Today, the Honourable Dave Denine, Minister of Municipal Affairs, announced $61.2 million in funding from the 2008-09 Municipal Capital Works program. This funding will be used toward many infrastructure improvement projects province-wide, including major projects in Corner Brook and Clarenville. Through this round of approvals, the province will contribute $32.4 million; the Federal Government will contribute $12 million and the municipalities will contribute $14.1 million. Towns will also utilize the federal GST rebate as part of the capital cost.

"Since 2003, our government has shown a strong commitment towards significantly enhancing the aging municipal infrastructure throughout Newfoundland and Labrador," said Minister Denine. "We continue to provide municipalities the opportunity to secure, develop and improve services for their residents and support the long-term sustainability, growth and development of communities throughout the province."

Municipalities Newfoundland and Labrador (MNL) President Graham Letto said that municipal infrastructure is critical to the economic development and environmental sustainability of municipalities and to the health and wellness of residents.

"Providing basic services like water, sewer and waste management is a challenge for many municipalities," said Mayor Letto. "This is a positive move by government to help address infrastructure deficits and identify municipal priorities through investment in targeted infrastructure."

This Municipal Capital Works (MCW) program fosters the development of cost-shared projects in a wide range of municipal infrastructure, including water and waste-water treatment, roads, recreational facilities and fire equipment. Contributing $61.2 million to various projects in 2008-09, the MCW program has been significantly improved by recently announced revised cost-share ratios for municipalities. These new changes state that towns with populations under 3,000 now have to contribute only 10 per cent toward the cost of capital infrastructure. Towns with populations between 3,000 and 7,000 contribute 20 per cent and the largest cities and towns with populations over 7,000 contribute 30 per cent.

"Communities require efficient infrastructure and we have made significant improvements in this regard," said Minister Denine. "The Provincial Government is making great strides in revitalizing our cities, towns and local service districts, and will continue to invest strategically in support of the long-term sustainability, growth and development of our province. We are committed to providing municipalities the capability to secure, develop and improve services for residents."

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Media contact:
Jennifer Collingwood
Director of Communications
Department of Municipal Affairs
709-729-1983, 709-690-2498
JenniferCollingwood@gov.nl.ca