August 23, 1999
(Municipal and Provincial Affairs)

Minister provides status report on Municipal Capital Works

Lloyd Matthews, Minister of Municipal and Provincial Affairs, provided a status report today on projects approved under the 1999 Municipal Capital Works Program including the regular capital works program together with the new multi-year capital works program approved for the first time this year. These programs are designed to provide assistance with infrastructure development in municipalities.

This year, funding of $35 million has been approved for the traditional capital works program. A total of 148 water and sewer, road and recreation projects are being funded on a 50/50 per cent municipal/provincial basis.

At this point in time, 12 tenders have been called for water and sewer projects, 27 for road construction, and two for other projects. Other tenders will be called in the near future.

By March 31, 2000, work to the value of $28.2 million will be completed, resulting in up to 1,400 direct and indirect jobs.

Mr. Matthews said these municipal infrastructure projects are providing residents with cleaner drinking water, better roads and highways and improved recreational facilities and that they also serve to enhance environmental conditions in the province.

The minister said 26 projects worth $106 million are being financed for 10 municipalities under the new Multi-Year Municipal Capital Works Program. Funding is being provided for infrastructure projects that are too large to be effectively and efficiently accommodated within the regular Municipal Capital Works Program.

To date, four tenders have been called for water and sewer projects, and one for road construction. Other tenders will be called in the near future.

By March 31, 2000, work to the value of $14.1 million will be completed, resulting in up to 750 direct and indirect jobs.

The multi-year funding facilitates larger projects over a longer period of time and allows comprehensive infrastructure development to take place in our municipalities.

Mr. Matthews said: "This new multi-year program has been fully endorsed by the Newfoundland and Labrador Federation of Municipalities and municipalities themselves are demonstrating confidence in their communities and the province generally through their participation in the program."

Mr. Matthews said funding under both the regular and multi-year program is beneficial to the province as a whole. "These projects started immediately and municipalities are already beginning to see results. The large number of projects that have been awarded together with the jobs that have been created are having a positive impact on local economies. As well, it is important to point out that the benefits will carry into next year."

Mr. Matthews said the funding under the regular and multi-year programs is being distributed fairly and equitably through the province and that the expenditures are also providing new assets that will be of tangible value to communities into the future.

Media contact: Gary Callahan, (709) 729-3015.

1999 08 23 4:30 p.m.