinces and territories as well as cities and communities to contribute to Canada’s competitiveness, environmental and quality of life objectives.

Knowledge

In supporting the development of strategic policies and strong partnerships, the Infrastructure Canada Research Strategy focuses on three objectives:

• Knowledge Generation – Building new knowledge that responds directly to priority gaps in the understanding of public infrastructure issues in Canadian communities that are key for policy purposes;
  
• Community Building – Fostering the development of a stronger, better-networked, multi-disciplinary community of researchers and other experts committed to meeting the needs of policy and decision makers; and
  
• Knowledge Dissemination and Transfer – Developing innovative, effective ways to share and communicate knowledge from national and international sources about infrastructure and communities to policy and decision makers, researchers, industry, non-governmental organizations, professional associations and the general public.

In support of the Research Strategy, which is designed to enhance research and knowledge on infrastructure, and cities and communities, a five-year, $25-million funding initiative was initiated in fiscal year 2004-2005. The initiative currently consists of the Peer Reviewed Research Studies (PRRS) and Knowledge-building, Outreach and Awareness (KOA) programs. These programs have been designed to respond directly to several key gaps that must be filled in order to better position the Government of Canada to address current and future Canadian infrastructure pressures and city and community issues. (For more details on research funding programs, refer to http://www.infrastructure.gc.ca/research-recherche/index_e.shtml).

Under the PRRS, funding is awarded by Infrastructure Canada on the basis of merit, through a competitive peer review process executed by the Social Sciences and Humanities Research Council of Canada with assistance from the Natural Sciences and Engineering Research Council of Canada.

Infrastructure Canada’s research priority groupings for fiscal year 2007-2008 are listed below.

• The state of infrastructure in cities and communities;
  
• Innovation;
  
• Policy design and implementation;
  
• Infrastructure impacts;
  
• Sustainability;
  
• Finance; and
  
• Governance.

Partnership Development

Infrastructure Canada will continue to work in partnership with the provinces and territories, municipalities, First Nations and stakeholders to develop and implement a vision for ensuring the economic, social, cultural and environmental sustainability of Canada’s cities and communities. Infrastructure Canada is committed to working with partners at all levels to help ensure that communities have a stronger voice in decisions that affect them.

There are opportunities for more effective and innovative inter-governmental relationships to help address, together, the complex, interrelated challenges that can affect Canada’s economic prosperity and quality of life. The implementation of Gas Tax Fund agreements has resulted in the creation of Oversight Committees that provide new opportunities for dialogue. Some agreements include a commitment for future collaboration via trilateral agreements to better co-ordinate existing federal, provincial and municipal policies, programs and investments in key urban centres.

In 2007-2008, Infrastructure Canada will continue to strengthen its capacity to develop strategic policies based on sound knowledge and strong partnerships. Specific planned initiatives will include:

• Strengthen collaboration with provinces, territories and municipalities through such initiatives as trilateral tables and the Gas Tax Oversight Committees responsible for monitoring the overall strategic implementation of GTF and PTF.
  
• Support the building of municipal capacity to plan for and achieve sustainability objectives, including sustainable infrastructure.
  
• Maintain and enhance strong partnerships with regional development agencies and other partners for the delivery of programs and projects.
  
• Continue to work with international bodies (e.g., Organisation for Economic Co-operation and Development (OECD), World Bank, UN-HABITAT) on cities and communities related issues and performance indicators.

Performance Measurement and Evaluation

This section outlines the approach taken by Infrastructure Canada to monitor the performance of two Program Activities and to measure and report on the results achieved.

Infrastructure Investments

Infrastructure Canada has identified a set of key indicators against which to report, on an ongoing basis, the performance of its various infrastructure funding programs (Table 9).

In 2007-2008, Infrastructure Canada will develop a horizontal approach for reporting that encompasses all infrastructure programs under its responsibility.

Measuring the outcomes of funding programs requires the conduct of periodic evaluation studies. Results-Based Management and Accountability Frameworks (RMAFs) and Risk-Based Audit Frameworks (RBAFs) have now been developed for all programs. These frameworks define expected results for each program and appropriate measurement indicators. They help ensure effective management decision-making and demonstrate clear accountability in the program areas.

In 2006-2007, Infrastructure Canada began a mid-term evaluation of the Municipal Rural Infrastructure Fund, which will be completed in 2007-2008. On the basis of this evaluation, the program RMAF and RBAF will be updated to ensure that they maintain focus on measuring and reporting on outcomes throughout the lifecycle of the programs.

The Infrastructure Canada Program (ICP), an older program nearing completion, operates under a Federal Governance and Accountability Framework that identifies roles and responsibilities. In collaboration with its ICP delivery partners, Infrastructure Canada developed an integrated RMAF-RBAF for the ICP extension, and completed the ICP Mid-term Evaluation. The results of these two processes indicated the need to be diligent to ensure program completion by the extended deadline of March 31, 2009, and the importance of working on a method to report outcome measures and of the ability to calculate cost effectiveness.

Infrastructure Canada will negotiate with each jurisdiction on the core performance measures to be used for the various investment areas of the Gas Tax Fund (GTF). As well, Infrastructure Canada is consulting with other government departments, academia and key associations to share information and expertise on relevant performance measures for infrastructure investment. The Gas Tax Fund and Public Transit Fund are outcomes-based programs designed to provide flexibility to municipalities to fund their local infrastructure priorities that meet national outcomes of cleaner air, cleaner water and reduced GHG emissions. Municipalities, provinces and territories, and INFC share responsibility for reporting on the results of these investments.

In 2006-2007, an Advisory Committee with representation from GTF signatories began to study performance measures suitable for national reporting. An internal evaluation of the GTF program was initiated in 2006-2007 to assess the implementation of the initiative and to ensure proper management systems.

Mid-term evaluations for CSIF and BIF will assess and determine results achieved to date. The evaluations will be performed in 2007-2008, and 2008-2009 respectively.

Further information on Infrastructure Canada’s evaluation plan is provided in the Supplementary Tables section of this RPP (Table 17).

Table 9: Performance Indicators for Infrastructure Programs

Output indicators Number of project announcements Number of signed agreements Number of MOUs with other government departments and partners for delivery Number of projects approved

Intermediate results indicators Negotiation and completion of agreements and projects in an expeditious fashion Collaborative support of other government departments, provinces, territories and key partners Resources levered from partners Effective program management and oversight of agreements (e.g., risk management, monitoring and reporting, e-management)

Ultimate results indicators Safe, reliable transportation Sustainable economic development Sustainable use and quality of water, and efficient wastewater treatment Safe and efficient borders Improved innovation and delivery of public services via connectivity Efficient and sustainable energy systems Improved capacity for integrated community sustainability planning New collaborative mechanisms

Policy, Knowledge and Partnerships

Infrastructure Canada’s policy, knowledge and partnership activities contribute to the Strategic Outcome by ensuring that Canada’s infrastructure investment decisions and activities are supported by rigorous, integrated knowledge and analysis and with the understanding and collaboration of provinces, territories, municipalities, First Nations and other partners.

