A Transformational Infrastructure Plan

The time to invest in Canada's infrastructure is now—to bring Canadians good jobs, a cleaner environment and thriving communities for years to come. Infrastructure is a key component of strengthening the middle class and having great communities to live in, clean drinking water and clean air to breathe.

In Budget 2016, the government made a down payment on future growth by making immediate investments of $11.9 billion in public transit, green infrastructure and social infrastructure. The Fall Economic Statement proposes an additional $81 billion through to 2027–28 in public transit, green and social infrastructure, transportation infrastructure that supports trade, and rural and northern communities. The government will also establish the new Canada Infrastructure Bank, an arm's-length organization dedicated to increasing investment in growth-oriented infrastructure, transforming the way infrastructure is planned, funded and delivered across the country. 

Taking into account existing infrastructure programs, new investments made in Budget 2016 and the additional investments contained in the Fall Economic Statement, the government will be investing more than $180 billion.

Public Transit: Faster Commutes and Innovative Communities—$25.3 Billion Over 11 Years 

Strong urban transportation networks are the foundation of more inclusive and sustainable cities where the middle class can grow and prosper.

Public transit infrastructure investments provided through the Fall Economic Statement will have a greater focus on new, transformative construction and expansion projects that build the transit systems of the 21st century. With this additional funding, Canadian communities will be able to build the new urban transit networks and service extensions that will transform the way that Canadians live, move and work.

Green infrastructure: Clean Air, Clean Water—$21.9 Billion Over 11 Years

Investments in sustainable infrastructure are needed to support greenhouse gas emission reductions; enable greater climate change adaptation and resilience; and ensure that more communities can provide clean air and safe drinking water for their citizens.

To achieve this, the federal government will work with its provincial, territorial, municipal and Indigenous partners to evaluate, select and fund the green infrastructure projects that will deliver the best outcomes for Canadians. Projects that may receive these additional investments include, among others: inter-provincial transmission lines that reduce reliance on coal-fired power generation; the development of new low-carbon/renewable power projects; the expansion of smart grids to make more efficient use of existing power supplies; water treatment projects on reserve; and the construction of infrastructure to help manage the risk associated with floods and wildfires.

Social Infrastructure: Better Neighbourhoods for Our Kids—$21.9 Billion Over 11 Years

Investing in Canada's communities is not only about creating good jobs and encouraging clean economic growth. It is also about building stronger, more inclusive communities and improving the quality of life of the middle class and those working hard to join it. Investments in social infrastructure will focus on affordable housing and homelessness prevention, early learning and child care, and cultural and recreational infrastructure. These investments will strengthen the middle class, improve socio-economic outcomes and foster economic growth by lifting more Canadians out of poverty.

Getting Canadian Products to Global Markets—$10.1 Billion Over 11 Years

Canada is a trading nation, and being competitive on a global scale requires world-class infrastructure. The government will make strategic investments in trade and transportation projects that build stronger, more efficient transportation corridors to international markets and help Canadian businesses to compete, grow and create more jobs for Canada's middle class. 

The government will also support critical transportation needs in Canada's North to strengthen community connectivity to trade and investment opportunities.

Rural and Northern Communities—$2 Billion Over 11 Years

Small, rural and remote northern communities have unique infrastructure needs that deserve a more tailored approach. Through Investing in Canada, the government will provide up to $2 billion to support small, rural and northern communities. Broad eligibility criteria will be established to recognize the distinct challenges in these communities and the wide-ranging nature of infrastructure needs, from expanding road access and Internet connectivity, to upgrading existing heating systems, to pursuing renewable sources of energy to reduce reliance on diesel. 

The Canada Infrastructure Bank

The government is launching the new Canada Infrastructure Bank to provide innovative funding and financing for infrastructure projects and help more projects get built in Canada. The Canada Infrastructure Bank will be responsible for investing at least $35 billion from the federal government into large infrastructure projects that contribute to economic growth through loans, loan guarantees and equity investments. Part of this amount—$15 billion—will be sourced from the announced funding for public transit, green infrastructure, social infrastructure, trade and transportation, and rural and northern communities. An additional $20 billion in capital will be available to the Canada Infrastructure Bank for investments which will result in the Bank holding assets—in the form of equity or debt. This $20 billion will therefore not result in a fiscal impact for the government. 

The Canada Infrastructure Bank will provide better results for middle class Canadians by doing things differently. By establishing a new organization capable of working with the private sector where it makes sense, public dollars will go farther and be used smarter, leading to better projects that create the good, well-paying jobs needed to grow the middle class now, and strengthen Canada's economy over the long term.

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