No. H038/02
For release April 05, 2002

$9 MILLION IN HIGHWAY IMPROVEMENT
FUNDING FOR NORTHWEST TERRITORIES

YELLOWKNIFE —Secretary of State (Children and Youth) and M.P. (Western Arctic) Ethel Blondin-Andrew, on behalf of Transport Minister David Collenette, together with Northwest Territories Transportation Minister Joseph Handley, today signed an agreement to provide joint funding of $9 million over the next five years for highway improvement projects in the Northwest Territories.

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

"Federal and territorial investment in highways is beneficial from both a safety and economic perspective," said Ms Blondin-Andrew. "Investing in the Northwest Territories is good for all Canadians."

"I am pleased to announce that the Government of Canada is providing $4.5 million in funding for Northwest Territories highways through SHIP," said Mr. Collenette. "Continuing the partnership between the Government of Canada and the Northwest Territories is key to making real improvements to our highway infrastructure."

The funds provided under SHIP will be used for the reconstruction of 25.4 kilometres of Route 3, which is the major highway into Yellowknife and the only highway connecting Yellowknife to southern Canada. The total cost of the project is $21 million.

"The Government of the Northwest Territories is pleased to sign this agreement and participate in the Strategic Highway Infrastructure Program," said Mr. Handley. "SHIP allows us to accelerate the ongoing reconstruction program on Highway 3 between Rae and Yellowknife."

Funding for this project was provided for in the February 2000 federal budget and is therefore built into the existing financial framework.

Contact:
Suzanne Quinn
Communications, Ottawa
(613) 993-6896

Peter Vician
Deputy Minister of Transportation
Yellowknife, NWT
(867) 920-3460

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 BACKGROUNDER

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. 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 Northwest Territories is $4.5 million.

The $4.5 million in federal funds provided under SHIP will be used for the reconstruction of a 25.4 kilometre section of Route 3, which is the major highway into Yellowknife and the only highway connecting Yellowknife to southern Canada. The total cost of the project is $21 million.

An environmental assessment that meets the requirements of the Canadian Environmental Assessment Act will be undertaken before the project begins. The funding for the project is conditional on the results of this environmental assessment. Transport Canada will not fund the project if it is determined that it 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.

April 2002