No. H100/02
For release September 13, 2002

$11.6 MILLION IN HIGHWAY
IMPROVEMENT FUNDING FOR PRINCE EDWARD ISLAND

CHARLOTTETOWN - Transport Minister David Collenette, together with Solicitor General of Canada and MP (Cardigan) Lawrence MacAulay, Prince Edward Island Premier Pat Binns, and Prince Edward Island Minister of Transportation and Public Works Gail Shea today announced an agreement to provide joint funding of $11.6 million until March 2006 for highway improvement projects in P.E.I.

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

“This federal contribution of $5.8 million from the Strategic Highway Infrastructure Program will help to enhance safety, and improve the overall condition of the province’s highways,” said Mr. Collenette. “Continuing the partnership between the Government of Canada and the Province of Prince Edward Island is a very important element in making real improvements to our highway infrastructure.”

“Investments like the one made today reaffirm our government’s commitment to ensuring safe, quality roads for the continued economic and community development of Prince Edward Island,” said Mr. Binns.

“Federal and provincial investment in P.E.I.’s highways will make our roads safer and stimulate the economy,” said Mr. MacAulay. “The people of Prince Edward Island, as well as local businesses and visitors, will benefit from these highway improvements.”

In addition to the agreement, three construction projects with a total joint cost of $3.46 million were announced.

In Charlottetown at the Park Street/Trans-Canada Highway intersection, an urban collector road will be realigned at a joint cost of $721,000. In Cornwall on the Trans-Canada Highway, a new intersection will be constructed at the St. John Street/Kellow Drive intersection at a joint cost of $546,000. And on the Trans-Canada Highway near Wood Islands, the Pinette Bridge will be replaced with a longer bridge structure, at a joint cost of $2.2 million.

“The road to renewing Island roads is a long but important one for the safe, future growth of our economy and communities,” said Ms Shea. “I’m very pleased that we can join with the federal government today in making this first step together.”

Transport Canada and the Province of Prince Edward Island are reviewing other proposed projects for the remaining $8.14 million of joint 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. Funding for SHIP projects is conditional on the results of required environmental assessments.

Funding for this project was provided for in the December 2001 federal budget and is therefore built into the existing financial framework.

A backgrounder with further information on SHIP is attached.

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Contact: 

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

Jeff Himelman
Prince Edward Island Transportation
and Public Works, Charlottetown
(902) 368-5112

Transport Canada is online at www.tc.gc.ca.  Subscribe to news releases and speeches at apps.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. 

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 five 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 administrative costs, will be available to address the needs of Canada’s highways until March 2006. 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 Prince Edward Island is $5.8 million.

Environmental assessments that meet the requirements of the Canadian Environmental Assessment Act will be undertaken before the projects begin. Funding for the projects is conditional on the results of these assessments.

SHIP will also provide $100 million nationally to fund initiatives that 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.

September 2002