Introduction

As part of its commitment to maintain and improve quality of life for all Canadians, the Government of Canada launched a six-year program in 2000 to renew and enhance Canada's physical infrastructure. In partnership with provincial, territorial, and municipal governments, First Nations and the private sector, the program is helping to upgrade infrastructure in rural and urban municipalities across Canada.

Budget 2000 provided $2.65 billion of funding for the physical infrastructure program. It is a national initiative, intended to complement and augment the existing capacity of provincial, territorial, and municipal governments to invest in physical infrastructure. The program has two components: municipal infrastructure ($2.05 billion), called the Infrastructure Canada Program (ICP), and a highways component ($600 million), called the Strategic Highway Infrastructure Program (SHIP), administered by Transport Canada. 

With contributions from our provincial, territorial and municipal partners, and the private sector, the ICP will generate at least $6 billion in infrastructure investment. The ICP is a national program with local impact. It funds municipal infrastructure projects in thousands of rural and urban communities across Canada.

Goals and Priorities

The goal of the Infrastructure Canada Program (ICP) is to enhance municipal infrastructure in urban and rural communities across the country, and improve Canadians’ quality of life through investments that protect our environment and support long-term economic growth.

Green municipal infrastructure is the program’s first priority. Examples of eligible projects include the following:

• water and wastewater systems
• water management
• solid waste management and recycling
• capital expenditures to retrofit or improve the energy efficiency of buildings and facilities owned by local governments.

Other priorities include the following:

• local transportation infrastructure (urban transit, subway systems, commuter rail, light rail, and transit buses using alternative fuels; other local rail-related infrastructure; roads, bridges, tunnels, and intelligent transportation systems technology; and public wharves, docks, piers and terminals)
  
  
• cultural and recreational facilities (local museums, designated local heritage sites, art galleries, performing arts facilities, cultural or community centres, recreational and sports facilities, and libraries)
  
  
• tourism-related infrastructure (basic municipal infrastructure to support or provide access to tourist facilities, major public attractions, convention or trade centres, and exhibition buildings)
  
  
• rural and remote telecommunications (such as fibre optic or copper cable, radio or satellite links in rural area)
  
  
• high-speed Internet access (for local public institutions such as schools, museums and libraries, community centres or municipal buildings)
  
  
• affordable housing (construction of rental housing, including related infrastructure such as site preparation and utility extensions, that would rent at or below average market rental rates in a particular community)

Local Results

The Infrastructure Canada Program (ICP) is designed to work from the bottom up. Local governments are in the best position to identify which infrastructure needs will have the greatest impact on the quality of life within their own communities. The program allows rural and urban municipalities, provinces and territories, First Nations and northern communities to identify their own priorities.

Role of Municipalities

Under the ICP, municipalities propose projects for funding. In most cases, the Government of Canada provides up to one-third of the cost of each municipal infrastructure project. The province or territory, and the municipality itself, provide the remainder of the funds.

Role of First Nations

Under the ICP First Nations component, administered by Indian and Northern Affairs Canada (INAC), First Nations propose projects for funding. In most cases, the ICP contributes one third of the costs of the projects. The First Nations and INAC contribute the remaining funds. Regional project review committees, established by INAC, include representatives from First Nations organizations. Projects under the First Nations component can also be shared initiatives, involving municipalities or provincial and territorial governments.

Program Administration

As the Minister of State (Infrastructure and Communities), John Godfrey is responsible for the implementation of the Infrastructure Canada Program (ICP).

ICP agreements have been signed between the Government of Canada and all ten provinces and three territories. These agreements define the relationship between the federal government and each provincial/territorial government. Each agreement includes program objectives, funding allocation, project selection criteria, cost-sharing principles, communication protocols, general administrative procedures, and the audit and evaluation process.

Joint federal-provincial and federal-territorial management committees have been established in each jurisdiction to review and select projects using the selection criteria detailed in each ICP agreement. Each Management Committee is co-chaired by a representative of the federal government and one from the provincial or territorial government. On the federal side, the following federal departments and agencies are responsible for program delivery and represent the Government of Canada on the management committees:

• Atlantic Canada Opportunities Agency (for Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador)
  
  
• Canada Economic Development (for Quebec)
  
  
• Indian and Northern Affairs Canada (for Yukon, Northwest Territories, Nunavut and First Nations component)
  
  
• Industry Canada (for Ontario)
  
  
  
• Western Economic Diversification Canada (for British Columbia, Alberta, Saskatchewan, and Manitoba)

Infrastructure Canada provides leadership and coordination to the ICP at the national level, providing advice and support to the Minister of State (Infrastructure), operations and policy advice, information management and reporting, communications planning and coordination, and audit and evaluation.

For more information, visit our Partners page.

Project Selection

The selection criteria against which project proposals are measured were developed in negotiations with our provincial and territorial partners, and are designed to support the overall goals and objectives of the Infrastructure Canada Program (ICP).

Broadly speaking, project proposals are ranked according to how well they advance the objectives of the program:

• Enhancement of the quality of the environment (water and wastewater management, solid waste management, 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)

• Innovation, partnerships, the use of new approaches and best practices, and more efficient use of existing infrastructure

Detailed information about project selection criteria is available through the Management Committee for each jurisdiction. Management Committee contact information for each jurisdiction is available on our Partners page for that jurisdiction.

Program Funding

In recognition that federal funding can often be a catalyst that makes investment in infrastructure possible, the Government of Canada is contributing a total of $2.05 billion to the Infrastructure Canada Program (ICP) over six years.

In most cases, the federal government matches the provincial government contribution, providing up to one-third of the cost of each municipal infrastructure project. The remaining funds come from provincial, territorial and municipal governments. The private sector and others, such as non-governmental organizations, may also be considered as partners for projects.

Funding Allocation

In order to take into account the differing needs of all regions, ICP funds have been allocated according to a formula based on population and unemployment. The amount allocated to a given province or territory is based on its percentage of Canada’s total unemployment and its percentage of Canada’s total population.

For example, if a given jurisdiction has 10 per cent of the total population of Canada, and 12 per cent of the total number of unemployed in Canada, it would receive 11 per cent of the total funding allocation. (10% + 12%) ÷ 2 = 11%

In addition, each ICP agreement specifies a minimum percentage of funds that must be allocated to green and rural infrastructure projects in that jurisdiction.

view allocation table

Accountability

The Government of Canada is working closely with its partners to ensure public accountability. Provisions for regular and strong audit and evaluation of the new program are included in each of the agreements signed with provincial and territorial governments.

Audits are performed annually to ensure that public funds are spent judiciously. Two evaluations of the Infrastructure Canada Program (ICP) will be conducted to examine the effectiveness and efficiency of program design and delivery – an interim evaluation after the third year, and a full evaluation at the conclusion of the program.

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