Energy from the Earth - new media

EconomyInfrastructure Gets Top Priority inCanadian BudgetThe primary objective of Canada's 2011 FederalBudget was to reduce deficit by increasing spending inseveral areas. One of the areas identified isinfrastructure. As part of economic development ingeneral, Canada recognizes the importance ininvestment in public infrastructureIn 2007, the government launched the BuildingCanada plan, supported by $33 billion in federalfunding over seven years. The Building Canada planconsists of a suite of programs to meet infrastructureneeds across the country, including:• Gas Tax Fund and full rebate of the Goods andServices Tax paid by municipalities, which providepredictable long-term funding for municipalities.• Provincial/Territorial Base Funding Initiative, whichprovides $25 million per year for each provinceand territory.• Building Canada Fund, which supportsinfrastructure projects across Canada• Gateways and Border Crossings Fund and theAsia-Pacific Gateway and Corridor Initiative tostrengthen trade-related infrastructure.• Public-Private Partnerships (P3) Fund, the firstCanadian infrastructure fund dedicated to P3sIn response to the global recession, the Governmentintroduced stimulus initiatives under the EconomicAction Plan to increase infrastructure spending duringthe 2009 and 2010 construction seasons. Theseprojects are expected to be completed by the end ofOctober 2011. It claims to have spent $7.7 billion onalmost 8000 projects across the country.The 2011 Budget makes important investments inpublic infrastructure and supports the use of publicprivatepartnerships in delivering infrastructureprograms and projects.$2 billion annual investment inmunicipal infrastructureTo provide greater certainty to provinces, territories andmunicipalities, the 2011 Budget proposes to legislate apermanent annual investment of $2 billion in municipalinfrastructure through the Gas Tax Fund.Public-private partnershipsThe government believes that Public-privatepartnerships (P3s) have demonstrated their ability toproduce value for taxpayers in the delivery of publicinfrastructure and plans for Canada to be a leader inP3s. In 2008, the government established PPP CanadaInc. to increase the effective use of P3s in Canada.From now on, all federal infrastructure projects creatingan asset with a lifespan of at least 20 years and havingcapital costs of $100 million or more will be subjectedto a P3 screen to determine whether a P3 is a suitableprocurement option. Federal departments will also beencouraged to consider a P3 approach for other typesof project and service procurements.Increased federal funding forinfrastructureAs a result of these investments, the government claimsthat the amount of federal funding available toprovinces, territories and municipalities forinfrastructure projects will be close to $11 billion in09Indo-Canadian Business October - December 2011