Quebec, Ottawa reach $1.3-billion deal on infrastructure funding

Theglobeandmail.com
July 5, 2016
By Bill Curry

Ottawa and Quebec have reached a deal on infrastructure that will see $1.3-billion in federal money spent in the province on public transit and water projects over the next three years.
Prime Minister Justin Trudeau is scheduled to make the announcement Tuesday in Montreal with Quebec Premier Philippe Couillard.

 But the announcement won’t include details of the largest project on Quebec’s Phase 1 list, which states that Ottawa will contribute $518.2-million toward a $1-billion transit project. The details are to be confirmed when the deal has been approved by the federal Treasury Board.

The two governments will reveal a list, which was obtained by The Globe and Mail, of specific transit projects. It includes $17.5-million in federal money to repair Montreal’s aging MR-73 subway cars and general upgrades to the Societe de transport de Montreal’s subway system.

The Agence métropolitaine de transport, which operates regional commuter rail lines and bus service, will receive $25.8-million to purchase new train cars. Quebec is the second province to sign a bilateral deal with Ottawa in what the federal Liberals call the first phase of their plan to boost economic growth with billions in new spending on projects across the country.

The Phase 1 projects are aimed at repairs to existing infrastructure and covering the planning costs for larger projects, which would be part of a second phase that will likely launch in 2017.

The federal government has been negotiating with the provinces and territories since the release of the March 22 budget, which promised a doubling of federal spending on infrastructure over 10 years worth a combined $120-billion. However, only $11.9-billion was made available to provinces and municipalities in the short term through the so-called first phase.

The nature of the Quebec program suggests the money would also go toward Montreal’s existing metro system rather than major new expansions, given that will be the focus of the program’s second phase. Quebec’s longer-term priorities include the extension of the Blue Line, part of Montreal’s metro, and a $5.5-billion proposal to build a new light-rail transit line across the Greater Montreal Area.

The list of specific Phase 1 projects does not allocate all of the federal money set aside for the province. Other projects will be decided on and announced later.

British Columbia signed a deal on June 16 focused primarily on projects in the Metro Vancouver area, including rapid transit upgrades. Yukon also reached a bilateral deal with Ottawa in June, with a list a projects that mostly related to waste-water management.

Other provinces are expected to announce similar deals with the government in the coming weeks.