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Transportation and Works
Labrador and Aboriginal Affairs
June 11, 2009

Economy Strong as Province to Tender Over a Billion Dollars This Fiscal Year

Provincial infrastructure projects totalling $1.6 billion will be tendered this fiscal year, creating an estimated 15,000 jobs (some seasonal) and providing significant economic stimulus to the economy of Newfoundland and Labrador. The Honourable Trevor Taylor, Minister of Transportation and Works; the Honourable Jerome Kennedy, Minister of Finance and President of Treasury Board; and, the Honourable John Hickey, Minister of Labrador Affairs, provided an update today on infrastructure projects that are underway to stimulate the provincial economy and address the provincial infrastructure deficit.

In February, the Provincial Government announced it would spend approximately $800 million on infrastructure in 2009-10. Newfoundland and Labrador is beginning to see the benefits of its significant investment in economic stimulus, as contracts for projects totalling approximately $400 million have already been awarded or gone to public tender, with the remaining 2009-10 projects expected to be tendered by this fall.

"It's one thing to make unprecedented commitments but it's quite another to get this money flowing and projects tendered quickly and that's just what our government is doing," said Minister Taylor. "Right now our Tendering and Contracts Division is the busiest it has ever been. On average, at any given time, the Provincial Government has between 20 to 30 tenders in circulation. We currently have 107 tenders out, which is a record for this province."

In addition, the Williams Government expects a further $800 million worth of projects, slated to commence in 2010-11, will be tendered this fiscal year. The Provincial Government will fund 85 per cent (or $1.3 billion) of the $1.6 billion total, supplemented by contributions from federal and municipal governments.

Minister Taylor said there are many reasons why these significant projects are moving ahead so briskly.

"Newfoundland and Labrador launched our own multi-year infrastructure strategy three years ago," said Minister Taylor. "So this year, when the Federal Government offered economic stimulus money, we already had our priority list identified. We had been proactive and our sound strategic planning allowed us to move forward with a series of significant projects very smoothly.

"We are issuing and awarding our tenders earlier than ever before and we plan to maintain this aggressive tender schedule as long as the commodity and labour prices hold and the industry has the capacity to do the work. Also, we are duplicating the designs of many of our new schools and health care facilities which expedites the process and makes it more cost-efficient."

Minister Kennedy said while Newfoundland and Labrador has seen the effects of the global economic downturn, there is reason to be cautiously optimistic about the future.

"At a recent meeting of finance ministers across the country, the Federal Government indicated that Newfoundland and Labrador is now leading the rest of the country with stimulus flowing to the economy in 2009 and 2010 relative to our GDP," said Minister Kennedy. "In addition, thus far this year, our province is leading the country in a number of economic indicators, including investment intentions, retail sales, labour income and urban housing starts."

"It is our hope that with sustained economic stimulus we will continue to see positive economic indicators," said Minister Kennedy. "The Hebron project is proceeding and we see confidence demonstrated by the partners in the fact that they have set up a head office in St. John's and announced their plans. The Vale Inco project is proceeding and the company has awarded a contract for engineering, procurement and construction management. The province has also successfully negotiated collective agreements with most of its public sector unions."

Minister Kennedy said the province's continued population growth is another reason to be optimistic. According to Statistics Canada, after experiencing the highest quarterly population growth since 1992 during the third quarter of 2008, Newfoundland and Labrador's population continued to increase again during the fourth quarter of 2008. Last year marked the first time in 16 years that the province recorded an increase in population.

The Honourable John Hickey, Minister of Labrador Affairs, also provided an update specifically regarding Labrador infrastructure.

"With some $93 million in projects awarded or tendered for Labrador so far this fiscal year, creating approximately 1,400 jobs, this government is moving fast to make smart strategic investments," said Minister Hickey. "Through the Northern Strategic Plan, we are making historic improvements to Labrador infrastructure while creating the necessary economic stimulus to get us through these challenging times."

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Photo #1 - Pictured here is the new Corner Brook Law Courts, currently under construction and valued at $20 million.

