PwC Federal Budget Instant Reaction: Get the shovels at the ready, $12 billion dollars in new infrastructure stimulus over the next two years



    OTTAWA, Jan. 27 /CNW/ - PricewaterhouseCoopers (PwC) Canada commented
today:
    There were multiple actions announced today in Budget 2009 for immediate
infrastructure spending. While not unexpected, the stimuli are intended to
create jobs in the construction, engineering and manufacturing sectors along
with economic spin-off activity hopefully leading to safer, greener and more
modern infrastructure.
    "The creation of the Infrastructure Stimulus Fund, together with the PPP
Fund which was established last year, sets the stage for the second generation
of Canadian infrastructure projects," says Shamshad Madhok, Managing Director
and recently appointed head of PwC's federal government Infrastructure and
Project Finance practice. "Selecting the right projects will be critical to
driving value and economic growth."

    Highlights from the Budget include:

    
    -   $1 billion over five years for a green infrastructure fund
    -   Up to $500 million over the next two years to accelerate
        infrastructure projects in small communities
    -   $1 billion over two years to expedite new "ready-to-go" provincial,
        territorial and municipal projects
    -   $4 billion over two years to restore aging infrastructure
    -   $500 million over two years to Recreational Infrastructure Canada
        (RInC) to build and renew community recreational facilities
    -   $2 billion for repair, maintenance and construction of post-secondary
        institutions
    -   $750 million to the Canada Foundation for Innovation to support
        leading-edge research infrastructure
    -   $50 million to the Institute for Quantum Computing for a new research
        facility
    

    Roxanne Anderson, Lead Partner of Federal Government of Canada Services,
commented, "This was the most anticipated budget that we have seen in recent
years. The previous thought that infrastructure would be one of the key
measures in the Budget to stimulate the economy are now confirmed. We look
forward to working with our clients to put the infrastructure vision into
action."
    Further according to Rod Johnston, PwC Partner and National Leader of the
Infrastructure and Project Finance practice, "PwC continues to be responsive
to market changes in infrastructure. The strong message in the budget and
recent appointments to PPP Canada Inc. will bring a national focus to the
infrastructure sector."
    A PwC Budget Flash with additional Budget highlights will be issued later
today followed by a detailed Budget Memo. For more information and detailed
commentary on the Budget please contact, Carolyn Forest,
carolyn.forest@ca.pwc.com, 416-814-5730 or visit www.pwc.com/ca/budget.

    PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 155,000 people in 153 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
(www.pwc.com/ca) and its related entities have more than 5,200 partners and
staff in offices across the country.
    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.





For further information:

For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730, carolyn.forest@ca.pwc.com

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FEDERAL BUDGET 2009

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