News Release

Backgrounders

Final Agreement

November 10, 2005

NORTHWEST TERRITORIES COMMUNITIES TO BENEFIT FROM MORE THAN $64 MILLION THROUGH CANADA'S NEW DEAL FOR CITIES AND COMMUNITIES

YELLOWKNIFE, Northwest Territories - The Honourable Ethel Blondin-Andrew, Minister of State (Northern Development), on behalf of Minister of State (Infrastructure and Communities) John Godfrey, and the Honourable Michael McLeod, Minister of Municipal and Community Affairs, today announced joint funding of over $27 million for 12 community infrastructure projects under the Canada-Northwest Territories Municipal Rural Infrastructure Fund (MRIF), and celebrated the signing of an agreement to provide $37.5 million for communities across NWT, through federal gas tax funding.

The signing of the gas tax sharing agreement was officially witnessed by Yellowknife Mayor Gordon Van Tighem, the president of the Northwest Territories Association of Communities. NWT communities will receive the gas tax funding over five years, for environmentally sustainable municipal infrastructure. 

“Through the New Deal for Cities and Communities, the Government of Canada is committed to support the long-term sustainability of NWT communities,” said Minister Blondin-Andrew. “Today’s announcement delivers on our promise to provide predictable funding to communities across the Northwest Territories, and will allow communities to plan for their future infrastructure needs.  These investments are also consistent with the Government of Canada’s Northern Strategy.”

Minister Blondin-Andrew and Minister McLeod also unveiled a map showing the location the first 12 multi-year projects to be funded through MRIF.  The projects are located in communities across the NWT, including Aklavik, Deline, Holman, Inuvik, Norman Wells, Behchoko, Tuktoyaktuk and Yellowknife. 

“The agreements and projects announced today are first steps towards addressing the growing infrastructure deficit faced by communities.  The MRIF projects were selected in response to the current major infrastructure needs and priorities in communities and regions across the Northwest Territories,” Michael McLeod stated. “Furthermore, the gas tax agreement we signed today will help Northwest Territories communities to plan and invest for the future.”

Canada’s New Deal is about building new relationships, including with the Northwest Territories Association of Communities, which has been very supportive through the recent negotiations.  Mayor Van Tighem commended the initiative, noting that, “The MRIF projects and the gas tax agreement announced today will significantly improve the quality of life for our communities.  The funds ensure quality services for our residents, and finance projects we couldn’t do without partnering with the federal and territorial governments.”

Investments through the gas tax agreement will result in significant environmental benefits for communities, such as cleaner air, cleaner water or reduced greenhouse gas emissions, and will encourage long-range integrated community sustainability planning.

The Canada-NWT MRIF program, which was launched in January 2005, will provide joint federal-territorial community infrastructure funding of $32 million over five years. With matching investments by tax-based communities, there is expected to be at least $39 million in total infrastructure investments made through this program.

Canada’s New Deal promotes the economic, social, environmental and cultural sustainability of our cities and communities. It is focused on establishing a long-range vision for Canada's communities, building new relationships among all orders of government and other partners, strengthening the connections among federal programs that benefit cities and communities, as well as helping communities secure predictable and stable long-term funding. 

“The Government of Canada is committed to improving Northern communities,” Minister Godfrey said. “By investing in clean drinking water and in sewage treatment, and by building sustainable communities, we are making important contributions to our quality of life.  I am pleased that we can work together with the Northwest Territories and its communities to advance the New Deal for Cities and Communities.”

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Contacts:

(Left to Right): Minister of Municipal and Community Affairs Michael McLeod, Minister of State (Northern Development) Ethel Blondin-Andrew, and Northwest Territories Association of Communities president Gordon Van Tighem sign the Canada-Northwest Territories gas tax funding agreement, and announce 12 community infrastructure projects.

BACKGROUNDERS

GAS TAX FUNDING FOR NORTHWEST TERRITORIES COMMUNITIES THROUGH CANADA'S NEW DEAL FOR CITIES AND COMMUNITIES

BACKGROUNDER

• The Government of Canada’s Budget 2005 delivered long-term, stable and predictable funding as part of the New Deal for Cities and Communities.  Over the next five years, $5 billion in federal gas tax funding will be shared with Canadian cities and communities, both small and large.  

