Infrastructure Canada Financial Management Institute Investment Planning and Project Management January 19, 2017

Who we are Infrastructure Canada (INFC) serves as the focal point for the Government of Canada on public infrastructure matters Responsible for federal efforts to enhance Canada’s public infrastructure includes making investments, building partnerships, developing policies, delivering programs, and fostering knowledge about public infrastructure in Canada Since its creation in 2002, billions have been invested, with a current long-term commitment to invest $186 billion over the next 12 years Created as stand-alone entity in 2002

Why Infrastructure? Public infrastructure supports Canada’s priorities: Economic competitiveness: through funding for national transportation systems, trade corridors, and telecommunications Cleaner environment: through funding for clean water, clean energy, public transit, waste Stronger communities: through funding for local roads, clean water, recreation, culture, brownfield development Infrastructure investments can help address any number of complex challenges – ranging from the rapid growth of our cities, to climate change, and threats to our water and land Infrastructure funding has also been used to support large national policy agendas such as fiscal balance and economic stimulus

How it Works Under Canadian federalism, provinces and territories are responsible for matters of a local nature (e.g. municipalities, local infrastructure) Almost all (98%) of core public infrastructure* in Canada is owned, operated and maintained by Provinces, Territories and Municipalities INFC manages contribution programs targeting provincial, territorial and municipal infrastructure - we do not own or manage these assets PTs are delivery partners for most of INFC’s programs Respects PT constitutional responsibility for municipalities Allow PTs to prioritize competing municipal proposals within their jurisdiction In general, we deliver three styles of program 1) Statutory Funding for Communities; 2) PT allocations; 3) Application-Driven Programs *Core Public Infrastructure is defined as public transit, roads, bridges, water, wastewater, culture, and recreational facilities

THE Investing in Canada PLAN $186.7 billion over 12 years (2016-17 to 2026-27, all federal departments) $91.1 BN Existing Funds* $14.4 BN Phase 1 $81.2 BN Phase 2* $21.8B Gas Tax Fund** $10.4B GST Rebate $14B New Building Canada Fund $12.7 Legacy programs POST SECONDARY INSTITUTIONS Infrastructure Bank $32.2 OTHER DEPARTMENTS* RURAL BROADBAND Infrastructure is one key element to help grow the middle class * CMHC, INAC, Public Safety, Health, ESDC, Public Health, Canadian Heritage ** Announced on November 2, 2016 Fall Economic Statement. Detailed program design in progress

Phase 1 - New Programs: Transit and green infrastructure $3.4B for public transit infrastructure delivered through Public Transit Infrastructure Fund (PTIF) Focus Rehabilitation, modernisation and replacement of existing capital assets Planning for future system improvements and expansion $2B to renew water and wastewater infrastructure delivered through the Clean Water and Wastewater Fund (CWWF) Focus Investments on meeting immediate priorities for clean water and wastewater in communities Rehabilitation of water, wastewater and stormwater infrastructure Studies and planning for future system upgrades as well as new construction

Program Delivery Flow – PTIF/CWWF 1. Agreement with P/Ts 2. P/Ts prioritize and submit project list 3. INFC reviews project lists for eligibility 4. Departmental Recommendation 5. Ministerial approval 6. Funding Agreement Monitoring and claims payment 7. Project and agreement closure INFC enters into funding agreements with each province and territory (P/Ts) P/Ts manage the project identification process and the general oversight of the program. P/Ts submits a list of projects. INFC reviews to determine eligibility and submits for approval of Minister. INFC monitors agreements, reimburses Canada’s contribution to cost incurred and paid by the P/Ts and receives progress reports semi-annually. For each completed project, P/Ts are to submit an attestation that the project has been completed in accordance with approved project parameters.

Key Elements of BUDGet 2016 Programs Incrementality Federal funding is intended to accelerate overall infrastructure spending Transparency and openness Federal Government is committed to providing more information on infrastructure program spending to Canadians INFC website and open data portal include information on amount of funding approved as well as details on progress of projects and programs Strong accountability and public reporting of results Informing Canadians of the projects and benefits of the investments projects that would not have taken place within the first two years of the program, projects not have been undertaken without the federal funding

Management of Key Challenges Programs were designed to manage main risks 1. Short-term program timeframe Focus on projects that can be completed quickly Flexibility for PTs in project identification process Project approval is simple – list-based system 2. Flowing funding quickly Costs eligible as of April 1, 2016 Payments based on PT attestations of costs incurred 3. Reporting on progress and outcomes Project data publicly available Building on existing reporting relationships and processes

Lessons Learned from Previous Programs Infrastructure Canada, Provinces and Territories have had a longstanding, positive and collaborative relationship. Continuing to build and maintain that relationship is highly important Defining outcomes and reporting expectations upfront facilitates the aggregation of results for national reporting Programs recognize that provinces and territories are better positioned to determine and select their infrastructure priorities, in collaboration with municipalities A single-window approach that focuses on bilateral agreements directly with provinces and territories to facilitate the delivery of programs in an effective and efficient manner