News Release

July 22, 2003

GOVERNMENT OF CANADA ANNOUNCES PARAMETERS FOR INFRASTRUCTURE FUNDS

OTTAWA, Ontario - Minister of Industry and Minister responsible for Infrastructure Allan Rock today outlined the broad parameters for the $3 billion infrastructure funds announced in Budget 2003.

"Taken together with past infrastructure initiatives, this $3 billion brings the Government of Canada's investment in infrastructure projects since 1994 to $12 billion. Now, we are moving forward on our ten-year commitment to infrastructure by laying out the broad direction for future project funding," said Minister Rock.

"Our approach will ensure that infrastructure investments benefit and respond to the needs of all Canadians, in both urban and rural communities," said Minister Rock. "The Government of Canada continues to provide leadership on national priority projects and to pursue partnerships with all levels of government to respond to Canada's infrastructure needs. These investments represent a key component of the Government of Canada's sustained support for Canadian communities."

Of the Budget 2003 allocation, $2 billion will top-up the existing Canada Strategic Infrastructure Fund. Investments will be strategically targeted to help promote sustainable growth and competitive communities by ensuring that investments reflect Government of Canada objectives on climate change, urban development, clean water, trade and innovation. The fund will continue to target large-scale projects, with key Government of Canada priorities guiding project eligibility. The Canada Strategic Infrastructure Fund will support projects in areas such as:

• water quality and access;
• trade corridors;
• broadband connectivity;
• sustainable urban growth; and
• northern infrastructure

A maximum of ten per cent, or $200 million, of the Canada Strategic Infrastructure Fund has been set aside for national priority projects. These are projects of national importance that require the Government of Canada to take a leadership role.

"Access to safe water, ensuring infrastructure improves our trading position, supporting sustainable urban development and achieving infrastructure goals in the north are all priorities that will directly benefit Canadians," stated Minister Rock. "As well, expanding broadband networks in Canada will help to ensure that Canadians who live and work in rural and remote communities have access to services such as distance learning and tele-health and can seize more business opportunities."

Under the new parameters, 20 percent of the Canada Strategic Infrastructure Fund will be targeted toward projects that benefit communities of less than 250,000 people. And, in order to better respond to the particular infrastructure needs of the north, a northern infrastructure category will be developed and included under this Fund for the benefit of the Territories.

In addition to the $2 billion top-up of the Canada Strategic Infrastructure Fund, Minister Rock announced that the remaining $1 billion will be directed toward a grassroots municipal-rural infrastructure fund. This program will include a First Nations component and be similar in nature to current federal-provincial infrastructure agreements. Under this program, a maximum of 20 percent of the funds will be targeted toward projects that benefit communities of over 250,000 people.

Further details on the parameters of the municipal-rural fund and the announcement of the national projects will follow in the weeks to come.

Contacts:

Selena Beattie
Office of Minister Rock
(613) 995-9001

Infrastructure Canada
(613) 948-1148

BACKGROUNDER

PARAMETERS FOR THE BUDGET 2003 INFRASTRUCTURE FUNDS

In the 2002 Speech from the Throne, the Government of Canada committed to an additional 10-year involvement in public infrastructure. In Budget 2003 it re-affirmed this long-term commitment by providing an additional $3 billion for infrastructure investments. This brings the Government of Canada's investment in infrastructure since 1994 to $12 billion, which has in turn generated $30 billion in investments by all partners.

Why infrastructure investments?

The Government of Canada recognizes that a modern and efficient public infrastructure is key to the prosperity of our cities, the health of our communities and the competitiveness of our economy. Building on the success of past infrastructure programs, the Budget 2003 funds will continue to invest in public infrastructure, improving quality of life and economic growth, and making Canada a better, more competitive place in which to live, work and do business.

Who benefits from the new approaches?

While the Canada Strategic Infrastructure Fund focuses primarily on Canada's large urban centres, the investment parameters will recognize the particular needs of smaller cities as well as northern, rural and remote communities, and First Nations. Provisions will be put in place to ensure flexibility in addressing the needs of these communities.

Smaller and rural municipalities will benefit from the new parameters in several ways. Of the Budget 2003 infrastructure funds, $1 billion will be set aside for a municipal-rural infrastructure program. Under the Canada Strategic Infrastructure Fund, funds will also be reserved for projects that benefit communities of less than 250,000 people.

Additional consideration has also been made for northern communities and First Nations. A northern infrastructure category has been included in the eligible investment categories for the Canada Strategic Infrastructure Fund. This will permit them to access this investment fund to address their particular infrastructure needs. And a First Nations component will be implemented under the municipal and rural program to address infrastructure needs in these communities.

Canada Strategic Infrastructure Fund

The Canada Strategic Infrastructure Fund announced in Budget 2001 provided $2 billion to respond to strategic infrastructure needs across the country. Investments are directed to large-scale projects of major national and regional significance and are made in areas that are vital to sustaining economic growth and supporting an enhanced quality of life. The Fund emphasizes partnerships with municipal, provincial, territorial governments, as well as the private sector, and each partnership is governed by specifically tailored agreements. Announcements to date include the Vancouver Convention and Exhibition Centre, the Red River Floodway, transit in the Greater Toronto Area, broadband in Newfoundland, the A-30 by-pass in Montréal, and the St. John's and Halifax Harbour Clean-ups. Major highway projects have also been initiated in British Columbia, Saskatchewan, Quebec, New Brunswick and Nova Scotia.

The additional $2 billion provided for the Canada Strategic Infrastructure Fund through Budget 2003 will build on the successes of the 2001 funds. The existing CSIF program parameters will be adjusted to better address the infrastructure needs of the country, as well as Government of Canada priorities. Provisions have also been built in to increase the Fund's flexibility to meet the particular needs of northern, rural and remote communities, and First Nations.

Key Government of Canada priorities will continue to guide project eligibility. The existing investment categories will remain the same but be re-focused to better reflect these priorities. A new category has also been included to respond to infrastructure needs of our northern communities. The investments categories are:

• water quality and access;
• trade corridors;
• broadband connectivity;
• sustainable urban growth; and
• northern infrastructure

Several key projects of strategic national importance will be identified as priorities for funding under the new parameters. A maximum of ten per cent, or $200 million, of Budget 2003 CSIF funding will be set aside for these national projects, which are defined as projects of national importance that require the Government of Canada to take on a leadership role. They include trans-provincial or trans-territorial projects or more localized but critical projects where federal funding is appropriate.

While the CSIF is urban in focus, to ensure overall equity, funding will be dedicated to projects that benefit rural areas and municipalities with a population of under 250,000 people. This allows the Government of Canada to continue its partnerships with municipalities that, with provinces and territories, has produced almost 3,000 infrastructure projects since 2000 with a total investment of over $5 billion.

Leveraging Greater Public Benefits

The Canada Strategic Infrastructure Fund will establish a framework to ensure that maximum public benefits are realized from infrastructure investments. Where possible, projects should be complemented by supportive policies such as, climate change plans and best practices in areas such as infrastructure investments and asset life-cycle management.

Infrastructure research

Strengthening the existing knowledge-base related to infrastructure, including both the creation and transfer of knowledge, will lead to innovative and more effective policy and decision making on infrastructure investments. In this spirit, Infrastructure Canada will support infrastructure research, feasibility studies on specific complex project proposals, and will work to generate and disseminate knowledge.

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