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New Building Canada Plan

New Building Canada Plan. April 2014. The New Building Canada Plan: Context. Budgets 2011 and 2012 committed the Government of C anada to develop a new long-term infrastructure plan prior to the expiry of the 2007 Building Canada Plan on March 31, 2014

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New Building Canada Plan

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  1. New Building Canada Plan April 2014

  2. The New Building Canada Plan: Context • Budgets 2011 and 2012 committed the Government of Canada to develop a new long-term infrastructure plan prior to the expiry of the 2007 Building Canada Plan on March 31, 2014 • To meet these commitments, INFC undertook extensive engagement activities to receive feedback from partners and stakeholders on what a future plan should look like • Budget 2013 announced a New Building Canada Plan (NBCP) that provides over $53 billion in funding, including more than $47 billion in new funding, over 10 years • Budget 2014 reiterated the NBCP announcement and committed to having the new plan launched before the expiry of the 2007 Building Canada Plan - the NBCP was fully launched on March 28, 2014

  3. NBCP Framework New Building Canada Plan $53B - 2014-2024 COMMUNITY IMPROVEMENT FUND $32.2B Gas Tax Fund $21.8B GST Rebate $10.4B Existing Infrastructure Funding $6B Legislated Funding: $32.2B/10 years NEW BUILDING CANADA FUND $14B P3 CANADA FUND $1.25B (merit-based) Provincial-Territorial Infrastructure Component $10B (allocated) National Infrastructure Component $4B (merit-based) Program Funding: $15.25B/10 years Funding for National/ Regional Projects$9B Small Communities Fund $1B

  4. Community Improvement Fund The Gas Tax Fund (GTF) • Key program features : • Municipalities select projects • Canada pays in two instalments per year COMMUNITY IMPROVEMENT FUND $32.2B Gas Tax Fund $21.8B GST Rebate $10.4B • Budget 2013 announced some changes to the GTF: • Indexation at 2% per year, beginning in 2014-15, increases in $100M increments • Added 11 eligible categories, for a total of 18: • Public transit • Drinking water • Wastewater • Solid waste • Green energy • Capacity building • Disaster mitigation • Tourism • Sport • Recreation • Culture • Brownfield redevelopment • Local roads and bridges • Short-line rail • Short-sea shipping • Regional and local airports • Highways • Connectivity and broadband The GST Rebate (managed by Canada Revenue Agency) • Municipalities submit an application to CRA to claim the GST paid on purchases to support municipal services

  5. New Building Canada Fund – NIC National Infrastructure Component (NIC) • $4-billion fund for large, strategic infrastructure projects of national significance that support job creation, economic growth and productivity • Projects are determined by merit and guided by federal priorities NEW BUILDING CANADA FUND $14B Provincial-Territorial Infrastructure Component $10B (allocated) National Infrastructure Component $4B (merit-based) Funding for National/ Regional Projects$9B Small Communities Fund $1B • Eligible categories are limited to those that provide the greatest economic impact: • Highways and major roads • Public transit • Rail infrastructure • Local and regional airports • Funding of $155 million over 10 years will be allocated from the NIC to the First Nations Infrastructure Fund managed by AANDC • Port infrastructure • Intelligent transportation systems (ITS) • Disaster mitigation infrastructure

  6. New Building Canada Fund – PTIC Provincial-Territorial Infrastructure Component (PTIC) • $10-billion in allocated funding: • $9 billion for national and regional projects NEW BUILDING CANADA FUND $14B Provincial-Territorial Infrastructure Component $10B (allocated) National Infrastructure Component $4B (merit-based) • $1 billion through the Small Communities Fund for local projects in communities with populations under 100,000 Funding for National/ Regional Projects$9B Small Communities Fund $1B • Each PT will receive a base amount of $250 million with the remainder of funding allocated on a per capita basis • Eligible categories have been realigned to focus on those with strong economic benefits while contributing to a cleaner environment, and stronger communities: • Innovation • Northern infrastructure (territories only) • Short-line rail • Short-sea shipping • Regional and local airports • Connectivity and broadband • Disaster mitigation • Brownfield redevelopment • Highways and major roads • Public Transit • Drinking water • Wastewater • Solid waste • Green energy

  7. NBCP – Support for P3s • Through the NBCP, the Government demonstrated its continued support for P3s and its commitment to further develop the Canadian P3 market • Binding P3 Screen • For NBCF projects with total eligible costs above $100 million • If the Screen determines that a project could be successfully procured through a P3 and a P3 procurement would generate better value for money, NBCF funding will be conditional on the project being delivered as a P3 • P3 Screen administered by PPP Canada in consultation with INFC • Renewed P3 Canada Fund (managed by PPP Canada) • $1.25 billion over five years to support innovative P3 projects • Includes $10 million to support procurement option analysis undertaken by Provinces, Territories, and Municipalities for the P3 Screen under NBCF • Would cover up to 50 percent of costs incurred to a limit of $200,000 per project • Eligible project categories would be consistent with existing program

  8. NBCF Cost-sharing Provinces • The maximum federal contribution from all sources will be one-third (33.3%) of the total eligible costs of a project, with the following exceptions: • Provincially-owned highways and major roads will be cost-shared up to 50% • Public transit projects will be cost-shared up to 50% • Projects where the recipient is from the for-profit private sector will be cost-shared up to 25% • All projects delivered as P3s will be cost-shared at 25% Territories • The maximum federal contribution from all sources will be three-quarters (75%) of the total eligible costs of a project, with the following exception: • Projects where the recipient is from the for-profit private sector will be cost-shared up to 25% • Three levels of government, and the private sector, can contribute to infrastructure projects

  9. NBCP – Open for Business • On March 28th Minister Lebel launched the New Building Canada Fund • The official launch of the New Building Canada Fund, means that the entire NBCP is now "open for business," ensuring a seamless transition to the new program • $6 billion in old funding will continue to flow to projects in 2014-15 • INFC and PTs are signing new GTF Agreements • Federal government is ready to review project proposal submissions

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