Infrastructure, borders get big cash boost in budget

OTTAWA — Canada’s crumbling infrastructure got a $33 billion- cash infusion yesterday, making it, the government says, the largest single federal investment in public infrastructure since World War II.

The cash is part of the Building Canada plan and will go towards roads, bridges, water systems, public transit and international gateways over the next seven years.

Main highlights of the infrastructure funding include making the Gas Tax Fund — which will be worth $2 billion in 2009-10 — a permanent measure. The money allows municipalities to plan and finance long-term infrastructure needs.

Infrastructure is a vital cog in the nation’s vitality. And
it just got a multi billion dollar boost

Another $500 million will be spent on urban transit systems, while most of the rest will go towards building, repairing and maintaining the nation’s aging highways, roads, and bridges via public or private partnership initiatives.

About $250 million is earmarked to help the struggling auto industry, which is roughly just over half of the $400 million the hard-hit sector was requesting from the federal and Ontario governments.

Finance Minister Jim Flaherty’s budget also commits millions to border initiatives. Ottawa says it will put up $400 million towards a commercial access road to the proposed new Windsor-Detroit border crossing. However, that’s only about a third or even a quarter (depending on the route design chosen) of the projected cost of the access road. Ontario is supposed to fork up the rest, but the province hasn’t made an official announcement of how much it will donate as of yet.

Another $75 million over two years will go to the Canada Border Services Agency to more “effectively manage the border.”

The government is also introducing a higher-security electronic passport by 2011 while doubling the validity period to 10 years; providing $14 million over two years to expand the joint Canada-United States NEXUS program for low-risk frequent travellers across the border; providing $6 million over two years to support provinces planning to introduce enhanced driver’s licences.

To help maximize these investments, Ottawa has created a new Crown corporation called PPP Canada, which will be the first public-private partnership office of its kind at the federal level. “By increasing our use of P3s and taking into account contributions by other levels of government, we should be able to leverage a $100-billion investment in infrastructure,” according to the Finance Ministry.

Transport Canada has stated many times over the last few years that a new bridge in Windsor-Detroit would likely be built through a P3 agreement.