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April 19, 2011

Infrastructure Investments Stand Strong for Real and Lasting Economic Benefits

The Provincial Government continues to build and maintain infrastructure through an investment of more than $1 billion in Budget 2011. This funding will benefit all Newfoundlanders and Labradorians and will serve as the cornerstone of a strong and vibrant economy well into the future as part of an ongoing multi-year infrastructure strategy currently valued at more than $5 billion.

Infrastructure investments in 2011-12 are expected to generate 7,680 person years of employment. This will help strengthen the economy and provide further opportunities for the province’s strong and productive labour force.

“Through our infrastructure strategy, we are building a strong foundation for future prosperity in Newfoundland and Labrador while addressing an infrastructure deficit inherited by our government after years of neglect,” said the Honourable Tom Hedderson, Minister of Transportation and Works. “The economies that thrive are those that have the necessary infrastructure to support and encourage economic growth and opportunity. We stood strong in the face of a global economic recession and we have made strategic investments in public infrastructure to both create jobs and lay out a firm base upon which to build a bright and prosperous future for generations of Newfoundlanders and Labradorians.”

Budget 2011 has significant infrastructure investments spanning multiple Provincial Government departments and agencies including: Transportation and Works; Municipal Affairs; Education; Health and Community Services; Justice; Fisheries and Aquaculture; Tourism, Culture and Recreation; Environment and Conservation and, Newfoundland Labrador Housing. The $1 billion provided in Budget 2011 for provincial infrastructure includes the investments outlined below and other ongoing infrastructure initiatives in 2011-12.

Transportation and Works
Budget 2011 provides Provincial Government funding of $343.8 million for various infrastructure initiatives through the Department of Transportation and Works which include:

Provincial Government funding of $216.4 million is allocated for road and bridge improvements. This funding will be supplemented by an additional $35.2 million in Federal Government funding, providing for a total road and bridge investment in 2011-12 of $251.6 million which includes:

    • The Provincial Roads Improvement Program including funding to complete repairs to road infrastructure damaged by Hurricane Igor;
    • Various road and bridge projects on the Trans Canada Highway;
    • Funding to continue construction of the CBS By-Pass and Team Gushue Highway extensions;
    • Funding to advance work to replace the Sir Ambrose Shea Lift Bridge in Placentia;
    • Funding to complete the Kenmount Rd. (Donovan’s) overpass replacement, the Torbay By-Pass, and a highway realignment at the Pinware River on the Trans Labrador Highway (TLH) in Southern Labrador; and,
    • Funding to continue widening and hard-surfacing of Phase I of the TLH.

$38.7 million is provided for alteration, improvement and new development of public buildings including:

    • $12.5 million dollars to continue with exterior renovations and $3 million to begin mechanical and electrical system upgrades at the Confederation Building, East Block;
    • $1 million to continue redevelopment of the Sir Richard Squires Building in Corner Brook;
    • $1.3 million for various environmental remediation and demolition projects;
    • $1 million for energy improvements at public buildings supplemented by an additional $2 million from the Newfoundland and Labrador Green Fund administered by the Department of Environment and Conservation; and,
    • $2 million to complete the construction of a new weigh scale inspection facility on the TLH near Wabush.


    • $39.3 million is provided to continue with the vessel replacement strategy. This includes funding towards final payments on the first two medium-size vessels, the MV Grace Sparkes and MV Hazel McIsaac; funding to begin construction of a third medium-size vessel and to complete the design and begin construction of a large-size vessel to replace the MV Captain Earl W. Winsor; and, funding toward the completion of the design and purchase of materials for six small-size ferry vessels;
    • $12.1 million for ferry vessel refits; and,
    • $5 million for maintenance and upgrades to wharves at ferry terminals.


    • $17.9 million is allocated towards the purchase of the remaining two of four new waterbomber aircraft as announced in October 2009.

Other investments include:

    • $2.4 million for construction of new salt storage sheds;
    • $10 million for the purchase of heavy equipment; and,
    • $2 million for land acquisitions for various construction projects.

