Infrastructure Stimulus Fund
Stimulus projects deadline extension
2 December 2010
Mississauga, Ontario
In February 2009, the Harper Government launched Canada’s Economic Action Plan, one of the most comprehensive stimulus packages in the industrialized world. Our Economic Action Plan is working. By funding approximately 23,000 projects across the country, federal, provincial/territorial and municipal partners have injected $62 billion dollars into the economy and helped more than 420,000 Canadians get back to work since July 2009. This timely, targeted and temporary support includes $16 billion of federal funds to support thousands of infrastructure projects which will benefit Canadians for years to come.
The deadline for completing infrastructure stimulus projects under the Economic Action Plan was March 31, 2011. However, reports from partners show that a small number of projects have been delayed for a variety of reasons. Following consultations with provincial/territorial partners, the Government of Canada has decided to extend the construction deadline on infrastructure projects under four funding programs: the Infrastructure Stimulus Fund, the Building Canada Fund Communities Component Top-Up, the Recreational Infrastructure Canada Program and the Knowledge Infrastructure Program. Nearly 90 per cent of projects under these four specific infrastructure programs are expected to be completed by March 31, 2011.
By extending the deadline for one more construction season, the Economic Action Plan will further benefit Canadians without incurring additional government spending. In fairness to all partners, this extension will apply to all projects under these programs, and will not be applied on a case-by-case basis.
In order to qualify for this extension, work must have begun on the project and it must have incurred eligible costs before March 31, 2011. Claims for all expenses incurred up to this date must be submitted by April 30, 2011. This is a one-time extension. While virtually all projects are expected to be completed by October 31, 2011, the Government of Canada will not share in any costs after this date, and proponents will be required to complete projects at their own expense.
While providing flexibility, the Harper Government is committed to ensuring that the stimulus program is completed in a timely fashion, and that Canada returns to balanced budgets in a timely manner.
Background
- The Government of Canada’s Economic Action Plan (EAP) is providing support to thousands of infrastructure projects underway across the country, providing needed stimulus to Canada’s economy. Funding was provided over two years for projects that were construction ready and that proponents attested could be substantially completed by March 31, 2011.
- The $4-billion Infrastructure Stimulus Fund (ISF) targeted the rehabilitation and construction of new projects with provinces, territories, municipalities and non-profit groups that would stimulate the economy in the short-term and be of benefit to communities. The federal government also topped up the Building Canada Fund’s Communities Component (BCF-CC Top-Up) with an additional $500 million to accelerate infrastructure projects in small communities. A further $500 million was provided under the Recreational Infrastructure Canada Program (RinC) to be used to fund projects geared to the rehabilitation and upgrades of existing facilities or for the construction of new recreation facilities. And finally, the Economic Action Plan also included the $2-billion Knowledge Infrastructure Program (KIP) to support infrastructure enhancement at post-secondary institutions across Canada.
- While the vast majority of EAP projects will be complete by March 31, 2011, there are a number of projects in most jurisdictions that will benefit from a seven month extension to October 31, 2011. This extension will ensure timely and responsible project completion.
- This extension will allow project proponents to benefit from an additional construction season to complete projects underway under the four key EAP infrastructure funds.
Conditions for Project Extensions
Recipients will be required to meet certain conditions in order to take advantage of this extension under the four programs as follows:
- Projects must have begun work and incurred eligible costs by March 31, 2011.
- For these projects, the agreement signatories must submit a claim for all eligible costs incurred up to March 31, 2011 by April 30, 2011. Projects for which no claims are received will not be eligible for an extension.
- Agreement signatories will be required to submit the following documentation by January 31, 2011 for projects requiring an extension:
- A list of projects that require an extension beyond March 31, 2011;
- A forecast of project expenses that will be spent and federal funding that will be claimed by March 31, 2011, and a forecast of how much will be incurred between April 1, 2011 and October 31, 2011;
- A detailed construction schedule for each project signed by a professional engineer;
- A letter from the responsible Minister for provincial/territorial projects, a Council resolution for municipal projects or a resolution from the Board of Directors for Non-profit organizations committing to finish the projects, and accepting responsibility for any costs incurred beyond October 31, 2011.
- Project progress reports will be required at two-month intervals during the extension period. For CC Top-Up, the regular monthly reporting process will continue throughout the extension period.
- All final claims for extended projects must be received by January 31, 2012.
- For projects that are not completed by October 31, 2011, agreement signatories will be responsible for project completion as well as all costs incurred after this date.
- Amended Contribution Agreements with the federal government, as well as (where applicable) Contribution Agreements between provincial/territorial governments and their recipients, must be signed no later than February 28, 2011.
