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Federal funding for 605 Primary Grid will make a big difference, says RM of Coalfields

Grid Road connects communities, important for energy businesses
Coal dragline near Estevan
Financing from PrairiesCan through a coal transition fund will be used for 605 Primary Grid.

RM OF COALFIELDS - The RM of Coalfields No. 4 says the federal funding it is receiving from Prairies Economic Development Canada (PrairiesCan), formerly Western Economic Diversification Canada, to support the upgrading and paving of Primary Grid 605, will make a big difference.

PrairiesCan provides targeted funding investments that build on regional strengths and encourage innovation in communities in southeast Saskatchewan. To date, this program has invested over $6 million in Saskatchewan communities.

The RM received $3.02 million.

In a press release, the RM said the goal of this project is to upgrade and complete the paving of Primary Grid 605, improving the connections between the RM of Coalfields, Town of Bienfait and the Town of Lampman.

This will also supply enhanced access to two significant businesses in the area, Kingston Midstream’s Steelman terminal and Steel Reef’s Steelman natural gas processing facility.

Upgrades to sections of Primary Grid 605 will improve travel from Highway 18 to Highway 361, which connects to Highway 13. This project will significantly improve heavy truck market access and commuter safety in southeast Saskatchewan.

“This is basically a once-in-a-lifetime opportunity for the RM of Coalfields to secure a significant amount of funding from the Government of Canada to upgrade Grid 605 to a 20-year, primary-weight paved road connecting businesses and communities in the southeast,” said RM of Coalfields Reeve Richard Tessier.

“I have been a resident of the area my entire life and I know how important the 605 is as a connector link for the ratepayers of the RM, the Town of Bienfait and many other southeast communities. Since being elected to council in 2014, one of my top priorities has always been to have the 605 remain as a primary road able to handle all different classes and weights of traffic. With the assistance of added federal government funding, this project will finally be able to go ahead,” said Division 6 Councillor Terry Sernick.

“The federal government has committed funds to specific areas in Canada that will be most adversely affected by the phase-out and eventual termination of coal-fired power generation as a result of federal policies,” said RM of Coalfields administrator Holley Odgers said. “The RM of Coalfields had been identified as one of these areas, and therefore submitted an application in the hope of securing grant funds that could be applied to this significant capital infrastructure improvement in the RM.

“Once coal-fired power generation has been completely phased-out, the RM of Coalfields will lose a substantial portion of its commercial tax base. In 2021 the tax revenue received from coal mining was 30 per cent of total tax revenue. This shortfall in tax revenue in future years will be most challenging for the RM of Coalfields and will make it extremely difficult to budget for annual operational expenditures, not to mention future capital expenses.

“Obtaining financial assistance from the Federal Government now in order to plan for alternative future economic development opportunities in the RM is paramount.”

Tim Keating, regional economic development director of the Southeast Sask. Economic Partnership (SSEP), said: “The green light given to move forward on this exciting and long-awaited project signals a new phase in the growth, development and future opportunities for our economic region. This is an excellent example of regional economic development in action.

“I congratulate the RM of Coalfields and our SSEP economic development team on their excellent work to make this exciting project become a reality.”