FUNDING FOR THE FEDERAL BRIDGE CORPORATION LIMITED
Requesting $18,497,000 for the 2021‑22 Main Estimates
The Federal Bridge Corporation Limited is seeking access to $18,497,000 in planned spending authorities.
KEY MESSAGES:
- The source of the $18,497,000 in funding is an unannounced funding decision via the Fall Economic Statement 2020.
- The objective of the funding is to ensure the continued safe operation of the Blue Water Bridge, the Sault Ste. Marie International Bridge, the Seaway International Bridge and the Thousand Islands International Bridge, important international crossings connecting Canada to the United States.
- The funding provided to the Federal Bridge Corporation Limited (FBCL) is enabling the Corporation to ensure the continued operation of the aforementioned bridges, whose revenues have declined significantly as a result of cross‑border travel restrictions related to COVID‑19.
- International bridges play a crucial role in facilitating the cross-border movement of goods and people. They are essential to maintaining highly‑integrated supply chains and have been vital in the cross‑border movement of essential goods and services required to combat the COVID‑19 pandemic.
- COVID has had a negative impact on all tolled international bridges and tunnels and those with high passenger volumes have been impacted the most. The Government of Canada is aware of the situation and is working with these stakeholders to determine a path forward.
BACKGROUND
The Federal Bridge Corporation Limited (FBCL), a parent Crown corporation, is responsible for oversight of Canadian federal interests at four international bridges in Ontario: Blue Water Bridge in Point Edward (Sarnia); Sault Ste. Marie International Bridge in Sault Ste. Marie; Seaway International Bridge in Cornwall; and Thousand Islands International Bridge in Lansdowne.
COVID-19 has had a major impact on FBCL, which has suffered significant losses of revenue as a result of cross‑border travel restrictions related to the pandemic. While FBCL managed to sustain the operations of the bridge within its portfolio by using its accumulated cash reserve, cash flow deficiencies resulting from the ongoing costs of operations, required capital projects, and debt payments became too great for FBCL to continue to manage due to the continually-prolonged travel restrictions.
Given these challenges, FBCL is in need of emergency funding. Consequently, the Fall Economic Statement 2020 provided the following (unannounced funding decision):
- up to $6,876,000 in 2020‑21 to support the continued operation of the Blue Water Bridge, the Sault Ste. Marie International Bridge and the Thousand Islands International Bridge (this funding is included within the 2020‑21 Supplementary Estimates (C)); and
- up to $18,497,000 in 2021‑22 to support the continued operation of the three aforesaid bridges and the Seaway International Bridge (this funding is being included within these 2021‑22 Main Estimates).
The Fall Economic Statement 2020 did not provide support for the Seaway International Bridge in 2020-21, given that the Government of Canada previously provided funding of up to $2,556,324 to FBCL to support the operation of that bridge in 2020‑21, through the Public Health Events of National Concern Payments Act.
Prior to this fiscal year, FBCL had not received appropriations for its day-to-day operations, but did receive federal funding for significant capital projects. The last such funding for capital projects was provided in the 2018‑19 Main Estimates in the amount of $3,463,982, from the Gateways and Border Crossings Fund, to allow FBCL to significantly improve the corridor connecting the North and South Channel bridges in Cornwall, Ontario.
There are currently 12 tolled international bridges and tunnels that are publicly or privately owned that rely on revenue for their operations. The governance structure varies between crossings and reflects the particular historical and environmental circumstances surrounding each bridge and tunnel. International bridges and tunnels owned by provincial and municipal governments are generally operated by these governments in conjunction with their American government counterparts. The bridges owned by private companies are privately operated. The remaining bridges are owned by not-for-profit authorities and the FBCL and operated by bi-national entities.