News Release

January 18, 2005

$32 million joint Municipal Rural Infrastructure Fund launched, $90 million in joint highway funding confirmed in the Northwest Territories

Yellowknife, NWT - Two agreements announced today by the governments of Canada and the Northwest Territories will inject a total of $122 million into community and transportation infrastructure projects across the territory.

John Godfrey, Minister of State (Infrastructure and Communities), Michael McLeod, Minister of Municipal and Community Affairs and Minister of Transportation, along with Ethel Blondin-Andrew, Minister of State (Northern Development), on behalf of Minister of Indian and Northern Affairs Andy Scott and Minister of Transport Jean-C. Lapierre, jointly announced successful completion of negotiations to launch the Municipal Rural Infrastructure Fund in the NWT and provide more funding for Corridors for Canada projects through the Canada Strategic Infrastructure Fund.

The agreement for the new Canada-Northwest Territories Municipal Rural Infrastructure Fund will support all territorial communities, translating into joint federal-territorial community infrastructure funding of $32 million over five years. With matching investments by the six tax-based territorial communities, there is expected to be at least $39 million in total infrastructure investments made through this program.  This funding is demonstrates positive movement on the part of the federal and territorial governments to address the significant infrastructure gap in both tax-based and non-tax-based communities.

A separate agreement will add $90 million to $40 million previously committed for improvements to two strategic highway corridors in the Northwest Territories that were identified in the NWT’s Corridors for Canada funding proposal. The additional $45 million from each partner will ensure completion and addition of new highway and winter road projects in the Mackenzie Valley and Slave Geological Province transportation corridors.

“This funding is critical for the future of the Northwest Territories and will bring forth very tangible results,” said Minister Godfrey. “The Government of Canada is committed to improving the quality of life for Canadians – socially, economically, environmentally and culturally. This is an example of the New Deal at work building sustainable communities in the Northwest Territories.”

“These strategic investments in the Northwest Territories expand and build upon current major infrastructure priorities in communities and regions across the territory,” said Minister McLeod. “We appreciate the support the individual communities and Corridors for Canada have received from all levels of government and industry and from organizations such as the NWT Business Coalition and NWT Association of Communities.”

Indian and Northern Affairs Canada and Municipal and Community Affairs, in consultation with the Northwest Territories Association of Communities, will work together to deliver the Canada-Northwest Territories Municipal Rural Infrastructure Fund program.

“This announcement is proof that all three orders of government are committed to making a difference,” said Minister Blondin-Andrew. “This partnership builds the foundation for strong economic development, protects the environment, and improves the quality of life for Northerners. It also represents the kind of collaboration we are seeking to build in developing the new Northern Strategy.”

The federal contribution from the Municipal Rural Infrastructure Fund is one of a series of investments the Government of Canada is making across the country. Since November 2004, similar agreements have also been signed in Ontario, Manitoba, New Brunswick, Saskatchewan and, most recently, Yukon.

Federal funds for Corridors for Canada will come from the Canada Strategic Infrastructure Fund (CSIF). The CSIF supports large-scale strategic infrastructure projects that improve quality of life and further sustainable growth. Since 1994, the Government of Canada has committed $12 billion in infrastructure funding, which is expected to leverage over $30 billion from all partners. The New Deal for Cities and Communities will deliver stable, predictable, long-term funding for cities and communities across Canada.

Contacts:

Infrastructure Canada
(613) 948-1148

Irène Marcheterre
Director of Communications
Office of the Minister
Transport Canada, Ottawa
(613) 991-0700

Debbie DeLancey
Deputy Minister
Municipal and Community Affairs
Government of the Northwest Territories
(867) 873-7118

Bob Kelly
Manager, Public Affairs and Communications
Department of Transportation
Government of the Northwest Territories
(867) 873-7712

Pierre Collin
Director of Communications
Office of the Minister of State
Northern Development
(819) 994-7626

BACKGROUNDER

The Municipal Rural Infrastructure Fund in the Northwest Territories

In 2003, the Government of Canada created the $1 billion Municipal Rural Infrastructure Fund (MRIF) as a way to help ensure all Canadians, regardless of where they live, have the opportunity to benefit from investments that will help improve their quality of life. The MRIF primarily provides support for smaller communities, operating alongside other programs such as the Canada Strategic Infrastructure Fund (CSIF). 

