Federal rules around the
But some provinces, such as
A data analysis by
Those projects range from new sewers in small towns to electric-vehicle charging stations at for-profit companies like
Pandemic-related delays on projects will inevitably lead to cost overruns that cities could struggle to cover without some federal help, said
Infrastructure Minister
"We are working closely with the provinces and territories to identify how we can support them during this period," part of the statement said.
"Infrastructure
The federal Liberals rode to power in 2015 on a platform that promised to spend heavily on new roads, bridges, transit and water systems at a time when the economy was faltering, predicting the economic spinoffs would more than cover government spending.
The program has since been subject to criticism about whether the expected economic benefits would materialize, due to the slow pace of spending. The federal government regularly carries over infrastructure money budgeted in one year to the next, often the result of reasons beyond the government's control.
Infrastructure
Infrastructure
"We are working with all our partners to move forward on what is required immediately in terms of infrastructure, what can be rolled out in the short-term to support jobs, and how we will restart our economy as quickly as possible," the department said.
None can run a deficit like provincial and federal governments, and some have only enough reserves to cover expenses for two or three months at most, said Karsten, a
"It's reached a point where if we don't have some real, tangible help and urgent financial support from the federal government, there are municipalities that are talking about their ability to stay solvent," he said.
If a site is closed, for instance, the contractor covers extra costs related to leased equipment and site security.
Delays to projects may be compounded by lags in getting materials once work restarts, Van Buren said. Many manufacturers have closed or significantly reduced capacity, meaning they'll need time to get back up to speed and improve inventories to meet demand, she said.
"There is a huge list of costs that will be incurred and we can't ask the contractors to pick up all those costs. It's not reasonable given the situation we're in," Van Buren said in an interview.
"So that is one of our asks — that there is an emergency fund created on the federal level to provide confidence to the contractors that they will be treated fairly."
This report by
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