Canada – Quebec Integrated Bilateral Agreement for the Investing in Canada Infrastructure Program
Amending Agreement no. 3

This Amendment No. 3 to the Integrated Bilateral Agreement for the Investing in Canada Infrastructure Program (ICIP) is made as of the date of last signature.

BETWEEN: HIS MAJESTY THE KING IN RIGHT OF CANADA, as represented by the Minister of Infrastructure and Communities, hereinafter referred to as the Minister of Intergovernmental Affairs, Infrastructure and Communities (hereinafter "Canada")

AND: THE GOVERNMENT OF QUEBEC, as represented by the Minister of Infrastructure and the Minister responsible for Canadian Relations and the Canadian Francophonie (hereinafter "Quebec")

individually referred to herein as the "Party" and collectively referred to herein as the "Parties".

WHEREAS the Parties entered into an agreement on June 6, 2018, which sets out the terms and conditions for Canada's contributions under the Canada-Quebec Integrated Bilateral Agreement relating to ICIP ("the Agreement");

WHEREAS the Parties amended the Agreement ("Amendment No. 1") on January 12, 2021;

WHEREAS the Parties amended the Agreement ("Amendment No. 2") on February 9, 2022;

WHEREAS the Parties wish to amend the Agreement to reflect changes to the ICIP ("Amendment No. 3") by Canada, including additional funding under Category 5 of the COVID-19 Resilience Infrastructure stream to support ventilation improvements in public buildings owned by a public sector organization, as well as a number of ICIP changes made in Budget 2022; 

NOW THEREFORE, in accordance with the above principles, the Parties agree as follows:

1. Amendments to the Agreement

1.1 The definition of "Agreement End Date" in section 1.1 (Definitions) is deleted and replaced by the following:
"Agreement End Date" means March 31, 2034.

1.2 The text of subsection 3 a) (Commitments by Canada) is deleted and replaced by the following:

  1. Canada agrees to provide contribution funding to Quebec for each of the Program's contribution streams in an amount outlined in Schedule A.1 (Contribution Funding) and to be paid in accordance with schedules A.2, A.3, A.4, A.5, A.6 and A.7, as applicable. The total amount of contribution funding provided by Canada to Quebec under all streams will be up to seven billion five hundred fifty-nine million six hundred seventy-three thousand nine hundred eighty-three dollars ($7,559,673,983).

1.3 The text of subsection 3 c) (Commitments by Canada) is deleted and replaced by the following:

  1. Canada agrees to consider Quebec's requests to transfer part of the contribution funding set out in paragraphs A.1 a) i. to A.1 a) iv. between Program streams.

1.4 The text of subsection 3 f) (Commitments by Canada) is deleted and replaced by the following:

  1. Canada agrees to provide a maximum of seventy-five million five hundred ninety-six thousand seven hundred forty dollars ($75,596,740) from Quebec's total allocation under this Agreement to Planning Projects funded under the public transit stream, the green infrastructure stream, the community, culture and recreation infrastructure stream, the rural and northern communities infrastructure stream, and category 5 of the COVID-19 resilience infrastructure stream, in accordance with paragraph (ii) of subsection A.2(b) (Eligible Projects) and subsections A.3(c), A.4(c), A.5(b), A.6(b) and A.7(b) of Schedule A (Program Details).

1.5 The text of Article 4(a) (Commitments by Quebec) is deleted and replaced by the following:

  1. Quebec agrees to ensure that the Ultimate Recipient complies with the relevant provisions of the Agreement and completes the Project within the expected timeframe and budget in the Agreement. For any ineligible expenses or cost overruns, Canada will not be financially liable, unless agreed between the Parties.

1.6 The text of subsection 4 c) (Commitments by Quebec) is deleted and replaced by the following:

  1. For Projects funded under the public transit stream, the green infrastructure stream, the community, culture and recreation infrastructure stream, the rural and northern communities infrastructure stream, if Quebec acts as the Ultimate Recipient, Quebec will ensure that all Projects are Substantially Completed by October 31, 2033. For projects where the Ultimate Recipient is not Quebec, Quebec will ensure that the memoranda of understanding with Ultimate Recipients require that projects be Substantially Completed by October 31, 2033. For Projects funded under the COVID-19 resilience infrastructure stream, Quebec will ensure that all projects are Substantially Completed by December 31 , 2023, or no later than December 31, 2024 if the project is in a remote community, unless otherwise agreed by Canada.