Municipal Affairs
Budget 2011 provides $140.8 million for new and ongoing municipal infrastructure projects. As well, Budget 2011 commits $30 million for recreational and multi-purpose facilities, which will be used to leverage additional funding from other sources, and will be spent over the construction life of the projects. When the provincial contribution to municipal infrastructure is combined with federal cost-shared programs and municipal contributions, the total investment in Newfoundland and Labrador for 2011-12 is expected to be approximately $219 million.

$166.5 million will be invested in Budget 2011 for new and continued infrastructure projects, and for repairs and maintenance throughout the K-12 and post-secondary education systems.

Health and Community Services
Budget 2011 continues the Provincial Government’s significant commitment to health infrastructure with an investment of $272.2 million for health infrastructure. The total figure includes $200.6 million for new construction and redevelopment; $50 million for new equipment; and, $21.6 million for repairs and renovations.

Budget 2011 provides $16.9 million for the redevelopment of the Royal Newfoundland Constabulary Headquarters located at Fort Townshend in 2011-12. The total cost of the project is $50 million with construction expected to be completed by 2014-15.

Fisheries and Aquaculture
Budget 2011 provides more than $9 million for aquaculture wharves. This includes $6.3 million for the completion of wharves in Pool’s Cove and Hermitage and the construction of new wharves in Belleoram and Harbour Breton. Also included is $2.8 million for the upgrade of wharves in St. Alban’s and Milltown which were transferred with funding to the province from the Federal Government as part of Transport Canada’s Port Divestiture Program.

Tourism, Culture and Recreation
Budget 2011 allocates $2.8 million toward the restoration of the Colonial Building in St. John’s, with additional funding to be leveraged from other sources.

Environment and Conservation
Budget 2011 provides $4 million in funding for improvements to Salmonier Nature Park. The improvements, announced in Budget 2010, will include the construction of a new visitor centre, animal care building and technical services building.

Newfoundland Labrador Housing
Under the goals outlined in the Provincial Social Housing Plan for Newfoundland and Labrador, Secure Foundations, Budget 2011 provides $25.9 million for renovations and improvements, affordable housing, and maintenance through the Newfoundland and Labrador Housing Corporation. This funding includes $1.2 million to construct four public housing units for low income residents requiring smaller housing units in Hopedale, Labrador.

In addition to the $1 billion in provincial infrastructure funding in Budget 2011 noted above, infrastructure investments through Newfoundland and Labrador Hydro, a subsidiary of Nalcor Energy, in 2011-12 will total $65 million and provide additional economic stimulus.

Budget 2011 also provides $2.3 million to co-locate the Avalon regional Government Service Centre headquarters, currently located in St. John’s, with the Motor Registration Division in Mount Pearl. The co-location will strengthen the “one-stop” service approach for accessing a wide range of direct government services for residents of the region. This move will also bring the Consumer Affairs Division which is responsible for residential tenancies and consumer affairs activities under the same roof.

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Media contacts:

Roger Scaplen
Director of Communications
Department of Transportation and Works
709-729-3015, 697-5267
Ken Morrissey
Director of Communications
Department of Municipal Affairs
709-729-1983, 685-6612
Heather May
Director of Communications
Department of Education
709-729-0048, 697-5061
Jennifer Tulk
Director of Communications
Department of Health and Community Services
709-729-1377, 699-6524
Vanessa Colman-Sadd
Director of Communications
Department of Justice
709-729-6985, 682-6593
Lori Lee Oates
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 690-8403
Diana Quinton
Director of Communications
Department of Tourism, Culture and Recreation
709-729-0928, 631-8155
Melony O’Neill
Director of Communications
Department of Environment and Conservation
709-729-2575, 689-0928
Bradley Power
Director of Communications
Department of Human Resources, Labour and Employment
709-729-0753, 699-5707
Heather Maclean
Director of Communications
Department of Natural Resources
709-729-5282, 697-4137
Hugh Donnan
Director of Communications
Department of Government Services
709-729-4860, 725-6511

2011 04 19                                                                      2:15 p.m.


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