Infrastructure Stimulus Fund Guidelines
1. Introduction
2. Funding Allocation
3. Program Management and Delivery
4. Eligible Recipients
5. Eligible Projects
6. Eligible Project Categories
7. Eligible & Ineligible Costs
8. Cost-sharing
9. Expiration of Infrastructure Stimulus Fund
10. Reporting and Public Information
11. Environmental Assessment
12. Contact Information
The purpose of this program guide is to provide as much relevant program information as possible to support applicants to the Infrastructure Stimulus Fund. Here you will find information on various topics, such as eligible project categories, mandatory criteria and other program documentation.
The Infrastructure Stimulus Fund is an important part of the Government of Canada’s Economic Action Plan which provides a timely, targeted and temporary stimulus to the Canadian economy, creates jobs and protects Canadians during the global recession. The Province of Ontario will match the federal government’s investments under the Infrastructure Stimulus Fund. Canada and Ontario have worked together to ensure the timeliness of funding under this program.
The 2009 Federal Budget establishes a new, $4-billion Infrastructure Stimulus Fund that provides funding towards the rehabilitation or construction of provincial, municipal and community infrastructure projects. The program provides $2-billion in 2009-10 and $2-billion in 2010-11 for projects that can begin construction quickly and be built during the 2009 and 2010 construction seasons. This initiative is structured to flow funding faster and get shovels in the ground quickly.
The Infrastructure Stimulus Fund will focus on the rehabilitation of existing assets and new infrastructure projects that can begin and be completed by March 31, 2011. Given the time-sensitive nature of the stimulus funding, the Infrastructure Stimulus Fund has been designed to ensure maximum flexibility. Funding allocations, project identification, selection and approval, have all been developed to provide the Government of Canada and the Government of Ontario with the necessary flexibility to ensure the most efficient and effective delivery of the program, thus enabling the funds to flow quickly to construction-ready projects across Canada. The Infrastructure Stimulus Fund will generally work by having Canada and Ontario match contributions from eligible recipients towards eligible projects on an equal basis.
The $4 billion earmarked by the Government of Canada for the Infrastructure Stimulus Fund is notionally allocated on a per capita basis for projects in each province and territory. However, these notional allocations are subject to change in the event that project proponents in a given province or territory are unable to take up the available funding. Canada and Ontario are working together to ensure that Ontario’s per capita allocation is taken up and injected into the economy.
3. Program Management and Delivery
Where the project recipient is the Province of Ontario, a single Infrastructure Stimulus Fund agreement will be signed between Canada and Ontario, where both parties are contributing to the project.
Where the project recipient is not Ontario, such as a municipality, an Infrastructure Stimulus Fund Contribution Agreement will be signed between Ontario and the recipient, where Ontario, Canada and the recipient are contributing to the project.
It is the intention of both Canada and Ontario to have these contribution agreements put in place quickly and efficiently so that available funds can flow to projects over the next two years. These contribution agreements are also an important part of the accountability framework for the funding that will be allocated out of the Infrastructure Stimulus Fund.
Applications are required for all projects that proponents wish to be considered for funding under the Infrastructure Stimulus Fund. These applications must be submitted using the online application form.
Infrastructure Stimulus Fund applications must be received by 11:59 p.m. EST on May 1, 2009. Given the need for immediate economic stimulus, priority will be given to those projects that are able to spend at least 50% of their funding by March 31, 2010.
Eligible Recipients under the Infrastructure Stimulus Fund include:
a. The Province of Ontario, or a local regional government established by or under provincial statute;
b. A public sector body that is established by or under provincial statute or by regulation or is wholly owned by a province or local government;
c. A non-profit private sector entity; and
d. A for-profit private sector entity.
Eligible projects under the Infrastructure Stimulus Fund are for the rehabilitation or retrofit of existing infrastructure assets, or the construction of new infrastructure assets, in eligible categories, that can be substantially completed before March 31, 2011. For the purposes of the Infrastructure Stimulus Fund, a project is deemed to have been substantially completed once all major construction work has been completed and the infrastructure is ready to be used for its intended purpose. Upon completion of the project, and prior to the final payment by Canada, recipients will be required to provide a Solemn Declaration of Substantial Completion attested to by a registered professional or in a manner deemed satisfactory by Canada and Ontario.