A Results-Based Management and Accountability Framework (RMAF) and a Risk-Based Audit Framework (RBAF) have been developed for the Research-building, Outreach and Awareness program and for the Peer Reviewed Research Studies program. These frameworks define expected results for each program, identify performance indicators, help ensure effective management decision-making, and demonstrate clear accountability in the program areas.

Further work is planned for performance measurement in the policy, knowledge and partnership activities. Infrastructure Canada will also be building on the networks and collaborative efforts with other federal departments to share knowledge and build on existing expertise, networks and common interests such as performance measurement.

Over the next two years, work will also continue with the World Bank on an international project that includes Canada’s three largest cities to develop and test city performance indicators. It is planned that the results of the World Bank study will be shared at the next World Urban Forum in Nanjing in 2008.

 

Section III: Supplementary Information

Organizational Information

The Honourable Lawrence Cannon is the Minister responsible for the Transport, Infrastructure and Communities portfolio⁹.

Infrastructure Canada is headed by a Deputy Head, Louis Ranger, who reports to the Minister. The Deputy Head is supported by five Assistant Deputy Ministers:

• A/Senior Assistant Deputy Minister, Policy and Communication: John Forster.
  
• Assistant Deputy Minister, Cities and Communities: Yazmine Laroche.
  
• Assistant Deputy Minister, Program Operations: Carol Beal.
  
• Assistant Deputy Minister, Corporate Services/Chief Financial Officer: David Cluff.
  
• Assistant Deputy Minister, Regional Integration: Gary Webster.

Infrastructure Canada’s organizational structure is presented in Figure 3.

Figure 3: Infrastructure Canada Organization Chart

9. On February 6, 2006, Infrastructure Canada became part of the Transport, Infrastructure, and Communities Portfolio under the responsibility of the Minister of Transport, Infrastructure, and Communities.

Departmental Partners

Infrastructure Canada collaborates with other federal departments and agencies in the delivery of infrastructure programs. For example, the organization works closely with Indian and Northern Affairs Canada in respect to projects in the territories and those that involve First Nations in the provinces. It also works closely with Western Economic Diversification Canada, Industry Canada, Canada Economic Development for Quebec Regions, the Atlantic Canada Opportunities Agency, and Transport Canada. Other major federal partners include Environment Canada, Canada Mortgage and Housing, and Public Works and Government Services Canada. These departments and agencies share their knowledge of local needs and priorities, as well as their technical expertise, resources and governance structures and are critical to the organization’s ability to fulfill its mandate. For transport-related CSIF and BIF projects, Transport Canada provides the federal lead role while Infrastructure Canada provides a supportive role.

In addition to federal partners, Infrastructure Canada collaborates with provincial, territorial and municipal governments and associations, as well as universities, research institutes, civil society organizations, the private sector and other experts. This collaboration is intended to:

• Better manage partnership-funded public infrastructure projects; 
  
• Generate new, horizontal insights into infrastructure and place-based issues;
  
• Develop a stronger, more multi-disciplinary research community that can provide support for policy and decision makers in the multiple sectors involved in addressing Canada’s infrastructure needs; and
  
• Disseminate and communicate knowledge about infrastructure to key partners.

Supplementary Tables

Table 10: Departmental Planned Spending and Full-Time Equivalents

($ thousands)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Infrastructure Investments	1,808,681	2,000,322	1,513,130	2,170,669
Policy, Knowledge and Partnership Development	15,446	17,375	4,970	-
Crown Corporations Portfolio Management	20,497	-	-	-
Budgetary Main Estimates	1,844,624	2,017,697	1,518,100	2,170,669
Crown Corporations Portfolio Management	2,492	-	-	-
Non-budgetary Main Estimates	2,492	-	-	-
Total Main Estimates	1,847,116	2,017,697	1,518,100	2,170,669
Adjustments: Budget 2006
Canada Strategic Infrastructure Fund	-	181,000	429,000	570,000
Municipal Rural Infrastructure Fund	-	463,766	495,487	559,748
Procurement Savings
Infrastructure Investments	(100)	-	-	-
Supplementary Estimates
Canada Strategic Infrastructure Fund	216,345	194,310	196,392	144,573
Border Infrastructure Fund	23,273	(141)	(149)	(152)
Municipal Rural Infrastructure Fund	16,278	10,444	10,444	5,222
Federal Gas Tax Fund	18,072	10,007	12,510	25,020
Public Transit Fund	19,112	-	-	-
Research Knowledge and Outreach	247	-	-	-
Infrastructure Canada Program transfer from Indian Affairs and Northern Development	709	-	-	-
Contribution to the Harbourfront Centre	4,000	-	-	-
Internal reallocation of resources to address incremental costs due to program growth	3,000	-	-	-
Transfer to Transport Canada the Crown Corporations Secretariat and the Old Port of Montreal Corporation Inc. (Approved February 6, 2006)	(22,517)	-	-	-
Other
Internal Audit TB Vote 10	5	113	-	-
Employee Benefit Plan (EBP)	(191)	-	-	-
Total Adjustments	278,229	859,499	1,143,687	1,304,411
Net Planned Spending	2,125,350	2,877,196	2,661,787	3,475,080
Plus: Cost of services received without charge	1,771	2,004	1,184	1,263
Total Departemental Spending	2,127,121	2,879,200	2,662,971	3,476,343
Full Time Equivalents	220	237	-	-

Table 11: Departmental Links to Government of Canada Outcome Areas

2007-2008
Budgetary					Total Planned Spending
($ thousands)	Operating	Contributions and Other Transfer Payments	Total Main Estimates	Adjustments (planned spending not in Main Estimates)
Strategic Outcomes: Improving the sustainability of our cities and communities and Canada’s local, regional and national public infrastructure to enhance the economic, social, cultural and environmental quality of life of Canadians.
Infrastructure Investments	18,055	1,982,267	2,000,322	859,499	2,859,821
Policy, Knowledge and Partnership Development	11,625	5,750	17,375	0	17,375
Total	29,680	1,988,017	2,017,697	859,499	2,877,196

The Program Activity “Infrastructure Investments” contributes to the achievement of the Government of Canada’s “Strong Economic Growth” outcome area.

The Program Activity “Policy, Knowledge and Partnership Development” contributes to the achievement of the Government of Canada’s “An Innovative and Knowledge-based Economy” outcome area.

