SASKATCHEWAN COMMUNITIES TO BENEFIT FROM BUILDING CANADA INFRASTRUCTURE FUNDING

Saskatchewan communities are getting a major boost for their priority public infrastructure projects thanks to an agreement between the Government of Canada and the Government of Saskatchewan through Building Canada, the Government of Canada's new long-term infrastructure plan.

Gerry Ritz, Minister of Agriculture and Agri-Food, on behalf of Lawrence Cannon, Minister of Transport, Infrastructure and Communities and Municipal Affairs Minister Bill Hutchinson, today announced the signing of a Framework Agreement between the two governments. The agreement provides approximately $635 million through Building Canada.

This funding is in addition to funding from the Gas Tax Fund and Municipal Rural Infrastructure Fund already being provided to Saskatchewan. The Government of Canada will provide more than $755 million in funding, between 2007 and 2014, for infrastructure projects in Saskatchewan under the Building Canada plan.

The governments of Canada and Saskatchewan have identified the first phase of upgrades to Highway 11 between Prince Albert and Saskatoon, and the construction of an interchange at the junction of Lewvan Drive and Highway 1 in Regina, as priorities for funding under the Building Canada plan.

"The Government of Canada is proud to partner with Saskatchewan to build a strong foundation of infrastructure to support this province's booming economy," said Ritz. "Through the Building Canada plan, we are supporting the prosperity of Saskatchewan. In fact, we have already committed funding toward IPSCO Place in Regina, the Regina region inter-modal initiative and two freeway interchange initiatives in Saskatoon."

"Infrastructure is a challenge no government can solve on its own," Hutchinson said. "We need to work together with our partners at the municipal and federal level to plan and invest in infrastructure. With today's announcement, the federal government and the provincial government are doing precisely that."

The Framework Agreement sets the stage for a collaborative investment in the infrastructure of Saskatchewan. Under this Agreement, the Government of Canada will provide more than $236 million from the Building Canada Fund, a centrepiece of the overall plan, toward infrastructure initiatives in Saskatchewan. Of this amount, approximately $94.5 million will be allocated to smaller-scale projects in communities of less than 100,000 residents. With provincial matching funding, this means a total of $189 million will be available for Saskatchewan communities, which is more than double the funding available under the sunsetting Municipal Rural Infrastructure Fund.

Under the Framework Agreement, the Government of Canada will also provide $25 million in base funding annually, for a total of $175 million through to 2014 for core infrastructure priorities in Saskatchewan.

A further $224 million will flow to Saskatchewan municipalities through the extension of the Gas Tax Fund agreement from 2010 to 2014.

The federal government has agreed to consider as a priority for funding the first phase of upgrades to Highway 11 between Prince Albert and Saskatoon up to a maximum of $10 million, and the interchange at the junction of Lewvan Drive and Highway 1 in Regina up to a maximum of $16 million. Federal funding would not exceed 50 per cent of the total eligible costs for each initiative, which are estimated at $20 million and $32 million respectively.

Federal financial support for these initiatives is conditional on meeting federal eligibility criteria under the Building Canada plan and any environmental requirements. Funding is also subject to approval and signing of appropriate funding agreements by the two governments.

The Canada-Saskatchewan Framework Agreement outlines how the Building Canada plan will operate in the province. It also establishes a governance framework through which the two governments will work together to identify and address infrastructure priorities.

Saskatchewan infrastructure initiatives in eligible categories will also have the opportunity to benefit from the Public-Private Partnership Fund and the Gateways and Border Crossings Fund. In addition, Saskatchewan communities receive a full rebate on the GST they pay, for local infrastructure priorities.

Through its unprecedented $33-billion Building Canada infrastructure plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada. Building Canada will support a stronger, safer and better country.

For further information on the Building Canada plan, visit www.buildingcanada.gc.ca.

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For more information, contact:

Karine White
Office of the Minister
Ottawa
Phone: 613-991-0700

Tyler McMurchy
Municipal Affairs
Regina
Phone: 306-787-5193
Cell: 306-537-7051

Infrastructure Canada
Ottawa
Phone: 613-948-1148