Infrastructure bank could yield funds for social services

OTTAWA A new infrastructure bank could free up billions in new money for social services Canadians regularly use, internal government documents say — provided the experimental new institution meets its lofty financing goals.

The presentation, prepared for the economic growth council that’s advising Prime Minister Justin Trudeau and his cabinet, shows transit and water projects going through the bank could mean more federal dollars for social infrastructure like child care, recreational facilities and seniors’ centres.

Funding for social infrastructure projects, which tend to be less attractive to private investors, could increase by one-third if the bank meets its target of leveraging $4 in private investment for every $1 from the federal government, the documents indicate.

Those documents, obtained by The Canadian Press under the Access to Information Act, demonstrate the Liberal government’s thinking on how money from its long-term infrastructure program could help them meet their economic and political goals. The program’s three streams — social, transit and so-called “green” infrastructure — are worth almost $69.1 billion in new funding over the next 10 years.

The green stream, which focuses on water and waste water projects, could for example be used to fund energy retrofits for affordable housing projects, freeing up billions in the social infrastructure fund slated for low-income shelter work.

Wednesday’s budget will unveil more details of how the money will flow and where the funding for the bank will come from, say sources who spoke on condition of anonymity in order to discuss details not yet made public.

Concerns have persisted that the funding would be diverted away from money earmarked to cities and provinces. The government has argued the promised infrastructure money remains available even if it is delivered through the bank, which cities and provinces will have the option of using.

More details about the bank itself will come in the weeks and months to follow once cabinet has approved tabling the legislation that will create the institution, the sources said.