Two communities in the St. Barbe area will receive $265,575 in total funding to support municipal infrastructure improvements. Through the 2008-09 Municipal Capital Works (MCW) program, the Town of Hawke�s Bay will receive $217,787 for water line work and the Town of Trout River will receive $47,788 for sewage pumping.

"The Williams Government recognizes that communities require efficient infrastructure," said the Honourable Dave Denine, Minister of Municipal Affairs. "The Municipal Capital Works program was designed to foster 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."

Minister Denine recently announced that through the 2008-09 MCW program, $61.2 million will be spent on many infrastructure improvement projects province-wide. Under the program, the Provincial Government 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.

"I am extremely pleased with the capital works funding approved for the Towns of Hawkes Bay and Trout River," said Wallace Young, MHA for the District of St. Barbe. "Effective water and sewer systems are essential services that will enhance day-to-day living for residents, and allow for the long-term growth of these towns."

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.

- 30 -

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