Minister announces New Multi Year Capital Works Funding

Oliver Langdon, Minister of Municipal and Provincial Affairs, announced a new $108 million commitment to the Multi-Year Municipal Capital Works Program to be cost-shared 50/50 with the municipalities. This program, first introduced in 1999, was designed to fund larger scale infrastructure projects in larger communities which have the capacity to make a multi-year commitment. Funding under the original program was due to expire in 2002. Recognizing the success of this program and the valuable contribution to comprehensive infrastructure development, government is providing $108 million to fund the multi-year program for another three years.

Also, under the Canada-Newfoundland Infrastructure Program (CNIP), a total of $90 million will be cost-shared over the next three years between the federal ($30 million), provincial ($39 million) and municipal governments ($21 million) and will continue its focus on green municipal infrastructure projects. Water quality is the highest priority, drinking water in particular. The CNIP agreement will see a total combined investment of $153.7 million over five years.

In addition, $63 million over three years will be cost-shared between the province and municipalities under the Municipal Capital Works Program. The Municipal Capital Works Program will focus primarily on shorter term projects in rural areas of the province.

"Last year, variable cost-sharing guidelines were introduced by the province to provide small and rural communities with better access to funding for projects that many would not otherwise have been able to afford. In recognizing the need for these projects, the province is pleased to continue to provide this opportunity. These guidelines reduce the municipalities share of project costs so that it does not become over burdened with capital debt," said Minister Langdon. In many cases, the province is paying the largest portion of the total cost of any project sometimes as much as 90 per cent of the provincial/municipal share.

This brings the total investment in municipal infrastructure to $261 million over three years. Projects to be funded will include water treatment, water/sewer servicing, waste management, paving, recreation, municipal buildings and fire fighting equipment.

Also included is the completion of a multi-year water disinfection program announced in 2001-2002, which saw $8 million spent toward improvements to municipal water disinfection systems as part of government�s plan of action on water quality. A further $10 million will be spent to complete the program in 2002-2003. This funding provides municipalities currently under boil water advisories access to 100 per cent provincial funding up to a maximum of $100,000 to install or upgrade water disinfection equipment.

Media contact: Lynn Hammond, Communications, (709) 729-1983.

2002 03 21                              3:30 p.m.