Supplementary Table - Details on Transfer Payment Programs

Name of Transfer Payment Program: Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund

Start Date: October 20, 2006

End Date: March 31, 2018

Description: The Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund is intended to establish the best transportation network to facilitate global supply chains between Asia and North America. The transportation infrastructure investments address short and long-term capacity issues.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12:

• Completion of strategic infrastructure projects to improve highway, rail and marine capacity, as well as inter-modal links and connectors to increase the efficiency and reliability of Canada’s Asia-Pacific Gateway and Corridor. Significant progress has been made over the past year including:
  • five projects were completed:
    1. Highway 1 - Hilltop to Balmoral;
    2. Nordel Way in the Corporation of Delta;
    3. North Shore Trade Area (NSTA): Brooksbank Avenue Underpass;
    4. Pitt River Bridge and Mary Hill Interchange; and
    5. Roberts Bank Rail Corridor (RBRC) - 41B St. Overpass at Deltaport Way.
  • four contribution agreements were signed for seven Asia-Pacific Gateway and Corridor Initiative (APGCI) projects with the following project proponents:
    1. City of Surrey
       1. RBRC combo project (192nd Street Overpass, 54th Avenue Overpass, 196th Street Overpass)
       2. RBRC - Panorama Ridge Project (Replaces 168th Street Overpass)
       3. RBRC - 152nd Street Overpass Project
    2. Province of British Columbia
       1. Regional Transportation Management Centre
    3. City of Richmond
       1. Westminster Hwy and Nelson Rd Widening
       2. No. 6 Road Widening
    4. Kinder Morgan
       1. NSTA : Philip Avenue Grade Separation (phase 1)
• Identification of bottlenecks, capacity constraints and other impediments to the flow of goods.
  • Transport Canada has developed evidence-based measures of supply chain performance that have helped identify bottlenecks for marine containers in the Asia-Pacific Gateway and potential remedies, by building on the productive partnerships forged with industry stakeholders as part of the  APGCI .
  • Research was conducted on the movement of and accessibility to refrigerated containers, a mode of conveyance that is crucial for many sectors of the Canadian export industry. Analysis was also conducted in cooperation with provincial and municipal stakeholders to map precisely the location of major generators of freight in the Lower Mainland of British Columbia and related transportation services, in order to help identify pinch points affecting Asia-Pacific trade and solutions.

Comment(s) on Variance(s):  The variance between planned spending and actual spending for 2011-12 under the APGCI program resulted from delays in several projects.  The major contributing factors for the delays included complex project approvals, the difficulties private sector recipients faced in proceeding after the economic recession, and challenging multi-stakeholder collaboration.

Audit Completed or Planned: Not at the present time.

Evaluation Completed or Planned:  Transport Canada’s Evaluation and Advisory Services completed an interim evaluation of the program during 2011-12.  A summative evaluation of the Asia-Pacific Gateway and Corridor Initiative will be conducted in 2016-17.

Initiatives to Engage Applicants and Recipients:  Transport Canada continuously engages recipients to ensure that legislative, regulatory, and contractual requirements are met.  This process includes regular meetings, site visits, project reporting and evaluation, environmental assessments, and Aboriginal consultations. In addition, Transport Canada works with recipients to market APGCI through joint communications activities and initiatives.

Name of Transfer Payment Program: Gateways and Border Crossings Fund

Start Date: February 7, 2008

End Date: March 31, 2018

Description: The Gateways and Border Crossings Fund (GBCF) is a merit-based program that funds transportation infrastructure and other related initiatives to develop and exploit Canada’s strategic gateways, trade corridors and border crossings and to better integrate the national transportation system.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12:

Since the program began, 40 strategic infrastructure projects in 9 provinces have been announced under the GBCF . Recent commitments have included investments in core National Highway System infrastructure, strategic border crossings, as well as major ports and airports. These projects are intended to enhance the flow of people and goods between Canada and the rest of the world by improving and integrating Canada’s transportation system.

In 2011-12, a total of 4 new federal commitments were announced under the GBCF , in support of the Québec-Ontario Gateway. Contribution agreements were signed for 10 GBCF infrastructure improvement projects.

In 2011-12, Transport Canada also continued to support a number of ongoing GBCF -funded studies and research projects that seek to identify efficiency-enhancing opportunities throughout Canada’s transportation network.

Comment(s) on Variance(s): The reported variance between planned and actual spending for 2011-12 can be attributed to delays in the implementation of projects under the GBCF resulting from a number of circumstances, including challenges in project design, property acquisition difficulties, complex environment approvals, and adverse weather conditions.

