No. H 178/08
For release - July 25, 2008
TORONTO - The City of Toronto and the Toronto Transit Commission (TTC) is $100 million richer thanks to the recent transfer of federal funding from the Government of Canada for subway and bus infrastructure.
The $100-million investment represents one of the largest one-time reimbursements for federal public transit funding ever made by the Government of Canada. The federal funds transferred are a portion of an overall commitment of $350 million to the TTC.
"This investment demonstrates that the Government of Canada supports infrastructure projects in Toronto which improve quality of life and economic growth for residents and visitors," said Minister Cannon. "We've been able to flow significant federal funding in the City of Toronto and the TTC as part of our commitment to funding transit priorities right across the Greater Toronto Area."
Jim Flaherty, Minister of Finance and Minister Responsible for the Greater Toronto Area (GTA) called the substantial investment important for Torontonians. "These are critical investments in modern public transit that will help keep people moving efficiently throughout the GTA," said Minister Flaherty. "The Toronto Transit Commission operates the third most heavily-used urban transit system in North America, with approximately 1.2 million riders each weekday. Commuters across this city will benefit from our government's investment in the TTC."
The $100 million payment addressed two components of the TTC's Strategic Capital Projects:
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$27.6 million was provided as a first payment for the purchase of 78 subway cars. The overall cost of the subway car order is $236.7 million, with the federal government contributing a further $64.7 million to the project. The balance of these funds will be transferred once further invoices have been provided.
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$72.4 million was provided as a first payment for the purchase of 212 hybrid buses. Ultimately, a total of 324 buses will be purchased at a cost of $251.4 million, with the federal government contributing a further $43.4 million. Again, the balance of these funds will be transferred once further invoices have been provided.
"I am pleased to be collaborating with our Federal partners to make important investments in public transit that are good for the City and for Canada," said Mayor David Miller. "Through partnerships with other governments we are undertaking city-building initiatives that might otherwise be difficult. The on-going improvements to our public transit system have been greatly assisted by funding partnerships like the Canadian Strategic Infrastructure Fund. Working together we can build a prosperous, livable city that provides opportunity for all."
"The people of Toronto rely on the TTC as an efficient, convenient and environmentally-friendly way to get around the City," said Councillor Giambrone. "This reimbursement from the Government of Canada will help to ensure that the quality of service we provide remains high as demands on the system continue to grow with the city."
The federal funds transferred are a portion of an overall commitment of $350 million to the TTC and the City of Toronto for improvements to subway cars and subway infrastructure; streetcar infrastructure and dedicated streetcar lanes; buses and bus infrastructure; and the PRESTO farecard system for the GTA. The funding for these investments comes from the Canada Strategic Infrastructure Fund (CSIF), which supports large-scale strategic infrastructure projects that improve quality of life and further economic growth.
As with all federal contributions, funding is reimbursement-based, and funds are transferred once the contribution agreement has been signed, eligible costs have been incurred and all federal requirements have been satisfied. This process ensures accountability and concrete deliverables for all Canadians.
Backgrounders on the Canada Strategic Infrastructure Fund and the TTC are attached.
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Contacts:
Karine White
Press Secretary
Office of the Minister of Transport,Infrastructure and Communities, Ottawa
613-991-0700
Stuart Green
Deputy Director of Communications
Office of the Mayor
City of Toronto
416-338-7119
Media Relations
Communications
Transport Canada, Ottawa
613-993-0055
Danny Nicholson
Media Relations
Toronto Transit Commission
416-420-0776
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at www.tc.gc.ca/e-news and keep up-to-date on the latest from Transport Canada.
This news release may be made available in alternative formats for persons with visual disabilities.
CANADA STRATEGIC INFRASTRUCTURE FUND
The federal funding for these improvements comes from the Canada Strategic Infrastructure Fund (CSIF). Through the fund, the Government of Canada works with provincial, territorial and municipal governments, as well as with the private sector, to meet strategic infrastructure needs throughout the country. CSIF supports large-scale strategic infrastructure projects that improve quality of life and further economic growth.
The federal commitment of $303.5 million will allow for improvements in the following areas:
- Subway infrastructure - Seventy-eight new subway cars are being purchased and repairs or improvements are being made to tracks and tunnels; escalators and elevators; fire ventilation; and radio systems.
- Streetcar infrastructure - Tracks will be repaired or replaced along numerous routes and dedicated streetcar lanes will be constructed on St. Clair Avenue.
- Bus infrastructure - New hybrid buses are being purchased, and bus rapid transit links will be constructed from York University to Downsview Station and along Yonge Street from Finch Station to Steeles Avenue.
An additional commitment of $46.5 million will be available to the TTC upon successful completion of a proposal for a farecard for the Greater Toronto Area (GTA).
In addition to the $350 million the Government of Canada has already committed to the TTC Strategic Capital Projects funding, the federal government is providing nearly $1 billion in funding through FLOW, the federal action plan for the GTA.
The plan will help reduce congestion, cut commute times, clean our air and improve the flow of goods and people in the GTA. FLOW funding is being allocated to the following projects:
- up to $95 million for the Brampton AcceleRide project;
- up to $83 million for the Mississauga bus rapid transit corridor;
- up to $85 million for the York VIVA Phase II - Stage I project;
- up to $697 million to support the extension of the Toronto-York subway; and
- up to $2.5 million to help the Region of Durham develop a long-term transit strategy.
Through the $33-billion Building Canada infrastructure plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada
Building Canada will invest in infrastructure that will support a stronger economy, a cleaner environment, and more prosperous communities. In short - a stronger, safer and better country.
The Government of Canada is also allocating funds to several other transit projects in the GTA, including:
- $385 million for GO Transit; and
- $50 million for York Region Rapid Transit - VIVA Quick Start.
In addition, through the Gas Tax Fund, the federal government is providing $407.3 million from 2005 to 2009, which will permit the TTC to purchase more than 700 clean diesel and hybrid buses, 156 subway cars and 90 Wheel-Trans vehicles.
Gas Tax funding was increased to $2 billion per year for a further four years from 2010 to 2014. Earlier this year, and in response to ongoing requests for stable, long-term funding, Budget 2008 extended the $2-billion-per-year fund beyond 2014 and made it permanent. This permanent fund will provide municipalities with a reliable source of funding that will help them better plan and finance their infrastructure needs.
THE TORONTO TRANSIT COMMISSION
The Toronto Transit Commission (TTC) moves 460 million people every year - about 1.5 million riders every weekday. The TTC is the third largest public transit system in North America serving some 4.5 million people in the Greater Toronto Area, with a network of subways, streetcars, buses, and a specialized service, Wheel-Trans, for people with disabilities. An arms-length agency of the City of Toronto, the TTC is committed to meeting the growing needs of the region with subway and light rail expansion, carrying an additional 175 million riders by 2021. For more information, visit www.ttc.ca.
