Canadian Public Sector Spending and Infrastructure Projects

31 July 2017

In 2016, the low price of oil and the wildfires that swept across Alberta and British Columbia greatly impacted their provincial economies, as well as the Canadian economy. However, as a result of the recent rising price of oil and increased investments in infrastructure through the Investing in Canada infrastructure plan, the Canadian economy has grown and is continuing to prosper.

As cited from the Government of Canada website, by 2028, it “… will invest $35 billion into transformative infrastructure projects. $15 billion will be sourced from the over $180 billion Investing in Canada infrastructure plan, including:

  • $5 billion for public transit systems; 
  • $5 billion for trade and transportation corridors; and,  
  • $5 billion for green infrastructure projects, including those that reduce greenhouse gas emissions, deliver clean air and safe water systems, and promote renewable power.
Specifically, the Canadian government will: 
  1. Invest in infrastructure projects that have revenue-generating potential and are in the public interest;  
  2. Attract private sector and institutional investors to projects so that more infrastructure can be built in Canada;  
  3. Serve as a centre of expertise on infrastructure projects in which private sector or institutional investors are making a significant investment;  
  4. Foster evidence-based decision making and advise all orders of government on the design of revenue-generating projects; and  
  5. Collect and share data to help governments make better decisions about infrastructure investments.”

A portion of the funds discussed, are being invested into the modernization of water and wastewater infrastructure and the improvement in alternative transportation fuel infrastructure, to increase sustainable practices across the country. By working closely with its provincial, territorial, municipal and indigenous partners, the Government has announced it will evaluate, select and fund infrastructure projects based on the needs of each community.

Public spending has also been allocated to municipalities across Canada to improve the reliability, efficiency, safety and accessibility of their public transit systems. By planning the improvement of the public transit system in each respective municipality, experts believe ridership will increase.

As population growth and increasing urbanization show no sign of slowing down, improvements in public sector infrastructure will have to be constructed and maintained to meet increasing demands. With numerous short and long-term projects underway, public sector entities may want to consider partnering with an insurance broker that is well-established in the marketplace, can offer stable rates and coverage, and that works with insurance companies that have a proven track record for paying municipal claims.

Infrastructure projects and spending affects municipalities across Canada. As infrastructure is a proponent of building great cities, we’ll be discussing the topic at our inaugural JLT Canada Public Sector Summit 2017, held this fall in The Blue Mountains, Ontario. For more information on other topics and speakers, please see our JLT Canada Public Sector Summit event page.

At JLT Canada we seek to build strong lasting relationships with each client. As your partner, we work with you and act in ways that are most beneficial to your municipality. For more information on our Public Sector insurance offerings or related advice, please contact Meghan Callaghan, Vice President – Public Sector, at