August 31, 2009

Infrastructure

Stimulus rollout gaining momentum

VINCE VERSACE

staff writer

Canada’s finance minister says that there will soon be a visible increase in construction projects and the Canadian Construction Association also believes that is the case.

“There is good evidence that we are starting to see actual construction projects out there that are being funded under federal infrastructure programs, including the stimulus ones launched in the last federal project,” said Michael Atkinson, CCA president.

“In Ottawa alone there are two projects, the expansions of both the University of Ottawa and Algonquin College, which are happening under the Knowledge Infrastructure Program.”

Jim Flaherty, in recent media reports, said there will be “more visibility of construction projects” as work on bridges, roads and schools ramp up.

In a recent economic update, the Conservative government reported that $20.6 billion of $22.7 billion to be spent this year has gone through its necessary approvals and rests within its appropriate departments.

Critics have claimed that not enough activity has been evident across the country despite the federal government’s claims. John Baird, Canada’s infrastructure minister, stressed to Canadian municipalities over the last few months that when money is announced for projects, work should get underway and be billed back to Ottawa.

CCA said that it stands to reason that any projects recently approved under the stimulus program would be coming out for tender now.

“There are still questions for this construction season because most of the jobs are just coming out for tender now,” said Atkinson.

“There were so many project approvals in June that by the time municipalities got them out to tender you are looking at July and August, especially to get something done before winter.”

CCA stakeholders had indicated to the association earlier this year that there was already enough backlogged work available to carry them through 2009 but their bigger concerns were from 2010 to 2012.

“It looks like we may be having those infrastructure stimulus projects coming out at the best time just when that backlog of work is finishing,” said Atkinson. “We are going to see the infrastructure stimulus program come online in a big way and the timing couldn’t be more perfect if that is the situation.”

The federal government reports that $2.8 billion of the $4-billion Infrastructure Stimulus Fund (ISF) has been committed. Ottawa also noted that more than 1,700 infrastructure projects have been approved across Canada that can proceed to tender and construction. As of early June, about 60 per cent of the funds committed under the ISF are for municipal and community projects.

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