Investing in Canada Plan

Investing in Canada Plan
Name	Investing in Canada Plan
Type	National infrastructure investment strategy
Established	2016
Jurisdiction	Canada
Budget	CAD 180 billion (initial)

Investing in Canada Plan

The Investing in Canada Plan was a federal public policy initiative launched in 2016 to coordinate large-scale infrastructure investment across Ottawa, Toronto, Vancouver, Montreal, Calgary and other regions. It sought to align funding streams from the Government of Canada with provincial and municipal partners including Ontario, Quebec, British Columbia, Alberta, Manitoba, Saskatchewan and Nova Scotia to support projects in transit, green infrastructure, social infrastructure and trade. The initiative engaged entities such as Infrastructure Canada, the Canada Infrastructure Bank, Crown corporations and private investors to deliver multi-year capital programs involving public-private partnerships and grant agreements.

Background and Policy Objectives

The announcement followed fiscal frameworks influenced by precedents like the Canada–European Union Comprehensive Economic and Trade Agreement discussions, fiscal planning in the 2016 Canadian federal budget, and investment models used by the Canada Pension Plan Investment Board and Export Development Canada. Objectives included modernizing assets inherited from milestones such as the 1967 Canadian Centennial, addressing constraints highlighted by reports from the Conference Board of Canada, and meeting commitments under instruments like the Paris Agreement on climate change. The plan cited goals comparable to infrastructure programs in United States, United Kingdom, Germany, Australia and funding mechanisms deployed by the Asian Infrastructure Investment Bank and the World Bank.

Program Components and Funding Mechanisms

Core components encompassed a national public transit fund akin to projects in Metrolinx and rapid transit initiatives in Vancouver SkyTrain, a green infrastructure stream reflecting work by the Pembina Institute and policies from the Environment and Climate Change Canada portfolio, a social infrastructure envelope for schools and hospitals paralleling provincial capital plans in Ontario Ministry of Education and Ministry of Health and Social Services (Quebec), and a trade and transportation stream interfacing with agencies such as Transport Canada and the Port of Montreal. Funding mechanisms combined direct transfers like those in agreements with the Federation of Canadian Municipalities, loan guarantees similar to Canada Mortgage and Housing Corporation instruments, and the leveraging model advanced by the Canada Infrastructure Bank. Investments employed procurement approaches used by Public Services and Procurement Canada and leveraged partnerships with crown entities such as Via Rail Canada and municipal utilities like Toronto Hydro.

Eligibility and Application Process

Eligibility criteria mirrored established frameworks from programs run by Infrastructure Canada and the New Building Canada Fund with applicants including provinces, territories such as Yukon, Northwest Territories, Nunavut, municipalities like the City of Calgary and Indigenous governments such as the Assembly of First Nations and Inuit Tapiriit Kanatami. Applications required alignment with outcome frameworks used by the Treasury Board of Canada Secretariat and environmental assessments consistent with the Impact Assessment Act and standards promoted by agencies like Parks Canada and the Canadian Environmental Assessment Agency. Project proponents submitted proposals through portals administered by entities akin to the Canada Infrastructure Bank and negotiated contribution agreements similar to those employed by Employment and Social Development Canada and the Canada Foundation for Innovation.

Implementation and Governance

Governance structures involved federal ministers including the Minister of Infrastructure and Communities, collaboration with provincial counterparts such as Premier of Ontario, and oversight from bodies analogous to the Parliament of Canada standing committees. Delivery mechanisms drew on procurement and delivery models used by Infrastructure Ontario, BC Infrastructure Benefits Inc., and municipal agencies like Metrolinx and TransLink (British Columbia). Accountability and audit functions referenced practices from the Office of the Auditor General of Canada and fiscal monitoring by the Department of Finance (Canada). Stakeholder engagement included partnerships with business organizations such as the Business Council of Canada, labour groups like the Canadian Labour Congress, and advocacy entities including the Canadian Urban Transit Association.

Economic Impact and Outcomes

Analyses of outcomes compared to projections by the Bank of Canada, estimates from the Canadian Urban Institute, and modelling by the Canadian Centre for Policy Alternatives evaluated impacts on employment in sectors tracked by Statistics Canada, contributions to gross domestic product measures monitored by the Organisation for Economic Co-operation and Development, and effects on trade corridors involving the Port of Vancouver and Vancouver Fraser Port Authority. Outcomes referenced precedent infrastructure multipliers observed in studies by the International Monetary Fund and the European Investment Bank. Reported benefits included upgrades to transit networks serving systems such as Toronto Transit Commission, modernization of rail assets used by CN (company) and Canadian National Railway Company, and investments in renewable energy projects influenced by provincial utilities like Hydro-Québec.

Criticisms and Controversies

Critiques emerged from academic institutions like the University of Toronto School of Public Policy and Governance, think tanks such as the Fraser Institute and the C.D. Howe Institute, and Indigenous organizations including Truth and Reconciliation Commission stakeholders, citing concerns about procurement transparency in examples like certain public-private partnership contracts, the role of the Canada Infrastructure Bank in leveraging private capital, and outcomes for affordable housing linked to programs involving CMHC. Contentious issues invoked comparisons with disputes over projects such as the Muskrat Falls development, debates over transit mega-projects like the Eglinton Crosstown LRT and the SNC-Lavalin affair, and environmental assessments contested around pipelines involving companies such as TransCanada Corporation and Enbridge Inc..

Category:Infrastructure in Canada