No. H 003/ 03 
For release January 21, 2003

$2.67 MILLION IN TRANSPORTATION INFRASTRUCTURE FUNDING FOR NUNAVUT

IQALUIT - Nancy Karetak-Lindell, M.P. (Nunavut), on behalf of Transport Minister David Collenette, together with Manitok Thompson, Nunavut Minister of Community Government and Transportation, today announced joint funding of $2.67 million for the construction of new air terminal buildings at Gjoa Haven airport and Pond Inlet airport.

The projects, which come under the Canada/Nunavut Strategic Highway Infrastructure Program (SHIP), involve the replacement of the existing structures in order to accommodate the needs of the travelling public. The new air terminal buildings will be constructed over a two-year period.

"This federal and territorial investment will go a long way in helping Nunavut develop its transportation infrastructure," said Ms Karetak-Lindell. "Continuing the partnership between the Government of Canada and Nunavut is key to making real improvements to our transportation system."

Canada/Nunavut SHIP funds are being used primarily for capital investments in air, surface and marine infrastructure. In addition, funding is being allocated to feasibility studies given the early stage of development of some of Nunavut’s transportation infrastructure. The funding is part of the national $600 million SHIP program announced by Mr. Collenette in April 2001.

An allocation formula has been developed to distribute the funds available to the provinces and territories under SHIP. The formula normally consists of a minimum of $4 million per jurisdiction plus a share based on population and a 50-50 cost-sharing ratio. However, the cost-sharing ratio for the Nunavut component has been adjusted to 67 per cent federal and 33 per cent territorial for transportation infrastructure projects, in recognition of Nunavut’s fiscal capacity. Feasibility studies will be funded on a 50-50 basis.

"I am pleased that the Government of Canada is providing nearly $1.8 million in funding, through SHIP, to broaden Nunavut’s transportation infrastructure base," said Mr. Collenette. "These important projects will help address Nunavut’s unique transportation needs."

"The construction of new air terminal buildings in Gjoa Haven and Pond Inlet is part of a continuing effort by the governments of Canada and Nunavut to improve the safety and comfort of air transportation users," said Mrs. Thompson. "Both communities have experienced tremendous growth since the creation of Nunavut and these facilities will help the communities handle the increased travel."

Funding for this program 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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BACKGROUNDER

STRATEGIC HIGHWAY INFRASTRUCTURE PROGRAM - NUNAVUT

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 Minister David Collenette 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 in administrative costs, will be available to address the needs of Canada’s highways until March 2007. 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. The cost-sharing ratio for the Nunavut component of SHIP has been adjusted to 67 per cent federal and 33 per cent territorial for transportation infrastructure projects, in recognition of Nunavut’s fiscal capacity. Feasibility studies will be funded on a 50-50 basis.

The $4.3 million in federal funds provided under SHIP will be used to improve access to land, sea and air transportation, to provide reasonable access to other communities and southern Canada, and to foster a safe and secure transportation system that minimizes the environmental impact.

An environmental assessment that meets the requirements of the Canadian Environmental Assessment Act will be undertaken before a project begins. The funding for projects is conditional on the results of this environmental assessment.

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.