Two communities in the Straits � White Bay area will receive funding totaling $628,000 to support municipal infrastructure improvements. Through the 2008-09 Municipal Capital Works (MCW) program, the Town of Englee will receive $568,000 for transmission main twinning and the Town of Flower�s Cove will receive $60,000 to upgrade the water supply intake system.

"Our goal remains to strengthen municipal services and infrastructure throughout Newfoundland and Labrador," said the Honourable Dave Denine, Minister of Municipal Affairs. "This government recognizes the critical importance of safe and reliable water supplies for communities and I am pleased that through this funding, important water system improvements can take place."

The 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.

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.

"This funding will go a long way to address the challenges towns have been experiencing with their water supply," said the Honourable Trevor Taylor, MHA for the Straits � White Bay. "I am pleased that this government is continuing to invest in municipal infrastructure improvements on the Northern Peninsula."

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

2008 08 15                                                   10:25 a.m.