CANADA - ALBERTA PARTNERSHIP FUNDS RING ROADS IN CALGARY AND EDMONTON

Calgary, Alberta
May 9, 2003

Prime Minister Jean Chrétien and Premier Ralph Klein today announced funding of $500 million towards the construction of segments of ring roads around Calgary and Edmonton.

"The Governments of Canada and Alberta agree that the Calgary and Edmonton ring roads are top infrastructure priorities," said Prime Minister Chrétien. "With this investment, we will keep people and goods moving quickly and efficiently to, and through, these cities. We will also help clear the air by reducing traffic congestion in the city centres."

"The ring roads in Calgary and Edmonton are integral components of the Trans-Canada Highway and the Trans-Canada Highway Yellowhead Route through Alberta," said Premier Klein. "Alberta's population continues to grow rapidly and that growth has been concentrated in Calgary and Edmonton. Construction of the ring roads will reduce congestion, make the movement of goods more efficient and will make travel through the cities safer."

In Calgary, funding announced today will contribute to the construction of an important section of the Calgary ring road. The project is part of the Calgary Go Plan elaborated to deal with the City's expected growth.

In Edmonton, the investment announced today will provide for the construction of the Southeast section of the ring road. The ring road project is an integral part of the City of Edmonton's Transportation Master Plan that addresses future transportation needs.

The Government of Canada will contribute $150 million towards the construction of the segments of both ring roads, while the Province of Alberta will invest $350 million. Alberta's investment is part of the $5.5 billion Centennial Capital Plan announced in Budget 2003, of which $1.5 billion is being provided for provincial highways. The investments announced today bring the Government of Canada's contribution to Alberta's infrastructure since 1994 to over $700 million. The Government of Alberta has invested over $7.6 billion in the province's transportation infrastructure since 1994.

The Government of Canada's $150-million contribution, will come from the $2-billion Canada Strategic Infrastructure Fund. Through the Fund, the Government of Canada works with provincial, territorial and municipal governments, as well as with the private sector, to meet strategic infrastructure needs throughout the country. These investments are directed to large-scale projects of major national and regional significance, in areas that are vital to sustaining economic growth and supporting an enhanced quality of life for Canadians.

In the Speech from the Throne of September 30, 2002, the Government of Canada committed to an additional 10-year involvement in public infrastructure. Its Budget 2003 re-affirmed this long-term commitment and provided an additional $3 billion in infrastructure support, thus bringing the Government of Canada's contribution to infrastructure to $12 billion since 1993.

Funding for this initiative was provided for in the February 2003 federal Budget and is built into the existing fiscal framework.

For more information on Infrastructure Canada and its programs, please visit:
http://www.infrastructurecanada.gc.ca.
For more information on transportation programs in Alberta, please visit:
http://www.trans.gov.ab.ca.

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For more information, please contact:

PMO Press Office
(613) 957-5555

Gordon Turtle
Director of Communications
Office of the Premier of Alberta
(780) 422-8475

BACKGROUNDER - CALGARY RING ROAD PROJECT

Calgary's road system needs

In 1991, the City of Calgary responded to the need to manage its growth by developing the Go Plan, a strategic long-range effort that links transportation and land use planning. The Go Plan resulted in the 1995 Calgary Transportation Plan, which outlined options to maintain a successful transportation system in Calgary over the next 30 years. The document reflected a balance between community and environmental quality, mobility and costs/affordability.

The Calgary ring roads are a major component of the Transportation Plan's proposed skeletal road network. The network consists of four east/west and four north/south freeways and expressway standard roads. The network was designed to:

• support the recommended land use distribution and travel forecasts;
• maximize the use of existing river crossing locations and avoid new ones;
• provide free flowing travel continuity throughout the day, which is critical to the efficient movement of goods and services.

Calgary grows

Between 1991 and 2024 Calgary's population is projected to increase by about 542,000, bringing the total population to 1.25 million, mostly in new suburbs. If past trends continue, this will represent an additional 470,000 cars competing for space on Calgary roads. Most of the increased traffic will travel from the new suburbs to jobs downtown.

The infrastructure improvement

The approximately 15-km construction project announced today will form the northwest quadrant of a larger ring road project around the City of Calgary, also known as Stoney Trail. The project will include the construction of a limited access, four-lane highway beginning at Highway 1 in the west and ending at Highway 2 north. The existing Stoney Trail will be widened from Highway 1 (Trans-Canada Highway) to Country Hills Boulevard. Stoney Trail will also be extended north and west from Country Hills Boulevard to Highway 2, with an interchange on Highway 2, north of Country Hills Boulevard. The total cost of the project will be approximately $250 million and will be shared between the federal and provincial governments.