To be eligible for funding under the Infrastructure Stimulus Fund, projects will be required to demonstrate the following:
a. Project incrementality - All eligible recipients will be required to attest, in conjunction with their project application, that the work to be undertaken is an incremental construction activity that would not otherwise have been constructed by March 31, 2011 were it not for funding from the Infrastructure Stimulus Fund. Federal and provincial funding could be used to provide sufficient funding to allow a project to proceed that would not otherwise be built, or could be used to accelerate a project planned for future years so that it can be completed by March 2011.
b. Project readiness - All eligible recipients will be required to provide information necessary to determine if the project is construction-ready and likely to be substantially completed by March 31, 2011.
c. Project merit - As part of the online application form, all eligible recipients will be required to provide a description of the project benefits, which may inform the evaluation and selection of projects under the Infrastructure Stimulus Fund. For projects involving the rehabilitation of existing assets, such benefits could include: public health and safety, energy efficiency, accessibility, and/or extending the economic life of the asset consistent with sound asset management principles. For projects involving new construction, these benefits could include: adding new public infrastructure for which there is a demonstrable need, replacing an existing asset that has reached the end of its useful life, but is still needed to provide public services, or improving the energy efficiency, accessibility, safety or quality of public infrastructure in a community.
d. Financial leverage - The Government of Canada is seeking to leverage additional funds from either the province, municipality, not-for profit sector or the private sector to provide additional economic stimulus. The ability for a given project to leverage additional capital will be considered when making project decisions as well.
e. Endorsement - Prior to final approval of funding, projects must be duly authorized or endorsed by, as applicable:
(i) In the case of a Local Government submission, a resolution of its council; or
(ii) In the case of a non-profit or private sector body submission, a resolution of its board of directors
(iii) In the case of i) or ii), the resolution must be submitted before a contribution agreement is signed.
Municipalities in excess of 100,000 people may submit an unlimited number of applications for consideration under the Infrastructure Stimulus Fund. Municipalities and communities with a population less than 100,000 will be restricted to three project submissions, as these municipalities also have access to other funding under the Communities Component of the Building Canada Fund. For greater clarity, projects cannot be “bundled” or grouped in any instance. A separate application is required for each and every project.
6. Eligible Project Categories
Projects must fall within the following eligible project categories to be eligible for the Infrastructure Stimulus Fund:
a. Provincial Assets
The following are eligible project categories for provincial/ territorial assets:
- Highway Infrastructure
- Local Road Infrastructure
- Regional Transit Infrastructure
- Disaster Mitigation Infrastructure
- Brownfield Redevelopment Infrastructure
- Cultural Infrastructure
- Port and Cruiseship Infrastructure
- Parks and Trails
Provincial Asset means an asset that is owned, or will be owned, by Ontario or by a public sector body that is established by or under Ontario statute or by regulation or is wholly owned by Ontario or local government.
b. Local Government Asset
The following are eligible project categories for Local Government Assets:
- Water and Waste Water Infrastructure
- Public Transit Infrastructure
- Local Road Infrastructure
- Disaster Mitigation Infrastructure
- Solid Waste Management Infrastructure
- Brownfield Redevelopment Infrastructure
- Cultural Infrastructure
- Airport Infrastructure
- Port and Cruiseship Infrastructure
- Municipal Buildings
- Parks and Trails
A Local Government Asset means an asset that is owned, or will be owned, by local or regional government established by or under Ontario statute.
c. Not-For-Profit Sector Assets
The following are eligible project categories for Not-For-Profit Sector Assets:
- Temporary Housing Shelters
- Community Centers and Community Services Infrastructure
- Brownfield Redevelopment Infrastructure
- Cultural Infrastructure
- Port and Cruiseship Infrastructure
Not-for-profit Sector Asset means an asset that is owned, or will be owned, by an incorporated, not-for-profit sector entity.
d. Private Sector Assets
The following are eligible project categories for Private Sector Assets:
- Short-line Rail Infrastructure
- Port and Cruiseship Infrastructure
Private Sector Asset means an asset that is owned, or will be owned, by an incorporated, for-profit entity.
a. Eligible Costs
Eligible costs are costs considered to be direct and necessary for the successful implementation of an eligible project, excluding those explicitly identified in Ineligible Costs.
