Minister announces $50 million for infrastructure and capital works

Oliver Langdon, Minister of Municipal and Provincial Affairs, is pleased to announce that $50 million will be spent this year on infrastructure and municipal capital works.

Under the Canada-Newfoundland Infrastructure Agreement, a total of $30 million will be cost-shared this year between the federal, provincial and municipal governments on green municipal infrastructure projects. In addition, $20 million will be cost-shared between the province and municipalities on the municipal capital works program.

Through discussions and negotiations between the province, the federal government and the Federation of Municipalities, green municipal infrastructure, such as water and sewer and waste water management, has been identified as the number one priority.

Under the terms of the Canada-Newfoundland Infrastructure Agreement, the federal government will contribute one third of the $30 million total capital cost of green municipal infrastructure projects. The remaining two thirds will be shared by the province and municipalities.

"In order to ensure that municipalities, particularly smaller ones, can access funding to provide quality drinking water and sanitary sewer, the province is introducing a variable cost-sharing ratio for the provincial-municipal share of the cost of these projects," said Minister Langdon. "Guidelines have been developed so that community size, tax base and ability to generate revenue are considered in determining municipal share. This will make the program more affordable for smaller towns."

The focus of this new program is on rural areas with a minimum of 56 per cent of the funding being allocated for projects in rural Newfoundland and Labrador.

The $20 million allocated for new municipal capital works will include funding to address priority areas including water disinfection, firefighting, solid waste management, roads paving, recreation and support regional cooperation initiatives.

Minister Langdon also announced that $10 million has been allocated on a multi-year water disinfection program with $1.5 million of this funding to be spent in 2001-2002 on improvements to municipal chlorination systems as part of government�s plan of action on water quality.

"Government is working with municipalities to address problems with water disinfection systems," said the minister. "Ensuring that people have clean and safe drinking water is a priority of government. Under this component of the program, municipalities currently under a boil water advisory can receive 100 per cent provincial funding up to a maximum of $100,000 to install or upgrade water disinfection systems."

In addition, the minister stated that $1 million has been set aside to support and encourage regional cooperation initiatives. Minister Langdon said: "This funding will be used to assist communities who wish to share services."

The Canada-Newfoundland Infrastructure Agreement is administered provincially by the Department of Municipal and Provincial Affairs and federally by the Atlantic Canada Opportunities Agency. The agreement will mean a total investment in Newfoundland and Labrador of $153.7 million over five years.

Media contact: Sean Kelly, Communications, (709) 729-1983.

2001 03 22           4:30 p.m.