ISED expects most Connect to Innovate agreements will be signed by April

Only about $30 million has made it out the door so far from the Liberal government’s $500 million Connect to Innovate fund that was announced in the 2016 budget, according to documents tabled this week in Parliament, but that should soon change. Ottawa expects most of the funding agreements will soon be finalized and signed, and says more money will start flowing into rural broadband development projects. “Negotiations on all 181 announced projects are well advanced, and claims are beginning to be submitted and processed,” the documents said. “Agreements for 91 projects have been signed to date and it is anticipated that the majority of the agreements will be signed by the end of March, 2019.” The demand for the Connect to Innovate program, announced in the 2016 budget, was “unprecedented,” the documents said, stating that Ottawa received 892 proposals that requested $4.4 billion worth of funding in total, and those all took time to review. So far BCE Inc.’s Northwestel received the bulk of that nearly $30 million slice -- $27.6 million -- to put toward broadband for 25 communities in Nunavut through satellites, out of a $50 million commitment from Innovation, Science and Economic Development (ISED) for its project. Other companies that have received some funds already include a Bell project improving broadband in two communities in Newfoundland and Labrador, Gwaii Communications Ltd. for a fibre-to-the-premise project in B.C.’s Haida Gwaii region and Maskicom for a last mile network in Quebec’s Maskinonge MRC region. The documents note that the department only pays once the contribution agreement is signed and it receives the expense claims, which can be filed monthly, quarterly or annually. “Work can begin on successful projects as soon as they are conditionally approved, however, there can be lag in funds flowing while negotiations are being completed and claims submitted.” The department plans to hand out the program’s $500 million in funding by 2021, which should boost broadband in 300 rural and remote communities. A report by the auditor general last year criticized Ottawa for not getting the full bang for its buck with the program because of various design flaws and from failing to ensure it wasn’t displacing private sector investments.

ISED expects most Connect to Innovate agreements will be signed by April

Brief | January 31, 2019

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ISED expects most Connect to Innovate agreements will be signed by April

Brief | January 31, 2019

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