There is currently no by-pass for the Trans-Canada Highway around Calgary. The project will help divert traffic from 16th Avenue (the TCH), and from Highway 2, also known as the Deerfoot Trail. These diversions will help alleviate inner-city congestion and allow goods and people to move more freely through the city. Once complete, this project will help to remove trucks from already-congested urban routes, allowing through-traffic to go around the city, thus improving the east-west and north-south trade routes.

BACKGROUNDER - EDMONTON RING ROAD PROJECT

Edmonton's road system needs

"Plan Edmonton" is the City's municipal development plan. The Transportation Master Plan is a framework within Plan Edmonton that establishes how the city will address future transportation needs to the year 2020. Edmonton's ring roads are an integral part of this Transportation Master Plan, which recommends the development of a system of high standard arterial roadways to facilitate the movement of large volumes of people and goods over relatively long distances across the city. This system has three elements designed to work together:

• Outer ring road: Edmonton's ring road system, basic six-lane free flow standard.
• Inner ring loop: consists of Whitemud Drive, Yellowhead Trail, 170 Street and 75 Street, minimum of six through lanes and posted speed of 70km/h.
• Highway connectors: number of existing arterial roadways, which will be enhanced to connect the inner and outer rings as well as the regional highway network.

Edmonton grows

Edmonton's population is expected to grow from 616,000 in 1996 to 829,000 in 2020. Growth in the area surrounding Edmonton will result in a population of 1.17 million in the Edmonton Census Metropolitan Area. Traffic volume is expected to triple during the same period.

The infrastructure improvement

The approximately 11-km construction project announced today will form the southeast quadrant of a larger ring road project around the City of Edmonton. The construction will include 4-laning the new road from Highway 216 to the north-south Highway 2 corridor. Further, this segment will join with the southwest portion of the ring road currently under construction. Connecting to this southwest portion will provide a complete southern by-pass around the city, alleviating congestion along Whitemud Drive as well as on the southern portion of Highway 2 through the city of Edmonton. The total cost of the project will be approximately $250 million and will be shared between the federal and provincial governments.

The section announced today will accommodate through-traffic on the Trans-Canada Yellowhead Highway 16, and provide an efficient connection to the north-south trade corridor. Once complete, the project will help to remove trucks from currently-congested urban routes by allowing through-traffic to go around the city, thus improving the east-west and north-south trade routes.

BACKGROUNDER -  INFRASTRUCTURE INITIATIVES OF THE GOVERNMENT OF CANADA

In recent years, the Government of Canada has provided a host of funding programs to address provincial, territorial and municipal infrastructure needs and to improve the state of Canada's infrastructure. The total Government of Canada investment in infrastructure initiatives since 1994 exceeds $12 billion. Partnerships with provincial, territorial, and municipal governments as well as the private sector investments made through these programs will help leverage significant infrastructure investments. Here is a brief description of the Government of Canada's major infrastructure initiatives:

Infrastructure Canada Program -- $2.05 billion (2000-2007)

The $2.05-billion Infrastructure Canada Program was announced in Budget 2000 to enhance municipal infrastructure in urban and rural communities across the country, and to improve the quality of life for all Canadians through investments that protect the environment and support long-term economic growth. With contribution from provincial, territorial, and municipal governments, as well as with First Nations and the private sector, the Infrastructure Canada Program will generate at least $6 billion in infrastructure investment over six years.

In most cases, the Government of Canada is matching the provincial and territorial contribution, and generally providing up to one-third of the cost of each municipal infrastructure project. Other than the Government of Canada's share of costs, the remaining funds may come from other sources, including provincial, territorial and municipal governments, the private sector and non-governmental organizations. The program's first priority is Green Municipal infrastructure, i.e. projects that improve the quality of the environment and contribute to Canada's goals of clean air and clean water. The program's secondary priorities include local transportation infrastructure, cultural and recreational facilities, tourism-related infrastructure, rural and remote telecommunications, high-speed Internet access, and affordable housing.

Recognizing that individual communities know their needs best, the program operates in a "bottom-up" fashion, with the flexibility for municipalities and First Nations to identify their own infrastructure priorities. It also includes provisions to ensure an equitable balance of funding between urban and rural communities.