Photo #2 - Pictured here New Corner Brook Long term-care facility, currently under construction and valued at $60.7 million

Photo #3 - Pictured here is an artist's conception of the New Torbay Elementary School, valued at $16.9 million

Photo #4 (PDF) - Map of Trans Labrador Highway (Phase I, II and III)

Photo #5 - Constructions crews widen Phase I Trans Labrador Highway in preparation for paving

Photo #6 - Construction crews work on Torbay By-pass

Media contacts:

David Salter
Director of Communications
Transportation and Works
709-729-3015, 691-3577

Tansy Mundon
Director of Communications
Department of Finance
709-729-6830, 685-2646

John Tompkins
Director of Communications
Department of Labrador and Aboriginal Affairs
709-729-1674, 728-7762

Status of Major Infrastructure Projects

Program Tendered/
To be Tendered
09/10 10/11
Transportation Sector      
Provincial Roads Program
(includes Federal Stimulus)
$49.7M $3.0M Summer-Fall 09
$74 M
National Highway System
(includes cost-shared)
$25.9M   Summer-Fall 09
$82 M

Trans-Labrador Highway
(includes cost-shared)


Team Gushue Highway
(includes cost-shared)

Fall 09

CBS By-Pass
(includes cost-shared)

$4 M

Late Summer 09

Torbay By-Pass
(includes cost-shared)


Vessel Construction (two ferries)



Fall 09 $25 M

Kenmount Road Overpass
(includes cost-shared)

Spring 10

Placentia Lift Bridge
(includes cost-shared)

Fall 09/Spring 10

Heavy Equipment


Fall 09 $10 M

Vessel Refits


Spring 09 $10.7 M



Fall 09 $3.5 M

Building Maintenance


Various $8.7 M

Health Sector

Corner Brook Long-Term Care Facility


Happy Valley-Goose Bay Long-Term Care Facility


James Paton Memorial Health Centre

Late Summer 09

Labrador West Health Centre

Fall 09

Lewisporte Health Centre

Fall 09

Flower's Cove Health Centre

Winter 10

Health Sciences Centre Parking Garage

June 09

Hoyles/Escasoni Complex


Late Summer 09

Corner Brook Acute Care Centre


Late Summer 09

Repairs/Maintenance of Health Facilities

June 09/Winter 10 $40M

St. John's Centre for Clinical Research



St. Clare's Emergency Department


Fall 09

Dr. H. Bliss Murphy Cancer Centre-Expansion


Fall 09

Faculty of Medicine/Genetics Centre (MUN)


Fall 09

Education Sector - K-12

Happy Valley-Goose Bay Francophone School



L'anse Au Loup School K-12



Paradise #1 School K-6



Paradise #2 School K-6



Torbay School K-6



Baie Verte School K-12

June 09

Flower's Cove (Canon Richards re-development)

Planning stage

St. Anthony School K-12

Planning stage




Port Saunders School K-12



Placentia School 7-12



Port Hope Simpson School K-12

June 09

Wesleyville (Lester Pearson Extension)

June 09


Planning stage

St. John's, Virginia Park Elementary (extension/renovation)

Planning stage

Witless Bay - St. Bernard's Elementary (extension/renovation)

June 09

Kelligrews - St. Edwards School (extension/renovation)

June 09

Mount Pearl - St. Peter's Junior High (extension/renovation)

Summer 09

Portugal Cove - Beachy Cove Elementary Phase II

June 09

St. Teresa's Elementary

Planning stage

Carbonear, Davis Elementary - New School

Planning stage

Upper Gullies Elementary

Summer 09

St. John's - Roncalli Phase II

June 09

Education Sector - Post-Secondary

Sir Wilfred Grenfell - Academic Building
(includes cost-shared)


Fall 09

College of North Atlantic Campus (Lab West)
(includes cost-shared)

June 09

College of North Atlantic (Seal Cove) (includes cost-shared)

Winter 10

College of North Atlantic (Prince Phillip Drive)
(includes cost-shared)

June 09/Early Winter 10

Municipal Sector

Municipal Capital Works


Late Summer 09

Multi-Year Capital Works


Late Summer 09

Building Canada Fund


Summer 09

Canada-NL Strategic Infrastructure Fund


Late Summer 09 $2.6M

Municipal Rural Infrastructure Fund


Late Summer 09

Other Projects

Corner Brook Court


RNC H.Q. St. John's


Fall 09

Resource Road Construction


Fall 09

St. Alban's Aquaculture

June 09

Colonial Building


Late Summer 09

Newfoundland Labrador Housing Corporation



2009 06 11                            2:05 p.m.

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