Funding for Municipal Infrastructure

Infrastructure Canada-PEI funding programs support major capital projects that improve the quality of life and standard of living for residents in Island communities. The funding agreement allows municipal governments to undertake significant projects that align with their local priorities under the following themes:

• Green infrastructure: projects that improve the environment and contribute to clean air and water e.g. water, wastewater, and water treatment systems, solid waste management and recycling, and improved energy efficiency of new and existing buildings and facilities owned by local governments;
• Long-term economic growth, e.g. increasing economic opportunity in communities, improved telecommunications;
• Improved community infrastructure, e.g. constructing or rehabilitating traditional transportation infrastructure, improving community safety, supporting Canadian heritage and culture, local recreational facilities, etc.; and/or
• Building 21st-century infrastructure, e.g., encouraging innovation, increasing partnerships, encouraging use of new approaches and best practices, and more efficient use of existing infrastructure.

The Infrastructure Secretariat administers funding to PEI municipalities under the following programs:

• Canada Community-Building Fund (CCBF)
• Investing in Canada Infrastructure Program (ICIP) - ICIP Program Closed for Applications

For more information about a specific funding program, contact the Infrastructure Secretariat at 1-888-240-4411.

What is the municipality expected to contribute towards the cost of a project?

In most cases, federal, provincial, and municipal governments each provide up to one-third of the eligible cost of a municipal infrastructure project. Private sector participation is considered in lieu of or in conjunction with a municipal contribution. 

Is there a completion date for projects?

Yes. However, completion dates vary between funding agreements.

What if the project has already started?

Costs for projects already underway are not eligible for funding under the guidelines of the program. However, if the project has logical phases, funds may be available for a phase not yet started, providing the project meets any environmental mitigation measures that would have been imposed as a condition of funding.

Can we tender the project while we await approval?

Written approval is required prior to tendering any project not yet approved. Contact the office and they will advise on how to proceed.

How are project submissions assessed?

A Management Committee consisting of representatives from the federal, provincial, and municipal governments represented by the Federation of PEI Municipalities.

How do I find out the status of my application?

Notification letters will be sent out to all groups whose projects have been approved for funding. An applicant can contact the Secretariat Office toll-free at 1-888-240-4411 for an update at any time.

Are there any requirements for projects receiving provincially administered funds?

• Environmental Assessment: All projects are subject to the Canadian Environmental Assessment Act. Each project submission must include a completed Environmental Assessment Checklist, provided in the application. CCBF projects are not subject to the Canadian Environmental Assessment Act; however, they must meet Provincial standards. 

• Insurance Requirements: Project agreements administered by the Province have insurance requirements. Applicants are advised to review the insurance section of the funding agreement and consult with their insurance provider.  Insurance requirements under “Third Party Contracts” should be included in quotation and tender requests so contractors are aware of them prior to providing their quotations to you. 
  • Section 6 of The Funding Agreement dealing with Insurance
  • Third-Party Requirements

When do we receive the funding?

Funds are issued according to the specifics of the funding agreement, i.e. lump sum payment upon receipt of required auditing materials (i.e. annual expenditure reports).

Are there any provisions for First Nations communities under this program?

Infrastructure priorities for First Nations communities are funded through a separate allocation of funds, administered by Indian and Northern Affairs Canada. The Government of Canada has set aside about $31 million for First Nations infrastructure across Canada.

For more information about infrastructure funding, contact the PEI Infrastructure Secretariat at cpei-infrastructure@gov.pe.ca(link