No. H007/02
For release January 24, 2002

$37 MILLION IN HIGHWAY
IMPROVEMENT FUNDING FOR SASKATCHEWAN

REGINA — Saskatchewan's Federal Cabinet Minister Ralph Goodale, on behalf of Transport Minister David Collenette, and Saskatchewan Minister of Highways and Transportation Mark Wartman, today signed an agreement to provide joint funding of $37 million over the next five years for highway improvement projects in Saskatchewan.

This agreement is part of the $600 million Strategic Highway Infrastructure Program (SHIP) announced by Mr. Collenette in April 2001.

"This new SHIP funding augments federal funding for the improvement of Saskatchewan's roads and highways, over the past few years, to more than $263 million," said Mr.Goodale. "And in a big, rural province like this one, that kind of support is crucial for economic development reasons, as well as public safety."

"I am pleased to announce that the Government of Canada is providing an additional $18.5 million in funding for Saskatchewan highways through this agreement," said Mr. Collenette. "Continuing the partnership between the Government of Canada and the Province of Saskatchewan is a very important element in making real improvements to our highway infrastructure."

In addition to the agreement, two construction projects for Highway 16 were announced.

Part of the $18.5 million in federal funds provided under SHIP will be used to continue twinning Highway 16, build intersections and make service road improvements through Lashburn. Another portion of the funds will be used to twin roads leading to the new North Battleford bridge on Highway 16.

Under the SHIP agreement, the Government of Canada and the Province of Saskatchewan will be contributing a total of $8.7 million for these initial projects. Funding for SHIP projects is conditional on the results of required environmental assessments.

"The Government of Saskatchewan is pleased to sign the agreement and participate in the Strategic Highway Infrastructure Program," said Mr. Wartman. "SHIP allows us to start working sooner on making important changes to Highway 16."

Transport Canada and the Province of Saskatchewan are reviewing a list of other proposed projects for funding under SHIP. The department will examine the benefits of these projects and how they support the program objectives and, in partnership with the province, determine which projects best meet these objectives.

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Contacts:

Anthony Polci
Director of Communications
Office of the Minister
Ottawa, Ontario
(613) 991-0700

Margaret Duffy
Communications
Saskatchewan Ministry of
Highways and Transportation
Regina, Saskatchewan
(306) 787-1128

Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at www.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.

This news release may be made available in alternative formats for persons with visual disabilities.

BACKGROUNDER

STRATEGIC HIGHWAY INFRASTRUCTURE PROGRAM - SASKATCHEWAN

In the February 2000 Budget Speech, the Government of Canada committed to improve the economy and the quality of life for Canadians by investing up to $600 million over four years in highway infrastructure across Canada. In April 2001, Transport Canada announced the Strategic Highway Infrastructure Program (SHIP). The program has two components: a $500 million highway construction component and a $100 million national system integration component.

Under the program, $500 million, including $15 million for administration costs, will be available to address the needs of Canada's highways over the next five years. The program formally begins in fiscal year

2002-2003. However, $30 million is available for projects during the 2001-2002 fiscal year. The Government of Canada is working with the provinces and territories to identify those parts of the national highway system that — because of growing traffic and increasing trade — need immediate attention. This will result in a safer and more efficient highway system for all Canadians.

An allocation formula has been developed to distribute the $485 million available to the provinces and territories under SHIP. The formula consists of a minimum of $4 million per jurisdiction plus a share based on population and a 50-50 cost-sharing ratio. Under this formula, the total federal allocation for the Province of Saskatchewan is $18.5 million. Under the previous joint highway funding agreements from 1987-1997, Transport Canada contributed $45.9 million to Saskatchewan. This brings the total funding from Transport Canada to $64.4 million.

Environmental assessments that meet the requirements of the Canadian Environmental Assessment Act will be undertaken before the projects begin. The funding for the projects is conditional on the results of these environmental assessments. Transport Canada will not fund the projects if it is determined that they could have any significant adverse environmental impacts.

SHIP will also provide $100 million nationally to fund initiatives which better integrate the transportation system. These include the deployment of Intelligent Transportation Systems across Canada, improvements to border crossings and better transportation planning. Intelligent Transportation Systems include applications such as advanced systems for traveller information, traffic management, public transport, commercial vehicle operations, emergency response management and vehicle safety.

January 2002