Transportation and Works
December 17, 2007

Provincial and Federal Governments Sign $430 Million Infrastructure Agreement

To better address the infrastructure needs and priorities of Newfoundland and Labrador, the governments of Canada and Newfoundland and Labrador today announced the signing of a framework agreement worth more than $430 million in federal contributions under Building Canada, the Government of Canada�s new long-term infrastructure plan. The Honourable Loyola Hearn, Minister of Fisheries and Oceans, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, along with the Honourable Dianne Whalen, Minister of Transportation and Works for Newfoundland and Labrador, participated in today�s announcement.

The governments of Canada and Newfoundland and Labrador today also jointly announced that improvements to the Trans Labrador Highway and upgrading of the Argentia Access Road will be among the first funding priorities under Building Canada. The Government of Canada will provide up to $51.5 million, representing a maximum of 50 per cent of total eligible costs of these initiatives, after the successful conclusion and signing of a base funding agreement.

"The signing of a Building Canada Framework Agreement between the governments of Canada and Newfoundland and Labrador will address infrastructure needs and priorities that will improve the province�s communities, economy and environment," said Minister Hearn. "The federal investment in these first two initiatives is an example of how Building Canada is helping to ensure that Newfoundlanders and Labradorians have modern, safe and efficient infrastructure."

"Addressing the provincial infrastructure deficit is one of the top priorities of the Government of Newfoundland and Labrador," said Minister Whalen. "This agreement with the Government of Canada provides a blueprint for infrastructure revitalization that complements the Provincial Government�s $2 billion infrastructure strategy and will significantly impact Newfoundlanders and Labradorians."

The infrastructure framework agreement sets the stage for a collaborative investment in the infrastructure needs of Newfoundland and Labrador. Under this agreement, $131.33 million from the Building Canada Fund will go towards infrastructure initiatives in Newfoundland and Labrador. Of this amount, $56.33 million will be allocated to smaller-scale projects in communities with populations of less than 100,000. As well, $75 million of the Building Canada Fund will be dedicated to major infrastructure projects, including investments in St. John�s, particularly in priority areas such as the core National Highway System, transit, water and wastewater treatment and green energy. Under the framework agreement, the Province of Newfoundland and Labrador will also receive $25 million annually in base funding, for a total of $175 million through to 2014 for core infrastructure priorities. A further $124.66 million will flow to Newfoundland and Labrador municipalities through the extension of the Gas Tax Fund Agreement from 2010 to 2014.

The Canada-Newfoundland and Labrador Framework Agreement outlines how the Building Canada Plan will operate in the province. It also establishes a governance framework through which the two governments will work together to identify and address infrastructure priorities. Through the agreement, the two governments will also establish a mechanism for reporting to Canadians on the results of these investments.

Through its unprecedented $33-billion Building Canada infrastructure plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada. Building Canada will support a stronger, safer and better country.


For further information on the Building Canada plan, visit

Media contacts:

Karine White
Press Secretary
Office of the Minister of Transport, Infrastructure and Communities
Infrastructure Canada
David Salter
Director of Communications
Department of Transportation and Works
709-729-3015, 691-3577


2007 12 17                                                 11:10 a.m.


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