News Release

October 3, 2003

GOVERNMENT OF CANADA ANNOUNCES $55 MILLION FOR INFRASTRUCTURE IN YUKON - INCLUDING ALASKA HIGHWAY IMPROVEMENTS

WHITEHORSE, Yukon - Allan Rock, Minister of Industry and Minister responsible for Infrastructure, together with David Collenette, Minister of Transport, Andy Mitchell, Secretary of State (Rural Development) (FedNor) and Larry Bagnell, Member of Parliament for the Yukon Territory, today announced Government of Canada contributions totalling $55 million to significantly support infrastructure improvements in the Yukon.

The first $15 million contribution, to be made under the Canada Strategic Infrastructure Fund (CSIF), will be directed towards the reconstruction of the section of the Yukon's Alaska Highway between Champagne and Haines Junction, as well as towards bridge improvements on the section between Watson Lake and Whitehorse. The Government of Yukon is expected to match the contribution being made by the Government of Canada.

An additional $25 million from CSIF will be made available for other strategic infrastructure priorities in the Yukon, to be identified in the coming months.

"This investment represents an important step for the Government of Canada in addressing the infrastructure needs of the Yukon Territory," said Minister Rock. "The improvements announced today will contribute to Yukon's economic growth."

"The projects announced today will go a long way towards addressing transportation needs that will help improve the safety of local residents and tourists," said Minister Collenette. "They also build on the previous investments made by the governments of Canada, Yukon, and the United States, and will complete the upgrading of the 945 kilometres of the Alaska Highway that lie within the Yukon's borders."

Minister Rock also announced that he has asked federal officials to immediately initiate negotiations with territorial and municipal representatives in the Yukon regarding the territory's share of the Municipal Rural Infrastructure Fund (MRIF). The Yukon Territory will receive over $15 million from the Government of Canada's MRIF, announced on August 20, 2003. The $1-billion Fund has been structured to provide a balanced response to local infrastructure needs in urban and rural Canada, and will ensure that all Canadians, including those living in small and remote communities share in the benefits of infrastructure investments.

"The Government of Canada is committed to helping our northern communities address their specific challenges," said Secretary of State Mitchell. "The Municipal Rural Infrastructure Fund will allow us to work closely with our partners in the provinces, territories and municipalities to enhance the quality of life for these communities."

"These projects will create local employment and business opportunities for the people of Yukon," said Mr. Bagnell. " The highway improvements will benefit the vast majority of residents in the territory who live in communities along the Alaska Highway, so we look forward to working with the government of Yukon to complete these upgrades to a very important transportation link to southern Canada."

"I am pleased that the Municipal Rural Infrastructure Fund will benefit Yukon communities," said Robert Nault, Minister of Indian Affairs and Northern Development. "Through this Fund, the Government of Canada reiterates its long-standing commitment to foster economic development opportunities and improve quality of life of Aboriginals."

Contacts:

Mylène Dupéré
Press Secretary
Office of Allan Rock
(613) 995-9001

Christine Aquino
Office of Andy Mitchell
(613) 759-1087

Amy Butcher
Director of Communications
Office of David Collenette
(613) 991-0700

Mouktar Abdillahi
Office of Larry Bagnell
(613) 995-9368

Infrastructure Canada
Communications and Promotions
(613) 948-1148

Alastair Mulin
Office of Robert Nault
(819) 997-0002

BACKGROUNDER

Yukon's Alaska Highway Improvements

The Alaska Highway is crucial to the economic and social structure of the Yukon. It is the most important transportation link between Yukon and southern Canada. More than 80% of the 315,000 tonnes of goods and supplies destined for the Yukon each year are transported on the Alaska Highway, and approximately 70% of tourists visiting the Yukon use this road. In addition over 85% of the Yukon's population lives in communities along the Alaska Highway.

Sections of the Alaska Highway from Champagne to Haines Junction will be reconstructed. A large portion of this section of highway has already been upgraded. These previously completed projects leave a total of 36 kilometres that require upgrading. In addition to the highway reconstruction, certain bridges will be rehabilitated on the section of the highway between Watson Lake and Whitehorse. The bridges will be determined in consultation with the territory to address priorities on the National Highway System. Upgrading of the bridges will include replacement of the decks on each of the structures. Additional improvements may include upgrades to increase seismic resistance and load capacity.

Government of Canada Infrastructure Funding Sources

Through the Canada Strategic Infrastructure Fund, the Government of Canada works with provincial, territorial and municipal governments, as well as with the private sector, to meet strategic infrastructure needs throughout the country. Initially funded at $2 billion, CSIF supports large-scale strategic infrastructure projects that improve quality of life and further economic growth. In 2003, the Government of Canada provided an additional $2 billion for the Fund to support program priorities including water quality and access, trade corridors, broadband connectivity, sustainable urban growth and northern infrastructure. The northern category has been introduced to allow the Government of Canada more flexibility in identifying strategic projects in the North eligible for funding under CSIF.

Up to $25 million in future funding under CSIF is still available for Government of Canada contributions to strategic joint priority projects in the Yukon. The Government of Canada will continue to work in partnership with the Government of Yukon to identify these joint priority projects to be funded under the Canada Strategic Infrastructure Fund.

Yukon will also receive $15 million from the Municipal Rural Infrastructure Fund (MRIF), announced on August 20, 2003. The $1 billion Fund will respond to the specific needs of Canada's municipalities and rural and remote areas. The Fund also includes a component targeted to First Nations' infrastructure needs that will specifically help foster economic development opportunities and improve quality of life of Aboriginal people who live on-reserve.

MRIF will have a green infrastructure focus and will target projects such as water and wastewater treatment infrastructure, municipal environmental energy improvements, public transit infrastructure and solid waste treatment infrastructure. Other eligible categories under this fund are cultural, tourism and recreational infrastructure, local roads and broadband connectivity.

In the Speech from the Throne of September 30, 2002, the Government of Canada committed to an additional 10-year involvement in public infrastructure. Its Budget 2003 re-affirmed this long-term commitment and provided an additional $3 billion in infrastructure support, thus bringing the Government of Canada's contribution to infrastructure to $12 billion since 1993.

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