News Release

July 4, 2005

GOVERNMENT OF CANADA SETS ASIDE $27.3 MILLION FOR REGIONAL WATER SUPPLY SYSTEMS IN SASKATCHEWAN

KINDERSLEY, Saskatchewan – Residents from several Saskatchewan towns, villages and rural municipalities including Kindersley, Eston, Kerrobert, Luseland, Coleville and neighboring rural municipalities, may soon have a more reliable, sustainable source of domestic quality water. The Government of Canada has announced it is setting aside up to $27.3 million toward regional water supply systems in Saskatchewan. The next stage of this process is for the Governments of Canada and Saskatchewan to work with these and other Saskatchewan communities to develop further details around potential projects.

Ralph Goodale, Minister of Finance and Peter Prebble, Minister Responsible for SaskWater announced today the federal and provincial governments have worked collaboratively to identify regions with good potential to establish a viable regional water supply system project and where communities are ready to move forward to more in-depth consideration in the planning process.  Potential projects, as listed in the attached backgrounder, were selected based on their expected contributions to: providing a highly-reliable, secure, quality water source to rural communities in Saskatchewan; reducing barriers to expanding regional economic development opportunities; and meeting the Government of Canada’s commitment to provide safe, clean drinking water to First Nations communities.

“Investing in reliable, high quality water systems is key to the health and economic vitality of rural communities,” said Minister Goodale.  “The Government of Canada recognizes the importance of water to the vibrancy and sustainable development of these Saskatchewan communities. This is why we are working collaboratively with them and the Saskatchewan government to develop the potential projects for funding.  This is the New Deal for Cities and Communities at work in our province.”

The Government of Saskatchewan welcomes this important federal government investment in regional water supply systems in our province,” said Peter Prebble, Minister Responsible for SaskWater.  “Not only will this contribution increase the financial viability of future water supply projects but the regional approach will lead to a much longer term solution for local water needs. If requested by the communities, SaskWater will work with them to further define the project and make a financial investment in the new water system.”

“Projects of this nature are the best possible economic generators for the region,” said Erhard Poggemiller, chairman of the Water West Pipeline Co-operative.  “We’ve been looking at this project for a long time and without the help of the federal and provincial governments, this project may not proceed.  With the support of the federal and provincial governments, this project will have long term benefits for the region.”

The co-operative approach encourages communities to work with their neighbors to develop regional systems with long-term benefits for water quality, sustainability and economic development opportunities.  The advancement of these projects is dependent upon the commitment of financial and human resources from municipal, provincial and federal governments to work co-operatively on these projects.

The next step will be for officials from the Department of Western Economic Diversification Canada (WD), Infrastructure Canada (INFC), the Prairie Farm Rehabilitation Administration (PFRA) and SaskWater to meet and consult with municipal representatives from the afore-mentioned and neighboring affected communities to determine their level of interest and the resources they are prepared to commit to advancing their respective projects.

Ultimately, in order to qualify for assistance, all communities would be required to:

• Develop a sound business plan based on full cost pricing for water users subscribing to the pipeline system. This case would then be assessed by Infrastructure Canada against criteria used nation-wide in funding community infrastructure through the Canada Strategic Infrastructure Fund (CSIF);
• Commit to appropriate water conservation measures (eg. metering, increasing block pricing);
• Fully comply with the Guidelines for Canadian Drinking Water and provincial drinking water regulations and policies; and
• Complete federal environmental assessments.

The Government of Canada’s share of the funding for eligible projects will be provided through the $4 billion Canada Strategic Infrastructure Fund (CSIF). The CSIF supports large-scale strategic infrastructure projects of local and regional importance that improve quality of life for Canadians and further sustainable growth.

Contacts:

BACKGROUNDER

Regional water pipelines have been identified as a priority for federal infrastructure funding in Saskatchewan.  SaskWater also supports the development of regional water pipelines and is committed to delivering good quality water to Saskatchewan communities at affordable prices.

Together, the potential projects ultimately approved under the Canada Strategic Infrastructure Fund (CSIF) will receive up to $27.3 million in funding from the Government of Canada, which can represent a maximum of 50 percent of the total estimated eligible project costs. 

Such an investment would complement other federal and provincial infrastructure funding in Regina, Saskatoon and North Portal.  As well, some $24.9 million will be available over the next two years to address mass transit challenges in Saskatchewan. Saskatchewan communities have also benefited from over $112 million in federal and provincial investment through the Canada-Saskatchewan Infrastructure Program.  Future federal and provincial infrastructure investments totaling $76 million will be made through the Canada-Saskatchewan Municipal Rural Infrastructure Fund. 

An additional $147.7 million will be provided to Saskatchewan through the federal gas tax transfer and Saskatchewan communities are already receiving a full refund of their GST payments. These are all elements of the New Deal for Cities and Communities that is promoting new partnerships between federal, provincial, and municipal governments, and working to deliver stable, predictable, long-term funding for cities and communities in urban and rural areas.

Projects of this nature are in perfect harmony with SaskWater’s mandate to provide Saskatchewan communities with options for quality water services.  For example, in 2004, the Village of St. Louis was added to the regional water system in the Wakaw-Humboldt area.  The project consisted of 3.3 km of twinned pipeline, a new booster station and 14.2 km of pipeline to connect to St. Louis.

Locations of Potential Projects:

1) Caronport/Caron - Village of Caronport and R.M. 162 (Caron).

2) La Ronge/Air Ronge - Town of La Ronge, Village of Air Ronge, Lac La Ronge Indian Band 156.

3) Water West - Town of Kindersley; Town of Eston; Town of Kerrobert; Town of Luseland; Village of Coleville; R.M.’s 290 (Kindersley), 259 (Snipe Lake), 351 (Progress), 260 (Newcombe), and 320 (Oakdale); Water West Regional Pipeline Cooperative; and West Central Regional Economic Development Authority.

4) Saskatchewan Landing – Town of Rosetown; Town of Elrose; Town of Kyle; R.M.’s 287 (St. Andrews), 257 (Monet), and 228 (Lacadena); Entrepreneurs 2000 Regional Economic Development Authority; and Saskatchewan Landing Water Pipeline Steering Committee.

5) Regina East – Town of White City; Town of Balgonie; Town of Pilot Butte; Village of Edenwold; and R.M. 158 (Edenwold), including Emerald Park.

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