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March 6, 2009
For immediate release

Governments of Canada and Prince Edward Island Invest in Rural Infrastructure

Communities, Cultural Affairs and Labour

Residents in the Resort Municipality, Kensington and Kinkora will benefit from water and sewer replacements and extensions, as well as the installation of wind turbines, thanks to joint investments by the governments of Canada, Prince Edward Island and the local municipalities.

The combined investment of $1,982,787 was announced today by the Honourable Gail Shea, Minister of Fisheries and Oceans; the Honourable Carolyn Bertram, Minister of Communities, Cultural Affairs and Labour; Mel Gass, Chairperson of the Resort Municipal Council; His Worship Barry Campbell, Mayor of the Town of Kensington; and Roger Savoie, Chairperson of Kinkora Community Council.

“Today, we are investing in the heart of this province, and delivering results to rural PEI during these difficult economic times,” said Minister Shea. “Investments like these will help create local jobs and boost our regional economy for now and for years to come.”

The support to extend the sewers in Seawood Estates in the Resort Municipality, to install two wind turbines in Kinkora, and to replace and extend water and sewer mains in Kensington, demonstrates the commitment of governments to strengthen the Prince Edward Island economy by creating jobs for Islanders and getting shovels in the ground. These projects will enhance local facilities and services, and create local jobs at a time when the need for economic stimulus is greatest.

“These Communities have identified their priority projects and the Province of Prince Edward Island is pleased to contribute to these worthwhile initiatives,” said Minister Bertram. “The funding announced today will not only help promote environmental sustainability in the Resort Municipality, Kensington and Kinkora, but will also contribute to the safety and efficiency of the our municipal infrastructure.”

The governments of Canada and Prince Edward Island are working together to provide more long-term and predictable infrastructure funding, as well as more streamlined programs. Investments like these will help stimulate the economy, create jobs and generally improve the quality of life for Island families.

The Seawood Estates subdivision is located on a peninsula and contains many on-site septic systems that have either reached their life expectancy or were not constructed to meet environmental standards. This project will involve the extension of the sanitary sewer main, services and manholes. In addition, several septic systems that are considered potential hazards will be decommissioned, which will help protect the area from contamination and improve the safety of the water source and distribution system. The total project cost is $1,160,880.

The Town of Kensington project will replace aging sewer line and older brick manholes in a number of locations. This project will provide residents with a safe, secure source of drinking water, and will protect the groundwater from contamination caused by deteriorating sewer lines. The total project cost is $633,000, and will be covered by equal contributions from all three levels of government.

The Town of Kinkora project will have two 20-kw wind turbines installed to replace energy now being purchased from the electrical utility. The total project cost is $188,907. The governments of Canada and Prince Edward Island will each invest up to $63,478 in this project. The Canada-Prince Edward Island Gas Tax Fund will contribute up $31,485. The municipal government will fund $31,485 of remaining eligible project costs.

The federal and provincial governments have taken the necessary steps to get shovels in the ground and to flow money faster for targeted infrastructure projects in Island communities for the 2009 and 2010 construction seasons.

To complete these three projects, the Government of Canada will invest up to $642,929 from the Communities Component of the Building Canada Fund and up to $85,975 from the Canada-Prince Edward Island Gas Tax Fund. The Government of Prince Edward Island, through the Department of Communities, Cultural Affairs and Labour, will fund up to $642,929. The municipal government will provide the balance of total eligible project costs up to $574,954. For more information visit www.buildingcanada.gc.ca or www.gov.pe.ca/go/infrastructure.

BACKGROUNDER

Extension of sewer main at Seawood Estates – Resort Municipality

“The Resort Municipality is pleased with the federal and provincial governments’ announcement that we have received infrastructure funding through the Building Canada Fund,” said Chairperson Mel Gass. “This project will allow our municipality not only to provide for the sustainable disposal of effluent, but also to protect our drinking water for future generations to come.”

The Seawood Estates subdivision is located on a peninsula and contains many on-site septic systems that have either reached their life expectancy or were never constructed to proper environmental standards. This project will involve the extension of the sanitary sewer main, services and manholes. In addition, several septic systems that are considered potential hazards will be decommissioned, which will help the environment and protect the area from contamination and improve the safety of the water source and distribution system. The total project cost is $1,160,880. The federal and provincial governments will each invest up to $386,960. The municipal allocation from the Canada-Prince Edward Island Gas Tax Fund will contribute up to $55,000. The municipal government will fund the remaining eligible project costs up to $331,960.

Extension and replacements of water and sewer mains – Town of Kensington

“We are very pleased to be partnering with the federal and provincial governments on the water extension and sewer replacement project,” noted Kensington Mayor Barry Campbell. “It will ensure that all residents of Kensington now have access to a safe drinking water source and an adequate sewer collection system.”

The project will replace aging sewer lines and older brick manholes in a number of locations. In addition, the existing private wells will be properly decommissioned, which will decrease the opportunity of contamination in the groundwater. This project will provide residents with a safe, secure source of drinking water, and will protect the groundwater from contamination caused by deteriorating sewer lines. The total project cost is $633,000, and will be covered by equal contributions from all three levels of government.

Construction of two wind turbines – Community of Kinkora

“The Community of Kinkora Wind Turbine Project is now reality thanks to the generous amount of funding from both the Government of Canada and the Province of Prince Edward Island,” said Chairperson Roger Savoie. “We are extremely excited to be part of a program that sets Kinkora on a path to becoming a sustainable community.”

To assist the Community of Kinkora’s plan for sustainable development, two 20-kw wind turbines will be installed to replace energy purchase from the electrical utility. Through net metering, it was determined that the community centre and fire hall require 41,000 kwh of electrical energy and that an additional 34,000 kwh is required to support a recently installed geo-thermal heating system for these two facilities. It is estimated that the new wind turbines will generate sufficient electrical energy to replace the projected 75,000 kwh utilization and generate an annual savings of $13,350 on the community’s electrical bill. The total project cost is $188,907. The governments of Canada and Prince Edward Island will each invest up to $63,478 in this project. The Canada-Prince Edward Island Gas Tax Fund will contribute up $31,485. The municipal government will fund $31,485 of remaining eligible project costs.

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Media Contact: Autumn Tremere
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