Infrastructure Canada

Infrastructure Canada

June 02, 2009 14:15 ET

Canada-Quebec Agreement to Stimulate the Economy and Create Jobs

Joint federal-provincial-municipal investments of more than $2.75 billion

QUEBEC CITY, QUEBEC--(Marketwire - June 2, 2009) - The Government of Canada will help stimulate the economy and create jobs by investing almost $1 billion more in infrastructure projects in Quebec over the next two years. This announcement follows an agreement between the Government of Canada and the Government of Quebec. The investment would come from the Infrastructure Stimulus Fund. When combined with contributions from the Government of Quebec and municipalities, the total investment could rise to more than $2.75 billion.

"This announcement is very good news for Quebec," said Christian Paradis, Minister of Public Works and Government Services. "Our investments allow work to get underway at major construction sites that will generate economic activity in all parts of Quebec and give municipalities the means to gain the infrastructure they really need at this time."

In its Economic Action Plan, the Government of Canada announced the creation of a $4 billion Infrastructure Stimulus Fund to be invested across Canada. Of this amount, $936 million is reserved for projects in Quebec, of which $350 million has already been announced for projects to be funded under the Programme de renouvellement des conduites d'eau potable et d'eaux usees (PRECO).

Today, the governments of Canada and Quebec have agreed to invest the balance of the Infrastructure Stimulus Fund to accelerate a series of provincial, municipal and community infrastructure projects. These will be implemented throughout Quebec over the next two years and will not only help to create jobs but will help boost the economy and improve the quality of life of Quebeckers, through sustainable infrastructure. Among the types of projects to be funded are ones that: improve the safety of the provincial and municipal road network and extend its life; improve the environment, such as green spaces, waste management, upgrading drinking water and wastewater treatment systems, and public transport; and upgrade cultural infrastructure. More details on the projects to be funded will be available shortly.

"Under the leadership of Prime Minister Stephen Harper, the Government of Canada is working closely with provinces such as Quebec to stimulate the economy and to promote job creation. Today, the governments of Canada and Quebec have agreed on ways to invest stimulus funds to create jobs and improve the quality of life in Quebec", said Canada's Infrastructure Minister, John Baird. "With the contributions of municipalities, more than $2.75 billion will be invested in infrastructure projects that will stimulate the Quebec economy over the next two years."

These funds are in addition to the $4.8 billion in funding previously provided under the Building Canada Plan. For example, under the Building Canada Plan - Communities Component, the governments of Canada and Quebec have already agreed to jointly spend $410 million on infrastructure projects in small municipalities with fewer than 100,000 residents.

In addition, the governments of Canada and Quebec recently signed an agreement to speed up the payment of the $175 million Provincial-Territorial Base Funding. This amount, which was to have been paid over a seven-year period extending to 2014, will now be made available over the next two years to implement some 65 municipal and provincial initiatives.

The Government of Canada's Economic Action Plan is accelerating and increasing existing federal investments of $33 billion in infrastructure by injecting close to $12 billion over a two-year period to stimulate investment, including for infrastructure in Quebec.

Further information:

For further information on infrastructure investments, click on: www.creatingjobs.gc.ca

For further information of the government of Quebec's Economic Action Plan, click on: www.actionplan.gc.ca

BACKGROUNDER

INFRASTRUCTURE STIMULUS FUND

Through Canada's Economic Action Plan, the federal government has established a new $4 billion Infrastructure Stimulus Fund that provides funding to provincial, territorial and municipal construction-ready infrastructure rehabilitation projects. Funding is available for two years for projects that will be built during the 2009 and 2010 construction seasons.

About the Program

The Infrastructure Stimulus Fund complements existing federal infrastructure funding by focusing on short-term objectives for economic stimulus. To further this goal of rapid economic stimulus, the ISF will focus on construction-readiness as an important project selection criteria. The full $4 billion will be distributed in fiscal years 2009-2010 and 2010-2011. Projects will focus largely on the rehabilitation of existing assets such as water, wastewater, public transit, highways, roads, culture, parks, and trails.

How the Program will Operate in Quebec

The Government of Canada has set aside $936 million for projects to be implemented in Quebec.

Of this amount, $350 million in federal funding will go to projects identified under the Programme de renouvellement des conduites d'eau potable et d'eaux usees (PRECO). This program will allow municipalities in Quebec to implement projects to renew or replace their drinking water distribution and wastewater collection mains. The projects will be selected through a competitive process in which municipalities submit projects for evaluation.

The governments of Canada and Quebec continue discussions to identify other projects that will be supported under the Infrastructure Stimulus Fund. Among the categories of projects to be funded are those that: upgrade safety on the provincial and municipal road network and extend its life; projects to improve the environment, such as investments in green spaces, waste management, upgrades of drinking water and waste water treatment systems and public transport; and improve cultural infrastructure. More details on the projects to be funded will be available shortly.

The projects selected must meet the program's criteria and be confirmed in a funding agreement. The proponents of all projects must certify that the project will be completed over the next two construction seasons and that the project could not have been realized without federal funding. This will allow the program to provide rapid stimulus to the economy.

The program will fund up to 50 percent of projects involving capital investments in provincial and territorial infrastructure or non-profit organizations, up to 33 percent of municipal capital projects, and up to 25 percent of private sector capital projects.

Who is Eligible?

Eligible recipients include provinces, territories, local regional governments and public sector, not-for-profit organizations and, in limited cases, private companies. Projects receiving funding under the ISF program must complete construction by March 31, 2011.

Contact Information

  • Office of the Minister of Public Works and
    Government Services Canada
    Mark Quinlan
    Communications Director
    819-997-5421
    or
    Infrastructure Canada
    613-948-1148