No. H078/06
For release July 12, 2006

COMPLETION OF ROADWAY
IMPROVEMENTS IN PRINCE EDWARD ISLAND

CHARLOTTETOWN — The governments of Canada and Prince Edward Island today announced the completion of six jointly funded construction projects under the Strategic Highway Infrastructure Program (SHIP).

The Honourable Peter Mackay, Minister of Foreign Affairs and Minister of the Atlantic Canada Opportunities Agency, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, together with the Honourable Gail Shea, Minister of Transportation and Public Works for Prince Edward Island, made the announcement.

These projects were funded under the Canada/Prince Edward Island Strategic Highway Infrastructure Program (SHIP), which was announced in September 2002. This program has provided joint funding for highway improvement projects along the National Highway System in Prince Edward Island. The total value of the highway construction component was $11.6 million ($5.8 million federal and $5.8 million provincial).

The six roadway projects funded through SHIP cover a variety of improvements to enhance safety, traffic flow and capacity to the National Highway System in Prince Edward Island. These include projects along Trans-Canada Highway Route 1, such as a bridge replacement in Pinette; the establishment of controlled intersections at Park Street in Charlottetown and at John Street in Cornwall; the realignment and widening of Riverside Drive and extension of Murchison Lane in Charlottetown; and highway rehabilitation work on Route 2, the province’s Veterans Memorial Highway at Springfield and Summerfield. A value-added component of the Riverside Drive/Murchison Lane project involved the establishment of a pedestrian walkway adjacent to Murchison Lane overlooking the Hillsborough River, a National Heritage River. This walkway safely links residents and cyclists with nearby health, education and recreation facilities.

“The Strategic Highway Infrastructure Program is assisting the provinces and territories in making necessary improvements to sections of Canada’s National Highway System,” said Minister Mackay. “These investments are contributing to the enhancement of the road transportation system in Prince Edward Island by making the highways safer for Island residents and travellers.”

“By partnering with the federal government through programs like SHIP we are leveraging investments to upgrade the safety and quality of the National Highway System on Prince Edward Island for trade, transportation and tourism. We are pleased to work with the federal government to further those goals,” said Minister Shea.

“The Government of Canada continues to work with the Province of Prince Edward Island to ensure the Prince Edward Island surface transportation system is more reliable, efficient, competitive, integrated and sustainable for Islanders and for all Canadians,” said Minister Cannon.

In May 2006, the federal government committed up to $7.5 million under the Canada Strategic Infrastructure Fund (CSIF) in Prince Edward Island towards improvements on Trans-Canada Highway Route 2 between Charlottetown and Summerside. Further, in the 2006 Federal Budget, the Government of Canada has committed an unprecedented $16.5 billion over the next four years for provincial, territorial and municipal infrastructure, including $2.4 billion over the next five years from the Highways and Border Infrastructure Fund.

Discussions are ongoing between the Government of Canada and the Province of Prince Edward Island to finalize details of how these investments can be directed to benefit Prince Edward Island’s transportation infrastructure.

A backgrounder with further information on the Strategic Highway Infrastructure Program is attached.

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BACKGROUNDER

STRATEGIC HIGHWAY INFRASTRUCTURE PROGRAM

The Government of Canada is committed to improving the economy and the quality of life for Canadians by investing in highway infrastructure across Canada. As part of this commitment, Transport Canada announced the Strategic Highway Infrastructure Program (SHIP) in April 2001. The program has two components: a $500-million highway construction component and a $100-million national system integration component.

Under the highway component, the Government of Canada works 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 determines how much federal funding each province and territory receives with a minimum of $4 million per jurisdiction plus a share based on population. Provinces and territories cost-share these projects on a 50-50 basis. Under this formula, the total federal allocation for the Province of Prince Edward Island was $5.8 million.

Under the second component of SHIP, the federal government provides $100 million to fund initiatives that better integrate the transportation system. These include the deployment of intelligent transportation systems across Canada, improvements at border crossings and improving transportation planning and modal integration. 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.

The program continues the Government of Canada’s long tradition of highway funding that started more than 80 years ago. The federal government also invests in transportation-related infrastructure through other programs such as the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund.

For more information on the Strategic Highway Infrastructure Program, please visit www.tc.gc.ca/SHIP/menu.htm.

July 2006