The following statement was issued today by Rick Woodford, Minister of Works, Services and Transportation. It was also read in the House of Assembly:

This morning government approved the precommitment of approximately $28 million against Works, Services and Transportation�s 2001/02 budget for the early tendering of eight Trans Labrador Highway projects.

It is well known in the construction industry that early tender calls save money. My department plans to call tenders for these projects early in January, thereby giving contractors more time to prepare for the work. Contractors will be able to replenish and repair their fleet earlier and not have to incur the overtime costs associated with a short preparation time.

Knowing well in advance what jobs they will be working on also gives contractors more time and flexibility in mobilizing equipment to the site, cutting down on transportation costs. When contractors can reduce costs, this translates into savings for government.

The projects which will go to tender in January include:

• the construction of the St. Lewis Access Road, approximately 15 kilometres. When these final 15 kilometres are constructed, this road will be completed;

• construction of the highway from Port Hope Simpson towards the Charlottetown Access Road, approximately 17.5 kilometres;

• construction of the highway from the Charlottetown Access Road towards Paradise River, approximately 44 kilometres;

• construction of approximately 47 kilometres of highway from Cartwright towards Port Hope Simpson; and

• the construction of concrete bridges at the following locations on the highway:

a) Mary�s Harbour River

b) Blackwater Brook in Port Hope Simpson

c) Dykes River near Cartwright

d) Southeast Brook near Paradise River

Added to the $28 million we will spend on new projects in 2001/2002, we also have $15 million in carry over projects from last year. This puts the 2001/2002 Trans Labrador Highway expenditures at $43 million.

For people living in southern Labrador, the highway opens up areas previously not accessible by land travel. People in and outside of Labrador are experiencing new tourism and business opportunities and have another option for the movement of goods.

Two weeks ago my department opened the first section of Phase Two of the Trans Labrador Highway, 78 kilometres from Red Bay to Lodge Bay, and reaction has been positive. People in the area are very excited about what the highway will mean to them personally and to local businesses. We have also just entered into a three year contract for summer and winter maintenance for this road. This contract covers Pinware to Port Hope Simpson, including the branch road to St. Lewis, and is valued at $3 million.

Up to and including money spent on projects this year, government has invested a total of $141 million on the construction of the Trans Labrador Highway. We remain committed to ensuring the highway in Labrador is completed. While it is not in place right now, we continue to lobby the federal government for the funding necessary for Phase Three of the highway, from Happy Valley-Goose Bay to Cartwright. We are confident that this funding will come in the near future.

Backgrounder

New Projects ($28 million)

• St. Lewis Access Road, approx. 15.0 km

• Port Hope Simpson towards Charlottetown Access Road, approx. 17.5 km

• Charlottetown Access Road towards Paradise River, approx. 44.0 km

• Cartwright towards Port Hope Simpson, approx. 47.0 km

• Construction of Concrete Bridges at the following locations on the highway:

a) Mary�s Harbour River

b) Blackwater Brook in Port Hope Simpson

c) Dykes River near Cartwright

d) Southeast Brook near Paradise River

Carry-Over Projects ($15 million)

• Lodge Bay to St. Lewis River Total 26 km

• Charlottetown Access towards Paradise River Total 26 km

• Paradise River towards Port Hope Simpson Total 20 km

• St. Lewis Access Road Total 15 km

• St. Lewis River Bridge

• Alexis River Bridge

2000 12 12 2:25 p.m.