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June 4, 2009
For immediate release

Canada - Prince Edward Island Invest in Island Infrastructure

Communities, Cultural Affairs and Labour

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The Honourable Gail Shea, Minister of Fisheries and Oceans, and the Honourable Robert Ghiz, Premier of Prince Edward Island, today announced that communities and municipalities across Prince Edward Island will benefit from over $64.2 million in joint federal-provincial investments for key infrastructure projects. This is thanks to a partnership between the Governments of Canada and Prince Edward Island.

“Stimulating our economy and keeping people working during these tough economic times is a top priority for our Government,” said Minister Shea. “Under the leadership of Prime Minister Stephen Harper, we are working to improve Prince Edward Island’s infrastructure, inject additional capital into our economy, and keep people working during these tough economic times.“

“We are proud to be investing in infrastructure that will benefit Islanders both now and into the future,” said Premier Ghiz. “This investment will assist in making major infrastructure improvements in both rural and urban areas of our province, and will work in concert with our historic $510 Million Five-year Provincial Capital Building Plan. Our One Island Community will be strengthened from tip to tip with this much-needed investment.”

Today’s announcement includes 17 projects to be funded under the Government of Canada’s new Infrastructure Stimulus Fund, including upgrades to the Charlottetown Perimeter Highway, renovations to the Souris Town Hall and improvements to water and wastewater infrastructure in Summerside.

In addition to Stimulus funding, 37 local infrastructure projects were also announced, including the Wellington Lagoon Expansion and improvements to University Avenue in Charlottetown.

Canada and Prince Edward Island are working together to create jobs and boost the economy, while making significant investments that help communities improve their infrastructure. Both governments have agreed to work together to ensure that these funds are delivered quickly and efficiently in Prince Edward Island.

BACKGROUNDERS

CANADA-PRINCE EDWARD ISLAND BUILDING CANADA FUND – COMMUNITIES COMPONENT

The governments of Canada and Prince Edward Island announced a total of 37 projects in communities across the province for a total of $49.2 million. Combined federal and provincial government contributions will amount to more than $32.5 million for these projects.

Under the Economic Action Plan, the Government of Canada is allocating $12 billion to infrastructure projects across the country. This is further complemented by an earlier commitment of $33 billion to infrastructure.

The Government of Canada’s Economic Action Plan provided a $500 million top up, allocated nationally, under the Communities Component for projects that can be built over the next two years. Of this amount, the Government of Canada is providing $2.1 million for Prince Edward Island. The Provincial Budget committed to match the federal investment.

Thirty-six of these projects are being funded through the Building Canada Fund-Communities Component with a total federal and provincial contribution of over $30.3 million. The remaining project is being funded through Communities Component top up.

STIMULUS FUND AT WORK IN PRINCE EDWARD ISLAND

The Government of Canada and the Province of Prince Edward Island have completed negotiations for the Infrastructure Stimulus Fund. On June 4, 2009, Canada and Prince Edward Island announced a joint investment of close to $32 million for up to 17 provincial and community infrastructure projects and initiatives that will create jobs and help build stronger communities.

About the Program:

The Infrastructure Stimulus Fund complements existing federal and provincial infrastructure funding by focusing on short-term objectives for economic stimulus. To further this goal of rapid economic stimulus, the Infrastructure Stimulus Fund will focus on construction–readiness as important project selection criteria. The full $32 million from the governments of Canada and Prince Edward Island will be distributed in fiscal years 2009-2010 and 2010-2011. Projects will focus largely on the rehabilitation of existing assets such as water, wastewater, public transit, highways, roads, culture, parks, and trails.

For provincial assets, the federal and provincial governments will each contribute up to fifty per cent of eligible costs. For municipal projects, the federal and provincial governments will typically contribute up to two-thirds of eligible costs, with municipalities expected to contribute the remaining third. Federal financial support for these infrastructure improvements is conditional on meeting all applicable federal eligibility and approval requirements under the Infrastructure Stimulus Fund.

Economic Action Plan:

Under the Economic Action Plan, the Government of Canada is allocating $12 billion to infrastructure projects across the country. This is further complemented by an earlier commitment of $33 billion to infrastructure.

Through Canada’s Economic Action Plan, the federal government has established a new $4-billion Infrastructure Stimulus Fund that provides funding to provincial, territorial and municipal construction-ready infrastructure rehabilitation projects. Funding is available for two years for projects that will be built during the 2009 and 2010 construction seasons.

For more information about infrastructure projects in Prince Edward Island, visit www.creatingjobs.gc.ca or www.gov.pe.ca/go/infrastructure.

To learn more about Canada’s Economic Action Plan, visit www.actionplan.gc.ca.

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Media Contact: Autumn Tremere
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