Highway-Improvement Funding for Nova Scotia

TRANSPORTATION/PUBLIC WORKS Highway-Improvement Funding for Nova Scotia

The federal and Nova Scotia governments today signed an agreement to provide joint funding of $34.6 million over the next five years for highway improvement projects in the province.

The agreement was signed for the federal government by Transport Minister David M. Collenette and Robert Thibault, Minister of State for the Atlantic Canada Opportunities Agency. Transportation and Public Works Minister Ron Russell signed for the province.

This is the first federal-provincial agreement to be signed under the $600 million Strategic Highway Infrastructure Program (SHIP) announced by Mr. Collenette in April 2001.

"I am pleased to announce that the Government of Canada is providing an additional $17.3 million in funding through this agreement, which includes $13.5 million towards a three-year project to twin 21 kilometres of existing two-lane highway from Mount Uniacke to Ellershouse," said Mr. Collenette. "Funds provided under SHIP will mean that the twinning of this section of the highway will be completed five years sooner than originally planned."

"This funding agreement between the Government of Canada and the Province of Nova Scotia will soon result in concrete improvements to our highway infrastructure," said Mr. Thibault. "And that will be good, not only for Nova Scotians, but also for our visitors and for our trade."

"This investment will have a positive effect on the region and the province," said Mr. Russell. "It will make our roads safer and stimulate the economy."

In the near future, Transport Canada anticipates receiving a proposed list of other projects for funding under SHIP for Nova Scotia. The department will review the benefits of these projects and how they support the objectives of the program and, in partnership with the province, determine which projects best meet these objectives.

BACKGROUNDER

STRATEGIC HIGHWAY INFRASTRUCTURE PROGRAM - NOVA SCOTIA

In the February 2000 budget speech, the Government of Canada committed to improve the economy and the quality of life for Canadians by investing up to $600 million over four years on highway infrastructure across Canada. In April 2001, Transport Canada announced the Strategic Highway Infrastructure Program (SHIP). The program has two components: a $500 million highway construction component and a $100 million national system integration component.

Under the program, $500 million, including $15 million for administration costs, will be available to address the needs of Canada's highways over the next five years. The program formally begins in fiscal year 2002-2003. However, $30 million is available for projects during the 2001-2002 fiscal year. The Government of Canada will work with the provinces and territories to identify those parts of the national highway system that
because of growing traffic and increasing trade need immediate attention. This will result in a safer and more efficient highway system for all Canadians.

An allocation formula has been developed to distribute the $485 million available to the provinces and territories under SHIP. The formula consists of a minimum of $4 million per jurisdiction plus a share based on population and a 50-50 cost- sharing ratio. Under this formula, the total federal allocation for the province of Nova Scotia is $17.3 million.

Nova Scotia has indicated that its number one capital highway construction priority is a $27 million project with $6 million to be cost-shared this year to twin a 21 kilometre section of Highway 101 from Mount Uniacke to Ellershouse. Highway 101 is a component of the National Highway System and funds provided under SHIP will mean that the twinning of this section of the highway will be completed five years sooner than originally planned.

Supporting information for the Highway 101 project has been submitted to Transport Canada including: a cost-benefit analysis, a safety analysis, details on how the project is integrated and accelerates the Nova Scotia highway infrastructure development plans, and an environmental assessment that meets the requirements of the Canadian Environmental Assessment Act. Departmental officials have reviewed the project and found that it meets the program eligibility criteria.

SHIP will also provide $100 million to fund initiatives which better integrate the transportation system. These include the deployment of Intelligent Transportation Systems across Canada, improvements to border crossings and better transportation planning. Intelligent Transportation Systems include applications such as advanced systems for traveller information, traffic management, public transport, commercial vehicle operations, emergency response management and vehicle safety.