Ottawa, Nova Scotia sign $828M infrastructure deal

The province and Ottawa signed a deal Tuesday guaranteeing $828 million in federal funding for infrastructure projects in Nova Scotia, money that will be spread over 10 years.

Treasury Board president Scott Brison, who is also the MP for Kings-Hants, said the bilateral deal was struck so the province and municipalities had a long-term, stable stream of funding they could count on for planning purposes.

"In the past, sometimes infrastructure money was spread out like a candy toss and municipalities would have to rush in very short time frames to put together proposals and compete for those proposals," Brison told reporters following the announcement at the Halifax Central Library.

Relieffor rural communities

Eligible projects will fall into one of four streams: public transit, green infrastructure, culture and recreational projects, and infrastructure for rural and Indigenous communities.

A major change comes in the cost-sharing arrangement. Municipalities of fewer than 5,000 people will see a 60 per cent contribution from Ottawa while the province will still kick in its third, bringing the municipal commitment down as low as seven per cent.

Union of Nova Scotia Municipalities president Jeff Stewart said that change would make a big difference for communities facing decreasing tax bases but which must find ways to make federally mandated sewer and waste-water upgrades, as well as meet other infrastructure demands.

"Municipalities have been struggling for many years to try to maintain a level of service that is expected by the public," he said.

The federal share for projects in Indigenous communities will be 75 per cent.

Some projects ready to go

Brison said the change is in response to concerns Ottawa was hearing from the province and municipalities aboutthe need for flexibility to be able to actually complete projects.

The smaller municipal contribution means rural areas "don't get left behind and miss out on opportunities to build more modern community infrastructure," said Brison.

Premier Stephen McNeil said funding would start flowing as soon as projects are ready to go. Aside from necessary projects, such as waste-water and sewer upgrades, the premier said items such as the cleanup of Boat Harbour, twinning of more provincial highways and a new provincial art gallery in Halifax all willbenefit from the new money.

McNeil said the province would also explore helping with capital spending on transit projects, including atthe community level, and "having a broader discussion about what rail might look like" in the Halifax area, but he noted operational costs would continue to fall to municipalities.

Brison said the Canada Infrastructure Bank would also play a role in some instances, allowing institutional investors, including pension funds, to partner on some building projects.

"The reality is, all the federal, provincial and municipal resources government money alone will not fulfil all the infrastructure needs we have as a country."