Department of Municipal and Provincial Affairs
Municipal Capital Works
- For the last two years, the Municipal Capital Works
Program was interwoven with the Canada/Newfoundland
Municipal Infrastructure Agreement.
- Government will continue to fund the Infrastructure
Program under which approximately $40 million will be
spent this year.
- In addition, the government will provide loan guarantees
under the Newfoundland Municipal Financing Corporation to
any municipality which can fund 100% of its obligation
for water and sewer projects.
- The $25 million in additional loan guarantees for
Municipal Capital Works will be financed either directly
through chartered banks or through Government's financing
- In previous years, road work was financed on a 60%\40%
provincial/municipal basis and the municipal contribution
for water and sewer was based on the cost per household
on a percentage of fixed revenue. In order to reduce its
financing costs, Government has decided to suspend these
cost-sharing formulas in favour of having the
municipalities bear more of the cost if their finances
can support this obligation.
- The Department of Municipal and Provincial Affairs hopes
to be in a position to announce approval of tenders on
most of this work in the next 2-3 weeks.
- Government will make every effort to ensure that funds
are distributed fairly and equitably throughout the
Province, taking into consideration the ability of the
municipality to contribute toward the cost of funding the
various capital works projects.
- The infusion of capital works funding will generate
considerable employment opportunities in the construction
and trades industry and there is a number of indirect or
spin-off jobs in the supply industry, small stores,
motels, in heavy equipment operations and garages. It is
a most significant undertaking in view of the difficult
financial conditions prevailing in the Province at this