Nova Scotia, Canada sign $634-million Infrastructure Agreement

The infrastructure needs and priorities of Nova Scotians will be better addressed after a $634-million agreement between the province and government of Canada was signed today, Nov. 9.

"Today's announcement is a major step forward in improving our province's infrastructure – its roads, green energy, public transit, its water and wastewater systems," said Premier Rodney MacDonald. "We are taking a giant step forward in building stronger, more vibrant communities in Nova Scotia."

Premier MacDonald was joined by Murray Scott, Minister of Transportation and Infrastructure Renewal, and federal ministers Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and Peter MacKay, Minister of the Atlantic Canada Opportunities Agency, at the announcement, held at St. Francis Xavier University in Antigonish.

Nova Scotia will receive $235.68 million from the Building Canada Fund, the new long-term federal infrastructure plan. At least $37 million will be allocated to smaller-scale projects in communities with populations of less than 100,000. Major infrastructure projects, such as the national highway system, transit, water and wastewater treatment and green energy, will get $198.68 million from the fund.

The province will also receive $25 million base funding annually, for a total of $175 million through to 2014. Nova Scotia municipalities will receive $223.70 million through the extension of the Gas Tax Fund agreement from 2010 to 2014. Overall, Nova Scotia will receive more than $334 million in gas tax funding over the next seven years.

The construction of phase 1 of a new Highway 104 project outside Antigonish was identified as a priority under the new agreement.

"This investment will go a long way towards helping us tackle our infrastructure challenges over the coming years," said Mr. Scott. "It means Nova Scotia will have long-term, predictable funding to invest in safer and smoother highways."

Mr. Cannon said the announcement is another example of inter-government co-operation.

"The signing of a framework agreement provides a comprehensive and flexible approach between the government of Canada and Nova Scotia to co-ordinate infrastructure initiatives that matter most to the province and reflect infrastructure priorities of the Canadian government," said Mr. Cannon.

Mr. MacKay said the agreement addresses key concerns of both governments.

"The safety and security of our road system is a key priority for the government of Canada. The investment of a bypass outside Antigonish is an example of how Building Canada is helping to ensure that Nova Scotians have modern, safe and efficient infrastructure," said Mr. MacKay.

The first phase of the 16-kilometre Highway 104 project between Addington Forks Road and Beech Hill Road will improve safety, ease congestion and cut travel time for drivers.

The province has announced it will match government of Canada funding for the estimated $50-million phase of the project. The cost of the entire project will be about $94 million.

Federal financial support for the Highway 104 Antigonish project is conditional on the initiative meeting all applicable federal eligibility requirements under the Building Canada infrastructure plan, including completion of a full federal due diligence review of the project, successful completion of any environmental assessments required under the Canadian Environmental Assessment Act, and signature of necessary contribution agreements for the project.