Selecting and Funding BIF Projects

Under the Border Infrastructure Fund (BIF), projects are identified for investment through a process that usually starts with discussion between federal and provincial (and sometimes local) officials and their ministers (and mayors).  Mayors and local officials are involved if appropriate.

The Minister of Transport, Infrastructure and Communities is responsible for making the decision on whether Infrastructure Canada officials should further examine a project proposal, and will do this after consulting extensively with colleagues (other relevant ministers including the appropriate regional minister, and regional caucuses).

Once a project has been identified as a funding priority, the organization proposing the project (or “proponent”) is invited to submit a project business case that Infrastructure Canada will review in conjunction with other partners. This proposal will be screened to ensure it meets the BIF program criteria. Infrastructure Canada officials also review and evaluate the viability of a potential project and its ongoing implementation before recommending to the Minister that the department work toward establishing a legal contract (“contribution agreement”) with the proponent. This stage of the analysis is called “interim due diligence”.

A joint project announcement is made after the Minister has reviewed the final due diligence report and approves a project. This signals the Government of Canada’s commitment to fund the project. At this stage, all partners have essentially agreed in principle about the scope of the project, potential funding sources, and timelines. From the time of this announcement, the eligible costs that are incurred for the project can be reimbursed. However, funds cannot flow until a final contribution agreement is signed.

A second stage of review then begins, which looks at project planning and design; detailed, comprehensive project information; and an environmental assessment, which will identify any mitigation measures that may be necessary.

The process leading to the signing of a contribution agreement involves negotiation and consultations between the orders of government, to agree upon the set of parameters and conditions that will govern delivery of the federal funding as well as the implementation, management and evaluation of the project.

Once negotiations are concluded, but before a contribution agreement can be signed, a submission must be made to federal Treasury Board ministers seeking final approval for the project. The Treasury Board review ensures sound management and accountability for every project funded under the BIF.

With Treasury Board approval, and any conditions of that approval met, the contribution agreement can be signed by the funding recipient and the federal government. The signing of the contribution agreement is typically also recognized with a joint public project announcement because it represents a very important milestone.

Once the contribution agreement has been signed, the federal government may begin to reimburse a recipient for eligible projects costs, and will pay these costs according to the milestones detailed in the contribution agreement. 

Infrastructure programs are delivered in collaboration with many federal partners. These organizations have a regional presence and provide valuable technical expertise and support in the monitoring and administration of infrastructure projects.

In the case of BIF, the federal delivery partner is Transport Canada.

Representatives of the federal and provincial governments and the recipient participate on a project steering committee. Among other activities, the committee reviews the process for payment of claims, reviews the recipient’s annual audits and reports, monitors project progress and compliance with the contribution agreement and joint project communications.

A Funding recipients will be asked to report annually on the project’s progress, on achievements and on financial details.

Upon the completion of the project, the funding partners may hold a joint public event and install a permanent plaque recognizing the support of federal, provincial and other partners.