Table 12: Voted and Statutory Items Listed in Main Estimates 

($ thousands)

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008 Main Estimates	2006-2007 Main Estimates
50	Operating expenditures	27,362	37,103
55	Contributions	1,988,017	1,787,169
(S)	Contributions to employee benefit plans	2,318	1,552
	Appropriations not required
—	Operating Funding for the Old Port of Montreal Corporations Inc.	-	18,800
	Total budgetary	2,017,697	1,844,624
	Non-budgetary appropriations not required
—	Investment in contributed surplus of Parc Downsview Park Inc. for the purpose of allowing the completion of the transfer of lands from National Defence to Parc Downsview Park Inc.	-	2,492
—	To establish a borrowing authority of up to $100,000,000 for Parc Downsview Park Inc.	-	-
	Total non-budgetary	-	2,492
Total Department		2,017,697	1,847,116

Note: Infrastructure Canada’s budget for contributions has increased significantly from 2006-2007 to 2007-2008. This is due primarily to increases in the Municipal Rural Infrastructure Fund for cash flow requirements and authorized increases in the annual budget of the Gas Tax Fund.

Table 13: Services Received Without Charge

($ thousands)	2007‑2008
Accommodation provided by PWGSC	1,127
Contributions covering employer’s share of employees’ insurance premiums and expenditures paid by TBS	877
Total 2007-2008 Services received without charge	2,004

Table 14: Details on Project Spending

In 2006-2007, Infrastructure Canada received approval for the Shared Information Management System (SIMSI) enhancement project to support the continued effective management and delivery of Infrastructure Canada’s full suite of infrastructure programs.

Supplementary information on Project Spending can be found at http://www.tbs-sct.gc.ca/rpp/2007-2008/info/info-eng.asp.

($ thousands)	Current Estimated Total Cost	Forecast Spending to March 31, 2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Program Activity: Infrastructure Investments
Project Name: Shared Information Management System for Infrastructure	27,472	22,730	3,031	901	810

Table 15: Details on Transfer Payments Programs

• Canada Strategic Infrastructure Fund
• Border Infrastructure Fund
• Municipal Rural Infrastructure Fund
• Gas Tax Fund
• Public Transit Fund
• Peer Reviewed Research Studies and the Knowledge-building, Outreach and Awareness programs (Research, Knowledge and Outreach Program)

Name of Transfer Payment Program: Canada Strategic Infrastructure Fund
Start Date: 2003-2004	End Date: 2012-2013		Total Funding: $5.2 Billion
Purpose of Transfer Payment Program: Directed to projects of major federal and regional significance in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians.
Objective(s), expected result(s) and outcomes: Safer and improved water quality in major communities; safer and faster movement of people and goods on Canada's major land transportation routes; reduced production of greenhouse gases and airborne pollutants; more-effective urban development; increased economic activity including tourism.
($ thousands)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Program Activity (PA) Infrastructure Investments
Total Contributions	1,206,672	1,029,344	888,620	772,666
Total Program Activity	1,206,672	1,029,344	888,620	772,666
Total Transfer Payments Program	1,206,672	1,029,344	888,620	772,666

 

Name of Transfer Payment Program: Border Infrastructure Fund
Start Date: 2003-2004	End Date: 2012-2013		Total Funding: $600 Million
Purpose of Transfer Payment Program: Targets Canada-United States border crossing points and provides funding for investments in physical infrastructure, intelligent transportation system infrastructure and improved analytical capacity.
Objective(s), expected result(s) and outcomes: A reduction in border bottlenecks; greater uptake of border fast tracking programs by frequent users; expansion or improvement in border/system capacity.
($ thousands)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Program Activity (PA) Infrastructure Investments
Total Contributions	168,945	127,167	69,301	39,509
Total Program Activity	168,945	127,167	69,301	39,509
Total Transfer Payments Program	168,945	127,167	69,301	39,509

 

Name of Transfer Payment Program: Municipal Rural Infrastructure Fund
Start Date: 2004-2005	End Date: 2010-2011		Total Funding: $1.2 Billion
Purpose of Transfer Payment Program: To support smaller scale municipal infrastructure projects that improve the quality of life, sustainable development and economic opportunities, particularly of smaller communities.
Objective(s), expected result(s) and outcomes: Improved and increased stock of core public infrastructure in areas such as water, wastewater, cultural and recreation; improved quality of life and economic opportunities for smaller communities and First Nations.
($ thousands)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Program Activity (PA) Infrastructure Investments
Total Contributions	398,744	885,143	697,931	661,970
Total Program Activity	398,744	885,143	697,931	661,970
Total Transfer Payments Program	398,744	885,143	697,931	661,970

 

Name of Transfer Payment Program: Gas Tax Fund
Start Date: 2005-2006	End Date: 2009-2010		Total Funding: $5 Billion
Purpose of Transfer Payment Program: These funds will enable municipalities to make long-term commitments needed to help contain urban sprawl and to invest in new sustainable infrastructure projects in areas such as transit, clean water and sewers.
Objective(s), expected result(s) and outcomes:  To support environmentally sustainable infrastructure in support of shared national outcomes.  These outcomes are cleaner air, cleaner water, and reduced greenhouse gas emissions.
($ thousands)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Program Activity (PA) Infrastructure Investments
Total Contributions	624,822	799,999	1,000,000	2,000,000
Total Program Activity	624,822	799,999	1,000,000	2,000,000
Total Transfer Payments Program	624,822	799,999	1,000,000	2,000,000

 

Name of Transfer Payment Program: Public Transit Fund
Start Date: 2005-2006	End Date: 2006-2007		Total Funding: $400 Million
Purpose of Transfer Payment Program:  These funds will enable municipalities to invest in public transit services.
Objective(s), expected result(s) and outcomes: To promote improved quality of life in Canada’s municipalities and cleaner air by reducing greenhouse gas emissions and energy use, and reducing smog-forming air emissions.
($ thousands)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Program Activity (PA) Infrastructure Investments
Total Contributions	19,000	0	0	0
Total Program Activity	19,000	0	0	0
Total Transfer Payments Program	19,000	0	0	0

 

Name of Transfer Payment Program:  Peer Reviewed Research Studies and the Knowledge-building, Outreach and Awareness programs (Research, Knowledge and Outreach Program)
Start Date: 2004-2005	End Date: 2008-2009		Total Funding: $25 Million
Purpose of Transfer Payment Program:  To enhance implementation of Infrastructure Canada’s Research Strategy, which focuses on the three components of knowledge generation, community building, and knowledge transfer.
Objective(s), expected result(s) and outcomes: Greater understanding of the role and significance of infrastructure and infrastructure issues; more informed policy and decision making; increased knowledge of infrastructure, including infrastructure development, governance arrangements, best practices, inter federal experiences and emerging and emerging challenges and opportunities.
($ thousands)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Program Activity (PA) Policy, Knowledge and Partnerships Development
Total Contributions	3,497	5,750	5,000	0
Total Program Activity	3,497	5,750	5,000	0
Total Transfer Payments Program	3,497	5,750	5,000	0

Table 16: Reporting on Horizontal Initiatives

The objective of reporting on horizontal initiatives is to provide Parliamentarians, the public and government with an overall picture of public expenditures, plans, priorities and achievements for all major horizontal initiatives.

A horizontal initiative is an initiative in which partners, from two or more organizations have agreed under a formal funding agreement to work towards the achievement of shared outcomes. Infrastructure Canada has the lead for the following four horizontal initiatives: CSIF, BIF, ICP and MRIF.

