03/28/2014

Agreement with Provincial Government Required to Allocate Funding in Ontario

Today, the Honourable Denis Lebel, federal Minister of Infrastructure, Communities and Intergovernmental Affairs, announced the New Building Canada Fund is “open for Business”.

The New Building Canada Fund, a ten-year, $14 billion national fund first announced in the 2013 Budget, will support infrastructure over the next 10 years through:

  • A $4 billion National Infrastructure Component (NIC) for national projects;
  • Ontario will receive $2.7 billion of the Provincial/Territorial Infrastructure Component (PTIC) for regional and national projects
  • $270 million of the PTIC will be in the Small Communities Fund (SCF) for projects located in Ontario communities with populations 100,000 and under.

We know that these federal funding envelops generally require a 1/3 contribution from the three orders of government and that the New Building Canada Fund is back-end loaded so that the annual funding envelop gets larger several years out.

AMO understands that municipalities are eligible to apply for funding under all three funds depending on the project and its relation to the eligibility parameters. A guide to applying for NIC funding is available on the New Building Canada Plan web site.

At the same time, the federal government has announced today that it would be entering into discussions with the provinces and territories regarding the administration of the Small Communities Fund and would decide on projects for the PTIC funding jointly with the provinces and territories.

While the federal government has indicated that eligible proponents should contact their provincial ministries of infrastructure regarding PTIC and SCF projects, AMO expects that the Ontario Ministry of Infrastructure will announce additional details once discussions with the federal government have concluded. AMO is anxious to ensure the allocation for this year’s BCF funding flows to projects as quickly as possible. We believe this is a shared objective of the provincial and federal governments and therefore they will move quickly to deal with the administrative details.

AMO will update members on any new details as they become available.
 

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