$300 MILLION CANADA-ONTARIO INVESTMENT AT THE WINDSOR GATEWAY

September 25, 2002
Windsor, Ontario

Prime Minister Jean Chrétien and Ontario Premier Ernie Eves signed a Memorandum of Understanding (MOU) today, and committed $300 million over the next 5 years as part of a joint investment to upgrade existing infrastructure on the Ontario approaches to the Windsor-Detroit border crossings.

"The Windsor gateway is a priority for all of Canada. We must make sure that we have the infrastructure in place to meet the needs of the Canadian economy in the 21^st century," Chrétien said. "This investment will also enable Canada to take full advantage of initiatives such as FAST and NEXUS that we have agreed to with the United States under the Smart Border Action Plan. I am also pleased that the Windsor Gateway will be the first investment for the federal government under the new $600 million Border Infrastructure Fund."

"Our border crossings are the life-line of economic growth and prosperity in Ontario, and we must ensure that goods, services and people flow smoothly between Michigan and Ontario," Eves said. "We will continue to work with our federal and municipal partners and the private sector to develop a plan that will reduce traffic congestion and facilitate cross-border trade through this gateway."

Two-way trade between Ontario and Michigan was more than $97 billion in 2000 and up to 1 million jobs in Ontario depend on exports to Michigan. Ontario exports to Michigan increased for the fourth consecutive year in 2000, reaching almost $67.5 billion. Over 20 million vehicles, cars and trucks cross the Windsor-Detroit gateway every year.

As part of today’s announcement, a joint federal-provincial committee will be established to identify, consult on and recommend projects to Canada and Ontario over a 60-day period. During this period, stakeholder and public input will be welcomed to identify priority infrastructure projects, including partnerships with public and private sector interests, to improve the existing border crossings and their approaches.

This MOU complements the Canada - United States - Ontario - Michigan Bi-National Partnership process currently underway, by Canada, the United States, Michigan and Ontario, to identify, evaluate and select long term alternatives to expand capacity at the Windsor-Detroit gateway, including new border crossings.

Federal funding for this project was provided for in the December 2001 budget and is therefore built into the existing fiscal framework.

-30-

PMO Press Office: (613) 957-5555
Premier's Media Office : (416) 325 - 7600

BACKGROUNDER - Windsor Announcement

The Windsor Gateway is Canada's single most important trade crossing. 33% of Canada-US trucktrade (two-way, imports and exports) uses the Windsor crossing.

In 2000, the Windsor Gateway accounted for almost 30% of Canada's $171 billion CDN exports by road, and almost 40% of Canada's $170 CDN imports by road (both by value).

In 2000, the Windsor Gateway accounted for 25% of total truck volume between Canada and the United States (truck volume is considered the single most important measure of border importance).

Canada - United States trade has more than doubled from 1991 to 2000. Annual two-way trade in goods and services totals over $676 billion CND. This has led to strains in the capacity of the Canada - United States border system to expedite the flow of goods and people in an efficient manner.

Canada and Ontario have jointly committed to the following course of action to address the immediate and intermediary infrastructure pressures in the Windsor Gateway:

• $300 million in funding provided for infrastructure improvements, to be cost-shared equally;
• Appointment of a Joint Management Committee of federal-provincial officials to develop an Action Plan to deal with immediate congestion issues;
• The Joint Management Committee will produce and provide the Action Plan to Canada and Ontario within sixty (60) days; and
• Canada and Ontario will respond to the Action Plan in as timely a manner as is reasonable and practical.

The joint announcement will complement the ongoing work of the Canada - United States - Ontario - Michigan Bi-National Partnership, but the focus today's announcement is on action that can be taken in the near term to address congestion issues on the Windsor side of the Windsor - Detroit Gateway.

The Bi-National process is taking a longer and more comprehensive examination of capacity issues as these pertain to the broader crossing.

The City of Windsor, while not a formal signatory to this agreement, will play a key role in the process.

The following parameters for the Border Infrastructure Fund were set out by Minister Allan Rock on August 9, 2002:

"The $600 million Border Infrastructure Fund will ensure that the necessary investments are made to support and amplify the benefits of NEXUS and FAST. As some 70 per cent of Canada-U.S. cross-border truck traffic goes through just six crossing points, Canada needs to improve the efficiency at these border points. Hence, most of the funding available through the Border Infrastructure Fund will be invested in Windsor, Sarnia, Niagara Falls and Fort Erie, in Ontario; in Douglas, British Columbia; and in Lacolle, Quebec. Funding will also be available to address capacity and congestion problems at other crossings.

The Border Infrastructure Fund will employ a comprehensive approach towards sustaining and increasing the long-term efficiency of the Canada-U.S. border. Eligible projects for the new program fall into three distinct categories:

1. Physical Infrastructure: Projects for the improvement of physical infrastructure at or around border crossings include dedicated lanes, local access roads and other transportation infrastructure leading to and from a crossing; additional lanes and approaches; and Canadian highways that provide direct access to a border. These improvements to infrastructure will better facilitate the free flow of people and goods across the border.

2. Intelligent Transportation System Infrastructure: Projects such as smart card and transponder technology, traffic management systems as well as projects moving clearance centres away from the border, through initiatives such as inland inspection will help to monitor and improve the flow at our border crossings.

3. Improved Analytical Capacity: Traffic modelling and research of border flows are fundamental to continued economic growth and security as well as the establishment of sound public policy. This category will facilitate planning and policy development by showing the impact of potential changes in parameters such as physical infrastructure, security, staffing levels, and customs and immigration policies.

Data collection and management will also enable Canada to support the free flow of people and goods in a safe and secure environment. Eligible recipients include the provinces, municipalities, private sector firms, public and private transportation authorities and agencies.

Funding and Investment Criteria

The Border Infrastructure Fund will be implemented in co-operation with provincial, territorial and municipal governments, and with other partners from the public and private sectors on both sides of the Canada-U.S. border. The Government of Canada will make a maximum contribution of 50 per cent towards the total eligible costs of projects that will be selected based on the following investment criteria:

• Reduces congestion;
• Enhances capacity;
• Co-ordination with adjacent U.S. border facility and road access network;
• Supports implementation of the Smart Borders Action Plan;
• Enhances safety and security at border crossings; and
• Financial participation of other public and private sector partners."

- 30 -