Investing in Canada Infrastructure Program

COVID-19 update

To address the challenges faced by communities as a result of COVID-19, the over $33-billion Investing in Canada Infrastructure Program, delivered through bilateral agreements with provinces and territories, now includes a new COVID-19 Resilience stream, offers expanded project eligibility and allows for accelerated approvals.

Visit the COVID-19 Resilience stream page for more information.

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Program overview

The Investing in Canada Infrastructure Program is one way the Government of Canada is delivering funding to communities through the Investing in Canada Plan. The program provides long-term, stable funding delivered by Infrastructure Canada to:

  • Help communities reduce air and water pollution, provide clean water, increase resilience to climate change and create a clean-growth economy;
  • Build strong, dynamic and inclusive communities; and
  • Ensure Canadian families have access to modern, reliable services that improve their quality of life.

Under the program, over $33-billion in funding is being delivered through bilateral agreements between Infrastructure Canada and each of the provinces and territories. Investments in infrastructure are being made through targeted funding streams:

  Public Transit stream

The Government is investing in the construction, expansion, and improvement of public transit infrastructure, for projects that:

  • Improve the capacity of public transit infrastructure;
  • Improve the quality or safety of existing or future transit systems; and
  • Improve access to a public transit system.

Funding through this stream is allocated according to a formula based on ridership and population, which balances the demand on existing systems, while providing support for expected population growth.

COVID-19 Flexibilities

Provinces and territories can choose to transfer remaining funding from this stream to fund projects under the COVID-19 Resilience stream, as long as they have agreement from the transit authority whose funding allocation is affected.

To provide more flexibility in response to COVID-19, on a time limited basis, the eligible projects under the Public Transit stream will be expanded to include the following types of projects even when they are not connected to an existing transit system:

  • Inter-community transit;
  • Public sector ferry projects; and
  • Pathways and active transportation infrastructure.

Projects approved under these flexibilities must start construction by September 30, 2021.

  Green Infrastructure stream

Through three targeted sub-streams, investments under the Green Infrastructure stream will support green infrastructure projects with outcomes across three crucial areas:

  • Climate Change Mitigation:
    • Better capacity to manage more renewable energy;
    • Improved access to clean energy transportation;
    • More energy efficient buildings; and
    • Improved production of clean energy.
  • Adaptation, Resilience and Disaster Mitigation:
    • Increased structural or natural capacity to adapt to climate change impacts, natural disasters or extreme weather events.
  • Environmental Quality:
    • Upgraded wastewater treatment or collection infrastructure;
    • Upgraded drinking water treatment and distribution infrastructure; and
    • Better capacity to reduce or address soil or air pollutants.

COVID-19 Flexibilities

Provinces and territories can choose to transfer remaining funding from this stream to fund projects under the COVID-19 Resilience stream, as long as they maintain the 45% floor for GHG mitigation projects.

To provide more flexibility in response to COVID-19, on a time limited basis, the eligible projects under the Green Infrastructure stream will be expanded to include:

  • Pathways and active transportation projects

Projects approved under these flexibilities must start construction by September 30, 2021.

  Community, Culture and Recreation
Infrastructure stream

Through the Community, Culture and Recreation Infrastructure stream, the Government is investing in projects that:

  • Improve cultural infrastructure, like museums and Indigenous heritage centres;
  • Support upgrades to recreational facilities, like arenas and both indoor and outdoor recreational spaces; and
  • Improve community infrastructure, like community centres and libraries.

COVID-19 Flexibilities

Provinces and territories can choose to transfer remaining funding from this stream to fund projects under the COVID-19 Resilience stream.

  Rural and Northern Communities
Infrastructure stream

The Rural and Northern Communities Infrastructure stream is investing in the unique and wide-ranging infrastructure priorities of small, rural and remote communities, for projects that will:

  • Improve food security;
  • Improve road, air or marine infrastructure;
  • Improve broadband connectivity;
  • Increase access to more efficient or reliable energy sources; and
  • Improve education or health facilities (specific to the Truth and Reconciliation Commission's Calls to Action).

Arctic Energy Fund

The Arctic Energy Fund supports energy security in communities in the North, including Indigenous communities, by investing in upgrades to existing fossil fuel-based energy systems, as well as supplementing or replacing these systems with renewable energy options—improving energy reliability and efficiency as well as reducing pollution.

COVID-19 Flexibilities

Provinces and territories can choose to transfer remaining funding from this stream to fund projects under the COVID-19 Resilience stream.

To provide more flexibility in response to COVID-19, on a time limited basis, the eligible projects under the Rural and Northern Communities Infrastructure stream will be expanded to include:

  • Mobile and cellular projects; and
  • Energy efficiency and reliability projects for communities on established electricity grids, under the Arctic Energy Fund.

Projects approved under these flexibilities must start construction by September 30, 2021.

Agreements with Provinces and Territories

Information about the bilateral agreements with each province and territory can be found here.

Cost sharing

For projects funded through the Public Transit, Green Infrastructure, Community Culture and Recreation Infrastructure, and Rural and Northern Communities Infrastructure streams under the integrated bilateral agreements, Canada will invest up to:

  • 40% of municipal* and not-for-profit projects in the provinces;
  • 50% of provincial* projects;
  • 75% for projects in the territories and for projects with Indigenous partners;
  • 25% of for-profit private sector projects (except in the Community, Culture and Recreation Stream, where for-profit private sector projects are not eligible).

Provinces will have to cost-share on municipal projects at a minimum of 33.33% of eligible costs.

* For public transit, Canada will provide up to 50% for rehabilitation projects and up to 40% for new public transit construction and expansion projects.
* For projects under the Rural and Northern Communities stream, Canada will invest up to 50% for provincial, municipal and not-for-profit projects, and up to 60% for municipal projects in the provinces where the municipalities have a population of less than 5,000.

Climate lens

As part of the bilateral agreements, certain projects must be assessed on their environmental outcomes. A Climate Lens assessment is used to judge how a project might impact the environment and hold up to the effects of climate change. This aims to:

  • Build climate-smart infrastructure that will help combat climate change;
  • Reduce energy costs; and
  • Provide Canadians with safer and more resilient communities.

For additional information, see:

Community employment benefits

To ensure projects funded through the Investing in Canada Infrastructure Program create employment opportunities for a broader array of Canadians, the Community Employment Benefits initiative is used to assess the social outcomes of a projects, and:

  • Provide more employment opportunities for under-represented groups;
  • Build more inclusive communities; and
  • Increase the supply and retention of diverse workers in infrastructure-related industries.

For more information, please consult the Community employment benefits general guidance.