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Canada and Ontario Sign $6.2-Billion Building Canada Infrastructure Agreement

Archived Backgrounder

Canada and Ontario Sign $6.2-Billion Building Canada Infrastructure Agreement

Ministry of Infrastructure

The Framework Agreement sets the stage for a collaborative investment in the infrastructure needs in Ontario. Under this Agreement, approximately $3.09 billion from the Building Canada Fund, a centrepiece of the overall plan, will go towards infrastructure initiatives in Ontario through two components: more than $2.73 billion in funding will support larger-scale projects; while under the Communities Component, $362 million in funding will be available for partnership investments in communities with populations less than 100,000. Ontario will match federal funding, meaning that more than $6 billion will be made available for investment in the province's infrastructure.

Further, under the Plan, the Government of Canada will provide $25 million in base funding annually, for a total of $175 million through to 2014 for core infrastructure priorities in Ontario. A further $2.98 billion will flow to Ontario municipalities through the extension of the federal Gas Tax Fund agreement from 2010 to 2014.

The Canada-Ontario Framework Agreement outlines how the Building Canada Plan will operate in the province. It also establishes a governance framework through which the two governments will work together, in the spirit of open federalism, to identify and address further infrastructure priorities.

In addition to the $6.2 billion of guaranteed funding outlined in this agreement, under Building Canada, Ontario and its municipalities will also have potential access to the Gateways and Border Crossing Fund as well as the Public-Private Partnership Fund. Finally, with the full GST rebate and the Gas Tax Fund, over fifty per cent of the Building Canada Plan flows directly to municipalities to further strengthen local infrastructure priorities.

Through the Framework Agreement, Ontario is building on the success of ReNew Ontario, the province's five-year $30 billion-plus infrastructure investment plan to be completed by 2010. The province is currently developing a long-term comprehensive strategy for the additional investment in infrastructure that Ontario families depend on, totalling at least $60 billion.

Federal financial support for the priority funding initiatives announced today is conditional upon the initiatives meeting all applicable federal eligibility requirements under Building Canada.

Provincial financial support for the priority funding initiatives announced today is conditional upon the initiatives meeting all applicable eligibility requirements under ReNew Ontario and on satisfactory completion of provincial due diligence.

Canada and Ontario's contribution towards HELP Clean Water Project is conditional on the successful completion of a federal and provincial due diligence review of the project, including an analysis of the business case by the Infrastructure Framework Committee.

The contribution is also conditional on the municipalities securing any funding approvals that may be required respectively by federal and provincial Treasury Boards, all applicable environmental assessments, consistency with provincial water policy, and the signing of a contribution agreement that will detail the project elements, schedule, costs, and funding parameters.  



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