Supplementary information on each of the Horizontal Initiatives led by Infrastructure Canada can be found at http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/profil-eng.asp.

Canada Strategic Infrastructure Fund

Start Date of the Horizontal Initiative: 2003
End Date of the Horizontal Initiative: 2013
Total Federal Funding Allocation: $5.2 B

Description of the Horizontal Initiative:

The Canada Strategic Infrastructure Fund (CSIF), which received funding in the 2001 and 2003 federal budgets, is a $5.2 billion fund. It is a cost-shared contribution program for strategic infrastructure projects. As of February 4, 2007, the fund provided federal support to 61 projects.

Investments are directed to projects of major national and regional significance, and are to be made in areas that are vital to sustaining economic growth and supporting an enhanced quality of life for Canadians. CSIF is delivered through negotiated agreements with provincial, territorial or local governments, private partners or non-governmental organizations. Contribution agreements are tailored based on the project requirements.

The Canada Strategic Infrastructure Act outlines the prime categories of investments in projects that involve fixed capital assets that are used or operated for the benefit of the public. The categories eligible under the CSIF are:

• Highway and Rail Infrastructure;
• Local Transportation Infrastructure;
• Tourism or Urban Development Infrastructure;
• Water or Sewage Infrastructure; and
• Other categories approved by regulation, e.g. Advanced Telecommunications and High Speed Broadband, Northern Infrastructure.

More information on CSIF can be found at: http://www.infrastructure.gc.ca/ip-pi/csif-fcis/index_e.shtml.

Shared Outcome(s):

The overall planned results INFC expects to achieve through CSIF are to invest in projects which:

• facilitate the movement of goods and people on Canada’s National Highway System (NHS) for the purposes of increasing the productivity, economic efficiency, and safety of Canada’s surface transportation system;
• facilitate the safe and efficient movement of goods and people, ease congestion, or reduce greenhouse gases and airborne pollutants;
• ensure that tourism continues to contribute to the economic well-being of Canadians and to serve as a bridge between Canada and the world;
• ensure that drinking water is safe, clean, and reliable at drinking water facilities, and ensure sustainable treatment of wastewater; and
• expand broadband networks in Canada.

Governance Structure(s):

All CSIF projects are selected under the authority of the Minister of Transport, Infrastructure and Communities. Prior to selecting projects, the Minister consults other Ministers who have an interest in the region or in the substantive project area. After project selection, Treasury Board (TB) approval is sought for each contribution. At the same time, incremental operating funds required for project oversight and management by the implementing departments/agencies are identified and sought in the TB submission.

CSIF is delivered in partnerships, involving primarily three sets of key collaborators:

1. Infrastructure Canada: As the coordinating and funding agent for the contribution, INFC is responsible for project review, selection, approval, public announcements, environmental assessment in some cases, and program evaluation. INFC leads the negotiation of contribution agreements with each of the funding recipients and develops, in coordination with the implementing department/agency, the submission to TB for the approval of funds. To monitor activities and milestones throughout the project life cycle, an INFC representative will sit on the project’s Agreement Steering Committee (ASC) usually as the federal co-chair, except for transportation projects where Transport Canada is the lead.
2. An implementing department/agency: INFC’s relationship with each implementing department or agency varies with their capacity and the complexity of the project. Responsibilities are also negotiated specifically for each project. The implementing department/agency may provide technical assistance in the analysis of the business case, determining the costs and benefits to be realized, and providing advice on the development of the contribution agreement and TB submission. The implementing department/agency will support implementation of the CSIF projects in a manner that upholds federal due diligence in such areas as: overseeing the implementation of mitigation measures identified in the environmental assessment, assessing the eligibility and reasonability of project costs, providing information pertaining to cash flow and budget, approving claims, making payments, and conducting audits and evaluation of the projects. The implementing department/agency would normally be represented on the project’s ASC. The implementing department/agency will also ensure adherence to information management requirements, including the use of the Shared Information Management System for Infrastructure (SIMSI), which captures, monitors and reports on project information. The implementing department/agency also provides communication support.
3. The funding recipient: The recipient may be provincial, territorial, or local government, a private partner, a non-government organization or a combination thereof. Once the project has been selected, INFC leads the negotiations to develop a contribution agreement. The funding recipient is responsible for ensuring that the project is completed as per the terms and conditions of the contribution agreement.

Federal Partners Involved in each program:

The CSIF is delivered in partnerships with the three federal regional economic agencies – Atlantic Canada Opportunities Agency (ACOA), Canada Economic Development – Quebec (CED-Q), and Western Economic Diversification (WED). In addition, Infrastructure Canada works with Industry Canada for Ontario and broadband projects, Indian and Northern Affairs (INAC) for northern and First Nations projects, Transport Canada for all transportation-related projects, and CMHC for housing.

Roles and responsibilities of partners are outlined in Memoranda of Understanding between Infrastructure Canada (INFC) and the implementing agencies or departments.

Names of Programs

CSIF

Total Allocation

$5.2 B

Planned Spending for 2007-2008

$1.0 B

Expected Results for 2007-2008

A results-based management and accountability framework (RMAF) has been developed for CSIF that proposes a suite of indicators for projects and data source or methods for collecting the data.

The overall expected results for CSIF include:

• Safer and faster movement of people and goods on Canada’s major land transportation routes
• Less production of greenhouse gases and airborne pollutants
• More effective urban development
• Increased economic activity, including tourism

CSIF is a ten-year program that received Treasury Board approval in 2003. Given their large-scale nature, most of the approved projects that the government will be contributing to will be under development for many years. Therefore, the achievement of ultimate outcomes will be fairly limited in the early years of the program. Future Departmental Performance Reports will provide program and selected project reporting.

For project descriptions, refer to http://www.infrastructure.gc.ca/ip-pi/csif-fcis/proj/proj_desc_prov_e.shtml.

Results to be achieved by Non-Federal Partners (if applicable):

N/A

Contact Information:

Luigia Cistera, Manager, Corporate Accountability and Management Initiatives
Tel. : 613-954-7750
e-mail: cistera.luigia@infc.gc.ca

Approved by:

Louise Schwartz,
Director, Finance and Administration

Date Approved:

February 9, 2007

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Border Infrastructure Fund

Start Date of the Horizontal Initiative: 2003
End Date of the Horizontal Initiative: 2013
Total Federal Funding Allocation: $600 M

Description of the Horizontal Initiative:

The Border Infrastructure Fund (BIF), which was announced in Budget 2001, is a $600 million cost-shared contribution program. It complements some of the Government of Canada’s other infrastructure programs, such as the Canada Strategic Infrastructure Fund (CSIF), and the Strategic Highway Infrastructure Program (SHIP), a Transport Canada program (see http://www.tc.gc.ca/SHIP/faq.htm for more information).

