June 2, 1999
(Works, Services and Transportation)

Contracts for Red Bay to Cartwright highway

Ernie McLean, Minister Responsible for Labrador; Lloyd Matthews, Acting Minister of Works, Services and Transportation; and Yvonne Jones, MHA - Cartwright-L'Anse au Clair, today announced the awarding of six contracts, totalling $36,851,470, for construction of the Red Bay to Cartwright highway.

Work on these projects begins immediately and all projects are scheduled for completion by October 30. At the end of this construction season, more than 118 kilometres of the highway will be graded.

The construction of the 355 kilometre Red Bay to Cartwright highway - including the 30 kilometre access to Charlottetown - is a four-year, $130 million project that will result in approximately 5,500 seasonal jobs.

Mr. McLean and Ms. Jones said that the companies involved will make every effort to ensure employment opportunities for the people of Labrador. As well, special care will be taken to protect Labrador's pristine environment.

Mr. McLean said: "The awarding of these contracts demonstrates government's continuing commitment to the people of Labrador. This highway is more than just a road, it is a symbol of freedom. The highway will serve as a major road link to national and global networks and foster economic developments in mining, forestry, fishing and tourism."

Ms. Jones said: "The benefits of these major construction projects are of immense importance to Labrador, particularly our coastal regions. The completion of the Red Bay to Cartwright highway will eliminate the isolation of many Labrador communities and enable them to take advantage of more and more economic opportunities."

Mr. Matthews said: "Labrador communities must be able to rely on dependable transportation infrastructure for both personal travel and for the movement of goods and services. Our economic competitiveness, production, trade and travel are dependent upon the transportation systems we have in place and the investment we are making today will, undoubtedly, have a significant positive impact on the coastal Labrador region."

In April 1997, the federal and provincial governments signed the Labrador Transportation Initiative which transferred responsibility for Labrador Marine Services to the province. In exchange, the province received a $340 million cash settlement, and two ships valued at $25 million.

The following chart identifies the contractor, the value of each contract, and a description of work to be undertaken this year:

Contractor:                                 Value of Contract                                 Grading Work

SM Construction of                     $6,632,165                                         18.5 km of R510 from Red Bay toward Lodge Bay
St. John's                                                                                                 (km 83 to km 101.5)

Labrador Construction                 $5,965,521                                         20 km R510 from Cartwright towards Paradise River
                                                                                                               (km 383.5 to km 403.5)

H.J. O'Connell                             $7,628,042                                         23 km of R510 from Port Hope Simpson towards Mary's Harbour
                                                                                                               (km 188 to km 211)

McNamara Construction              $6,692,839                                         20 km R514, Charlottetown Access Road
                                                                                                               (km 8.0 to km 28)

Labrador Construction                 $5,391,808                                         20 km of R510 from Cartwright to Paradise River
                                                                                                               (km 363.5 to km 383.5)

SM Construction                          $4,541,171                                        16.5 km of R510 from Lodge Bay towards Red Bay
                                                                                                               (km 142.4 to km 159)

Media contact:  Rick Callahan, Director of Communications, Office of the Minister Responsible for Labrador, (709) 729-4860, or Gary Callahan, Director of Communications, Works Services and Transportation, (709) 729-3015.

1999 06 02         12:05 p.m.