The Infrastructure Canada Program is governed by agreements signed with each province and territory, and is delivered by federal agencies across Canada:

• Western Economic Diversification Canada (British Columbia, Alberta, Saskatchewan and Manitoba)
• Industry Canada (Ontario)
• Canada Economic Development for the Regions of Quebec
• Atlantic Canada Opportunities Agency (Newfoundland and Labrador, Nova Scotia, Prince Edward Island and New Brunswick)
• Indian and Northern Affairs Canada (First Nations component, Yukon, Nunavut and Northwest Territories)

Under the Infrastructure Canada-Alberta Program, a component of the national Infrastructure Canada Program, the Government of Canada has committed over $170 million to municipal infrastructure throughout Alberta.

For more information on the Infrastructure Canada Program, visit the Infrastructure Canada Web site at: www.infrastructurecanada.gc.ca

Green Municipal Funds -- $250 million (ongoing since 2000)

The $50 million Green Municipal Enabling Fund and the $200 million Green Municipal Investment Fund are endowments created by the Government of Canada in 2000, and are managed by the Federation of Canadian Municipalities, to support energy and water efficiency projects.

The Green Municipal Funds and the Infrastructure Canada Program are two initiatives that complement each other. The Green Municipal Funds support environmental innovation and high levels of performance improvement to develop knowledge and decrease costs, while the Infrastructure Canada Program supports municipal projects with environmental benefits.

In an effort to provide municipal governments with enough flexibility to implement innovative environmental infrastructure projects, arrangements have been made for them to seek funding through both the Infrastructure Canada Program and the Green Municipal Funds, should a proposed project meet the criteria for both programs.

Under these two initiatives, the Government of Canada has provided over $1.2 million to Alberta projects.

a) Green Municipal Enabling Fund (GMEF) -- $50 million (2000-2007)

The GMEF is a $50-million fund that provides grants to support feasibility studies. Operating from 2000 to 2007, the GMEF expects to support each year a large number of studies to assess the technical, environmental and economic feasibility of innovative municipal projects. Grants cover up to 50 per cent of eligible costs to a maximum grant of $100,000. The Fund is open to Canadian municipalities and their public-sector or private-sector partners. Applications are accepted each spring and autumn.

Feasibility studies must assess projects that would improve air, water or soil quality, protect the environment or promote the use of renewable resources. The projects must also show potential for significant improvements in environmental performance or energy efficiency by reducing pollution and waste at the source. Applications can be made in the following categories:

• Municipal buildings and facilities
• Energy services and renewable energy
• Water supply, sewage treatment or storm run-off management
• Solid waste management
• Sustainable transportation services and technologies
• Sustainable community planning

b) Green Municipal Investment Fund (GMIF) -- $200 million (ongoing since 2000)

The GMIF is a $200-million permanent revolving fund that supports the implementation of innovative environmental projects. It offers the opportunity for a municipality or its partner to borrow at competitive rates for up to 15 per cent (25 per cent in exceptional circumstances) of capital costs for a qualifying project. The GMIF can also provide loan guarantees. Loan payback periods may range from four to ten years.

Projects must add to the national knowledge base on innovative technologies or practices and their regional implementation. They must also generate measurable and verifiable results, both environmental and economic. GMIF expects to support 15 to 20 projects a year. Applications are accepted year-round.

For more information on the Green Municipal Funds, visit the Federation of Canadian Municipalities Web site at www.fcm.ca.

Prairie Grain Roads Program -- $175 million (ongoing since 2000)

The Prairie Grain Roads Program is a federal initiative established to improve municipal grain roads and provincial secondary highways. Traffic on these essential roads has increased as a result of changing transportation policies and the restructuring of grain handling systems. The program provides assistance to upgrade some of the municipal roads and secondary provincial highways used for the transportation of grain in the Prairie provinces and the Peace River region of British Columbia.

The Government of Canada has committed $32 million to Alberta through the Prairie Grain Roads Program.

For more information on the Prairie Grain Roads Program, visit the Agriculture and Agri-Food Canada Web site at: www.agr.gc.ca

Cultural Spaces Canada Program -- $80 million (2001-2004)

The Cultural Spaces Canada (CSC) program was created in 2001 to improve Canada's cultural infrastructure. Its aim is to help improve physical conditions for artistic creativity and innovation and to increase and improve access for Canadians to performing arts, visual arts, media arts and to museum collections and heritage displays through the improvement, renovation and creation of arts and heritage facilities.

The Program contributes towards the costs associated with the construction, adaptive re-use, or renovation of buildings for arts and heritage activities, specialized equipment purchases or feasibility studies.

