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News Release


April 8, 2003

Budget 2003

Budget 2003 says major projects a go
Ministers announce allocation of $5.5 billion in infrastructure and transportation dollars


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Edmonton … The Alberta government will modernize, preserve and build new health facilities, schools, roads and proceed with other major infrastructure projects as part of the Centennial Capital Plan, the new three-year, $5.5 billion capital plan.

The funding, an average of $1.85 billion a year, is almost double the $941 million in capital spending in 2002-03.

“The province’s population is growing by more than 50,000 people a year - that’s a community the size of Fort McMurray - and they are not bringing their schools, roads and hospitals with them. This is putting enormous pressure on our infrastructure,” said Infrastructure Minister Ty Lund. “This major capital investment will help address our infrastructure needs and make Alberta even better for future generations.”

Capital plan funding will be allocated over the next three years as follows:

  • $1.5 billion for the provincial highway network
  • $893 million for municipal transportation grants
  • $970 million for health facilities and equipment
  • $511 million for preservation, expansion and construction of school facilities and equipment
  • $373 million for post-secondary infrastructure
  • $262 million for water management facilities and water/wastewater infrastructure
  • $129 million for housing programs, and;
  • $878 million for other infrastructure initiatives including:
    • upgrading and expansion of government facilities
    • Centennial projects
    • Community Facility Enhancement Program
    • completion of the Alberta SuperNet
    • Alberta’s contribution to the Infrastructure Canada/Alberta Program
    • capital spending by government ministries to purchase equipment and inventories

“A safe and efficient transportation network is critical to the well-being of Albertans and the economy of the province,” Transportation Minister Ed Stelmach said. “Our support to municipalities will improve their economy and help them build environmentally friendly water/wastewater systems.”

Beginning in Budget 2003, the government will publish a three-year capital plan each year as required by Alberta’s new fiscal framework, setting out the government’s commitment to spending on capital projects.

A portion of the funding for the second and third years of the Centennial Capital Plan will come from alternative funding methods that would allow government to pay for capital projects over a number of years, or involve the private sector in public-private partnerships. “Our plan calls for us
to explore alternative funding options to help address infrastructure needs,” said Lund. “There will be an array of options evaluated, and an expert advisory committee is being put together to offer the government advice on whether particular projects are suited for alternative financing, and what kind of option would be appropriate. However, the bottom line remains the same: the government will not run budgetary deficits.”

The plan includes capital investment in government-owned projects, capital grants to support projects being built by local authorities and other capital spending.

Funding has been included to replace some facilities that are beyond their useful lifespan and to continue the process of preserving and maintaining existing infrastructure.

Further details on school, health care and post-secondary projects will be forthcoming. Information on Alberta Transportation’s initiatives is attached.

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Backgrounder: Centennial Capital Plan Activities and Programs, Alberta Transportation

The Capital Plan will allocate:

  • $1.5 billion for the provincial highway network over the next three years to do further work on the twinning of rural sections of the North-South Trade Corridor.
    • Continue urban components of the North-South Trade Corridor.
    • Build new interchanges including Highway 1 in Medicine Hat and Highway 1 at the junction of Cassils Road.
    • Replace more than 30 bridges including Highway 11A over the North Saskatchewan River at Rocky Mountain House and Highway 727 over the Ksituan River near Spirit River.
  • $893 million for municipal transportation grants to continue full funding for three years for:
    • Municipal transportation grants based on five cents per litre of fuel delivered in Calgary and Edmonton. In the past this has meant an annual average of $65 million for Edmonton and $85 million for Calgary.
    • Grants of $60 per capita for all other urban municipalities including hamlets.
    • Rural Transportation Partnership funding of $62 million, which includes the rural transportation grant for local roads, which is funded at the same level as last year.
    • Three-year $51 million resource road program to address heavy resource and industry traffic.
    • $14 million for local bridges.
    • $14 million for Métis Settlement Access Roads.
    • $10 million a year for three years to help cities other than Edmonton and Calgary address growth issues.
  • $262 million over the next three years for water management and water/wastewater projects.
    • This includes $25 million per year for water/wastewater projects.
    • Other projects include dams and associated infrastructure and irrigation infrastructure.

Federal-provincial cost-shared programs such as Infrastructure Canada/Alberta Program, and Strategic Highway Infrastructure Program will continue as in previous years.

Status of Deferred projects

  • Funding has been directed to strategic economic corridors: the North-South Trade Corridor, Edmonton and Calgary ring roads and national highway corridors.

For complete details of Alberta Transportation’s three-year highway construction program visit the web site at www.trans.gov.ab.ca.

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For media inquiries, please contact:

(Dial 310-000 for toll free access outside Edmonton.)

David Bray
Alberta Infrastructure Communications
(780) 422-0506		 Cheryl Mackenzie
Alberta Transportation Communications
(780)427-7674		 Go to Government of Alberta Home Page