August 15, 2005

Agreements give $69.5M to Nunavut communities for infrastructure projects

IQALUIT, NU-Two new funding agreements will give Nunavut municipalities a total of $69.5 million for infrastructure projects and municipal planning. The first agreement provides $37.5 million in federal gas tax funding over five years for Nunavut municipalities. The second agreement will provide $16 million from the federal government and $16 million from the Nunavut government, through the Municipal Rural Infrastructure Fund (MRIF). Gas tax funding will begin during this fiscal year. Nunavut municipalities will receive $4.5 million in the first year; this will rise to $15 million in year five and will continue at that level thereafter. The funds will support environmentally sustainable municipal infrastructure to help ensure cleaner air, cleaner water and reduced greenhouse gas emissions. Eligible project categories include water, wastewater management, and solid waste management. Funding can also help Nunavut communities build capacity for planning to achieve sustainability. Under the MRIF, Canada and Nunavut will each contribute 50% of the costs of approved projects. Forty percent of the fund in Nunavut has been reserved for "green" projects, e.g. repairs and improvements to water and wastewater infrastructure.

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