News Release

May 20, 2004

HIGHWAY IMPROVEMENTS IN NORTHWEST TERRITORIES INCREASE ACCESS, SAFETY AND PRODUCTIVITY

YELLOWKNIFE, Northwest Territories - The Honourable Ethel Blondin-Andrew, Minister of State (Children and Youth), and Michael McLeod, Minister of Transportation for the Northwest Territories, today confirmed the signing of a $40-million joint funding agreement to improve three transportation corridors in the Northwest Territories, allowing the long-awaited completion of Highway 3 to begin.

The funding will assist with the construction of 10 Mackenzie Valley winter road bridges between Wrigley and Norman Wells, upgrading of the Dempster Highway (Highway 8) and upgrading of the Slave Province Transportation Corridor (Highway 3 and Highway 4).

“These projects are high priorities for the territory which is dependent on the global trade of its non-renewable resources of diamonds, natural gas and oil,” stated Minister Blondin-Andrew. “This agreement is the first example of the ‘new deal’ for communities at work in the Northwest Territories. We’re pleased to be part of this project that will not only improve the transportation infrastructure but facilitate economic growth and improve the quality of life for all residents of the Northwest Territories.”

“People living, working and visiting in the Northwest Territories will benefit from highway and winter road improvements made possible through this joint funding agreement between the governments of Canada and the Northwest Territories,” Mr. McLeod said. “Access to remote communities, road safety and winter roads will be improved when these projects throughout the territory are completed.”

Imminent growth in oil and gas exploration and development, a Mackenzie Valley gas pipeline, expansion of the diamond mining sector, hydro development and opportunities for the tourism sector will produce numerous jobs, training and business opportunities for Northerners. The improvements to the transportation system throughout the territory will provide the framework needed to support and foster this growth.

Improvements to the Mackenzie Valley winter road bridges will facilitate community access and re-supply, encourage tourism and support exploration activities by resource development companies by extending and stabilizing the operating window for the winter road. On the Wrigley-Norman Wells section of the road, the operating season will be extended from eight to 12 weeks upon completion of the bridges.

The Dempster Highway, the only surface access to Inuvik and the Beaufort Delta from the rest of Canada, is heavily used for tourism and the oil and gas industries. This important link will see significant improvements in safety and access that will lead to increased opportunities for local employment and oil and gas exploration.

The highway projects in the Slave Province Transportation Corridor will increase safety, improve access for the mining industry and enhance tourism opportunities. On Highway 3, the remaining 7.3 kilometres of gravel highway between Yellowknife and Rae will be reconstructed and paved. Improving the road surface and geometrics on 43.6 km of Highway 4, the Ingraham Trail, will make that road safer for the increasing volume of traffic that travels it.

The Government of Canada’s contribution of $20 million, which was originally announced in October 2003, will be made through the Canada Strategic Infrastructure Fund (CSIF). That amount is matched by the Government of the Northwest Territories. Transport Canada will work with the government of Northwest Territories to implement projects under this agreement.

Through the CSIF, 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. The CSIF supports large-scale strategic infrastructure projects that improve quality of life and further sustainable growth. The fund also supports the Government of Canada’s ‘new deal’ for communities that will help make Canada a world leader in developing vibrant, creative and prosperous cities and communities. Since 1994, the Government of Canada has contributed $12 billion to over 20,000 infrastructure projects in Canada’s communities. This has helped leverage over $30 billion from all partners.

Contacts:

Infrastructure Canada
Communications and Promotion
(613) 948-1148

Bob Kelly
Manager, Public Affairs and Communications
Department of Transportation
Government of the Northwest Territories
(867) 873-7712

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.

Mackenzie Valley Winter Road Bridge Construction

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.

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.

Dempster Highway (Highway No. 8) Upgrading

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.

Slave Province Transportation Corridor Upgrading (Highways No. 3 and No. 4)

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

• Highway No. 3: Reconstructing and paving the remaining 30 km section of highway between Rae and Yellowknife is the highest priority for the Territory. This section is the only unpaved part of the National Highway System, and has the highest traffic volumes of the Territories’ intercommunity highways. The CSIF will contribute towards reconstruction and paving of 7.3 kilometres of Highway 3.
  
• Highway No. 4: Improvements will be made to the geometrics of the Ingraham Trail, which are currently the worst in the Territory. Poor surface and geometric conditions, in combination with increased truck traffic, are creating concerns for safety. The CSIF will contribute towards reconstruction of 43.6 kilometres of Highway 4.

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

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.

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.

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