Parliamentary Committee Notes: Modernizing Canada's Border Infrastructure: the Land Border Crossing Project (LBCP)

Proposed Response

Financial Implications

Background

In June 2021, the CBSA received project approval to rebuild up to 24 land border ports of entry (three full service ports and 21 smaller ports). As part of its commitment to border modernization, CBSA is upgrading and replacing ports of entry to improve the border crossing experience for travellers and provide border services officers with better infrastructure and technology.

With an investment of $481M (including $41M remaining from Budget 2012) the CBSA committed to rebuilding the St-Bernard-de-Lacolle POE) over seven years, completing construction in fiscal year 2028-2029.

In July 2024, the Agency received revised project approval based on updated estimates and plans for infrastructure upgrades and replacements under the Land Border Crossing Project. In summary, of the original 24 ports identified in 2021, one of the three full-service ports (St-Bernard-de-Lacolle) and nine of the 21 smaller ports can proceed to implementation under the current budget. The Agency can also proceed with definition activities of the two full service ports under the revised project approval, namely Pacific Highway in British Columbia and St-Armand in Quebec. 

The amendments to these authorities were required as a result of significant cost increases to the projects, driven primarily by inflation affecting the Canadian construction sector at large.

The CBSA is partnering with Public Services and Procurement Canada (PSPC) Real Property Services as the main procurement authority and delivery agent on this project

Financial Implications

The below table represents the 2024-25 funding profile (in Millions $):

2024-25 funding profile (in Millions $)
  2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 9 Year Total
SEC 30.2 0 0 0 0 0 0 0 0 30.2
2022-23 ARLU 0 35.2 47.3 64.9 35.7 14.7 0.9 0 0 198.7
2024-25 Repro* 0 (7.6) (55.5) (32.1) (0.9) 23.9 42.2 25.5 4.5 0
Sub-Total 30.2 27.6 (8.2) 32.8 34.8 38.6 43.1 25.5 4.5 228.9
SEB 0 0 0 23.1 0 0 0 0 0 23.1
Transfer Beyond the Border       10.3 16.4 8.2 6.2     41.1
2025-26 ARLU 0 0 0 0 21.1 45.1 37.1 2.9 0 106.2
Total 30.2 27.6 (8.2) 66.2 72.3 91.9 86.4 28.4 4.5 399.3

Note: the funding sought by the Agency ($399.3M) excludes Employee Benefit Plan, PSPC and Shared Services Canada costs.

The following full-time employees are associated with this funding:

Full-time employees associated with this funding
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 Total
8.938 21.815 41.454 21.168 21.168 114.542

 

Breakdown of funding for 2024-25 (in Millions $)
Activity Funding (millions $) 2024-2025
Build and Escalation 17.3
Project Management & Overhead (including CBSA risk) 5.5
Internal Services (including custodial) 0.3
Total for 2024-2025 23.1

 

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