1.7 The text of subsection 4 m) (Commitments by Quebec) is deleted and replaced by the following:

  1. Quebec will submit all Projects to be reviewed and approved by Canada for funding under this Agreement by March 31, 2023. Canada recognizes the possibility that some project information provided at the time of submission, including eligible costs, may evolve. This information may be updated by Quebec after March 31, 2023. No new project can be submitted after March 31, 2023.

1.8 The text of subsection 4 r) (Commitments by Quebec) is deleted and replaced by the following:

  1. Quebec acknowledges that for any Project with a federally required Construction Start date of September 30, 2023, as set out in A.3 f) ii., A.4 f) i. b), A.4 f) ii. e), A.6 e) i. (c), and A.7 e) ii., if the Construction Start of the Project has not occurred by September 30, 2023, Canada will cancel the Project under the Agreement.

1.9 The text of subsection 4 s) (Commitments by Quebec) is deleted and replaced by the following:

  1. Quebec will allocate a minimum of twenty-three million seven hundred and thirty-six thousand sixty-four dollars ($23,736,064) from the COVID-19 resilience infrastructure Contribution Funding under paragraph A.1a) v. of Schedule A.1 (Contribution Funding) to Projects in category 5 of the COVID-19 resilience infrastructure stream, as described in Schedule A.7(b) (Eligible Projects).

1.10 Paragraph (t), as set out below, is added to section 4 (Commitments by Quebec):

  1. Quebec acknowledges that a maximum of seventeen million two hundred ninety-two thousand three hundred ninety-nine dollars ($17,292,399) of Canada's contribution to COVID-19 resilience infrastructure under paragraph A.1 a) v. of Schedule A.1 (Contribution Funding) may be allocated to Projects in schools under category 5, as described in Schedule A.7 b) (Eligible Projects).

1.11 The text of section 6 (Fiscal Year Budgeting) of the Agreement is deleted and replaced by the following:

  1. The amount of the Contribution Funding payable by Canada for each Fiscal Year will be determined as set out in subsection A.1 b) of Schedule A (Program Details).
  2. If the amount owed by Canada for each Fiscal Year is less than the maximum amounts estimated in subsection A.1 b) of Schedule A (Program Details), Canada will reassign the difference between the two amounts to a subsequent Fiscal Year subject to section 5 (Appropriations).

1.12 The text of subsection 8 a) (Infrastructure Plan) is deleted and replaced by the following:

  1. Quebec will submit an Infrastructure Plan to Canada under the QIP by November 30, 2018, update and submit it again to Canada once a year before May 31, without exceeding May 31, 2022, to the satisfaction of the Parties, this will include:

1.13 The text of subsection 11 d) (Presentation of Project Progress Reports) is deleted and replaced by the following:

  1. For all Projects funded under the public transit stream, the green infrastructure stream, the community, culture and recreation infrastructure stream, the rural and northern communities infrastructure stream, Quebec will complete all project progress reports requirements set out in subsections 11 (a) and (b) to the Parties' satisfaction no later than December 31, 2033. For all Projects funded under the COVID-19 resilience infrastructure stream, Quebec will complete all reporting requirements set out in subsections 11 a) and c) to Canada's satisfaction no later than July 31, 2024, Or July 31, 2025 for projects in remote communities, unless otherwise agreed by Canada.

1.14 The text of subsection 12.1 c) (Claims and Payments) is deleted and replaced by the following:

  1. For Projects funded under the public transit stream, the green infrastructure stream, the community, culture and recreation infrastructure stream, the rural and northern communities infrastructure stream, Quebec will submit a final claim to Canada for payment of Eligible Expenditures by December 31, 2033 at the latest. For all Projects funded under the COVID-19 resilience infrastructure stream, Quebec will submit a final claim to Canada for payment of Eligible Expenditures no later than July 31, 2024, Or July 31, 2025 for Projects in Remote Communities, unless otherwise agreed by Canada.

