Current questions - Municipal Rural Infrastructure Fund
General information
1. What is the MRIF?
On July 18, 2005, the Government of Canada and the Government of Quebec signed an agreement for the implementation of the Municipal Rural Infrastructure Fund (MRIF) in Quebec. This agreement firms up their commitment to invest in infrastructure projects that will help create strong and sustainable communities in Quebec. According to the terms of the agreement, at least 80% of the funding available under the MRIF will be dedicated to municipalities with populations of less than 250,000 inhabitants. Furthermore, 70% of the federal and provincial contributions will be allocated to waterworks and sewer infrastructure projects.
2. Will a similar program be available to larger municipalities?
The Canadian Strategic Infrastructure Fund (CSIF) was established in 2001 with a budget of $2 billion. The program was renewed in the 2003 federal budget with another $2 billion in funding, and the commitment was made in the 2005 federal budget to further extend the initiative. The CSIF is designed to help major urban centers meet their infrastructure needs. Canada and Quebec are also discussing infrastructure projects for major transportation routes, like the completion of Highway 30, for example.
3. What role will the Union des municipalités du Québec (UMQ) play on behalf of its members in the implementation of the MRIF?
The UMQ has agreed to assist the Government of Quebec and the Government of Canada with implementation of the MRIF by helping to promote the program among Quebec municipalities and by providing training and learning opportunities to municipalities eligible for funding under the program.
Who can apply for funding under the MRIF?
4. Which municipalities are eligible for the MRIF?
In announcing the launch of negotiations on the Municipal Rural Infrastructure Fund, the Government of Canada maintained that at least 80% of the program's funding would be dedicated to municipalities with populations of less than 250,000 inhabitants. This objective has been respected in the agreement signed with the Government of Quebec. (Quebecconfirms that the following municipalities have populations of more than 250,000: Montreal; Laval; Longueuil; and Quebec City.)
5. Does the MRIF apply only to municipalities and local public service boards?
Potential funding recipients under the MRIF vary according to the type of project involved. In all cases, the MRIF applies to municipalities, which are defined as a local municipality, regional county municipality, metropolitan community or inter-municipal management board, or a corporation or organization to which one of the aforementioned entities either appoints the majority of members or contributes more than half of the annual budget. In the case where the infrastructure supports local or regional development, the MRIF also applies to non-governmental organizations.
6. Are private sector or non-governmental organizations eligible for MRIF funding?
The private sector and non-governmental organizations are eligible for MRIF funding for projects related to infrastructure that supports local or regional development . To receive funding, these promoters must obtain and submit a resolution from the council of the municipality in which the project is being carried out that indicates the council's support of the project.
Funding
7. How much will each level of government be contributing to the MRIF?
The Government of Canada and the Government of Quebec will each invest $234.8 million in the MRIF. The other funds required will come from the municipalities.
8. Can MRIF funding be combined with funding from other programs, such as the Canadian Federation of Municipalities' Green Municipal Funds (GMF)?
The recipient and a third party may obtain funding for an MRIF project from other federal sources for those costs or part of the work that are eligible under the agreement, provided that total federal funding for each MRIF project does not exceed 50% of these costs.
Eligible infrastructure types and costs
9. Which types of infrastructure will be eligible for funding under the MRIF?
Seventy percent of the eligible MRIF projects must be "green" infrastructure projects, such as those involving drinking water or wastewater treatment. Funds may also be allocated for infrastructure projects supporting local or regional development, such as cultural, tourism or recreational infrastructure, local roads, and the development of knowledge relating to municipal infrastructure.
10. How are eligible costs defined (i.e. with respect to technical studies, bridge inspections)?
Eligible costs generally refer to capital costs; fees paid to professionals, technical personnel, consultants and contractors specifically retained to carry out design, engineering, manufacturing, construction, or surveying activities; communications costs; costs related to the training required to operate the infrastructure and the implementation of training tools; for projects involving the development of knowledge relating to municipal infrastructure, eligible costs include planning, evaluation and development costs, project feasibility studies, and acquisition and installation costs of new equipmentto be added to municipality's and considered essential to the project's execution.
11. What is the deadline for municipalities to carry out studies or develop capital projects (knowing that environmental assessments can take several years)?
MRIF projects must be approved by December 31, 2008, and be completed by March 31, 2010. Any major modification to a sanctioned project must be approved by December 31, 2008, while all other modifications to a sanctioned project must be approved by March 31, 2010. Moreover, funding recipients must try to ensure their project is started within the 12 months following signature of the contract with Quebec, failing which the contract shall become null and void, barring mitigating circumstances.
Provincial questions
12. Will the provincial government match Canada's investment in the MRIF?
As our agreement clearly shows, that is precisely what the provincial government intends to do. Quebec is firmly committed to allocating funding for this program in order to help municipalities meet their infrastructure needs.
