FUNDING FOR AIRPORTS CAPITAL ASSISTANCE PROGRAM
Requesting $5,072,197 for the 2020-21 Supplementary Estimates B
The Transport Canada is seeking access to $5,072,197 in grant and contribution (Vote 10) funding that was reprofiled from 2019-20 to 2020-21 to complete projects that were delayed in 2019-20.
Key Messages:
- Due to unforeseen circumstances, certain ACAP projects were delayed in 2019-20. As a result, authority to spend an additional $5,072,197 in 2020-21 is being sought to in order to complete these projects.
- The source of funding is internal reference levels. Funding originally allocated in 2019-20 to support these projects has been reprofiled to 2020-21 to align with revised project timelines.
- The ACAP assists eligible applicants in financing safety-related capital projects to ensure the continued safety of the Canadian travelling public. The objective of the ACAP is to maintain and increase safety and to contribute to asset protection and operating cost reduction.
- Due to unforeseen circumstances, four ACAP projects were delayed in 2019-20. As a result authority to spend an additional $5,072,197 in 2020-21 is being sought in order to complete the following projects.
- The rehabilitation of runway, taxiway, and apron at Red Lake Airport in Ontario. The construction work at this airport has been delayed by two factors. In accordance with contracting policies set out in the contribution agreement, the airport went through a transparent, competitive and value-for-money process to obtain an engineering firm and construction firm to oversee and complete the rehabilitation. However, the work performed by the construction firm was inadequate and as a result, has to be partially redone, causing a delay in completing the project. In addition, given the location of the airport in northern Ontario, cold weather allows for a very short construction season. The issues with the contractor have now been resolved, however, $500K needs to be carried over to the current fiscal year in order to finalize the project.
- The rehabilitation of airside surfaces at the Clyde River Airport in Nunavut. The Government of Nunavut, owner and operator of the Clyde River Airport, was involved in a legal dispute with its contractor in 2019-20 due to the contractor's inability to complete work in accordance with the scope of work outlined in their successful competitive tender. The legal dispute forced work to be stalled for parts of the construction season in 2019-20 and therefore delayed the project. The Government of Nunavut has since resolved the legal dispute and has an acceptable plan to finalize the work this fiscal year, with a carry-over of $2M. Given the very short construction season in Nunavut due to cold weather, it is important that they have access to the funds this summer in order to successfully complete the project.
- The rehabilitation of airside surfaces and airfield lighting at Fond du Lac Airport in Saskatchewan. Although the project had a confirmed scope of work prior to the signing of a contribution agreement, questions were subsequently raised about the scope of work and Transport Canada's level of contribution funding following an accident at the airport. The ongoing discussions between airport management, Transport Canada, and the provincial government led to a delay in finalizing the project design, requiring the carry-over of $1.7M. The ongoing discussions between the parties involved became public and has drawn media scrutiny and as such, it is incumbent upon Transport Canada to uphold its commitment to this project.
- The rehabilitation of wildlife fencing at La Grande Airport in Quebec. Prior to entering a contribution with Transport Canada, the recipient was required to obtain a decree from the Government of Quebec which caused some delays. Coupled with the 2019 federal election which temporarily halted the signing of agreements, the contribution agreement came into effect in late 2019. The installation of new fencing requires work on the ground and must be completed during warmer months. As a result, the project has been delayed and will be completed during spring/summer 2020, requiring funding of $800K to the 2020-21 fiscal year.
- Canadians will benefit from the continued existence of an adequate, safe, and efficient airports system.
If pressed:
- Airports across the country have been severely impacted by the measures put in place to protect Canadians against Covid-19. The additional funds are of particular importance this year in order to show our commitment to support the safe operation of small and regional airports across the country.
Background
- The Airports Capital Assistance Program officially began on April 1, 1995 as part of the National Airports Policy. The Program was established to assist regional/local airport owners with safety-related capital infrastructure and to ensure the continued safety of the Canadian traveling public.
- To be eligible, an airport must receive year-round regularly scheduled passenger service (minimum 1,000 passengers/year), meet airport certification requirements, and not be owned by the federal government. Funding is provided to eligible airports on a cost-sharing basis based on passenger levels.
- There are currently 186 airports eligible to receive funding under ACAP.
- Since the Program started in April 1995, it has assisted 186 airports by financing 948 projects, of which over 99% were airside-safety related. These projects are critical for the safety of these airports.
- Federal funding commitments under ACAP total over $882M to date.