1.15 The text of subsection 12.3 b) (Payment Deadline) is deleted and replaced by the following:

  1. For all Projects funded under the public transit stream, the green infrastructure stream, the community, culture and recreation infrastructure stream, the rural and northern communities infrastructure stream, Canada will make the final payment no later than March 31, 2034. For all Projects funded under the COVID-19 resilience infrastructure stream, Canada will make the final payment no later than October 31, 2024, or October 31, 2025 for Projects in Remote Communities, unless otherwise agreed by Canada.

1.16. Schedule A.1 (Contribution Funding) is deleted and replaced by the following:

A.1 Contribution Funding

  1. Canada's Contributions:
    In accordance with section 3 (Commitments by Canada), Canada agrees to provide a contribution to Quebec for Projects under each of the Program's streams as follows:
    1. under the public transit stream, an amount of up to four billion seven hundred seventy-nine million five hundred eighty thousand centers forty-three dollars ($4,779,580,143) to be paid in accordance with Schedule A.2 (General Program Requirements) and A.3 (Public Transit); 
    2. under the green infrastructure stream, up to one billion seven hundred ninety million four hundred three thousand three hundred thirty-seven dollars ($790,403,337) to be paid in accordance with Schedule A.2 (General Program Requirements) and A.4 (Green Infrastructure);  
    3. under the community, culture and recreation infrastructure stream, an amount of up to two hundred and sixty-five million nine hundred and fifteen thousand one hundred and sixty-five dollars ($265,915,165) to be paid in accordance with Schedule A.2 (General Program Requirements) and A.5 (Community, Culture and Recreation Infrastructure);
    4. under the rural and northern communities infrastructure stream, up to two hundred and sixty-seven million one hundred and thirty-nine thousand two hundred and seventy-four dollars ($267,139,274) to be paid in accordance with Schedules A.2 (General Program Requirements) and A.6 (Rural and Northern Communities Infrastructure);
    5. under the COVID-19 resilience infrastructure stream, an amount of up to four hundred and fifty-six million six hundred and thirty-six thousand sixty-four dollars ($456,636,064 to be paid in accordance with Schedule A.2 (General Program Requirements) and A.7 (COVID-19 Resilience Infrastructure) and which includes a minimum amount of twenty-three million seven hundred thirty-six thousand sixty-four dollars ($23,736,064) to be allocated to Projects approved under category 5 of the COVID-19 resilience infrastructure stream.
    Subject to Canada's approval, allocations under each stream set out in Schedule A.1 a) i. to iv. may be adjusted in the future, following an analysis of eligible project expenditures, in accordance with the authorities acquired by Canada's Minister of Infrastructure and Communities. Adjustments, if any, will form an integral part of this Agreement and will not constitute a material amendment to the Agreement.
  2. Fiscal Year Breakdown
    The annual distribution of the estimated cash flows for the envelopes allocated to each stream will be provided by the Treasury Board of Quebec Secretariat by October 31, 2023 and will form an integral part of the Agreement. Canada's total Contribution Funding, including Contribution Funding for all approved and future Projects and for Administrative Expenses as determined under Article 13 (Administrative Expenses), will be allocated in accordance with that stream's estimated maximum amount as set out in the All Streams Estimated Fiscal Year Breakdown Table, depending on the Fiscal Years for all streams that may be updated by the Oversight Committee(s).

1.17 The text of Schedule A.2 a) ii. e) (General Program Requirements) is deleted and replaced by the following:

  1. Indigenous Ultimate Recipients are:
    1. A First Nation, Inuit or Métis* government or authority established pursuant to a self-government agreement or a comprehensive land claim agreement that has been approved, given effect and declared valid by federal legislation;
    2. A First Nations, Inuit or Métis* government that is established by or under federal or provincial legislation that incorporates a governance structure, including the government of a First Nations band;
    3. A not-for-profit organization whose central mandate is to improve Indigenous outcomes ;
    4. An Indigenous Development Corporation.
    * Canada's recognition of the Métis as Indigenous Ultimate Recipients under the Investing in Canada Program does not affect Quebec's position that the Métis are not recognized as an Aboriginal group by the Government of Quebec.