As part of “Canada’s commitment to address land border pressures, such as traffic congestion, and to continue to facilitate the large volume of trade across the Canada – United States border”, BIF contributions are directed at, or on routes leading to Canada’s border crossings, with a particular focus on the six largest:

• Windsor, Ontario;
• Sarnia, Ontario;
• Fort Erie, Ontario;
• Niagara Falls, Ontario;
• Douglas, British Columbia; and,
• Lacolle, Quebec.

BIF also directs some funding towards smaller and regionally important border crossings throughout Canada. Once completed, projects supported under BIF will help to alleviate traffic congestion, increase system capacity and further the Smart Border Declaration. (A Canada – US Declaration; see http://www.dfait-maeci.gc.ca/anti-terrorism/declaration-en.asp).

More information on BIF can be found at: http://www.infrastructure.gc.ca/ip-pi/bif-fsif/index_e.shtml.

Shared Outcome(s):

The overall planned results that INFC expects to achieve through the BIF are to invest in projects that contribute to safe and efficient border crossings. Expected outcomes are to alleviate border congestion and increase border crossing capacity, increase security and safety at border crossings, leading to cross border trade efficiencies.

Governance Structure(s):

All BIF projects are selected under the authority of the Minister Transport, Infrastructure and Communities. Prior to selecting projects, the Minister consults with other Ministers who have an interest in the region or in the substantive project area. After project selection, public announcements are made by the Minister Transport, Infrastructure and Communities. Treasury Board approval is sought for each contribution. At the same time, incremental operating funds required for project oversight and management by Transport Canada are identified and sought in the Treasury Board submission.

BIF is delivered in partnerships, involving primarily three sets of key collaborators:

1. Infrastructure Canada: As the coordinating and funding agent for the contribution, INFC is responsible for project review and selection. INFC leads the negotiation of contribution agreements with each of the funding recipients and is responsible for the evaluation of the program. To monitor activities and milestones throughout the project life cycle, an INFC representative will sit on the project’s Agreement Steering Committee (ASC).
2. Transport Canada: This department has the project specific technical knowledge with regard to each project. Transport Canada provides analysis and advice for the review and approval of projects. Transport Canada is responsible for implementing the BIF projects in a manner that upholds federal due diligence in such areas as: environmental assessment, the eligibility and reasonability of project costs, the provision of information pertaining to cash flow and budget, the approval of invoices, making payments, and the conducting of audits and evaluation of the projects. Transport Canada reviews the business case for the project, determining the costs and benefits to be realized. Transport Canada works with INFC to jointly negotiate the project agreement and prepares the TB submission; the Minister Transport, Infrastructure and Communities signs both documents. Transport Canada is the federal co-chair of the project’s ASC. Transport Canada also ensures adherence to information management requirements to capture, monitor and report on project information.
3. The funding recipient: The recipient may be a provincial, territorial or local government, private partner or a combination thereof. Once the project has been selected, the funding recipient enters into negotiations with INFC to develop a contribution agreement. The funding recipient is responsible for ensuring that the project is completed as per the terms and conditions of the contribution agreement.

Federal Partners Involved in each program:

BIF is delivered in partnership with Transport Canada. The roles and responsibilities of Infrastructure Canada (INFC) and Transport Canada are outlined in a Memorandum of Understanding .

Names of Programs

BIF

Total Allocation

$600 M

Planned Spending for 2007-2008

$127.2  M

Expected Results for 2007-2008

A results-based management and accountability framework (RMAF) has been developed for BIF, which details the expected results and proposes a suite of performance indicators for projects. The results of ongoing performance measurement will be used to make the necessary adjustments to the initiative and the performance measurement strategy will be reviewed on an annual basis.

The overall expected results for BIF include:

• More efficient facilities capable of handling greater capacity at major border crossing, helping trucks travel across the busiest Canada-US border points more quickly.
• Improved Canada-US relations and better movement of goods, contributing to increased trade and production.
• Improved border crossing, contributing to federal security and increased safety for all Canadians.

BIF is a ten-year program, which received Treasury Board approval in 2003. Given the large-scale nature of the projects, most of the projects will be under development for many years. Therefore, the achievement of ultimate outcomes will be fairly limited in the early years of the program. Future Departmental Performance Reports will provide program and selected project reporting.

For project descriptions, refer to http://www.infrastructure.gc.ca/ip-pi/bif-fsif/proj/proj_desc_prov_e.shtml.

Results to be achieved by Non-Federal Partners (if applicable):

N/A

Contact Information:

Luigia Cistera, Manager, Corporate Accountability and Management Initiatives
Tel. : 613-954-7750
e-mail: cistera.luigia@infc.gc.ca

Approved by:

Louise Schwartz,
Director, Finance and Administration

Date Approved:

February 9, 2007

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Municipal Rural Infrastructure Fund

Start Date of the Horizontal Initiative: 2004
End Date of the Horizontal Initiative: 2011
Total Federal Funding Allocation: $1.2 B

Description of the Horizontal Initiative:

The $1-billion fund has been structured to provide a balanced response to local infrastructure needs in urban and rural Canada, and will ensure that all Canadians, whether they live in large, small or remote communities, will share in the benefits of infrastructure investments. It will build on past successes in partnership infrastructure funding of over 3,800 projects that have directly benefited Canadians.

The Municipal Rural Infrastructure Fund will improve and increase the stock of core public infrastructure in areas such as water, wastewater, cultural, recreation, and those very things that make our communities vibrant and productive places to live and work and raise families. MRIF targets communities of less than 250,000 residents and First Nation communities.  Like other infrastructure programs, the MRIF seeks to ensure that the projects it funds support the goals of the federal government, encourages new and innovative approaches and favours partnerships, including an emphasis on ‘green’ projects which are sustainable and reduce greenhouse gasses.

Through the MRIF, the Government of Canada will continue to work in productive partnerships with provinces, territories, and municipalities, as well as First Nations and the private sector, to invest in local infrastructure projects. These projects will be vital to sustaining economic growth and supporting an enhanced quality of life in Canadian communities.

The MRIF will be cost-shared, with the Government of Canada contributing, on average, one-third of total project eligible costs. Provinces and municipalities will contribute the remainder. In recognition of the unique circumstances of the First Nations and the Territories, where many communities have no tax base, the Government of Canada may contribute more than one-third.

More information on MRIF can be found at: http://www.infrastructure.gc.ca/ip-pi/mrif-fimr/index_e.shtml.

Shared Outcome(s):

The overall expected outcomes are:

• Improved and increased stock of core public infrastructure in areas such as water, wastewater, cultural and recreation.
• Improved quality of life and economic opportunities for smaller communities and First Nations.

Governance Structure(s):

MRIF is based on a federal partnership arrangement between INFC and five federal departments: Western Economic Diversification, Industry Canada (for Ontario projects), Canada Economic Development – Quebec, Atlantic Canada Opportunities Agency, and Indian and Northern Affairs Canada.  MRIF is negotiating to create 14 sub-programs, one joint sub-program for each province and territory and a sub-program for First Nations communities.  Each of the 14 MRIF sub-programs will follow the same general conditions, priorities and approaches, but, recognizing the individual nature of each sub-program, the agreements will encompass the nuances pertaining to the partnering order of government. 

