Good afternoon, and thank you, Madam Chair, members of the committee, and Madam Clerk, for inviting the Canadian Council for Public-Private Partnerships to speak about the progress and challenges of the federal government's long-term infrastructure plan.
As the committee is aware, Canada, like all countries around the world, is confronting a significant infrastructure deficit while facing the additional challenge of fiscal restraint. The federal government, provinces, territories, and municipalities have nonetheless stepped up to the plate, earmarking significant funding to address this priority issue. The federal government is moving ahead with its ambitious $186-billion Investing in Canada plan, and notably the Government of Ontario is implementing an equally aggressive $190-billion 10-year plan.
Our council is a national not-for-profit member-based association, consisting of nearly 400 public and private sector organizations, which works closely with governments at all levels to enable them to become smarter, more innovative, and more effective at delivering infrastructure in Canada. I should add that the council is not a lobby group. Rather, we partner with governments to achieve the very best performance and return on their infrastructure investments.
While we are proponents of public-private partnerships, or P3s, we also recognize that they are not a panacea. If used for the right reasons, and on the right projects, they have delivered very strong economic outcomes in terms of projects being delivered on time and on budget and with excellent value for taxpayers. P3s have become a key tool in the tool kit for governments in delivering major infrastructure assets, and Canada has become a world leader in this sector. We now have 276 projects across the country and across a wide range of sectors, including transportation, health care, water and waste water, justice, energy, and broadband, to name but a few. The value of these projects that have reached financial close, which is to say they are either already in operation or under construction, now exceeds $125 billion.
The council is also actively engaged with indigenous communities across the country, who, as you know, are facing serious infrastructure deficits in the order of $30 billion to $40 billion, related principally to water and waste water, housing, schools, and broadband connectivity shortcomings, which must be addressed.
As a council, we have been pleased to see those historic investments made in infrastructure by governments. They signal that Canadians and their governments recognize that investing in infrastructure creates jobs, grows the economy, increases productivity, improves quality of life, and increases health and safety. In this regard, the government's Investing in Canada plan is to be commended. Notably the program targets high-priority sectors, including public transit and social and green infrastructure, as well as needed improvements to trade corridors. It also includes new innovations, such as the Canada Infrastructure Bank and the smart cities challenge.
Progress on the implementation of the infrastructure plan is being made. It's our understanding that over 28,000 projects have been approved under phase one and many provincial and territorial agreements are in place for phase two funding.
We're also well aware of the concern around the speed at which infrastructure plans are moving ahead. I'll leave it to others to determine what success on that front would be, but I do want to offer a few observations.
Negotiating federal-provincial deals does take time, on both sides, and there is no advantage to either party in rushing the process. Given the degree of infrastructure investment in the past decade, there are fewer shovel-ready projects than there were in the past. Bigger, more complex projects are now becoming the norm, and properly planning and executing these projects does and should take time.
Money flow does not always strictly follow project approval. For example, with P3 projects, the money may not flow at all until the project has reached substantial completion, because the private sector is taking on the construction risk and putting its own money on the table and does not get paid until it delivers.
We do, however, have a few suggestions that could improve the overall ability of government to build capacity, get infrastructure built faster, and deliver the best value and return on investment for taxpayers.
First, the reality is that when talking—