1.18. Schedule A.3 b) i. a) (Public Transit) is deleted and replaced by the following:

  1. Allocation to Ultimate Recipient
    1. Subject to approval by Canada, the Parties may reallocate the Contribution Funding to each of the Ultimate Recipients listed in the Estimated Public Transit Sub-Allocation Table, paragraph a) of this section, or to other eligible Ultimate Recipients, based on Eligible Projects under the Agreement and Quebec's public transit priorities. Canada's Minister of Infrastructure and Communities supports such reallocations so that Quebec can commit all of its allocation between public transit companies in the context of Projects submitted by March 31, 2023. Quebec will ensure that any relevant Ultimate Recipient agreement is amended to reflect changes to the funding allocations.
      Estimated Public Transit Sub-Allocation Table*
      Ultimate Recipient Revised Envelope (Amendment No.3)
      Société de transport de Montréal $2,958,544,366
      Réseau de transport de Longueuil $276,990,097
      Société de transport de Laval $201,529,266
      Réseau de transport de la Capitale $873,427,865
      Société de transport de l'Outaouais $94,021,873
      Société de transport de Sherbrooke $36,633,334
      Société de transport de Saguenay $19,590,179
      Société de transport de Lévis $52,889,347
      Société de transport de Trois-Rivières $53,898,416
      Autorité régionale de transport métropolitain et Réseau de transport métropolitain $212,055,400
      Total $4,779,580,143

      * Table for information only, based on the projects that Quebec intends to submit to Infrastructure Canada for the full use of its envelope. Some adjustments may need to be made as a result of the analysis of eligible project expenditures before or after March 31, 2023. Changes, if any, will be approved by the Ministers signing the Agreement or persons authorized to act on their behalf, and will not constitute a material amendment to the Agreement.

1.19 Schedule A.3 b) i. e) (Public Transit) is deleted.

1.20 Schedule A.3 e) i. (Public Transit) is deleted and replaced by the following:

  1. Stacking and Cost-Sharing
    1. Unless otherwise approved by Canada, the maximum funding from any federal source to a Project approved for Contribution Funding under this Agreement under the public transit stream, will be:
      1. Forty per cent (40%) of Eligible Expenditures for new construction and extension of public transit, as well as active transportation;
      2. Fifty percent (50%) of Eligible Expenditures for public transit rehabilitation Projects; or
      3. Twenty-five per cent (25%) of Eligible Expenditures for any for-profit Ultimate Recipient in the private sector, notwithstanding the provisions of paragraphs (a) or (b) of this section.

1.21 Schedule A.4 b) (Green Infrastructure) is deleted and replaced by the following:

  1. Canada's Contributions:
    1. Allocations to sub-streams
      1. Quebec agrees to allocate a minimum of $813,634,559 of Canada's allocation under paragraph A.1 a) ii. of this Schedule to Projects under the Climate Change Mitigation sub-stream, subject to the provisions of section 13 (Administrative Expenses).

1.22 Schedule A.4 e) (Green Infrastructure) is deleted and replaced by the following:

  1. Stacking and Cost-Sharing
    1. Unless otherwise approved by Canada, the maximum funding from any federal source to a Project approved for Contribution Funding under this Agreement under the its green infrastructure stream, will be:
      1. Fifty percent (50%) of Eligible Expenditures for Projects carried out by Quebec;
      2. Forty per cent (40%) of Eligible Expenditures for municipalities, regional governments and non-profit organizations;
      3. Seventy-five percent (75%) of Eligible Expenditures for Indigenous Ultimate Recipients;
      4. Twenty-five per cent (25%) of Eligible Expenditures for any for-profit Ultimate Recipient in the private sector, notwithstanding the provisions of paragraphs a), b) or c) of this section.

