Canada Strategic Infrastructure Fund

GOVERNMENT OF CANADA ANNOUNCES $80 MILLION FOR NATIONAL AND MUNICIPAL INFRASTRUCTURE PRIORITIES IN THE NORTHWEST TERRITORIES

Allan Rock, Minister of Industry announced $80 million package for the infrastructure priorities in the Northwest Territories at the Explorer Hotel on October 4, 2003. Source: Jiri Hermann

YELLOWKNIFE, Northwest Territories - 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 Ethel Blondin-Andrew, Secretary of State (Children and Youth), and Member of Parliament for Western Arctic, today announced contributions totalling over $80 million for Northwest Territories infrastructure priorities and the national Corridors for Canada initiative.

"These investments confirm the Government of Canada's commitment to address strategic infrastructure needs identified in the Northwest Territories Corridors for Canada proposal," said Minister Rock. "The improvements announced today will contribute to the Northwest Territories' economic growth by improving access to oil and gas resources and facilitating pipeline construction."

An initial $20 million contribution, to be made under the Canada Strategic Infrastructure Fund (CSIF), will go to the Corridors for Canada proposal for the reconstruction of highway segments on the Dempster Highway and the Slave Province Transportation Corridor, as well as to the construction of bridges on the Mackenzie Valley Winter Road. The Northwest Territories will also contribute $20 million towards these projects.

The Government of Canada remains committed to participate in subsequent phases of the Corridors for Canada proposal, and to see the overall project completed as quickly as possible to open up opportunities for northerners and for all Canadians. To this end, an additional contribution of $20 million, through the 2003 Canada Strategic Infrastructure Fund and $25 million under the Fund's national priority project component, will be allocated for Corridors for Canada next steps.

"The projects announced today will go a long way towards addressing public transportation needs that will help improve the safety of local residents and tourists," said Minister Collenette. "They will also help make transportation corridors for the diamond, gold and base metal resources sectors safer and more efficient." The Northwest Territories will also receive over $15 million from the Government of Canada's new Municipal Rural Infrastructure Fund (MRIF), announced on August 20, 2003. The $1 billion MRIF 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 will share in the benefits of infrastructure investments.

"The Municipal Rural Infrastructure Fund will help address the unique challenges facing our northern communities across Canada," said Secretary of State Mitchell. "We look forward to working with our partners in the provinces, territories and municipalities, to ensure that people in these communities can enjoy the same quality of life as Canadians living in large urban centres."

"These projects will create local employment and business opportunities for Aboriginal people," said Secretary of State Blondin-Andrew. "We look forward to working with the territorial government to address the infrastructure needs in the Mackenzie Valley and the Slave Corridor, and across the Territories."

"I am pleased that the Municipal Rural Infrastructure Fund also includes a First Nations component," commented 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 Aboriginal people who live on-reserve."

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

BACKGROUNDER

TRANSPORTATION INFRASTRUCTURE IMPROVEMENTS IN THE NORTHWEST TERRITORIES

The Government of Canada will invest $65 million in transportation infrastructure improvements in the Northwest Territories through the Canada Strategic Infrastructure Fund (CSIF). An initial $20 million contribution will go to three highway projects included in the Northwest Territories' Corridors for Canada proposal.

This contribution will be subject to the requirements of the Mackenzie Valley Resource Management Act, which will set out terms and conditions of the environmental approval.

This project includes the construction of 10 permanent bridges along the Mackenzie Valley Winter Road between Wrigley and Norman Wells. Bridges will be built at Strawberry Creek, Bob's Canyon, Blackwater River, No Name Creek, Little Smith Creek, Big Smith Creek, Notta Creek, Christina Creek, Hellava Creek, and Francis Creek.

In addition, funding will be provided towards research into practical solutions for the major crossing at Bear River.

The new bridges will extend and stabilize the operational window of the Mackenzie Valley Winter Road, which is used for community access and resupply, as well as for oil and gas exploration activities, by alleviating operational problems and environmental concerns associated with ice bridge construction. Extension of the winter road season will facilitate oil and gas exploration and pipeline construction in the north, and create local employment and business opportunities for northerners, including Aboriginal people.

The Government of Canada will contribute half of the eligible costs of this project, up to $5.7 million.

The reconstruction will encompass straightening the road; widening embankments to improve road geometrics; and correcting drainage and permafrost problems. There will also be granular resurfacing and surface stabilization to meet the needs of increasing commercial, industrial and tourist traffic using this highway. The highway also provides access to the Beaufort Delta for the oil and gas industry.

The Government of Canada will contribute half of the eligible costs of this project, up to $8 million.

This project, which will result in increased safety, better access for the diamond mining industry, and enhanced tourism opportunities, includes the following improvements:

The Government of Canada will contribute up to $6.3 million towards the eligible project cost.

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.

The national priority projects component of CSIF, announced in Budget 2003, provides $200 million to support projects of national importance that require the Government of Canada to take a leadership role. This is the second project earmarked for funding under the CSIF's "national priority project" component. By facilitating access to resources in the Northwest Territories, the highway improvements announced today will bring benefits to the North, and to all Canadians.

The Northwest Territories will also receive $15 million from the Municipal Rural Infrastructure Fund (MRIF) announced on August 20, 2003. The $1billion MRIF 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.