• These funds, which will be invested in environmentally sustainable municipal infrastructure, will result in significant environmental benefits, such as cleaner air, cleaner water and reduced greenhouse gas emissions.

• Northwest Territories’ share of the $5 billion over five years of federal gas tax funding will be $37.5 million.  When fully ramped up in year 5, NWT communities can expect to receive more than $15 million, continuing at that rate thereafter.  

• The Government of Northwest Territories will administer the distribution of the federal funds to communities following a distribution formula developed through consultation with key community government stakeholders.
  
  
• An Oversight Committee in Northwest Territories will monitor the program and develop new directions and initiatives.  The committee will have representatives from the territorial and federal governments.  The Northwest Territories Association of Communities holds observer status on the committee and can choose to participate in any subcommittees. 

• Funds for eligible projects are allocated according to a formula based on four funding areas. From the total funds, 2% is available to help build a stronger capacity for sustainability planning, and 1% for administration.  The Territory has also committed to covering any cost overruns on the administration of the agreement.  From the remaining net allocation, the 33 communities will each receive a base allocation of 1%, while 67% will be distributed on a per capita basis.  Communities can carry over gas tax funds to future fiscal years.

• Community and regional sustainability planning is crucial in Northwest Territories. The gas tax agreement will build on territorial and local initiatives that encourage environmental, economic, social and cultural sustainability and the collaboration of all governments to strengthen community capacity.  Over the life of the Agreement, Integrated Community Sustainability Plans will be developed and implemented at the community level, and will guide all community infrastructure investments in the Northwest Territories once adopted.

• The governments of Canada and the Northwest Territories will collaborate with communities to enhance sustainability, and to encourage cooperation in infrastructure projects among communities and between communities.
  
  
• Gas tax funding builds on other Government of Canada infrastructure funding, including the Municipal Rural Infrastructure Fund (MRIF), the Canada Strategic Infrastructure Fund (CSIF), the Border Infrastructure Fund (BIF), and the Infrastructure Canada Program (ICP). The Federal Budget 2004 gave municipalities the Goods and Services Tax (GST) rebate worth $7 billion over 10 years for their areas of greatest need. In addition, the Federal Budget 2005 committed $800 million in new transit funding over the next two years.  Budget 2005 also committed to the future renewal of CSIF, BIF and MRIF.
  
  
• As of today, nine gas tax agreements have been signed, including Yukon, British Columbia, Alberta, Saskatchewan, Nunavut, Ontario, Quebec, Nova Scotia, and Northwest Territories. The Government of Canada expects to sign agreements with remaining jurisdictions in the coming weeks and months. 

Examples of Eligible Projects

Water Infrastructure:

• Drinking water supply systems, purification, treatment and distribution systems, and water metering systems

Wastewater Infrastructure:

• Sanitary sewer systems and storm water systems, trucked collection and wastewater treatment/disposal systems

Solid Waste Infrastructure:

• Waste diversion, material recovery facilities, organics management, collection depots, waste disposal landfills, thermal treatment, and landfill gas recuperation

Community Energy Systems:

• Cogeneration or combined heat and power projects (where heat and power are produced through a single process)
• District heating and cooling projects where heat or cooling is distributed to more than one building.
• Use of proven technology to incorporate “alternative” energy sources (wind, geothermal, biomass, sun, tide, waste heat recovery, etc.) for community public infrastructure, recognizing that only the energy efficient components of such projects are eligible.