Funding is provided to successful applicants of up to 33 per cent of total eligible project costs for construction and renovation of arts and heritage facilities, as well as for projects that transform buildings that were not previously used for cultural purposes into arts or heritage facilities.

The Program provides funding to successful applicants of up to 50 per cent of total eligible project costs for specialized equipment purchases and feasibility studies. The Program does not support regular building maintenance costs.

The following are eligible applicants:

• Non-profit arts and heritage organizations incorporated under Part II of the Canada Business Corporations Act or under corresponding provincial or territorial legislation
• Provincial/territorial governments
• Municipal or regional governments, and their agencies
• First Nations/Inuit governments.

The CSC program is administered under the responsibility of the Minister of Canadian Heritage. Since its inception, the Cultural Spaces Canada Program has contributed $6 million to projects in Alberta.

For more information on the Cultural Spaces Canada program, visit the Canadian Heritage Web site at: www.pch.gc.ca.

Affordable Housing Program -- $1 billion (2002-2008)

In Budget 2001, the Government of Canada confirmed its contribution of $680 million over five years to a capital grants program to help stimulate the creation of more affordable rental housing. The Government of Canada announced in Budget 2003 an additional investment of $320 million, thus bringing the total contribution made through the Affordable Housing Program to $1 billion. The Government of Canada has committed over $67 million to help increase the supply of affordable housing in Alberta.

The final framework was developed and agreed to on November 30, 2001, and includes the following:

• Provinces and territories have the primary responsibility for the design and delivery of the program
• Provinces and territories require flexible programs to address their housing needs
• The initiative needs to create affordable housing for low to moderate income households
• Units funded will remain affordable for a minimum of 10 years
• Provinces and territories will be required to match the Government of Canada's contributions overall.

The Affordable Housing Program falls under the purview of the Canada Mortgage and Housing Corporation (CMHC). As such, the CMHC is in the process of concluding bilateral cost-sharing agreements with the provinces and the territories.

For more information on the Affordable Housing program, visit CMHC Web site at www.cmhc-schl.gc.ca.

Strategic Highway Infrastructure Program -- $600 million (2001/02-2005/06)

The Strategic Highway Infrastructure Program was created in 2001 to address highway infrastructure needs across Canada. The Minister of Transport is responsible to Parliament for the Program.

Projects funded under Strategic Highway Infrastructure Program must meet one or more of the following long-term objectives:

• Support trade, tourism and investment in Canada
• Strengthen national unity by sustaining strategic infrastructure investments in all regions of the country to respond to local needs
• Make the Canadian surface transportation system more reliable, efficient, competitive, integrated and sustainable
• Improve the quality of life of Canadians by promoting safer and more environmentally sustainable transportation.

The Strategic Highway Infrastructure Program is two-fold; it has a highway construction component and a national system integration component.

a) Highway Construction ($500 million):

Under the Highway Construction component, $500 million was allocated to address the needs of Canada's highways over the next five years.

The Government of Canada has been working with the provinces and territories to identify those parts of the National Highway System that need immediate attention due to growing traffic and increasing trade. This will result in a safer and more efficient highway system for all Canadians.

The Highway Construction component of Strategic Highway Infrastructure Program is governed by agreements signed with each province and territory.

Through the Strategic Highway Infrastructure Program, the Government of Canada has committed over $46 million to help improve Alberta's highway infrastructure.

b) National System Integration ($100 million)

The National System Integration component will fund initiatives that better integrate Canada's transportation system. These include the deployment of Intelligent Transportation Systems (ITS), improvements to border crossings and better transportation planning. ITS includes the application of advanced technologies for traffic management, traveller information and vehicle control, commercial vehicle and fleet management, public transit and rural transportation.

Provincial and territorial agreements for this component of Strategic Highway Infrastructure Program are signed on a project-by-project basis, with no pre-set allocation.

For more information on the Strategic Highway Infrastructure Program, visit Transport Canada Web site at www.tc.gc.ca.

Canada Strategic Infrastructure Fund -- $2 billion (2002-2007)

In Budget 2001, the Government of Canada announced its intention to provide at least $2 billion in funding for large-scale strategic infrastructure projects that improve quality of life and further economic growth. On March 27, 2002, the Canada Strategic Infrastructure Fund Act received Royal Assent, thereby establishing the Canada Strategic Infrastructure Fund.

The program's main objective is to provide for the funding of large-scale strategic infrastructure projects across Canada that go beyond the capacity of existing programs. The Fund calls for partnerships with municipal and provincial governments, as well as with the private sector, to meet Canada's essential infrastructure needs of the 21st century economy.

