NEWS BRIEFS Federal infrastructure money to flow soon: Infrastructure minister Canada’s infrastructure minister Amarjeet Sohi said in early May he ex- pects Ottawa and most of the provinces to sign agreements within weeks to allow new infrastructure money to flow to cities, Canadian Press reports. The funding agreements are a key milestone in the government’s new in- frastructure program because the bil- lions promised to municipalities can’t reach them without provinces signing on the dotted line. Sohi laid out the framework of the agreements in letters to his provincial counterparts in late April. He also said template agreements were sent to provinces and cities. Sohi told two Senate committees that the pace of negotiations leads him to believe the majority of provinces will sign agreements by June, just in time for money to arrive by the summer construction season, according to the published report. “If there’s one thing that I lose sleep over it’s that. We don’t want to miss the construction season,” Sohi told senators on the transport and commu- nications committee. The Liberals have proposed to dou- ble infrastructure spending over the next decade by $120 billion. There is $6.6 billion in spending for provinces and cities in the first two years, not in- CONSTRUCTION ACROSS CANADA cluding funds for universities or First Nations infrastructure. “The first phase is focused on re- pairing the aging water and public tran- sit infrastructure in the country and for smaller projects that can be com- pleted by 2019,” the report said. “There is also money available for plan- ning larger projects that are to be the focus of the second phase of the pro- gram.” Sohi said the government wants to fund “shovel-worthy” projects which would stimulate the economy, more easily move goods and people, and re- duce or mitigate climate change ef- fects. Projects won’t be funded unless they meet these goals. Any projects that don’t meet those goals won’t receive funding under the government’s new program, Sohi said. UK forecast: Canadian construction industry to improve over next five years Despite contracting by 1.7 per cent in 2015, the Canadian construction in- dustry is forecast to improve over the next five years – to reach US$321 bil- lion by 2020 - according to a report by Timetric’s Construction Intelligence Center (CIC), based in London, Eng- land. The industry recorded a weak per- formance, with its output value drop- ping from US$294.1 billion in 2014 to US$289 billion in 2015. Factors such as fragile economic conditions, low com- Federal infrastructure money to flow soon: Infrastructure minister 18 – May-June 2016 — The Canadian Design and Construction Report modity prices, poor fixed capital in- vestments and a high rate of unem- ployment contributed to its weak performance, Trimetric said in a news release. However, the industry’s future is getting brighter as its value is forecast to pick up from 2016 with investment in public and renewable energy infra- structure, commercial projects, and improvements in consumer and in- vestor confidence. Several govern- ment programs, such as the Affordable Housing Initiative (AHI), New Building Canada Plan (NBCP) and Made in Canada, will also continue to support the industry’s growth over the forecast period (2016–2020). The industry’s output value is ex- pected to rise at a compound annual growth rate (CAGR) of 2.13 per cent in real terms over the forecast period; down from 2.29 per cent during the re- view period (2011–2015). Timetric ex- pects the industry to increase from US$289 billion in 2015 to US$321.1 bil- lion in 2020, measured at constant 2010 U.S. dollar exchange rates. “Growing population and urbaniza- tion, and improvements in domestic manufacturing activities will likely be the main drivers behind the industry growth up until 2020,” said Danny Richards, lead economist at Timetric’s CIC. “In addition, the government’s ef- forts to enhance the residential and public infrastructure will also con- tribute to the growth. For example, to provide affordable housing to the lower and middle class population, the Canadian government is planning to spend US$6 billion in social infrastruc- ture by 2020, which includes expendi- ture on renovation and new housing buildings construction.” Residential construction is ex- pected to take on more importance in the industry over the next five years, to account for 38.4 per cent of the indus- try’s total value in 2020. The market will be supported by a rising popula- tion, urbanization, and improving eco- nomic conditions. According to the United Nations’ Department of Economic and Social