1.23 Schedule A.5 d) (Community, Culture and Recreation Infrastructure) is deleted and replaced by the following:

  1. Stacking and Cost-Sharing
    1. Unless otherwise approved by Canada, the maximum funding from any federal source to a Project approved for Contribution Funding under this Agreement under the its community, culture and recreation infrastructure stream will be:
      1. Fifty percent (50%) of Eligible Expenditures for Quebec;
      2. Forty per cent (40%) of Eligible Expenditures for municipalities, regional governments and non-profit organizations;
      3. Seventy-five percent (75%) of Eligible Expenditures for Indigenous Ultimate Recipients, notwithstanding paragraphs a) and b) in this section.

1.24 Schedule A.6 d) (Rural and Northern Communities Infrastructure) is deleted and replaced by the following:

  1. Stacking and Cost-Sharing
    1. Unless otherwise approved by Canada, the maximum funding from any federal source to a Project approved for Contribution Funding under this Agreement under the rural and northern communities infrastructure stream will be:
      1. Fifty per cent (50%) of Eligible Expenditures for Projects carried out by Quebec, municipalities and regional governments with a population of five thousand (5,000) or more and non-profit Ultimate Recipients;
      2. Sixty per cent (60%) of Eligible Expenditures for municipalities and regional governments with a population of less than five thousand (5 000);
      3. Seventy-five percent (75%) of Eligible Expenditures for Indigenous Ultimate Recipients; or
      4. Twenty-five per cent (25%) of Eligible Expenditures for any private sector for-profit Ultimate Recipient, with the exception of private sector for-profit Ultimate Recipients carrying out a Project related to "improved access to broadband connectivity, including Internet and mobile wireless infrastructure" found in the Rural and Northern Communities stream Outcome Table, for which the maximum funding from all federal sources will be:
        1. Fifty percent (50%) of Eligible Expenditures for Projects carried out by Quebec; or
        2. Seventy-five per cent (75%) of Eligible Expenditures for Projects in communities governed by one of the entities set out in Schedule A.2 a) ii) e) (Ultimate Recipients).

1.25. The text of Schedule A.7 e) (COVID-19 Resilience Infrastructure) is deleted and replaced by the following:

  1. Federal Requirements
    Each Project that complies with a project category and sub-category in the COVID-19 Resilience Infrastructure Project Categories and Sub-Categories Table must meet the following requirements:
    1. A COVID-19 resilience infrastructure Project must not exceed $10 million ($10,000,000) of total estimated Eligible Expenditures.
    2.  The Construction Start must take place by September 30, 2023 for any Project in the COVID-19 resilience infrastructure stream, except for Projects funded under category 5 for which a Construction Start date does not exist.
    3. A COVID-19 resilience infrastructure stream Project is to be Substantially Completed by December 31, 2023, or by December 31, 2024 if the Project is in a remote community.
    4. Projects funded under category 5 must be carried out in public buildings owned by a public sector body.
    5. Canada's Contribution Funding for all projects in category 5 schools shall not exceed seventeen million two hundred ninety-two thousand three hundred ninety-nine dollars ($17,292,399), in accordance with section 4 (Commitments by Quebec).

2. Effect of the amendments

  • 2.1 All capitalized terms used in this Amendment No. 3 have the meaning ascribed to them in the Agreement.
  • 2.2 Except for the amendments provided in this Amendment No. 3, the obligations, covenants and terms set forth in the Agreement will continue to remain in full force and effect.
  • 2.3 Amendment No. 3 may be signed in counterpart, and the signed copies will, when attached, constitute Amendment No. 3 and form part of the Agreement.
  • 2.4 Amendment No. 3 shall be effective as of the date this agreement is signed by the last Party.

3. Signatures

Amendment No. 3 is signed on behalf of His Majesty the King in right of Canada by the Minister of Intergovernmental Affairs, Infrastructure and Communities and on behalf of the Government of Quebec by the Minister responsible for Canadian Relations and the Canadian Francophonie and the Minister responsible for Infrastructure.

 

 

 

His majesty the King in right of Canada

The Honourable Dominic LeBlanc
Minister Intergovernmental Affairs, Infrastructure and Communities


Date

 

 

 

The Government of Quebec

Jonatan Julien
Minister responsible for Infrastructure


Date

 

 

 

The Government of Quebec

Jean-François Roberge
Minister responsible for Canadian Relations and the Canadian Francophonie


Date