The new program will invest in the following areas:

• Highway and Railway Infrastructure
• Local Transportation Infrastructure
• Tourism or Urban Development Infrastructure
• Water or Sewage Infrastructure
•  Broadband

The Government of Canada will make a maximum contribution of 50 per cent towards the total eligible costs of projects. All projects will be selected under the authority of the Minister responsible for Infrastructure.

For provinces and territories whose population is less than 750,000 people, total eligible project costs must exceed $10 million. This applies to Prince Edward Island, Newfoundland and Labrador, Nunavut, Yukon and the Northwest Territories. For provinces whose population exceeds 750,000 but is less than 1.5 million people, total eligible project costs must exceed $25 million. This applies to Nova Scotia, New Brunswick, Manitoba and Saskatchewan. For provinces whose population exceeds 1.5 million people, total eligible project costs must exceed $75 million. This currently applies to Alberta, British Columbia, Quebec and Ontario.

The Government of Canada has committed $150 million under the Canada Strategic Infrastructure Fund for Alberta.

For more information on the Canada Strategic Infrastructure Fund, visit the Infrastructure Canada Web site at: www.infrastructurecanada.gc.ca

Border Infrastructure Fund -- $600 million (2002-2007)

In Budget 2001, the Government of Canada announced its intention to provide $600 million to support improved efficiency at Canada's borders. The Border Infrastructure Fund is a comprehensive approach towards sustaining and increasing the long-term efficiency of the Canada-U.S. border. It encompasses physical infrastructure, intelligent transportation systems, and helps support analytic knowledge, which will provide decision makers with better knowledge of today's border issues as they pertain to congestion.

In the wake of the events of September 11, 2001, the Government of Canada renewed its commitment to public and economic security by signing a declaration for the creation of a Smart Border for the 21st century between the United States and Canada. The Smart Border Action Plan is supported by four pillars: (i) secure flow of people, (ii) secure flow of goods, (iii) secure infrastructure, and (iv) coordination and information sharing in the enforcement of these objectives.

This Program will be implemented in co-operation with provincial, territorial and municipal governments, academic and research institutes, and with partners from the public and private sectors on both sides of the border to form an integral component of the Smart Border Action Plan.

The two central objectives of the Border Infrastructure Fund are (1) to support the Smart Border Action Plan by reducing border bottlenecks; and (2) to expand existing infrastructure capacity over the medium term to support ongoing economic growth.

In fulfilling these objectives, funding will be largely targeted towards major crossings, such as Windsor, Ontario; Sarnia, Ontario; Niagara Falls, Ontario; Fort Erie, Ontario; Douglas, British Columbia; and Lacolle, Quebec.

The Government of Canada will make a maximum contribution of 50 per cent towards the total eligible costs of each project.

All projects will be selected under the authority of the Minister responsible for Infrastructure based on the following investment criteria:

• Mitigation of congestion;
• Enhancement of system capacity;
• Coordination with adjacent U.S. border facility and road access network;
• Support implementation of the Smart Border Action Plan;
• Enhancing safety and security at border crossings; and
• Leveraging public and private sector funding.

Budget 2003 -- $3 billion

The last Speech from the Throne formally committed the Government of Canada to an additional 10-year involvement in public infrastructure. Budget 2003 confirmed this long-term commitment and provided an additional $3 billion in infrastructure support, including $1 billion for municipal infrastructure. In combination with the $5.25 billion in infrastructure programs announced in Budget 2000 and 2001, this brings the federal government's recent investment in the nation's infrastructure to over $12 billion.

Previous Infrastructure Commitments

The Government of Canada commitment to infrastructure since Budget 2000 built on previous initiatives, including the following:

Canada Infrastructure Works Program -- $2.4 billion (1994-1999)

The Canada Infrastructure Works Program was introduced in 1994 as a short-term initiative during a period of low economic growth. The Government of Canada's total contribution of $2.4 billion has leveraged more than $8.3 billion in over 17,000 infrastructure projects across Canada.

Through this program, the Government of Canada has invested more than $207 million in Alberta.

Canada Agri-Infrastructure Program -- $150 million (1995-2000)

The Canada Agri-Infrastructure Program was a $150-million initiative set up in 1995 to assist Western Canada to adjust to changes in the grain transportation system. The largest portion of these funds was used to build or upgrade roads and highways affected by new grain transportation patterns.

Through the Canada Agri-Infrastructure Program, the Government of Canada invested nearly $29 million in Alberta.

For more information on Infrastructure Canada and its programs, please visit: www.infrastructurecanada.gc.ca