NLIS 50
March 27, 2003
(Municipal and Provincial Affairs)

 

Investment in capital works and infrastructure continues

Oliver Langdon, Minister of Municipal and Provincial Affairs, said Budget 2003 reaffirms government�s commitment to capital works and infrastructure for municipalities, as announced last year. The total committed investment over three years by the provincial, federal and municipal governments, when combined with the St. John�s harbour clean up project, will exceed $300 million.

In the first phase of the Multi-Year Capital Works program, 13 larger municipalities entered into agreements with the province to share projects on a 50/50 basis, based on priorities submitted by municipalities. Of approximately $103 million committed to this initiative, more than 92 per cent of the priority projects were for water and sewer servicing and upgrades.

Water quality continues to be a priority. Under the three-year $90 million Canada-Newfoundland Infrastructure Program (CNIP), approximately $24 million will be invested in water and sewer projects this year. Projects will be cost-shared by the three levels of government. The CNIP agreement will see a total combined investment of $153.7 million over five years, concluding in 2005.

This year approximately $22 million will be invested through the Municipal Capital Works program (MCW) which focuses primarily on shorter term projects in rural areas of the province including water and sewer servicing, municipal roads and buildings, recreation, and firefighting equipment. Expenditures over the three-year planning period will exceed $60 million.

"Variable cost-sharing guidelines will continue to be offered by the province under the CNIP and MCW programs, to provide small and rural communities with better access to funding for projects that would otherwise result in unmanageable capital debt for the municipality," said Minister Langdon. "In many cases, the province is paying the largest portion of the total project cost.

"Improvements are being made to water and sewer servicing, municipal buildings, roads, recreational facilities, and firefighting equipment. These benefits are also seen through the employment opportunities that these projects create. From 1999 to the end of this year, it is estimated that 75,000 person weeks of employment will be created through the design and construction phases of capital works and infrastructure projects."

In 2001-02 government announced a multi-year water disinfection assistance program. This funding has provided 119 municipalities under boil water advisories access to100 per cent provincial funding up to a maximum of $100,000 to install or upgrade water disinfection equipment. This program will be completed this year with approximately an additional 15 municipalities receiving total funding of $1 million.

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

2003 03 27                                       4:30 p.m.


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