Canada launches $51B infrastructure fund, announces first water projects in north

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Iqaluit
This investment will support improvements to Iqaluit’s water and wastewater infrastructure to help meet growing housing needs and accommodate population growth. Credit: James, stock.adobe.com

Canada has launched a sweeping new infrastructure program aimed at accelerating housing, economic growth and climate resilience, while announcing the first round of funded projects focused heavily on water and wastewater systems in northern communities.

The Build Communities Strong Fund will deliver $51 billion over 10 years through three major funding streams supporting projects in housing, transit, health care, education, sport and climate adaptation.

Federal officials say the fund is designed as a “force multiplier,” with nearly $17 billion in provincial matching funds expected, alongside additional contributions from municipalities, territories and private partners. Combined investments are projected to support an average of 42,000 jobs annually and boost Canada’s GDP by $95 billion over the next decade.

Gregor Robertson, Minister of Housing and Infrastructure, called it infrastructure “at a speed and scale not seen in generations.”

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To mark the launch, Ottawa unveiled 13 initial projects under the fund’s Direct Delivery stream, representing $300 million in federal investment, with additional announcements expected in the coming weeks.

Among the largest is a more than $108-million investment in water and wastewater infrastructure in Iqaluit, announced by Lori Idlout, Member of Parliament for Nunavut.

The project will upgrade trucked water and sewer fleets and facilities, and expand the city’s utilidor system. These improvements are expected to enable between 2,000 and 2,500 new housing units by 2031 while improving service reliability and supporting population growth.

Additional funding includes more than $20 million for a new water treatment plant in Hay River, Northwest Territories, replacing an aging facility that serves the town and nearby communities, including Indigenous partners. The project aims to improve drinking water quality, eliminate boil water advisories, and support future housing and economic development.

“Residents have consistently identified this as a priority, and today we are delivering,” said Rebecca Alty, Minister of Crown-Indigenous Relations.

Separate investment supports Arctic infrastructure

In a related but separate announcement, Rebecca Chartrand, Minister of Northern and Arctic Affairs, confirmed up to $5.4 million in federal funding through the Canadian Northern Economic Development Agency for infrastructure upgrades in Inuvik.

Matched by the municipality, the project will total nearly $10.9 million and includes construction of a new water tower, a bulk water station and rehabilitation of the town’s sewage lagoon system.

The upgrades are expected to strengthen municipal services, support housing and economic growth, and maintain the Department of National Defence presence in the region — positioning Inuvik as a strategic hub for northern development and Arctic security.

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