Backgrounder - Infrastructure funding

Budget 2007 made a historic investment of $16 billion over the next seven years for provincial, territorial and municipal infrastructure, bringing federal support under a new long-term infrastructure plan to a total of $33 billion.

The Finance Minister’s Economic and Fiscal Update, Advantage Canada, reinforced the federal government’s commitment to infrastructure funding and announced that this government will work towards a comprehensive plan for infrastructure. This plan will include:

Long-term predictable funding.

A fair and transparent provincial allocation for a program envelope to support: improvements to the core national highway system; large-scale provincial, territorial and municipal projects, such as public transit and wastewater management; and small-scale municipal projects.

Separate national infrastructure funds, accessible on a merit basis, to support public-private partnership projects, as well as gateways and border crossings, particularly projects selected pursuant to a new national gateway and trade corridor policy.

Funding in New Brunswick
On March 24, 2006, Prime Minister Harper announced an agreement with the Government of New Brunswick to improve New Brunswick highways that form part of Canada’s Core National Highway System. The Prime Minister committed up to $200 million over a ten-year period to New Brunswick for cost-shared highway investments.

In October 2006, a $400-million Memorandum of Understanding (MOU) was signed between the Prime Minister and the former Premier for the equal cost sharing of eligible costs for highway improvement projects, with priority given to the Core National Highway System. The Government of Canada has committed to contribute up to $207 million over the next ten years to New Brunswick for investments to improve National Highway System routes in the province.

During the first five years of the commitment, the following six projects will receive funding under the Canada Strategic Infrastructure Fund (CSIF):

Route 1 – One Mile House Interchange:
Construction of a grade-separated intersection over Route 1 and a connector that would provide a direct link to the East Side Saint John industrial areas.

Route 1 – Pennfield to Lepreau:  
Construction of a new 11.5-km four-lane divided highway alignment from Letang to a new Route 1 interchange west of Pocologan.


Route 1 – Waweig River to Murray Road:
Construction of a 2.2-km highway to complete a 24-km bypass in south-western New Brunswick.

Route 7 – Welsford Bypass:
The start of construction of a new 10-km segment of arterial highway in southern New Brunswick. Phase 1 includes the construction of a viaduct structure, clearing of the highway corridor, and 5 km of grading.

Route 8 – Nashwaak/Marysville Bypass:  
Construction of a 36-km bypass along the east side of the Nashwaak River in south central New Brunswick.  Phase One includes 15 km of grading on Route 8, grading and paving at Route 8 and Bridge Street intersection, and construction of one bridge structure and two overpass structures.

Route 11 – Tracadie-Sheila to Six Roads Bypass:  
Construction of a new 7.9-km segment of arterial highway.

Financial support is conditional on meeting applicable federal and provincial requirements, including the successful completion of environmental assessments required under the Canadian Environmental Assessment Act, the negotiation of a successful contribution agreement and adherence to the terms and conditions of the CSIF.

Costs are eligible as of the announcement date and the province intends to award contracts this year for the Route 1 (Waweig River to Murray Road); Route 8 (Nashwaak/Marysville bypass); and Route 11 (Tracadie-Sheila to Six Roads bypass) projects.

Additional projects for subsequent years will be announced later this year.