To stimulate expected outcomes, MRIF eligible projects will have to conform to a policy leveraging framework, based on a common baseline but adapted for each jurisdiction. To ensure broad support and effective, innovative project delivery, partnerships of various types, including public-private partnerships, are encouraged in the formulation and delivery of MRIF projects.  The program will rely on strong input from local and rural municipalities, including the support of the locally elected councils. In addition, municipal representatives will be involved in the processes and management of the program in the respective province or territory. 

Federal Partners Involved in each program:

MRIF is based on a federal partnership arrangement between INFC and five federal departments:

1. Western Economic Diversification,
2. Industry Canada (for Ontario projects),
3. Canada Economic Development – Quebec,
4. Atlantic Canada Opportunities Agency, and
5. Indian and Northern Affairs Canada. 

Names of Programs

MRIF

Total Allocation

$1.2 B

Planned Spending for 2007-2008

$885.1 M

Expected Results for 2007-2008

A results-based management and accountability framework (RMAF) has been developed for MRIF that details expected results and proposes a suite of indicators for projects and data source or methods for collecting the data.

The overall expected results of MRIF include:

• Improved and increased stock and better management of core public infrastructure in areas such as water, wastewater, cultural and recreation, which make our communities vibrant and productive places to live and work and raise families
• Improved quality of life and economic opportunities for smaller communities and First Nations

Actual outcomes will depend on the types of projects approved, and will be reported in future INFC departmental performance reports.

Results to be achieved by Non-Federal Partners (if applicable):

N/A

Contact Information:

Luigia Cistera, Manager, Corporate Accountability and Management Initiatives
Tel. : 613-954-7750
e-mail:  cistera.luigia@infc.gc.ca

Approved by:

Louise Schwartz,
Director, Finance and Administration

Date Approved:

February 9, 2007

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Infrastructure Canada Program

Start Date of the Horizontal Initiative: 2000
End Date of the Horizontal Initiative: 2009 (2007 for First Nations ICP)
Total Federal Funding Allocation: $2.05 B

Description of the Horizontal Initiative:

The Infrastructure Canada Program (ICP) is a contribution program introduced in 2000 for local municipal infrastructure projects. The Government of Canada matches the provincial/territorial governments’ contribution, providing up to one-third of the cost of each municipal infrastructure project. The ICP is a $2.05 billion program in effect over seven fiscal years. The ICP is well underway and projects are ongoing across the country. Most of the funding has either been committed to approved projects or notionally allocated to those that are under review.

The ICP’s first priority for funding is “green municipal projects”, i.e. projects with environmental benefits that enhance the quality of the environment or health benefits that enhance the quality of human life. Other priorities include affordable housing, culture, tourism and recreation, rural and remote telecommunication, high-speed access for local public institutions and local transportation. Recognizing that individual communities know their needs best, the program operates in a "bottom-up" fashion, with the flexibility for municipalities and First Nations to identify their own infrastructure priorities. It also includes provisions to ensure an equitable balance of funding between urban and rural communities.

Further information may be obtained from the following web sites:

http://www.infrastructure.gc.ca/ip-pi/icp-pic/index_e.shtml http://www.acoa.ca/e/financial/infrastructure.shtml

http://www.dec-ced.gc.ca/asp/ProgrammesServices/ProgrammesServices_intro.asp

http://www.ainc-inac.gc.ca/ps/hsg/cih/ci/ic/index-eng.html

http://www.ic.gc.ca/coip-pico/coip-pico.nsf/main!OpenPage

http://www.wd.gc.ca/ced/infrastructure/default-eng.asp

http://www.infraguide.ca

Shared Outcome(s):

The overall planned results are that urban and rural municipal infrastructure in Canada is enhanced and Canadians’ quality of life is improved through investments that protect the environment and support long-term community and economic growth.

Governance Structure(s):

The key roles and responsibilities of partners are as follows:

• Minister of Transport, Infrastructure and Communities – overall program management and accountability to Parliament, including media relations, appointment of Management Committee members, project approval for projects where the federal share is between $1M - $10M;
• Infrastructure Canada – oversight and monitoring of the program ensuring effective management and a coordinated approach to communications and provision of services including operational services, information management, and communications services;
• Ministers or Secretaries of State responsible for delivery (Industry Canada; Western Economic Diversification; Canada Economic Development – Quebec; Atlantic Canada Opportunities Agency; Indian and Northern Affairs Canada) – with Minister of Transport, Infrastructure and Communities, joint authority to enter into contribution agreements with provinces/territories, and project approval where federal share is less than $1M;
• Federal-Provincial/Territorial Management Committees (one per jurisdiction) – administration and management of ICP in accordance with terms and conditions of the applicable federal-provincial/territorial agreement;
• Provinces/Territories – signatories to the negotiated agreements with the federal government;
• Local governments – main applicants for ICP projects; also responsible for sponsoring projects with NGOs and/or private sector;
• NGOs and private sector – eligible to propose projects that are sponsored either by a municipality, a province/territory or the federal government; and
• Other government departments - provide key expertise for all or some types of ICP projects (e.g., Transport Canada, National Research Council (e.g., InfraGuide), Department of Fisheries and Oceans, Canadian Environmental Assessment Agency, Federation of Canadian Municipalities).

Federal Partners Involved in each program:

The following partner federal departments/ agencies are responsible for the delivery of the ICP throughout the country:

• Industry Canada  (for projects in Ontario);
• Western Economic Diversification (for projects in the western provinces);
• Canada Economic Development – Quebec Regions (for projects in Quebec);
• Atlantic Canada Opportunities Agency (for projects in Atlantic Provinces); and
• Indian & Northern Affairs Canada (for projects in the Territories and with the First Nations).

The following partners also provide key expertise for all or some type of ICP project:

• Transport Canada;
• National Research Council;
• Department of Fisheries and Oceans;
• Canadian Environmental Assessment Agency; and
• Federation of Canadian Municipalities

Names of Programs

ICP

Total Allocation

$2.05 B

Planned Spending for 2007-2008

Not available at this time

(ICP has been extended to March 31, 2009, and to March 31, 2007, for the First nations component.)

N.B. Resources are transferred to the federal delivery partners and are reported in their RPPs and DPRs.

Expected Results for 2007-2008

3,888 projects have been approved and announced under ICP.  Together, the expected results over time include:

• Enhancement of the quality of the environment (water and wastewater management, solid waste management and more efficient energy use)
• Support for long-term economic growth (increasing economic opportunity in communities, access to the new economy through improved telecommunications and tourism opportunities)
• Improvement of community infrastructure (increasing community safety and access to local recreational facilities, supporting Canadian heritage and culture and the development of minority English and French linguistic communities)
• Increased innovation, and use of new approaches and best practices, and the more efficient use of existing infrastructure

Reporting will take place in the Departmental Performance Reports of those agencies and departments for their allocation of the ICP. Infrastructure Canada will also report on results.

