Funding pre-approved for Provincial Roads Program to ensure early start

Transportation and Works Minister Trevor Taylor today announced the early approval of the largest Provincial Roads Program in decades to address the serious need for improvements to the road network and allow for more timely tender calls and greater use of the short construction season.

Government has pre-committed $60 million in the 2006-07 budget for the Provincial Roads Program, which includes $48.4 million in new money and $11.6 million carried over from this construction season. This is being done in recognition of the significant annual investment required to address the serious deterioration of the province's roads network as a result of years of under investment.

"We need about $60 million a year to address the under funding of our roads that occurred when the previous government was in power," Minister Taylor said. "This government has significantly increased the value of the Provincial Roads Program in each of the last three years.

This is the earliest in recent memory that the department has ever received budget approval, which allows us to go to tender sooner and start construction much earlier."

The Provincial Roads Program was valued at $48.7 million last year (including $3.7 million carried over from the previous year) and $30 million in 2004-05, which was a $7 million increase from the year before and included $2.6 million in carryovers. The program provides funding for upgrading and improvements to the provincial highway network, as well as rehabilitation and replacement of bridges. This year's funding includes the $1.6 million already committed for the completion of the Kenmount Road/Bifurication interchange.

"The early commitment of funding will ensure contractors have the advantage of the full construction season, resulting in more projects being completed in the year they are identified instead of being pushed into the following year," Minister Taylor said. "It will also save

the department money by allowing contractors to plan ahead and bid on adjacent projects, reducing their costs and improving bids."

Officials will immediately begin the process of identifying specific projects for the Provincial Roads Program and begin the tendering process. It is the department's objective to have most, if not all, of the identified projects tendered by early spring.

The department is also preparing a transportation infrastructure strategy that will provide an updated assessment of all roads, bridges and causeways needing reconstruction, rehabilitation, upgrading and paving, and prioritizing those projects.

The provincial government has also pre-committed $52.1 million for the continued rehabilitation and restoration of sections and bridges along the Trans-Canada Highway under the Canada Strategic Infrastructure Program, a cost-shared program between the province and Infrastructure

Canada. Of that, $24 million is recoverable from the Government of Canada. The 16 projects identified for completion in the next two years under the program were announced in August.

"Improving highway infrastructure in the province is a priority of this government," Minister Taylor said. "A well-planned roads program will save the department money, generate local employment, ensure the most efficient use of resources by taking advantage of the full construction season, and improve our roads for the benefit of residents, travelers and the trucking industry."

Media contact: Tracy Barron, Communications, (709) 729-3015, 691-3577

The Provincial Roads Program funds upgrading and improvements to the provincial highway network, including major trunk roads, community access roads, local roads, bridges and routine maintenance on the Trans-Canada Highway.

In recognition of the significant annual investment required to address the serious deterioration of the province's infrastructure, government will have invested $123.4 million in the Provincial Roads Program since taking office.

The Department of Transportation and Works is developing a transportation infrastructure strategy that will provide an updated assessment of all roads, bridges and causeways needing reconstruction, rehabilitation, upgrading and paving. The strategy will prioritize projects based on identified need and safety issues.

The Canada Strategic Infrastructure Fund is a cost-shared program between the province and Infrastructure Canada. Under the program, Infrastructure Canada partners with provinces, territories and municipalities to meet strategic infrastructure needs.

In August 2005, the Government of Newfoundland and Labrador and the Government of Canada each committed $24 million for the continued rehabilitation and restoration of highway infrastructure and bridges along Route 1 of the Trans-Canada Highway. The province is also

contributing an additional $5.6 million for project design and contract administration, for a program total of $53.6 million. The province has already spent $1.5 million in 2005-06.

The 16 projects identified under the Canada Strategic Infrastructure Fund for the next two years are:

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