Mr. Speaker, our government has worked and will continue to work closely with provinces and territories on helping meet the transportation and other public infrastructure needs of all our communities, including those in the north.
We are committed to working productively with all our counterparts in all provinces, territories and municipalities across Canada. We understand that it is important to have a positive working relationship with our counterparts and we are committed to maintaining that.
We have continued this relationship through the development of the building Canada plan. We consulted with all levels of government about how this could help address their infrastructure concerns, and the result was the $33 billion building Canada plan.
We understand that no single level of government is sufficient to address the diverse infrastructure needs of this country. That is why we are committed to working with all levels of government in order to develop infrastructure that will meet the needs of all Canadians.
Our infrastructure programs, like the building Canada plan, are all about multi-level partnerships and co-operation. We continue to work very closely with the provincial and territorial governments to ensure that essential infrastructure needs are being addressed and that any critical gaps are readily identified and dealt with. This collaboration is essential not only to fulfill long-term and short-term infrastructure goals and build world-class infrastructure, but to stimulate our economy and improve the quality of life of Canadians.
We have clearly demonstrated our commitment to support provincial, territorial and municipal infrastructure. While we are sensitive to the federal government's role in this, we also know that when it comes to infrastructure needs and priorities, one size does not fit all. Every region of this country is different, and some require special attention.
Northern communities face unique and challenging infrastructure issues that require unique solutions to address the harsh northern climate and the large geographical area. The harsh climate and short construction season not only affect the delivery of goods and services but increase the cost of construction and reduce the lifespan of the infrastructure.
Through various investments such as the building Canada plan, this government has ensured the necessary flexibility to support its northern partners. For example, under building Canada, funding flows to the three territories through the provincial-territorial base fund, which will see over $182 million flow to each of the territories. This is about 10 times what they would have received under a per capita allocation. Canada's economic action plan accelerates these remaining payments to provinces and territories to be made over the next two years. This provides predictable funding to help provinces and territories meet their infrastructure needs.
Through this program, this government has ensured that the investment we have made in the north can be expanded to include infrastructure considerations unique to northern needs. We understand that living in the north poses some challenges different from the remainder of the country, such as higher construction costs. Because of this, our government has ensured that it will provide more funding to its projects by covering up to 75% of the costs, as opposed to the traditional 50%.
The three territories will also receive, combined, $88.5 million under the gas tax fund to support their infrastructure. This is money directly to the bank accounts of the municipalities.
In recognition of their unique needs and smaller populations, the territories are allocated a set amount of gas tax funding, instead of the per capita gas tax funding formula operating in the provinces. In addition to funds under building Canada, municipalities will receive hundreds of millions of dollars per year from the Government of Canada through the GST rebate.
Last year, a record $1 billion in gas tax funding was sent out to Canadian municipalities. Recently we announced that the gas tax fund will double to a record-breaking $2 billion. The first payments have been moved up from June 1 to April 1, in order for more projects to get under way this year. This $2 billion annual investment will continue as a permanent measure to supplement municipalities with an additional significant and predictable source of infrastructure funding.
Our commitment to northern infrastructure is further emphasized by the government's continued co-operation in the Yukon to pursue the development of the Shakwak project and improve sections of the Alaska Highway in the territory. As 85% of Yukon's population lives in communities along the highway, this project also contributes to the economic and social well-being of the Yukon.
Since Canada's economic action plan, the government has continued to meet with provincial, territorial and municipal governments to discuss infrastructure priorities and identify shovel-ready projects. We have taken action to assist our partners to cope with the current economic downturn. We have implemented measures to stimulate the economy, create jobs, and support Canadian families.
Over the past few months, we have taken serious action by approving nearly 500 projects in small communities across the country, worth over $1.5 billion in combined funding. By expanding and accelerating our infrastructure investment, we will provide almost $12 billion additional stimulus for our economy, above and beyond our $33 billion building Canada plan--