Federal/Provincial Infrastructure Programs
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1 Federal/Provincial Infrastructure Programs FEDERATION OF PRINCE EDWARD ISLAND MUNICIPALITIES SEMI-ANNUAL MEETING ABRAM S VILLAGE NOVEMBER 17, 2007
2 Current Infrastructure Programs Canada-PEI Infrastructure Program (ICP) $ 38 M Municipal Rural Infrastructure Fund (MRIF) $ 65 M Canada Strategic Infrastructure 1 (CSIF1) $ 43 M Canada Strategic Infrastructure 2 (CSIF2) $ 30 M Gas Tax Fund (GTF) $ 37.5 M Transit Fund $ 5.5 M TOTAL $219.0 M
3 What is the Building Canada Plan? Announced in Budget 2007 $33 billion over 7 years under a new long term infrastructure plan A suite of flexible programs and initiatives that balances regional needs with national priorities The breakdown is as follows: Base Funding (Gas Tax and GST) Build Canada Equal per Jurisdiction Funding Gateways and Boarders Fund P3 Project Fund Asia-Pacific Gateway
4 The Building Canada Plan Vision Building a Stronger, Safer and Better Canada through modern world-class public infrastructure Themes Growing Economy Clean Environment Strong & Prosperous Communities Objectives Support economic growth and productivity, improve Canada s competitiveness, and facilitate trade Promote sustainable growth and improve the quality of Canada s air, water, and land Promote strong, competitive and sustainable Canadian communities Eligible Categories National Priorities: Water & Wastewater Public Transit Core National Highway System Green Energy Local & Community Priorities: Disaster Mitigation Solid Waste Management Brownfield Cultural Sport Connectivity & Broadband Regional & Local Airports
5 Federal Funding to PEI Net BCF Distributed Funding Equal pre Jurisdiction $25M/year (millions of dollars) Gas Tax Fund MRIF Top Up Total $35.25 $ $60.00 $3.67 $ Almost $274M guaranteed to be delivered to infrastructure projects in Prince Edward Island under the Building Canada Plan ( ). Further funding will be provided: GST Rebate to all Prince Edward Island municipalities Gateways and Border Crossing Fund project consideration P3 Fund project consideration
6 Building Canada Fund ($35.25M in PEI - over 7 years) Cost Sharing - Will depend on Project Proponents. Communities Component $18M (min) Application based Maximum federal share of total eligible costs = 1/3 Maximum individual project federal share of total eligible costs = ½ Involving private sector assets = ¼ ½ when not-for-profit/ngo Major Component $17.25M (max) Projects to be negotiated Project selection is based on Provincial Plan Maximum individual project federal share of total eligible costs = ½ Involving municipalities = 1/3 Involving private sector assets = ¼ A % of funding will be made available for research, knowledge, planning, feasibility and other studies (cost-matching)
7 Building Canada Fund Program Priorities Federal Priorities 1. Core National Highways 2. Water 3. Wastewater 4. Public Transit 5. Green Energy Local and Community Priorities 1. Disaster mitigation 2. Solid Waste 3. Brownfields redevelopment 4. Cultural 5. Sports 6. Connectivity & Broadband 7. Local Roads 8. Shore-line Rail 9. Short Sea Shipping 10. Tourism 11. Regional & Local Airport
8 Equal per Jurisdiction ($25M/Year) $25M over 7 years Federal share = $175M Part of fiscal balance solution Maximum federal share 50% of total projects PEI will develop a long-term infrastructure plan outlining a vision and outcomes for public infrastructure. Projects will be selected from proposal submitted annually, consistent with PEI s long-term infrastructure plan. For 2007/08, P/T will be permitted to use EPJ Fun for operational. Same project categories as BCF + Non-core national highways + Safety-related rehabilitation
9 Base Amount Base Amount Gas Tax program extension GST rebate increase
10 Base Amount - Gas Tax Fund ($15M/year extension) Gas Tax Program Remaining 3 years 2007/ /10 $15M over 4 years 2010/ /14 = $28.5M = $60.0M 7 year TOTAL = $88.5M The existing Canada PEI GTF Agreement will be amended to reflect new funding. A review of GTF is scheduled for The results of this review will be used to assess the effectiveness of GTF. Agreements will be amended to reflect any changes to program parameters required as a result of the review before the extended funds flow.
11 Base Amount - Gas Tax Fund Program Priorities Gas Tax Priorities 1. Public Transit 2. Water 3. Wastewater/Storm 4. Community Energy System 5. Solid Waste Management 6. Local Roads and Bridges 7. Capacity Building
12 Base Amount - GST Rebate Federal Budget - Total funding $17.6B - $ 5.8B GST Rebate component PEI Allocation - GST Refund -100% refund of GST spent by municipalities GST Rebate 100% Refund on GST costs (current rebate is 57.1%)
13 Public-Private Partnerships (P3s) Details of the P3 Fund are being negotiated. Budget 2007 Commitments P3 Fund: $1.257B Merit-based, no allocation by jurisdiction To support innovative P3 projects P3 Office To be established
14 Gateways and Border Crossing Fund Details of the Gateways and Border Crossing Fund are being negotiated. Budget 2007 Commitments Federal Funding: $2.105B Merit-based, no allocation by jurisdiction Eligible Recipients Windsor-Detroit crossing ($400M) Ontario-Quebec Continental Gateway and Trade Corridor Atlantic Gateway Initiative
15 Asia-Pacific Gateway Federal Budget - $977M No allocation for PEI
16 First Nations Infrastructure Fund ($340M) Infrastructure Canada and INAC are developing a new $340M First Nations Infrastructure Fund (FNIF) that combines allocations under existing programs and Budget 2007 funding: In order to complement existing INAC programming for First Nations, INFC funding will be targeted at: Solid waste Energy systems Roads and bridges Broadband Planning/capacity building Funding would be delivered to successful First Nations applicants via INAC s existing funding agreements, and allocated on a weighted per capita basis (based on population and remoteness) to the seven INAC regions.
17 Proposed Governance for BCF Infrastructure Framework Committee (IFC) Two voting members One co-chair from the Province One co-chair from Infrastructure Canada Representatives from other federal, provincial and municipal entities may be invited as observers
18 Next Steps Framework Agreement - PEI A Framework Agreement (FA) will be signed between the Federal and Provincial Government, as a high-level umbrella agreement to cooperate and coordinate on infrastructure issues and programs. Upon signing the FA the Province will begin work on their Long-Term Infrastructure Plan. Subsequent Program Agreements will need to be signed.
19 PEI Infrastructure Plan The Province of PEI is required to development of long-term infrastructure plan, within one year of signing the Framework Agreement The plan will help better situate infrastructure priorities within the province The plan will be used during project selection and approval to ensure funding in key categories is consistent with identified priorities The plan can build on what the province already has in place The year plan will include, amongst other things: Infrastructure issues, challenges, and pressures in national priority categories Overall objectives for managing current and new infrastructure assets in those sectors Desired outcomes and strategies to achieve them
20 Conclusion Net BCF Distributed Funding Federal Infrastructure Funding Equal pre Jurisdiction $25M/year (millions of dollars) Gas Tax Fund MRIF Top Up Total $35.25 $ $60.00 $3.67 $ Fed/Prov/Mun Infrastructure Funding (millions of dollars) Net BCF Distributed Funding $ Equal pre Jurisdiction $25M/year $ Gas Tax Fund $60.00 MRIF Top Up $11.01 Total $526.76
21 Thank You Questions?
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