$51.5 million to be spent on municipal infrastructure projects

Brian Tobin, Minister of Industry, Oliver Langdon, Minister of Municipal and Provincial Affairs and Mayor Dianne Whalen, Avalon Director of the Newfoundland and Labrador Federation of Municipalities, announced today that 100 infrastructure projects have been recommended for approval under the Canada/Newfoundland Infrastructure Program (CNIP). All projects are subject to assessment under the Canadian Environmental Assessment Act. In addition, 72 projects have been recommended for approval under the province�s Municipal Capital Works Program (MCW).

The CNIP has a mandate to support the creation of green municipal infrastructure. Investments will include projects related to water and wastewater systems and solid waste management. Of the total round-one CNIP investment of $34 million, the federal government will contribute approximately $11 million, the province approximately $16 million and municipalities $7 million.

"The Canada-Newfoundland Infrastructure Program enables communities in rural areas to have the ability to afford the development of appropriate infrastructure to provide safe, clean drinking water and acceptable, environmentally safe sewage treatment," said Minister Tobin. "Without this kind of program, most parts of Newfoundland and Labrador would not be able to provide water and sewer systems consistent with the standards all Canadians have the right to expect."

Minister Langdon noted that the province�s total funding commitment for municipal infrastructure increased by $7 million over the previous year.

"This year, the province is providing $27 million of the $51.5 million total for municipal infrastructure; $16 million through the CNIP and a further $11 million through the province�s Municipal Capital Works Program. This is a clear demonstration of our commitment to strengthening rural communities. By working with the federal government and municipalities, many small rural communities will have reliable, safe drinking water and new and improved sewage services."

The provincial-municipal share is determined on the basis of new cost-sharing guidelines which give consideration to factors such as population base, tax rate and ability of individual municipalities to raise revenue. Under this arrangement, the province will pay a larger portion of the project costs, thus enabling smaller municipalities to access funding.

Mayor Whalen stated that she is particularly pleased with the new variable cost-sharing guidelines for determining the provincial-municipal share. "The new arrangement makes it easier for smaller towns to access funding for quality drinking water and new or improved sewer systems. The provincial government has responded to the needs of small municipalities, particularly those that could not previously afford the municipal share."

Minister Langdon also announced that 72 infrastructure projects under the MCW have been recommended for approval. These projects are funded on a provincial-municipal cost-sharing basis, and include water and sewer, paving and road reconstruction, solid waste management, recreation and projects relating to municipal buildings and firefighting equipment.

Minister Langdon noted that, in addition to the funding provided under the CNIP and the MCW, 10 municipalities have funding remaining from the 1999 provincial-municipal multi-year capital works program. The agreement is in its final year and approximately $55 million remains to be spent.

As well, $23.3 million in infrastructure funding was provided for northern coastal Labrador communities under the Northern Coastal Labrador Strategic Initiative to provide housing, water and sewer, roads upgrading and wharves. Approximately $11.2 million is to be spent this year and $4.6 million in 2002.

As part of the province�s commitment to address water disinfection problems, $1.8 million will be spent this year to install or upgrade municipal water disinfection systems. Municipalities are being provided with 100 per cent funding, up to a maximum of $100,000, to help those currently on boil water advisories.

$1 million has been earmarked for regional cooperation initiatives under the MCW. Minister Langdon stated that this funding is available to municipalities wishing to share municipal services.

Minister Langdon noted that the federal government and the provincial government are providing $3.5 million for waste management. He stated that this funding will be used to promote regional waste management and a reduction in the number of waste disposal sites in the province.

"Taking into consideration all funding programs for infrastructure, the total possible expenditure for infrastructure for this year is approximately $116 million," said the minister.

The Municipal Capital Works Program is a provincial-municipal program administered by the Department of Municipal and Provincial Affairs.

The Canada-Newfoundland Infrastructure Program is administered provincially by the Department of Municipal and Provincial Affairs, federally by the Atlantic Canada Opportunities Agency and cost-shared with municipalities. The program will mean a total investment in Newfoundland and Labrador of $153.7 million over five years.

Media contacts:
Sean Kelly,
Communications
Department of Municipal and Provincial Affairs
(709) 729-1983

Anne Pratt
Communications
Atlantic Canada Opportunities Agency
(709) 772-0155

Derm Flynn
President
Newfoundland and Labrador Federation of Municipalities
(709) 651-5927

2001 05 07                                                      10:15 a.m.