Residents of Labrador City will see extensive street and road improvements as a result of the Provincial Government�s investment of $3,571,429 to the town through the 2008-11 Multi Year Capital Works Funding Program (MCW).

In making the announcement today, the Honourable Dave Denine, Minister of Municipal Affairs, said the Multi-Year Capital Works Program allows larger municipalities to avail of three-year blocks of funding, which supports improved planning and scheduling of work for major infrastructure projects. The program was first introduced in 1999 to fund larger-scale infrastructure initiatives in communities that have the capacity to make multi-year commitments. Typically, the majority of funding for municipal capital works programs has supported road, water and sewer infrastructure.

The Multi-Year Capital Works Program allows larger municipalities to avail of three-year blocks of funding, which supports improved planning and scheduling of work for major infrastructure projects. The program was first introduced in 1999 to fund larger-scale infrastructure initiatives in communities that have the capacity to make multi-year commitments. Typically, the majority of funding for municipal capital works programs has supported road, water and sewer infrastructure.

"This type of funding agreement allows municipalities to plan their infrastructure investments over several years with the security of knowing the funding is in place," said Minister Denine. "Improvements to roads and streets were deemed a priority by the town and I am pleased that these improvements can now start."

"This is great news for the people of Labrador West," said Jim Baker, MHA for Labrador West. "I am very happy that with this funding, Labrador City residents may continue to enjoy well-maintained streets now and into the future."

The 2008-11 Multi Year Capital Works Program will provide a provincial funding investment of $112 million over the next three years to 15 of the province�s largest cities and towns. When combined with the municipal contribution, the program will result in a $156-million investment in municipal infrastructure over the next three years.

Recent improvements to cost-sharing ratios mean that the province will fund 70 per cent of the total cost while the town has to only fund 30 per cent.

"Council is pleased with the new provincial / municipal cost-sharing arrangement," said Labrador City Mayor Graham Letto. "This shift in financial burden will allow municipalities to reduce capital borrowing costs, which eat away at their limited financial resources. The reduction in the municipal portion will provide municipalities with the ability to address other infrastructure needs that are not covered by cost-shared programs."

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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

2008 06 20                                                    9:55 a.m.