Since the 1960's Indian and Northern Affairs Canada (INAC) has provided support to assist people living on reserves in accessing basic infrastructure services. INAC's goal is to ensure that people living on reserve have access to basic infrastructure services at a level which is comparable to services other Canadians receive from provincial, territorial and municipal governments. These services include water, wastewater treatment, roads, bridges, fire protection, schools, electrification and community buildings.

INAC's primary role today is carried out through the provision of funding and advisory activities. The department also supports First Nation organizations such as regional technical organizations and Tribal Councils in the provision of technical advisory and training services to First Nations.

Acting under the authorities of the Department of Indian Affairs and Northern Development Act, INAC provides funding assistance through its Capital Facilities and Maintenance Program to First Nations for the planning, design, and construction/reconstruction of basic infrastructure on reserves. INAC also funds First Nations to share services, such as water, with neighbouring municipalities through municipal-type agreements when this is a cost-effective and practical solution. The funding is normally contingent on the First Nation having an approved community physical development plan and related capital plan, which is supported by the Chief and Council. Funding is managed through regional five-year capital plans which are revised from time to time to reflect budgetary and priority considerations.

INAC funding for infrastructure services to First Nation communities is provided through a variety of funding arrangements. These funding arrangements include terms and conditions and reporting requirements that INAC uses to ensure that First Nations meet program requirements. Approximately one-third of the Capital Facilities and Maintenance Program budget is used for the operation and maintenance of existing infrastructure and facilities while two-thirds is designated for the acquisition of capital assets (mainly water and sewer and schools). The operating and maintenance funding is provided under a funding formula and managed by the First Nation. The funding priorities for major capital projects are determined by INAC regional offices in consultation with First Nations.

Over 90 percent of the program budget is administered by First Nations, who are responsible for developing their own capital plans and for prioritizing their requirements. First Nations manage capital projects, develop and implement maintenance management programs and ensure their capital assets are constructed and maintained in accordance with minimum federal and provincial standards.

First Nations are required to develop tendering policies as a condition of funding related to federal funded capital projects over $100,000, excluding housing. This requirement of competitive tendering process is intended to ensure value for money with projects awarded in an open and equitable fashion, while at the same time maximizing local socio-economic benefits.

The population within First Nation communities is growing. Because of this, the need for improved and expanded infrastructure in First Nation communities is ever increasing which is putting more and more demands on a community's current infrastructure. Because of this it is important that resources for capital be carefully targeted and that the life of current assets be extended through maintenance.

Quick Facts

• The Government of Canada has committed approximately $590 million to support the Capital Facilities and Maintenance Program.

• Under Gathering Strength, an additional $50 million is being provided for water and sewer projects for the 2001-2002 fiscal year.

• Thirty-one million dollars is being provided through the First Nations Component of the Infrastructure Canada Program to assist First Nations improving the physical infrastructure in their communities, from April 2001 until March 2003.

• Through the federal Rust-Out Initiative, $160 million is being provided over five years for improvements in water and sewer facilities.

• In 1991 less than 80 percent of houses on reserve has basic water and sewer services, by 2000, this number increased to 94 percent.

• As of 2000, 90 percent of First Nations communities had access to electric services.

• As of 2000, 88 percent of Fist Nations communities had adequate road access, meaning the community can be accessed by road year round.

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