1. Presented at the AFN National Housing and Infrastructure Forum
Using the Fiscal Management Act model to improve First Nation infrastructure and housing
Presented at the AFN National Housing and Infrastructure Forum
October 2017

2. State of First Nation Infrastructure
First Nation infrastructure takes longer to develop
First Nation infrastructure costs more to build
First Nation infrastructure does not last as long as other infrastructure in other communities in the rest of Canada
The current infrastructure system is ineffective and the federal government has signaled its commitment to seek alternatives to INAC support of infrastructure and other services

3. Root causes
Most First Nation governments don’t exercise jurisdiction over the planning, operation, maintenance and replacement of their infrastructure like other governments
Most First Nations don’t have the necessary fiscal powers and stable revenues to fiscally sustain infrastructure
Without jurisdiction and stable revenues, all elements of the infrastructure cycle (planning, design, financing, construction, operation, maintenance and replacement) take longer and cost more
Gaps in regulations, standards, planning, financing, and administration leads to less sustainable infrastructure systems

4. An option to close the gap – using the First Nations Fiscal Management Act model
230 First Nations have chosen to use the tools of the FMA
It closes many infrastructure financing gaps
It protects First Nation jurisdiction
FMA institutions and proponents are proposing the creation of a First Nation Infrastructure Institution as an additional FMA institution to implement and protect infrastructure jurisdiction for interested First Nations

5. Build on successful framework used by FMA institutions:
Guided, directed and controlled by First Nations
Optional and respect the right to self-determination
National institution with offices across Canada
An FMA institution
FMB will provide certification to participating First Nations to access secure long term infrastructure transfer funding
FNTC will work with participating First Nations to expand their fiscal powers and grow their revenue bases
FNFA will provide access to long term infrastructure financing
Focus on implementing infrastructure jurisdiction and supporting infrastructure and housing projects
Work with and support existing First Nation infrastructure institutions and other possible partners

6. Proposed purposes
Assist interested indigenous governments in their transition to more environmentally, economically and fiscally sustainable infrastructure
Support interested indigenous governments in the exercise of their jurisdiction over infrastructure development on their lands
Work with participating First Nations and the federal government to deliver secure, stable, long term infrastructure transfers for participating indigenous governments
Develop formulas and processes for effective and efficient infrastructure funding
Support long term infrastructure financing through the FNFA for participating First Nations

7. Proposed purposes (continued)
Help transition ownership of infrastructure to interested indigenous communities
Support aggregations of indigenous communities as part of nation groupings or to achieve economies of scale
Promote understanding of the infrastructure development process and the linkage with economic and fiscal sustainability
Provide support for implementation of standards and laws required to support infrastructure projects
Assess infrastructure project readinesss and support infrastructure planning
Develop training programs and build capacity and administrative efficiencies in participating indigenous governments for infrastructure construction, management and finance

8. Proposed purposes (continued)
Support more integrated infrastructure planning (environmental, economic, capital, land and financing) for indigenous governments
Work with the other fiscal institutions to build the necessary legal and administrative frameworks and systems that support improvements to planning, design, financing, construction, maintenance and operation, and replacement of indigenous infrastructure
Advocate for new FMA revenue streams within an improved fiscal framework to build fiscally sustainable indigenous infrastructure
Assess infrastructure risks and develop risk management strategies including public private partnerships
Achieve administrative efficiencies in the provision of services, procurement and funding to participating indigenous governments

9. First Nation Infrastructure Institution (FNII)
First Nation led
Optional
National
Sustainable infrastructure
Build on strengths of the FMA