Summerside, Prince Edward Island, May 21, 2008 - The governments of Canada and Prince Edward Island today announced the signing of a Framework Agreement worth $270 million under Building Canada, the Government of Canada's new long-term infrastructure plan. The Plan will help address infrastructure needs and priorities in Prince Edward Island until 2014.
The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and the Honourable Robert W. J. Ghiz, Premier of Prince Edward Island, participated in today's announcement.
Recognizing the economic importance of broadband coverage in Prince Edward Island, the governments of Canada and Prince Edward Island jointly committed to explore broadband connectivity on the Island as a priority for funding under the Building Canada.
The governments of Canada and Prince Edward Island also identified water and wastewater projects in Tyne Valley, Crapaud and Montague as priorities for funding under Building Canada.
"The Government of Canada's Building Canada infrastructure plan will help support economic growth, a cleaner environment and the overall prosperity of all Islanders," said Minister Cannon. "Safe drinking water, efficient wastewater systems and access to broadband are clear examples of the concrete results that Building Canada will deliver to the cities and communities of Prince Edward Island."
"We are a One Island Community, and through the signing of today's agreement, our community will prosper – through our roads, bridges, green energy, public transit, and our water and wastewater systems," said Premier Ghiz. "This agreement gives us long-term, predictable funding to invest in infrastructure across Prince Edward Island."
The Framework Agreement sets the stage for a collaborative investment in the infrastructure needs in Prince Edward Island. Under this Agreement, more than $35 million from the Building Canada Fund, a centrepiece of the overall plan, will go towards infrastructure initiatives in Prince Edward Island through two components. Under the Major Infrastructure Component, more than $13 million in funding will support larger-scale projects. Under the Community Component, $22 million in funding will be available for partnership investments in smaller-scale infrastructure projects in communities. With provincial matching funding, this means a total of $70 million will be made available for Island communities.
"The federal government is finally delivering for the people of Prince Edward Island," said the Honourable Peter MacKay, Minister of National Defence and Minister of the Atlantic Canada Opportunities Agency and the minister responsible for Prince Edward Island in the federal cabinet. "Long-term funding for specific projects will ensure money is put into the projects that need it most. This funding makes a real difference to the people of Prince Edward Island."
"We look forward to working with municipalities to develop a long-term plan for sustainable infrastructure," said Carolyn Bertram, Minister of Communities, Cultural Affairs and Labour. "Enhancing our infrastructure will enable the province to achieve our environmental goals and help build strong communities."
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 infrastructure priorities in Prince Edward Island. This is a significant commitment for the Island and provides smaller jurisdictions with a greater degree of flexibility.
A further $60 million will flow to Prince Edward Island municipalities through the extension of the Gas Tax Fund agreement from 2010 to 2014.
The Canada-Prince Edward Island 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.
Prince Edward Island 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, Prince Edward Island communities receive a full rebate on the GST they pay, for local infrastructure priorities.
Federal financial support for water and wastewater projects in Tyne Valley, Crapaud and Montague, is conditional upon the initiatives meeting all applicable federal eligibility requirements under Building Canada.
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 contact:
Karine White
Press Secretary
Office of the Minister of Transport, Infrastructure and Communities
613-991-0700
Erin Mitchell
Director of Communications
Office of the Premier of P.E.I.
902-368-4400
Autumn Tremere
Communications Officer
Communities, Cultural Affairs and Labour
902-620-3631
Infrastructure Canada
613-948-1148