All eligible costs outlined above can only be reimbursed to the recipient following the signing of a contribution agreement.
b. Ineligible Costs
Ineligible costs associated with a project will not be reimbursed under the Infrastructure Stimulus Fund and include the following:
- costs incurred prior to the date of approval of a project, as indicated in writing to the applicant by the federal and provincial minister;
- costs incurred for projects that are intended to be substantially completed after March 31, 2011;
- land acquisition, leasing land, buildings, equipment and other facilities, real estate fees and related costs;
- financing charges, legal fees and loan interest payments (including those related to easements (e.g. surveys);
- any goods and services costs which are received through donations or in-kind;
- employee wages and benefits, overhead costs as well as other direct or indirect operating, maintenance and administrative costs incurred by the ultimate recipient for the eligible project(s), and more specifically costs relating to services delivered directly by permanent employees of the ultimate recipient, or a Crown corporation or corporation owned and controlled by the ultimate recipient; and
- provincial sales tax and Goods and Services tax, for which the ultimate recipient is eligible for a rebate, and any other costs eligible for rebates.
There is no cap to the amount of federal or provincial funding that could be made available to an individual project funded under the Infrastructure Stimulus Fund. The federal government will provide a share of the eligible costs of an infrastructure project as follows:
a. Cost Sharing for Provincial Assets
Federal funding for Provincial Assets, from all federal sources, will not exceed a maximum of 50 percent (50%) of the total eligible costs of the project.
b. Cost Sharing for Local Government or Non-Profit Sector Assets
Federal funding for local government and non-profit sector assets will be one-third (33.3%) of total eligible project costs. On an exceptional basis, the federal share of funding may be up to 50 percent (50%) of total eligible project costs. The federal share of the project, from all federal sources (for example, Gas Tax) cannot exceed 50 percent (50%) of the total eligible project costs.
c. Cost Sharing for Private Sector Assets
The maximum share of funding for private sector assets, from all federal sources, will be 25 percent (25%) of total eligible costs.
d. Ontario's Contribution
Ontario will contribute an amount equal to that contributed by Canada. The “stacking” or combination of provincial funds from different sources for an individual project is permitted, unless doing so would cause the project proponent to violate the terms of an existing agreement.
9. Expiration of Infrastructure Stimulus Fund
All projects are required to begin and materially end construction prior to March 31, 2011. Should this condition of funding not be met, Canada and Ontario shall have the right to cancel funding in whole or in part, and further, Canada and Ontario shall have the right to be repaid any funding advanced, in whole or in part, for any project that is not completed by the end of the program.
The Federal (Minister of Transport, Infrastructure and Communities) and Provincial (Minister of Energy and Infrastructure) Ministers, pending consultation with funding recipients, may cancel funding for any project that has not begun construction within sixty (60) days of its start date.
10. Reporting and Public Information
All recipients of funding for a project, funded under the Infrastructure Stimulus Fund, will be required to submit progress reports every three months until project completion, or more frequently if requested in writing. The progress report should detail progress on the implementation of the project, amounts received from Canada and Ontario through the agreement, amounts expended on approved projects, and an overall update on the project status. Further information on the details of this reporting will be provided to funding recipients in the future.
Projects receiving federal and provincial funding may require federal and provincial environmental assessment requirements to tbe met, including the Canadian Environmental Assessment Act. The information requested in the project will help to determine whether an assessment is required. Construction should not begin on the project pending this review.
Note: Prospective applicants must contact the Canada-Ontario Infrastructure Secretariat at 1-866 306-7827 with questions about how to access the online application system in Ontario.
All other correspondence, queries and notices regarding the Infrastructure Stimulus Fund can be sent to:
Infrastructure Stimulus Fund Office
90-606 Sparks Street
Ottawa, Ontario
K1P 5B4
Telephone: 613-948-1148
Telephone Toll free: 1 800 O-Canada (1 800 622-6232)
TTY: 1 800 465-7735
Email: info@buildingcanada.gc.ca