Audit Completed or Planned: In 2009, the GBCF was included in Transport Canada’s Audit of Selected Departmental Economic Action Plan Initiatives presented to the Departmental Audit Committee in June 2010.  This audit indicated that the Department reasonably and appropriately distributed Economic Action Plan funding to eligible recipients and projects and that suitable monitoring measures were in place. 

The GBCF may be the subject of an audit in 2012-13 as a part of the Department’s audit plan.

Evaluation Completed or Planned: An interim evaluation is also planned for 2012-13.

Engagement of applicants and recipients: The following GBCF applicant engagement initiatives have been undertaken: targeted calls for project proposals, consultations and meetings with partners and stakeholders, and kiosks at gateway/trade-related conferences.  Agreement Management Committees, which include recipient representatives, are responsible for the management and administration of contribution agreements.

Name of Transfer Payment Program: Northumberland Strait Crossing Subsidy Payment under the Northumberland Strait Crossing Act (Statutory)

Start Date: May 31, 1997

End Date: April 1, 2032

Description: The Northumberland Strait Crossing subsidy payments are made to the bridge operator to honour a constitutional obligation to provide a transportation link between Prince Edward Island and the mainland.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12: Federal funding was provided for continuous and efficient year-round transportation of people and goods between Prince Edward Island and the mainland to support an efficient, integrated and accessible transportation system.

Comment(s) on Variance(s): N/A

Audit Completed or Planned: N/A

Evaluation Completed or Planned: N/A

Engagement of Applicants and recipients: Transport Canada has engaged the recipients in the following manner: Discussed Public Private Partnerships (PPP) agreement; annual review and discussion of subsidy; annual meeting between Transport Canada and recipient; maintain an ongoing dialogue to assess change and discuss emerging concerns through regular conference calls and follow-up as required on activities.

Name of Transfer Payment Program: Port Divestiture Fund

Start Date: April 18, 1996

End Date: March 31, 2014

Description: The Port Divestiture Fund was created to facilitate the divestiture process by providing new owners/operators with the resources to continue port operations for the foreseeable future.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12: Six ports were successfully transferred to local communities and users, and are therefore more responsive to local needs.

Comment(s) on Variance(s):  The variance between planned spending and actual spending for 2011-12 arose because the Port Divestiture Fund was scheduled to end on March 31, 2012. However, late in the year, as the program was drawing to a close, several municipalities decided to take over ownership of the facilities that service their town. The result was the unexpected divestiture of several ports. The variance was funded via a $7.4 million transfer from the capital vote and a $14.2 million internal reallocation.

Audit Completed or Planned: Transport Canada conducted an internal audit of the Port Divestiture Fund in 2009 and some recipient audits were conducted in 2011-12 based on the program’s risk audit framework.

Evaluation Completed or Planned: An evaluation was completed in 2007.  The program was further evaluated in 2011-12 as part of the evaluation of the Port Operations sub-sub activity.

Engagement of applicants and recipients: Transport Canada engaged the recipients and applicants in the following manner: engaged potential applicants through public meetings, newspaper notices, and targeted calls for proposals; provided information on service standards and reporting requirements, participated in dialogue and negotiations with potential applicants; and maintained ongoing relationships with recipients consistent with the related contribution agreements.

Name of Transfer Payment Program: Grant to the Province of British Columbia for ferry and coastal freight and passenger services

Start Date: April 18, 1977

End Date: Grant in perpetuity

Description: The Grant to the province of British Colombia gives financial assistance to provide ferry services in the waters of the Province as part of a federal obligation to provide transportation links to the national transportation system from various regions and isolated areas of British Columbia.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12: The grant helped maintain transportation links to the national surface transportation system from various regions and isolated areas of British Columbia.

Comment(s) on Variance(s): N/A

Audit Completed or Planned:  Transport Canada has no responsibility for the distribution, management, or investment of the funds and there are no provisions in the agreement covering Canada’s rights to audit.

Evaluation Completed or Planned:  An evaluation was completed in 2010-11 and is available by contacting Transport Canada Evaluation Services. The next evaluation is planned for 2014-15.

Engagement of applicants and recipients: N/A

Name of Transfer Payment Program: Contributions to provinces toward highway improvements to enhance overall efficiency and promote safety while encouraging industrial development and tourism from a regional economic perspective: Outaouais Road Development Agreement

Agreement signature date: January 07, 1972

Agreement End date: The Agreement will end when all projects listed in the Agreement are completed. No timeframe has been set for completion of projects.

Description: On January 7, 1972, the National Capital Commission and the Ministère des Transports du Québec signed a contribution agreement (amended in September 1972 and December 1978), intended to share the cost (50-50 of eligible expenses) of road construction projects to improve the highway network on the Québec side of the Outaouais region. In 1996, Cabinet authorized the transfer of the Agreement from the NCC to Transport Canada. To date, the federal government has contributed approximately $205 million for projects under this Agreement.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12:  The projects completed to date have enhanced the safety and the efficiency of the Outaouais road network.

