Infrastructure planning refers to preparation done before starting an infrastructure project. This may include consultation with stakeholders and local communities, funding considerations, and other statutory requirements set by each area.
In Canada, legal considerations for infrastructure planning are set out by the federal government’s Investing in Canada Plan (ICP), specifically ICP’s funding portfolio on Investing in Canada Infrastructure Program (ICIP).
When governments of provinces, territories, and municipalities, or private sector institutions (usually through a private-public partnership or PPP) engage with the federal government on the funding or investment of infrastructure projects, infrastructure planning would depend on the specific investment stream.
What is the Investing in Canada Plan (ICP)?
Investing in Canada Plan (ICP) is Canada’s federal infrastructure program. It's a 12-year plan providing a total of C$180 billion to projects submitted to Infrastructure Canada by provincial or territorial governments. Infrastructure planning for Canadian stakeholders and implementors would revolve around the parameters set by the ICP and ICIP.
Investment Streams
Stakeholders must consider the five investment streams under ICP in their infrastructure planning. The amount of funding and other factors will depend on the investment stream being applied for.
The investment streams of the ICP are:
- Public Transit Investment Stream
- Green Investment Stream
- Social Investment Stream
- Trade and Transportation Investment Stream
- Rural and Northern Communities Investment Stream
- COVID-19 Resilience Stream
One important consideration in infrastructure planning: infrastructure projects across these five streams should contribute to Canada’s goal of a low-carbon economy or a green economy, through less or zero carbon or greenhouse gas emissions (GHG emissions).
1. Public Transit Investment Stream
Infrastructure projects that may be approved in the Public Transit Investment Stream are those that establish new urban transit networks and service extensions to improve Canada’s public transportation system. This stream supports projects that improve the capacity, quality, safety, and accessibility of Canada’s public transportation and urban transit systems.
It also aims to reduce air pollution and GHG emissions, recognizing that the transportation sector is a leading contributor.
To know more about the project in the video or about the Public Transit Investment Stream, check with an infrastructure lawyer in British Columbia.
2. Green Investment Stream
The Green Investment Stream supports infrastructure projects that will increase local and Indigenous communities’ resiliency against climate change, natural disasters, and extreme weather conditions.
The stream also covers infrastructure projects that will reduce GHG emissions. Some examples are energy efficient buildings, low-carbon transportation systems, and cleaner electricity grids. These infrastructure projects will also strike a balance between Canada’s economic growth and its objectives for a low-carbon and greener economy.
3. Social Investment Stream
The Social Investment Stream covers infrastructure projects that will provide greater inclusion of Indigenous and marginalized communities such as low-income populations and other minorities. These projects pertain to affordable housing, early learning and childcare facilities, and cultural and recreational infrastructures.
The overarching goal is to build these facilities for the greater benefit of First Nations, Inuit, and Métis communities.
This stream will fund infrastructure projects regardless of its size, since this stream is primarily concerned with the communities’ needs and not with the size of the project.
4. Trade and Transportation Investment Stream
Infrastructure under the Trade and Transportation Investment Stream focuses on improving Canada’s major trade corridors and port facilities to facilitate smoother exportation of goods and products. Another goal is to create infrastructure that will address the transportation needs among the provinces and territories to promote local economic and social development.
5. Rural and Northern Communities Investment Stream
For infrastructure projects under the Rural and Northern Communities Investment Stream, priority is given to those that address development concerns of rural and northern communities and those that encourage its economic growth. Projects may include construction of transportation systems, broadband Internet connectivity, and energy infrastructure.
6. COVID-19 Resilience Stream
Program adjustments have been made in the ICIP to adapt to the changes and difficulties brought by the COVID-19 pandemic. One of these is the introduction of the COVID-19 Resilience Stream.
This is a temporary stream that focuses on short-term projects that do not fall under any of the other ICIP streams. These are projects that will help provinces and territories respond to the impacts of the pandemic.
Eligible projects under this stream may include improvements or construction of:
- health and educational infrastructure
- COVID-19 response infrastructure
- active transportation infrastructure
- disaster mitigation and adaptation projects
- ventilation improvement projects of existing buildings
Infrastructure planning under the said Stream must consider certain timelines. Improvements or construction must start on or before September 30, 2023 and be completed by end-2023 for the provinces or end-2024 for territories and remote communities.
Integrated Bilateral Agreements (IBAs)
Infrastructure planning for ICIP projects must consider certain terms and conditions of Integrated Bilateral Agreements (IBAs). Approvals of infrastructure projects are on an outcomes-based approach where infrastructure projects must address any of the goals of the investment streams mentioned above.
IBAs are entered into between the provincial and territorial governments and the federal government through Infrastructure Canada. Among other necessary terms and conditions of the agreement, the approved IBA will outline the following:
- delivery of the infrastructure funding over the next 10 years;
- submission of reports vis-a-vis the investment stream’s goals and other national targets; and
- submission of multi-year plans which will identify potential projects.
Cost Sharing
Part of the legal considerations for infrastructure planning of a project to be submitted to the ICIP is the cost sharing scheme between the applying provincial or territorial government and the federal government on the total cost of the infrastructure project. In general, federal fundings on the different ICIP investment streams are:
- projects with municipal and not-for-profit partners: up to 40%
- projects with provincial partners: up to 50%
- projects with Indigenous and territorial partners: up to 75%
- projects with for-profit private sector partners: up to 25%
Other costs not covered by federal funding would have to be shouldered by the implementing provincial or territorial government. However, these federal fundings are subject to certain exceptions which may be discussed during the infrastructure planning process.
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