Roads are expensive to maintain. That’s why they’re often in a state of disrepair. Especially in rural towns with small municipal budgets.
Traditionally, a small town would have to pay 50% of the cost required to build or repair roadways.
It was just announced that the Provincial Government is adjusting the cost share ratios for new municipal infrastructure projects. This will make it easier for communities to build and repair roads.
For new road construction, or expansion to existing roads, the new municipal rate is now 26.7%. The provincial and federal governments will cover 33.3% and 40% respectively. For road repair work, the provincial and federal governments will cover 33% and 50% respectively, leaving 16.7% to the municipality.
The province’s generosity is being made possible by the Federal Investing in Canada Plan. The Plan provides $555 million in federal funding for infrastructure projects in Newfoundland & Labrador.
Community Centre Cost Shares Also Lowered
Similarly, the cost shares for community centres is being lowered to 33% (down from 40%). This means a 3-way split of 33% between municipal, provincial, and federal governments.
A call for applications for municipal infrastructure projects will be issued on October 15. The new cost share ratios will be applied to proposals for funding.
Premier Dwight Ball has said “now municipalities will have more funds to invest in making their communities better places to live and work.”
Andrew Parsons, Minister of Municipal Affairs and Environment, says the opportunity and funding should be able to provide better access to quality water and wastewater systems — a real issue throughout our province.
Tony Keats is the President of Municipalities Newfoundland and Labrador. He says, “Our members called on the Provincial Government to work with Municipalities Newfoundland and Labrador on more affordable ways for municipalities to invest in roads. This announcement responds to that call, and allows many of our members to get on with the important work of building their communities.”