Comment(s) on Variance(s):  The variance between planned spending and actual spending for 2011-12 arose because, in the case of Phase 2 of Highway 5, the project was delayed due to extensive environmental analysis of ecologically sensitive land in the adjacent Gatineau Park, as part of the environmental assessment.  Phase 2 is now under construction.

Audit completed: 2005 and 2009

Evaluation planned: 2012-13

Engagement of applicants and recipients: Transport Canada engaged continually with the recipient through regular progress reports, site visits to project sites, Management Committee meetings, environmental assessments, Aboriginal consultations, and project evaluations and reporting.

Name of Transfer Payment Program: Ferry Services Contribution Program

Start Date: 1941

End Date: March 31, 2014

Description: The Ferry Services Contribution Program provided financial assistance to maintain interprovincial ferry transportation in Atlantic Canada and Eastern Quebec, more specifically for the service across the Northumberland Strait, between Wood Islands, Prince Edward Island, and Caribou, Nova Scotia, operated by Northumberland Ferries Ltd.; the service between Cap-aux-Meules, Îles de la Madeleine, Quebec, and Souris, Prince Edward Island, operated by CTMA Traversier Ltée; and the service between Saint John, New Brunswick, and Digby, Nova Scotia, operated by Bay Ferries Ltd.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12:

Certain regional and remote Atlantic Canada and Eastern Quebec communities continue to have access to national transportation options.

Canadians in Atlantic Canada and Eastern Quebec benefitted from more reliable ferry services with service providers meeting or exceeding the minimum level of service established for the ferry services.

Ferry services were operated in a safe and efficient manner.

Comment(s) on Variance(s): The $8 million variance between planned and actual spending for 2011-12 resulted from $5.6 million being reprofiled to future years based on revised forecasted requirements, $2 million not being required as a result of funding being provided from the Provinces of Nova Scotia and New Brunswick and $0.4 million not utilized due to changes in the maintenance projects completed.

Audit Completed or Planned: Recipient audits will be undertaken for the 2011-12 fiscal year before the end of the program by March 31, 2014.

Evaluation Completed or Planned: An evaluation of the program was completed in 2009-10 with a decision made for continuation. The Evaluation is available by contacting Transport Canada Audit and Evaluation Services. The next evaluation is planned for 2014-15.

Engagement of applicants and recipients: Transport Canada engaged the recipients in the following manner: Discussed and provided clear template-based contribution agreements, leases and charter party agreements; annual review and negotiation of the performance objectives and budget required to deliver the ferry services as per the terms of the agreements; informed of service standards and reporting requirements based on the risk profile of each recipient; maintained an ongoing dialogue to assess change and progress through monthly conference calls with each recipient; follow-up as required on project activities, funding requirements and reporting requirements; and notified of the requirement to audit and inform of the audit findings.

Name of Transfer Payment Program: Regional and Remote Passenger Rail Services Contribution Program

Start Date: June 1, 2004

End Date: March 31, 2013

Description: The Regional and Remote Passenger Rail Services Class Contribution Program supports operating and capital funding requirements for regional and remote passenger rail services by ensuring the continuation of non-VIA remote and regional passenger rail services.

Strategic Outcome: An efficient transportation system

Results Achieved in 2011-12: Continuation of safe, viable, reliable and sustainable regional and remote passenger rail services.

Comment(s) on Variance(s):  The variance between planned spending and actual spending for 2011-12 arose because at the time that overall spending was being planned for 2011-12, the contribution program for the operating, capital and start-up funding requirement for regional and remote passenger rail services was scheduled to end on March 31, 2011. However, the program’s renewal as well as changes to the amount of funding allocated to a recipient and the timing of recipient funding approvals resulted in a total contribution of $14.6 million in the 2011-12 fiscal year.

Audit Completed or Planned: The Economic Action Plan portion of the program was audited in 2010.

Evaluation Completed or Planned: An evaluation of sub-sub-activity 1.3.3.1 (Rail Passenger Stewardship and Support), under which the contribution program falls, was completed in 2010.

Engagement of applicants and recipients: Transport Canada engaged applicants and recipients continually through regular progress reports, site visits to project sites, Management Committee meetings, environmental assessments and Aboriginal consultations (where applicable), and project evaluations and reporting. In addition, communications activities were used to highlight key milestones achieved under the program.

Name of Transfer Payment Program: Grant to the Coast Tsimshian for the Port of Prince Rupert development

Start Date: 2011-2012

End Date: March 31, 2015

Description: The Coast Tsimshian First Nation (comprised of the Lax Kw’alaams Indian Band and Metlakatla Indian Band) assert Aboriginal Rights and Title on lands in the Port of Prince Rupert. Certain large development projects at the Port were deemed to adversely impact these potential Rights. The grant, which will be used for economic development, is part of a settlement agreement that fulfills Canada’s legal duty to consult and accommodate these First Nations.