Active Transportation Infrastructure:

• Bike lanes and walking trails
• Public transit
• The creation and rehabilitation of local roads and bridges that reduces vehicular traffic
• Dust control of unpaved local roads

Capacity Building:

• Collaboration: building partnerships, strategic alliances, participation, consultation and outreach
• Knowledge: use of new technology, research, monitoring and evaluation
• Integration: planning, policy development and implementation, such as environmental management systems and life cycle assessment

MUNICIPAL RURAL INFRASTRUCTURE FUND (MRIF)
NORTHWEST TERRITORIES PROJECTS

BACKGROUNDER

A Management Committee made up of representatives of the Governments of Canada and the Northwest Territories selected the projects that were announced under the MRIF, in accordance with the specific criteria for this program. The federal funding for the MRIF projects has also helped to provide the Government of the Northwest Territories with greater financial flexibility to respond to the infrastructure needs of other communities that will not benefit directly from MRIF.

The MRIF projects announced today are required to successfully complete applicable environmental assessment processes, and funding will be conditional on compliance with all applicable federal and territorial requirements.

The MRIF program operates alongside programs such as the Canada Strategic Infrastructure Fund (CSIF), which is supporting larger infrastructure projects, such as highway and winter roadway projects in the Mackenzie Valley and Slave Geological Province transportation corridors.

Hamlet of Tuktoyaktuk – Filtration Upgrade – Project Cost: $2,655,000.

The existing water treatment plant in Tuktoyaktuk does not meet the new turbidity guideline adopted by the Guidelines for Canadian Drinking Water Quality (GCDWQ). MRIF funds will be used to upgrade the existing water treatment plants aged infrastructure and process to meet the revised GCDWQ. The addition of filtration to the water treatment process will improve water quality and reduce risk of water borne disease outbreaks for the entire population of Tuktoyaktuk and its visitors. The Governments of Canada and the Northwest Territories will contribute $870,000 and $1,785,000 respectively to this project.

Community Government of Behchokö – Water Treatment Plant (Rae) – Project Cost: $4,887,000.

MRIF funds will be used for the construction of a new water treatment plant in Rae. The existing water treatment plant was built in the 1970’s and requires replacement as it has surpassed its design life. In addition, the water treatment plant is currently struggling to produce enough water to meet the present capacity of the community. The new plant will meet the community’s current and future capacity over the next 20 years, provide for fire storage and meet the Guidelines for Canadian Drinking Water Quality. The Governments of Canada and the Northwest Territories will contribute $2,443,000 and $2,444,000 respectively to this project.

Community Government of Behchokö – Water Treatment Plant Upgrade (Edzo) – Project Cost: $1,080,000.

The existing water treatment plant in Edzo does not meet the new turbidity guideline adopted by the Guidelines for Canadian Drinking Water Quality (GCDWQ). MRIF funds will be used to upgrade the existing water treatment plants aged infrastructure and process to meet the revised GCDWQ.  In addition the upgrade will address some existing health and safety concerns, the high-energy use of the water treatment process and reduce the overall environmental impact of the facility.  Improvements in the water treatment process will reduce risk of water borne disease outbreaks for the entire population of Edzo and its visitors. The Governments of Canada and the Northwest Territories will contribute $535,000 and $545,000 respectively to this project.

Hamlet of Aklavik – Water Treatment Plant Upgrade – Project Cost: $2,270,000.

The existing water treatment plant in Aklavik is old and in need of an upgrade. The existing water treatment plant is not expected to meet the new turbidity guideline adopted by the Guidelines for Canadian Drinking Water Quality (GCDWQ). MRIF funds will be used to upgrade or replace the existing water treatment plants aged infrastructure and process to meet the GCDWQ.  Improvements in the water treatment process will reduce risk of water borne disease outbreaks for the entire population of Aklavik and its visitors. The Governments of Canada and the Northwest Territories will contribute $855,000 and $1,415,000 respectively to this project.

Charter Community of Deline – Truckfill Upgrade/Replacement – Project Cost: $1,180,000.

The community of Deline will use MRIF funds to upgrade the water treatment plant to include filtration and upgrade the aged infrastructure, as it does not currently satisfy the new turbidity guideline adopted by the Guidelines for Canadian Drinking Water Quality (GCDWQ). The water produced by the upgraded plant will meet the revised GCDWQ.  The addition of filtration to the water treatment process will improve water quality and reduce risk of water borne disease outbreaks for the entire population of Deline and its visitors. The Governments of Canada and the Northwest Territories will contribute $440,000 and $740,000 respectively to this project.

