No. H170/06
For release December 6, 2006

CANADA’S NEW GOVERNMENT APPROVES
ANNUAL ADJUSTMENT TO TOLL RATES FOR
THE CONFEDERATION BRIDGE

OTTAWA — The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today announced the approval of the annual adjustment to toll rates for the Confederation Bridge submitted by Strait Crossing Development Inc., the bridge operator.

“Canada’s New Government is committed to ensuring the safety and security of all users of Canadian roads and bridges,” said Minister Cannon. “The adjusted toll rates will continue to provide financial support to manage and maintain the bridge and ensure the safety of travellers crossing the Confederation Bridge.”

Under the 1993 Bridge Operating Agreement signed between the Government of Canada and Strait Crossing Development Inc., the bridge operator is entitled to adjust toll rates to inflation every January 1st by an amount not exceeding three-quarters (75 per cent) of the increase in the Consumer Price Index over the previous calendar year. As per this agreement, this adjustment has been reviewed and approved by the Minister of Transport, Infrastructure and Communities to ensure the calculations are in accordance with the Bridge Operating Agreement.

“Compared to 2006, the year to year inflation adjustment results in a $0.25 increase for all types of vehicles for 2007, except for motorcycles, pedestrians and cyclists,” reported Michel Le Chasseur, General Manager of Strait Crossing Bridge Limited. “Also, the charge for every additional axle remains unchanged at $6.75.”

The adjusted-to-inflation toll rates will apply as of January 1, 2007. For more information on the adjusted toll rates, visit the Confederation Bridge website at www.confederationbridge.com

A backgrounder with further information on toll rates for the Confederation Bridge is attached.

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Backgrounder

TOLL RATES FOR THE CONFEDERATION BRIDGE

In 1993, Strait Crossing Development Inc. signed agreements with the Government of Canada to finance, design, construct and operate a bridge across the Northumberland Strait between New Brunswick and Prince Edward Island. As of 1997, its subsidiary company, Strait Crossing Bridge Limited, privately manages, maintains and operates the bridge until 2032, after which time such operations will be transferred to the Government of Canada. Over this 35-year period, the bridge operator has the right to collect tolls, which are considered essential to the financial sustainability of the bridge.

The Confederation Bridge toll rates are governed by the Bridge Operating Agreement. The Minister of Transport, Infrastructure and Communities must approve all toll rate changes.

Under the 1993 Bridge Operating Agreement, the bridge operator is entitled to adjust toll rates to inflation every January 1st by an amount not exceeding three-quarters (75 per cent) of the increase in the Consumer Price Index over the previous calendar year. This adjustment must be reviewed and approved by the Minister of Transport, Infrastructure and Communities to ensure the calculations are in accordance with the Bridge Operating Agreement. Limiting the increase to 75 per cent of inflation allows the tolls to gradually decrease in real value over the 35-year period.

Toll rates for 2007 are as follows:

December 2006