Strategic Outcome: An Efficient Transportation System

Results Achieved in 2011-12:  Payment made according to the settlement agreement.

Comment(s) on Variance(s):  There was a variance between planned and actual spending for 2011-12 because this grant was not approved at the time of the 2011‑12 Report on Plans and Priorities, and funding was received as part the 2011‑12 Supplementary Estimates (B).

Audit Completed or Planned: No audit is planned. This grant is the result of a negotiated settlement agreement, terms of which are fixed. According to the agreement, payments made are deposited in a Trust managed by the First Nation and Canada has no responsibility for the distribution, management, or investment of the funds and assumes no fiduciary obligations regarding their use.

Evaluation Completed or Planned: No evaluation is planned (see above).

Engagement of applicants and recipients: The grant payment resulted from a lengthy consultation and negotiation process that had been ongoing since 2004. According to the agreement, the payments made to the Coast Tsimshian finalize the consultation/accommodation process regarding development at the port of Prince Rupert. Future engagement and/or follow up are not required.

Name of Transfer Payment Program: Grant to the Gitxaala First Nation for the Port of Prince Rupert development

Start Date: 2011-12

End Date: March 31, 2015

Description: The Gitxaala First Nation asserts Aboriginal Rights and Title on lands in the Port of Prince Rupert. Certain large development projects at the Port were deemed to adversely impact these potential Rights. The grant, which will be used for economic development, is part of a settlement agreement that fulfills Canada’s legal duty to consult and accommodate this First Nation.

Strategic Outcome: An Efficient Transportation System

Results Achieved in 2011-12: Payment made according to the settlement agreement.

Comment(s) on Variance(s):  There was a variance between planned and actual spending for 2011-12 because this grant was not approved at the time of the 2011‑12 Report on Plans and Priorities, and funding was received as part the 2011‑12 Supplementary Estimates (B).

Audit Completed or Planned: No audit is planned. This grant is the result of a negotiated settlement agreement, terms of which are fixed. According to the agreement, payments made are deposited in a Trust managed by the First Nation and Canada has no responsibility for the distribution, management, or investment of the funds and assumes no fiduciary obligations regarding their use.

Evaluation Completed or Planned: No evaluation planned (see above).

Engagement of applicants and recipients: The grant payment concluded a lengthy consultation and negotiation process that had been ongoing since 2004. According to the agreement with the Gitxaala, the payment finalizes the consultation/accommodation process regarding development at the port of Prince Rupert. Future engagement and/or follow up are not required.

Name of Transfer Payment Program: Airports Capital Assistance Program

Start Date: April 1, 1995

End Date: No sunset clause

Description: The Airports Capital Assistance Program assists eligible applicants in financing capital projects related to safety.

Strategic Outcome: A safe transportation system

Results Achieved in 2011-12: The program maintained/improved safety at 23 non-federally owned airports.

Comment(s) on Variance(s): The variance between planned spending and actual spending for 2011-12 is explained by: 1) the absence of the decree required for projects to go forward at airports owned by the Québec Government; 2) one large project that had to be delayed for technical reasons; and 3) the late Program renewal in 2010 for which we are still experiencing delays/fallbacks in project implementation and receipt of applications.  

Audit Completed or Planned: No audits planned at this time.

Evaluation Completed or Planned: An evaluation was completed in 2009 in support of the renewal of the program. 

Engagement of applicants and recipients: 

The program is well known throughout the airport industry.

Program managers are invited to speak about the Airports Capital Assistance Program at various national and regional aviation forums. The program is also promoted on the departmental website. Ongoing relationships with recipients are maintained, consistent with reporting requirements under the related contribution agreements.

Name of Transfer Payment Program: Program in support of crossing improvements approved under the Railway Safety Act

Start Date: January 1, 1989

End Date: N/A

Description: Payments made to railway companies and municipalities to improve the safety at public road-railway grade crossings.

Strategic Outcome: A safe transportation system

Results Achieved in 2011-12:  Safety improvements at grade crossings that result in accident and incident reductions.

Comment(s) on Variance(s): The variance between planned and actual spending for 2011-12 arose because some Grade Crossing Improvement Program projects were not completed in time. These delays were reported late in the fiscal year to Transport Canada, which did not allow the department time to move other projects forward.

Audit Completed or Planned: No audit is planned in the near future.

Evaluation Completed or Planned: An evaluation was completed in 2010.

Engagement of applicants and recipients:

• Quarterly conference calls with key recipients
• Transport Canada’s website
• Rail Safety Program Outreach activities