Community Government of Behchokö – Water and Sewer Main Replacement – Project Cost: $1,465,000.

MRIF funds will be used to replace damaged sections of the water and sewer pipes as well as to upgrade the size of the water mains to ensure adequate water supply for fire protection. Replacing the damaged water and sewer mains in Rae and Edzo will reduce lagoon overload from groundwater infiltration of sewer pipes, the potential for sewage contamination of the ground, and operations and maintenance costs associated with emergency repairs necessary on aged pipes.  The Governments of Canada and the Northwest Territories will contribute $479,000 and $986,000 respectively to this project.

Community Government of Behchokö – Rae Vault Replacement – Project Cost: $1,220,000.

MRIF funs will be used to replace existing old cracked concrete vaults, which allow groundwater infiltration, with newer impermeable steel vaults. Reduced operations and maintenance costs will be realized as a result of a decrease in the volume of water being pumped and hauled from the sewage lift station to the sewage lagoon. The Governments of Canada and the Northwest Territories will contribute $488,000 and $732,000 respectively to this project.

Hamlet of Holman – Filtration Upgrade – Project Cost: $1,395,000.

The water treatment system in Holman will be upgraded to meet the new turbidity guideline adopted by the Guidelines for Canadian Drinking Water Quality. MRIF funds will be used to upgrade the existing water treatment plant process to meet the revised GCDWQ.  Improvements in the water treatment process will reduce risk of water borne disease outbreaks for the entire population of Holman and its visitors. The Governments of Canada and the Northwest Territories will contribute $525,000 and $870,000 respectively to this project.

Community Government of Behchokö – Solid Waste Disposal Site – Project Cost: $651,000.

The existing solid waste site in Rae has reached its expected life and can no longer meet the solid waste requirements of the community. Alternate solid waste sites have been explored and MRIF funding will be used to develop the best of the alternate sites in adherence with the Guidelines for the Planning, Design, Operations and Maintenance of Modified Solid Waste Sites in the NWT. The new landfill will be designed to serve the community over the next 40 years. The Governments of Canada and the Northwest Territories will contribute $200,000 and $451,000 respectively to this project.

City of Yellowknife – Corrugated Metal Pipe Replacement – Project Cost: $10,458,067.

The City of Yellowknife is using the MRIF program to replace approximately 19,500 m of damaged water and sewer mains. Corrugated metal sewer lines that were installed between 1940 and 1970 are being upgraded to cast iron. Uninsulated, undersized water mains are being replaced with appropriately sized insulated cast iron pipe to ensure freeze protection and adequate fire protection. The Governments of Canada and the Northwest Territories will contribute $2,640,734 and $4,262,084 respectively to this project. The City will cover the remainder of the cost.

Town of Norman Wells – Water Storage Tank Replacement – Project Cost: $1,138,666.

Norman Wells is accessing the MRIF program to ensure an adequate supply of clean drinking water for their community. The roof of Town’s water storage tank collapsed. An inspection of the interior of the tank performed in 2004 indicated subsidence in the foundation supporting the tank due to warming of the earth beneath the tank.  The structural integrity of the tank has deteriorated significantly since the roof collapsed.  A new tank is necessary to ensure safe drinking water. The new tank will be sized to supply sufficient capacity to the current and future population. The Governments of Canada and the Northwest Territories will contribute $283,383 and $571,900 respectively to this project. The Town will cover the remainder of the cost.

Town of Inuvik – Woodbox Utilidor Replacement – Project Cost: $8,771,550.

The Town of Inuvik is using the MRIF program to replace 1300 m of woodbox utilidors in Town as they have passed their expected service life. The woodpiles and box shell are decaying and will be replaced with steel piles and insulted mains.  Replacing the woodbox utilidors will reduce the risk of piles collapsing and causing interruptions in service and potential contamination. The Governments of Canada and the Northwest Territories will contribute $952,506 and $1,560,569 respectively to this project. The Town will cover the remainder of the cost.

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