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Economic recovery stimulates the Canadian construction and infrastructure sector

Author(s): Richard Wong, Paula Olexiuk, Alexandre Fallon, Emily Lynch, Jagriti Singh, Storme Mckop

Dec 8, 2020

In response to the economic impacts of the COVID-19 pandemic, governments across the globe have committed to significant spending measures to stimulate recovery. Apart from wage subsidy programs, Canada’s strategic focus to date, at the federal, provincial and territorial levels, has been to encourage private and public sector investment and development of shovel-worthy and shovel-ready infrastructure projects across the country. While policy announcements will continue across the country through the end of the year and beyond, the following is a high-level overview of federal and selected provincial initiatives as of October 2020.


The federal government’s Investing in Canada Infrastructure Program, which was in effect prior to the onset of COVID-19, provides over $33 billion in funding to provinces and territories through bilateral agreements with Infrastructure Canada for the following four targeted streams: public transit; green infrastructure; community, culture and recreation infrastructure; and rural and northern communities infrastructure. To accelerate the pace of infrastructure upgrades to counter the effects of the pandemic, the government also created the temporary COVID-19 Resilience stream and the COVID-19 Flexibilities transfer program...