In the 2004 Budget, the Government of Canada compressed the MRIF’s lifespan from ten years to five, effectively doubling the support available to municipalities in the short term. Sound, reliable infrastructure is the base upon which a community builds its future. Municipal leaders identify infrastructure as one of their most pressing issues, critical to their communities’ viability. The MRIF enables Northwest Territories municipalities and First Nations alike to plan, finance and deliver on their infrastructure priorities.

Under the Canada-NWT Municipal Rural Infrastructure Fund, all Northwest Territories communities, which include First Nations, are eligible for support. With matching investments by communities, there could be at least $39 million in infrastructure investments, with $16 million each from the federal and territorial governments, and matching contributions from the six tax-based territorial communities.

The governments of Canada and the Northwest Territories have agreed to provide up to 55 percent of MRIF funding for the 27 non-tax-based communities and at least 45 percent for the tax-based communities. In the non-tax-based communities, the federal government has committed to contribute up to 50 percent of the eligible costs of a given project, an increase over the usual one-third share; the Government of the Northwest Territories will provide the remaining 50 percent contribution. In the tax-based communities, Canada has committed to contribute up to 33 percent in total eligible project costs over the life of the program; the Government of the Northwest Territories has committed to match this federal contribution.

Eighty percent of the fund in the Northwest Territories has been reserved for “green” projects. Twenty percent of the funding for the tax-based communities will support innovative “green” projects. The overall target for the $1 billion Municipal Rural Infrastructure Fund across Canada would see 60 percent of projects provide environmental benefits.

One percent of the fund will be available to help municipalities improve and increase their capacity to manage their infrastructure assets.

A joint federal and territorial management committee will be established to implement and deliver the projects. Indian and Northern Affairs Canada and Municipal and Community Affairs will work together, in consultation with the Northwest Territories Association of Communities.

Proposals for projects in tax-based communities will be accepted from local decision-makers and will need to meet a number of shared federal and territorial objectives in the areas of the environment, sustainable development, climate change, water quality, urban life, and innovation. Projects must also comply with all applicable federal and territorial environmental legislation and regulations, including the Canadian Environmental Assessment Act.

Project selection will be based on merit, and in consideration of the relative needs of communities. It is expected that funding will be opened to communities in the spring.

Corridors for Canada

The $4 billion Canada Strategic Infrastructure Fund (CSIF) recognizes that public infrastructure is critical to Canada's quality of life and sustained economic growth. CSIF complements Canada's other infrastructure programs but differs in its orientation. It emphasizes partnerships with any combination of municipal, provincial, territorial governments, as well as the private sector, and each partnership is governed by specifically tailored arrangements. Investments are directed to large-scale projects of national and regional significance.

Improving transportation infrastructure in the Northwest Territories is a necessary response to the increasing pressure their highway system is under, as a direct result of the development of the territory’s resource sector. Reliable access to non-renewable resources such as natural gas, diamonds and oil is vital to support the NWT’s long-term economic growth and the productivity of its key resource sectors. This strategic investment in highways and winter roads will also reduce the cost of living and increase mobility and access to services for residents in NWT communities.

New highway projects will include upgrades to sections of the Mackenzie Highway and the Liard Highway, along with grade improvements on the Mackenzie Valley winter road and construction of the Great Bear River Bridge on the winter road near the community of Tulita.

Previously announced projects that will receive additional funding include upgrades to the Dempster Highway, construction of 10 permanent bridges on the Mackenzie Valley winter road between Wrigley and Tulita, and upgrades to the Yellowknife Highway and Ingraham Trail, highways that lead into the Slave Geological Province where two operating diamond mines will be joined by a third mine by 2007.

Construction to improve the corridors started in 2003 and all projects, including the ones announced today, will be completed within the next five years.

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