Funding approved for Municipal Capital Works

Art Reid, Minister of Municipal and Provincial Affairs, says he expects to be in a position over the next month or so to announce the approval of projects under the 1998/99 Municipal Capital Works Program.

The minister made the statement in response to the announcement in today's Budget Speech that $26 million will be allocated by government this year for capital works projects.

Mr. Reid said the approval of projects in April month will allow tenders to be called and construction to proceed as soon as the frost is out of the ground.

Projects under the Capital Works Program including water and/or sewer; paving and road reconstruction; and solid waste management will be cost-shared by the province and municipalities. Water and sewer and waste management projects will be cost-shared on a 50 per cent/50 per cent provincial/municipal basis and paving and road reconstruction will be on a 25 per cent/75 per cent provincial/municipal basis.

Mr. Reid said: "The infusion of this funding will generate employment opportunities in the construction industry and will create indirect or spin-off jobs in the trades and supply industry."

The minister said the $26 million is expected to create 8,700 person weeks of employment in municipalities throughout Newfoundland and Labrador.

"It is a significant expenditure in view of the difficult financial constraints placed upon government," said Mr. Reid. "Another meaningful factor is that the work will be spread throughout the entire province."

He added: "This program will stimulate and accelerate economic activity and contribute to government=s plan to revitalize communities particularly in the rural areas of the province."

Mr. Reid said these capital works projects are providing residents with cleaner drinking water, improved transportation links and new recreational facilities and are also serving to enhance environmental conditions.

The minister said the funding will be distributed fairly and equitably throughout the province.

"I am sure this capital works program will be well received by the many participating municipalities and I am happy to associate myself with such a positive announcement," Mr. Reid said.

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