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CCA Overview of New Building Canada Fund

This afternoon, (February 13th) the Prime Minister and Minister Lebel announced further details regarding the $14 billion component of the new $53 billion Building Canada Plan. The $14 billion fund titled the New Building Canada Fund (NBCF) consists of two components:

– The National Infrastructure Component valued at $4 billion

– The Provincial-Territorial Infrastructure Component consisting of $9 billion, which will provide each province and territory with $25 million of base funding and allocate the remaining $6.4 billion on a per capita basis based on 2011 population estimates.

The Small Communities Fund valued at $1 billion and available to communities with populations of less than 100,000 inhabitants

NATIONAL INFRASTRUCTURE COMPONENT

Eligible projects under the NIC include:

– Highways and MAJOR roads (local roads no longer eligible and must be funded from Gas Tax Funding)
– Public Transit
– Rail Infrastructure
– Local and regional airports
– Port Infrastructure
– Intelligent transportation systems (ITS)
– Disaster mitigation infrastructure

In addition to provinces, territorial and municipal governments, private-sector bodies (for-profit and not-for-profit) and Aboriginal entities can also submit projects for consideration under the NIC providing the projects contribute to economic development, are critical to supporting international trade or contribute to innovation (post-secondary institutions).

PROVINCIAL-TERRITORIAL INFRASTRUCTURE COMPONENT

Eligible projects under the PTIC include:

– Highways and MAJOR roads (local roads no longer eligible)
– Public Transit
– Drinking water
– Wastewater
– Solid waste management
– Green energy
– Innovation (post-secondary infrastructure supporting advanced research and teaching)
– Connectivity and broadband
– Brownfield redevelopment
– Disaster mitigation infrastructure
– Local and regional airports
– Short-line rail
– Short-sea shipping
– Northern Infrastructure

Local roads and recreational facilities are no longer eligible for project funding under the PTIC and must be funded from the Gas Tax Fund.

Each province and territory will receive up to $25 million annually in base funding. The funding must be applied against specific projects and will amount to $3.25 billion. In addition, each province and territory will receive a per capita share of $6.4 billion based on 2011 population estimates.

Funding Table over 10 Years
Base Fund Per Capita Share
NL $250 M $99 M
PE $250 M $27 M
NS $250 M $176.5 M
NB $250 M $143.6 M
QC $250 M $1,519.5 M
ON $250 M $2,470.3 M
MB $250 M $217 M
SK $250 M $186.7 M
AB $250 M $691.9 M
BC $250 M $839.9 M
YU $250 M $6.6 M
NW $250 M $8 M
NU $250 M $6M

COST SHARING UNDER THE BUILDING CANADA FUND

– Co-sponsored Government Project: The maximum federal government contribution will be 1/3 of eligible costs.
– Provincially-owned or public transit: The maximum federal contribution will be 50% of eligible costs.
– For-profit entities: The maximum federal contribution will be 25% of eligible costs.
– P3 Projects: The maximum federal contribution remains 25% of eligible costs.
– Territorial Projects: The maximum federal contribution will be 75% of eligible costs.

AREAS OF CONCERN
One area of concern moving forward is the requirement for all projects with eligible costs exceeding $100 million to undergo a P3 review by PPP Canada. While officials have confirmed that they will not duplicate reviews conducted by provincial P3 authorities, they will review their conclusions and make an independent assessment. Should PPP Canada determine that a provincial P3 authority erred in their assessment, project proponents will be denied funding unless they proceed with the project as a P3. These provisions are of particular concern to the Federation of Canadian Municipalities.

FURTHER DESIGN CONSULTATIONS
CCA was assured that it would be consulted further on the design of the NBCF provincial/territorial reporting requirements, as well as the P3 screen and the application of the Budget 2013 requirement to use federal procurement and the Building Canada Plan as a tool to encourage the greater use of apprentices.

PROGRAM START UP
The federal government will begin reviewing applications commencing April 1, 2014. Though funding allocations tables were provided in Budget 2013, these allocations were notional and should not be viewed as static.

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