Results to be achieved by Non-Federal Partners (if applicable):

N/A

Contact Information:

Luigia Cistera, Manager, Corporate Accountability and Management Initiatives
Tel.: 613-954-7750
e-mail: cistera.luigia@infc.gc.ca

Approved by:

Louise Schwartz,
Director, Finance and Administration

Date Approved:

February 9, 2007

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Peer Reviewed Research Studies Program (Research, Knowledge and Outreach Program)

Start Date of the Horizontal Initiative: 2004
End Date of the Horizontal Initiative: 2009
Total Federal Funding Allocation: $12.5 Million

Description of the Horizontal Initiative:

Infrastructure Canada has two multidisciplinary research funding programs, the Knowledge-building, Outreach and Awareness program and the Peer Reviewed Research Studies program. The programs are complementary tools for enhancing implementation of Infrastructure Canada’s Research Strategy and helping to foster evidence-based policy and decision making on infrastructure and communities issues.

Peer Reviewed Research Studies (PRRS) Program

Infrastructure Canada’s PRRS program is a horizontal initiative that provides contributions-based funding for high quality, horizontal, policy relevant research studies on public infrastructure and communities issues in Canada. Funding is awarded by Infrastructure Canada on the basis of merit, through a competitive peer review process that is administered on Infrastructure Canada’s behalf by the Social Sciences and Humanities Research Council of Canada with the assistance of the Natural Sciences and Engineering Research Council of Canada.

More information on the PRRS Program can be found at http://www.infrastructure.gc.ca/research-recherche/fun-fin/index_e.shtml.

Shared Outcome(s):

The primary goals of the Peer Reviewed Research Studies program are to:

• Stimulate and support independent, high quality, multidisciplinary and timely policy relevant research on public infrastructure and communities issues in Canada;
• Encourage the development and maintenance of a strong, multidisciplinary research community on public infrastructure and communities issues; and
• Strengthen Canada’s existing knowledge base.

Governance Structure(s):

The PRRS program is delivered with the help of various partners. The role of each collaborator is:

1. Infrastructure Canada: program design and implementation, initial eligibility screening of applications, final funding decisions, communications, negotiation and management of contribution agreements, monitor progress of funded research.
2. Social Sciences and Humanities Research Council (SSHRC) and Natural Sciences Engineering Council of Canada (NSERC): administering the peer review process and making recommendations to Infrastructure Canada based on recommendations of the peer review committee.
3. Funding recipient:  Eligible recipients include a wide variety of organizations and individuals, including university-based researchers, Canadian not-for-profit organizations, international organizations, and Canadian provincial, territorial and municipal governments.  The eligible recipient enters into negotiations with INFC to develop a contribution agreement and is responsible for ensuring that the project is completed as per the terms and conditions of that agreement.

Federal Partners Involved in each program:

The PRRS program is administered by the Infrastructure Canada in conjunction with the Social Sciences and Humanities Research Council and with assistance from the Natural Sciences and Engineering Council of Canada.

Names of Programs

PRRS

Total Allocation

$12.5 M

Planned Spending for 2007-2008

$ 1.3 M

Expected Results for 2007-2008

A results-based management and accountability framework (RMAF) has been developed for PRRS that details expected results.

Infrastructure Canada will continue to manage the program and monitor the progress of funded research.

Results to be achieved by Non-Federal Partners (if applicable):

N/A

Contact Information:

Luigia Cistera, Manager, Corporate Accountability and Management Initiatives
Tel.: 613-954-7750
e-mail: cistera.luigia@infc.gc.ca

Approved by:

Louise Schwartz,
Director, Finance and Administration

17) Date Approved:

February 9, 2007

Table 17: Internal Audits and Evaluations

Infrastructure Canada’s three-year plans for internal audit and evaluation are summarized in the table below. A new Treasury Board audit policy with a three year phased implementation came into effect on April 1, 2006, and a new evaluation policy is expected in April 2007. Based on these new policies, Infrastructure Canada will review its roles, responsibilities, planned activities, and resource requirements for audit and evaluation.

Name of Internal Audit/Evaluation	Audit Type/ Evaluation Type	Status as of Jan. 1, 2007	Expected Completion Date
Assurance audit of the contribution management control framework put in place for BIF	Transfer Payment	In-progress	May 2007
Assurance audit of contribution management control framework put in place for CSIF	Transfer Payment	In-progress	May 2007
Assurance audit of Human Resource management control framework	HR- Staffing and classification	Planned January 2007	May 2007
Assurance audit of contribution management control framework put in place for MRIF	Transfer Payment	Planned September 2007	March 2008
Assurance audit of the GTF Management Other Control Framework	Transfer Payment	Planned January 2008	June 2008
Assurance audit of the PTF Management Control Framework	Other Transfer Payment	Planned January 2008	June 2008
Assurance audit of selected components of the INFC Financial Management and Accountability Framework	Finance	Planned September 2007	March 2008
Assurance audit of the Infrastructure Policy Framework and strategic policy capacity	Policy	Planned September 2008	March 2009
Assurance audit of the Contribution Management Control Framework of the Research, Knowledge and Outreach (RKO) Program	Transfer Payment	Planned November 2008	April 2009
Assurance audit of contracting and procurement	Contracting and Procurement	Planned June 2008	November 2008
Formative evaluation of MRIF	Transfer Payment	In Progress	September 2007
Formative evaluation of GTF	Transfer Payment	In Progress	September 2007
Formative evaluation of CSIF	Transfer Payment	Planned	March 2008
Summative evaluation of ICP First Nations10	Transfer Payment	Planned	March 2008
Formative evaluation of BIF	Transfer Payment	Planned	March 2008
Summative evaluation of GTF and PTF	Transfer Payment	Planned	March 2009
Summative evaluation of ICP10	Transfer Payment	Planned	March 2009
Formal evaluations of all infrastructure programs under INFC responsibility: ICP, MRIF, CSIF, BIF, GTF and PTF	Transfer Payment	Planned	December 2009
Summative evaluation of Research Knowledge and Outreach initiative	Research	Planned	March 2010

10. Results of the ICP mid-term evaluation are available at http://www.infrastructure.gc.ca/pd-dp/eval/me_icp_2006_e.shtml.

 

Section IV: Other Items of Interest

Departmental Administration

Infrastructure Canada’s third Program Activity is Departmental Administration, which promotes excellence in program and corporate management in support of Infrastructure Canada’s priorities. Departmental Administration consists of:

• The Office of the Deputy Head;
  
• Communications;
  
• Corporate Services; and
  
• Legal Services.

The Corporate Services sub-activity is further divided into: Information management/information technology; Finance; Administration; Human Resources; Corporate Planning and Reporting; Internal Audit; and, Evaluation.

The Minister, supported by the Deputy Head, is responsible for ensuring that Government priorities are pursued through the Infrastructure and Communities Portfolio.

