OTTAWA — The federal government is rejigging its massive infrastructure plan to allow provinces to divert 10 per cent of their federal funding into shovel-ready projects aimed at helping people keep physically distant.

That could mean Manitoba will get up to $117 million, which has been gummed up in red tape, to build bike lanes and hospital extensions and retrofit classrooms.

“Once we get on the other side of COVID… infrastructure’s going to be a way to rebuild our cities, our rural areas and the North,” said Dan Vandal, Manitoba’s federal cabinet minister.

The Manitoba government said it will study the proposal and see if it can help clear obstacles to getting infrastructure funds out the door.

The Investing in Canada Infrastructure Program (ICIP) has been plagued with problems since Manitoba signed onto its quota in 2018.

The decade-long plan is aimed at repairing Canada’s crumbling roads and outdated buildings, such as recreation centres. ICIP splits projects into four areas, such as green, rural and public transit — and largely requires provinces to match the cost.

Numerous provinces have said the criteria make it hard to get projects through the federal approval process.

The Liberals have partially acknowledged that problem, while insisting provinces aren’t putting up enough cash to qualify.

Winnipeg’s city council has shelved projects it nominated for the plan, after the belt-tightening provincial Progressive Conservatives put up less funding than the city wanted.

On Wednesday, the federal Liberals announced provinces can divert 10 per cent of their federal ICIP cash into shovel-ready projects, targeted at making life easier during the COVID-19 pandemic.

Infrastructure Minister Catherine McKenna told reporters even cell phone and broadband projects could qualify for funding.

“We’re using existing money to make sure that we’re getting better outcomes,” she said. “This is for projects that can be built quickly.”

The reappropriated funding is intended for projects for which construction would start by fall 2021 and be completed by the end of that year. The federal government could also form more direct partnerships with cities, which municipalities have sought for years.

Instead of the usual formula of Ottawa and the province each covering 40 per cent of costs and leaving the city to pay the remaining 20 per cent, these COVID-19 projects could have Ottawa pay four-fifths of the cost without provinces contributing a dime.

However, those projects would still require the provincial government to sign off on them.

Manitoba Central Services Minister Reg Helwer seemed open to green-lighting such projects, saying the PCs want job-stimulating projects in cities and First Nations, while allowing the province to afford essential services.

“We’re going to make it work best for Manitoba and we are in very active negotiations with the federal government,” Helwer said in an interview. He did not provide examples of specific projects the PCs would make a priority.

Vandal said the money can be used for anything from cycling routes in Winnipeg to medical research facilities. As an example, he cited the St. Boniface Hospital Foundation, which is in his riding.

“Many of our hospitals need some investment, so I’m hoping we can use some of these funds to do some important work in our hospitals, as well as our schools,” Vandal said.

Winnipeg Mayor Brian Bowman was not aware of the arrangement before its announcement; his office said it would seek clarity.

Helwer said he’d still prefer the Liberals do away with the criteria for projects, but hoped Wednesday’s new program will clear the logjam by making more projects eligible for funding.

“Anything would help,” he said. “All provinces are struggling with finding a way to fit their projects into the (federal) streams.”

dylan.robertson@freepress.mb.ca