January 7, 2009

Federal government plans multi-million dollar investment in Alberta infrastructure

RICHARD GILBERT

staff writer

The federal government plans to make a multi-million dollar investment over four years to develop infrastructure, such as roads, public transit, and water/wastewater systems in Alberta.

“Both the federal and provincial governments have said they will step up infrastructure spending,” said Bill Stewart, vice president of Merit Contractors Association in Alberta.

“We have a 20 year infrastructure plan and it looks like its full speed ahead on that.”

The Alberta government announced last month that new plans for the construction of long-term infrastructure are being implemented through an investment of more than $798 million from the federal Gas Tax fund.

This funding was made possible by an extension, which covers the four years from 2010 to 2014.

“This agreement will provide long-term, stable funding to important infrastructure investments in Alberta,” said Minister of State (Transport), Rob Merrifield.

“We are working with our partners to reduce red tape on major infrastructure projects and to get shovels in the ground as soon as possible.”

The range of eligible projects includes public transit, community energy, local roads, water, wastewater and solid waste infrastructure improvements, and long-term planning.

Municipalities may also borrow against future Gas Tax Funding, allowing them to move forward on eligible projects right away.

“Funding from the federal Gas Tax Fund will support modern infrastructure that will help to create a competitive advantage that attracts businesses and creates jobs for today and the future,” said Minister of Labour, Rona Ambrose.

The first phase of the Gas Tax Fund provides more than $476 million over five years to Alberta communities.

More than $258 million has already been transferred to municipalities across the province in support of more than 567 projects that are either completed or underway.

The fund is a component of Building Canada, the federal government’s long-term infrastructure plan.

It supports environmentally sustainable infrastructure projects that lead to cleaner air, cleaner water, or reduced greenhouse gas emissions.

The prior agreement ended in the 2009-2010 fiscal year, with these funds also being invested into municipal projects.

The federal and provincial government also announced in December that they are allocating $176-million in infrastructure funding for small communities with less than 100,000 people.

Small municipalities can start applying for this money, which is aimed at projects that contribute to a growing economy, a cleaner environment, and stronger communities.

Last year, the Alberta government outlined its 20-Year Strategic Capital Plan.

The government plans to spend $120 billion over the next two decades on basic infrastructure, in order to deal with the economic and population growth.

This 20-year plan anticipates the need to invest, on average, $6 billion per year to meet short and medium-term objectives.

The plan does not provide a comprehensive list of all projects to be built, although a number of priorities have been identified.

These include the construction of new roads and the expansion of heavily used highways, such as the one from Edmonton to the oilsands hub of Fort McMurray.

The government also plans to upgrade its rail links to the U.S.

In addition, the strategy includes expansions or major projects at several hospitals and clinics, universities, colleges, technical schools as well as affordable housing.

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