Infrastructure Canada is well-positioned to support the Government of Canada’s vision for sustainable communities. Success requires all parts of the organization to recognize the complementary roles they play within the Portfolio, and their respective roles in supporting the Minister in his responsibilities toward Parliament and Canadians.

Effective portfolio management is imperative to maintain an organization that is properly positioned not only to deliver on the organization’s priorities, but also to help the Government achieve its overall strategic objectives.

Management Initiatives

Following the completion of the latest Management Accountability Framework (MAF) assessment with Treasury Board Secretariat, Infrastructure Canada continues to pursue several enhancements to various modern management practices within the overall MAF. This is consistent with its vision to deliver, under prudent stewardship, quality programs that generate results for Canadians.

Infrastructure Canada continues to respect Government of Canada administrative policies pertaining to proactive disclosure, public opinion research, communications, etc.

Chief Financial Officer

A key step in strengthening modern management practices within Infrastructure Canada was the establishment of the position of Chief Financial Officer (CFO). The move responds to a recommendation of a major independent review of Infrastructure Canada’s program operations conducted in early 2005 that Infrastructure Canada’s financial and auditing functions be strengthened. The CFO leads comptrollership activities in areas such as risk management and control, performance and financial accounting and reporting, and financial policy framework and standards. The CFO, as in all departments, maintains an ongoing working relationship with the Comptroller General.

Human Resources Strategy

Infrastructure Canada respects and supports the career aspirations of its employees, seeks their opinions, and celebrates their achievements. The success of the organization depends on a dedicated, well-trained and diverse workforce, and our human resources strategy will focus on the following five key areas to ensure we have the right people to deliver our programs and serve our clients.

i) Modernization and Public Service Renewal

The Public Service Modernization Act (PSMA) is the key to building the renewal of the federal public service. Now that the legislation is fully implemented, the emphasis will be on ensuring that the appropriate management infrastructure is in place to take full advantage of the flexibilities offered by the Act and the associated administrative reforms. Policy development, learning activities, implementing and sharing best practices, communications, and monitoring will be central elements. By concentrating on those areas, the Infrastructure Canada will fulfil its responsibilities related to: clarifying roles, responsibilities and accountabilities; creating a culture of teamwork; striving for excellence; building leadership capacity; and, improving our ability to think about and plan for Canada’s future.

ii) Building the Workforce

Infrastructure Canada will continue to seek out and hire people with the right knowledge, competencies and skills needed to accomplish its work. Particular emphasis will be placed on succession planning, staff retention, and recognition and awards. More efficient staffing processes will be developed to ensure employees are recruited when they are required.

iii) Learning

Efforts will continue to ensure that Infrastructure Canada fulfils its responsibilities related to required training for new public servants, first-time supervisors and managers, existing managers, and certain functional specialists. The organization’s continuous learning policy will be linked with succession planning, key leadership competencies and operational needs. A corporate learning strategy will ensure that individual learning plans have a corporate focus.

iv) Representation

Infrastructure Canada has excellent capacity to communicate with the public and with employees in both official languages, and it will do its utmost to maintain that capacity, taking into account issues related to succession planning, to recruitment from outside the federal public service and to Employment Equity. The organiza-tion is committed to providing equal opportunities for employment to the four designated EE groups, so, to that end, it will conduct a staff self-identification campaign early in 2007-2008. Measures to address any gaps identified will then be developed.

v) Values and Ethics

The passage of the Federal Accountability Act has created an even greater emphasis on public service values and ethics, and on the need to maintain and enhance Canadians’ confidence in federal institutions. Infrastructure Canada will put in place measures to ensure that it meets the spirit and intent of the new legislation.

Information Management/ Information Technology Strategy

Infrastructure Canada is committed to using information technology and information management products and services strategically to support its priorities. The Shared Information Management System for Infrastructure (SIMSI) is a secure, user-friendly, bilingual, Web-based information management system that allows users to register projects online, monitor project status and access benefits and payment information.

The main planned activities for 2007-2008 related to SIMSI include the following:

• Managing project files for all infrastructure programs;
  
• Developing a horizontal reporting approach that encompasses investment results; and
  
• Leveraging SIMSI project data for broader purposes (research community, public interest).

Other planned activities that engage the collaboration of various stakeholders include:

• Data collection, analysis and dissemination in support of multi-jurisdictional infrastructure planning;
  
• Providing collaborative technologies for infrastructure program governance bodies and stakeholder organizations; and
  
• Extending client service to encompass partners and stakeholders.

Also, to ensure alignment with federal accountability requirements, the IM/IT unit will focus on participating in Treasury Board policy and guideline renewal and implementing a robust information management program.

Communications

The communications function of Infrastructure Canada informs Canadians about funding and projects that support their communities through the range of the federal infrastructure investment programs. The organization also communicates about its role in cities issues and about its research program. Communications activities are coordinated and delivered with its portfolio partner – Transport Canada, regional development agencies, other federal partners, and with provincial, territorial and municipal partners.

The communications function also includes proactive media relations strategy to support ministerial and organizational announcements and events. The function develops consistent communications approaches and products to increase awareness and understanding by Canadians of the federal role/involvement in infrastructure. With the recent commitments by the Government to additional infrastructure investments, it is anticipated that Infrastructure Canada will see an increase in the number of announcements. As well, the directorate manages the on-line and phone query lines.

Budget 2006 committed to an unprecedented level of infrastructure funding that was reinforced in the November 2006 Economic and Fiscal Update, Advantage Canada. The Minister of Transport, Infrastructure and Communities has consulted over the summer months with provinces, territories, municipalities and stakeholders. These consultations will inform the development of the compre-hensive infrastructure plan outlined in Advantage Canada. To support the infrastructure plan, the Communications Directorate will develop a brand, including a look for the new infrastructure programs, which will be incorporated into the Infrastructure Canada and partner corporate identity programs as appropriate.

The communications function undertakes outreach activities by participating in various conferences and forums to help raise aware-ness of federal infrastructure programs, cities and communities initiatives, and associated research efforts. For example, Infrastructure Canada will look to participating in municipal conferences, such as the Federation of Canadian Municipalities 70th Annual Conference and Municipal Expo in Calgary in June 2007.

The Communications Directorate conducts media monitoring analysis to track current and emerging public issues and trends reported by the media as they relate to Infrastructure Canada’s policies, programs, services and initiatives. The Directorate also uses public environment research to help ensure that the views of Canadians contribute to formulating policy and programs approaches. Infrastructure Canada is currently planning to conduct a comprehensive nationwide public opinion research on Canadians’ thoughts and attitudes towards a variety of community related issues, which will be conducted in 2007-2008. The research will help feed into fund renewal policy development and related communications strategy.

Contacts

For more information, visit www.infrastructure.gc.ca or contact Infrastructure Canada at:

Infrastructure Canada
90 Sparks Street
Ottawa, Ontario
K1P 5B4

Telephone: 613 948-1148
Telephone toll free: 1 800 O-Canada (1 800 622-6232